Market Breakdown for Sellers, Buyers, and Investors
Portland has been a popular destination for many decades due to its vibrant culture and endless opportunities for outdoor adventures. Our city also happens to be an ideal place to invest in real estate — it continues to attract new homebuyers looking for a great investment opportunity. As you consider navigating the Portland real estate market right now — from your two favorite Portland agents — here's what you need to know about our popular Pacific Northwest hub.
Bit of Background
In the grand scope… over the last 10 years, Portland has seen an increase in competitively-priced homes with large square footage, as well as luxury single-family homes that often come with additional amenities such as swimming pools and outdoor entertainment areas. Home buyers are also looking for homes with more energy efficient features, like solar power or energy-saving appliances. We’re also seeing that rental properties have become increasingly popular due to their flexibility and affordability compared to buying a home outright. During this time, condos and townhomes have also experienced an uptick in popularity, thanks to their low cost of living and easy maintenance requirements.
Portland is still technically in a “seller’s market,” meaning there is a limited supply of homes on the market; buyers find themselves competing with other buyers, resulting in relatively higher prices and speedy transactions. Although home prices climbed an average 4.5% in 2023, Norada
predicts a 3.1% decline
in home prices through December 2023. The market is not expected to shift into a true, balanced real estate market
in 2023, but Norada
does expect the shift to continue trending in this direction.
David Paul Morris — Bloomberg News
As 2022 came to a close, realtors, lenders, economists (and more) reflected on the year past and market changes to come. Let’s compare forecasts from the top national real estate resources:
National Association of Realtors (NAR) predicts…
- 4.78 million existing-home sales in 2023, which is a 6.8% decrease from 5.13 million in 2022
- Median home prices will increase by 0.3%. Keep in mind, we saw a national 9.6% increase during 2022.
- A housing market correction may be on the way, with mortgage rates stabilizing and a slow increase in home sale activity. In fact, national mortgage rates are “showing some signs of ease” after unprecedented highs in 2022.
- Housing prices will finally “come back to earth,” and we will see affordable housing on the rise (phew)!
- Inventory levels may not be as extreme as 2022, but do not expect “historically normal numbers” in 2023.
- Even as the “extremes” of 2022 level out, buyers may remain tentative to purchase. Why? Fear and uncertainty.
…hey, we don’t blame you! 2022 was a rollercoaster ride and unfortunately, some buyers and sellers are still feeling the whiplash. The overall perspective here is that the market we see today will be very different from the one before, and will likely return to a more balanced market.
Join us below as we discuss where you fit into the year to come.
So… what does this mean for you?
Here are some takeaways if you are planning on buying or selling a home
Buyers: We are NOT going to see a big market crash! Inventory will remain low if sale prices drop, making competition stay fierce on dialed in homes. The sellers who can’t sell right now will stay put, and given that most homeowners refinanced for a super low interest rate and/or have significant equity in their homes, it’s unlikely we will see a wave of foreclosures. Anticipate that we are likely returning to a more normalized market with peaks and valleys, but that home prices will continue to rise at a sustainable rate.
If you are wanting to buy a house, waiting for the market crash could ultimately price you out of your market.
If you’re wanting to learn more about how to be successful as a buyer in our market, feel free to reach out here
Sellers: If you plan on selling your house, it is IMPERATIVE now more than ever, to present your house in the best possible condition and to work with an agent that has a proven track record of being successful in both hot and cool markets. You can no longer rely on your home to sell based on interest rates as the driving force for buyers.
Marketing, pricing, negotiating, and strategizing
are all crucial for getting your home sold nowadays and you’ll want to make sure that you’ve got someone in your corner to help you do that effectively. feel free to reach out to us here and book a time slot. Let’s help you achieve your next big real estate goal.
Head over to the Piece of PDX blog page for more tips on home maintenance, selling your home for top dollar, design inspiration, community engagement, and MORE! Thinking about moving to our beautiful city? Or, moving to a new Portland neighborhood? Check out all of our featured community blogs and find the perfect Portland neighborhood for you! Last but not least, REACH OUT! We can't wait to chat.