People Moving to Portland for Low Cost of Living Could Backfire

We've been talking about people moving in to Portland from a variety of different places all across the country over the last five years and this is constant increase in housing and in rents. A recent article stated that people from the San Francisco Bay area are now relocating at a rapid rate of one in 13 relocations to the Portland area. One in four people say that they are currently looking for real estate outside the bay area due to the high cost of living and increased home prices. Many of these relocations are tech savvy industries and those from Tech Valley that are finding that the Portland area is a much better place for growth for business as well as basis for living. The problem with this is that many Portland locals and natives do not want Portland to turn into a San Francisco-lite type of area.

What this means for current homeowners is that their home values in property values will likely increase rapidly over the next 2 to 3 years and those looking to buy should probably do it now before home prices skyrocket. Now, this is not to say that we will be unbalanced but those coming from the San Francisco Bay area are selling million-dollar homes and purchasing very similar properties in the $400,000 range. This is quite a big difference which could also mean that these incoming residents will be buying an additional home for investments, increasing rent and naturally increasing the housing market, potentially making the supply and demand greater. For every one person entering the Portland real estate market buying up two properties can really be a detriment on those relocating within the city.

What’s a buyer or seller to do?

I would suggest that if you've been on the market for a home I wouldn't wait too much longer to close the deal. Home prices are only projected to rise over the next 2 to 5 years and if there are more people moving into the area home prices will naturally rise and supply will decrease. Interest rates are still relatively low so there really is no better time to buy.

If you're considering selling but don't have to sell right now, you might consider waiting a little bit longer. However, if you do need to sell, prices are up and most homes have the potential of earning a great profit.

 

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