Although Portland’s housing prices are increasing, the US on an average is starting to slow. According to the Standard and Poor’s home price index, prices rose across 20 US cities 2.2% in June of this year which is 12% higher than a year earlier.
The Portland Metro area showed a nearly 2% increase for June and a nearly 12% increase over June 2012. We saw huge increases at the beginning of summer but over the last two months, these things are beginning to slow down. This is probably due to the fact that interest rates are also going up and the supply may be starting to get saturated again.
Interest rates are almost at 4.6% so homebuyers may be discouraged when it comes to purchasing real estate at this time. Although moderate home price gains is a good thing when it comes to the economy, the slowing due to high interest rates can quickly put a halt to the home buying.
Although both prices have tended to go up, this doesn’t necessarily mean that the housing market is set to crumble again. This is a sign of a healthy and recovering economy and the recent gains have been an overall unexpected surprise that will potentially remain the same or slightly increase over the next year. Home values are rising at about 6% per year on average but may slow as investors exit the market, interest rates rise, negative equity falls and developers create more new homes in subdivisions.
The average price of across the US is now at a level that was seen it around 2004 and 2005. The median home price in Portland was about $272,000 in June and $280,000 in July according to the Regional Multiple Listing Service.
So what does this mean for buyers and sellers? As a buyer your inventory may be dropping slightly but I certainly wouldn’t wait too much longer before buying a home since interest rates and home prices are both increasing, although slowly. As a seller you might be surprised as to what you can currently get out of your home. Now would be the best time to check property values and find out what your home is currently worth. Comparables are a little bit trickier since home values have gone up dramatically this year so using similar properties over the last month or two, not only those that have sold but active listings as well, can help determine a relatively accurate price range in which to sell your home.
Portland Real Estate Professional
As an expert real estate agent in Portland I love helping buyers and sellers come together over the right property. As a dedicated buyer’s agent I can help you find the right property, at the right price, and negotiate for your terms. Want a hassle-free real estate transaction? Call me anytime for details, secrets, and the keys to homeownership in the Portland Oregon real estate market.