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Portland, OR: Real Estate Market & Trends 2016

Published on Tuesday - September 27, 2016

Rain or shine, the Portland real estate market remains one of the hottest in 2016. Real estate for Rip City has become a commodity in the past few years, with home prices outgrowing the national average and appreciation rates bursting with equity gains that far outpace the rest of the country. Life is good for Portland real estate investors and homeowners, and a combination of positive factors (new housing construction, employment and unemployment rates) should further boost the outlook of the Portland real estate market in the second-half of 2016.

Portland, OR Real Estate Market Statistics:

Portland real estate investments

The road to real estate gold continues to go through the Portland real estate market in 2016. The second quarter witnessed Portland real estate appreciate at a one-year rate of 13.3 percent, while the rest of the country experienced rates less than five percent. Furthermore, three-year appreciation rates for Portland real estate were nearly doubled the national average in Q2, with home appreciating at 35 percent compared to 17.8 percent. While home prices continue to grow relative to last year, gains in the past three years have extended the trend of positive price after the recession. That said, the benefactor from rising home prices and appreciation rates continues to be Portland real estate investors and homeowners. For those considering Portland real estate investments, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the Portland, OR housing market one year ago have appreciated, on average, by $47,097. The national average was $14,963 over the same period.
  • Homes purchased in the Portland, OR housing market three years ago have appreciated, on average, by $106,399. The national average was $46,878 over the same period.
  • Homes purchased in the Portland, OR housing market five years ago have appreciated, on average, by $153,934. The national average was $82,353 over the same period.
  • Homes purchased in the Portland, OR housing market seven years ago have appreciated, on average, by $137,539. The national average was $77,054 over the same period.
  • Homes purchased in the Portland, OR housing market nine years ago have appreciated, on average, by $95,534. The national average was $31,126 over the same period.

Far and away the biggest benefit of the Portland real estate market is total equity gains. Portland real estate investors should consider taking advantage of current conditions, as appreciation rates continue to snowball with each passing quarter. Whether buy and hold or rental properties, there are a slew of ways Portland real estate investors can earn a nice profit in 2016.

As of July 2016, there are currently 1,404 properties in the Portland, Oregon area in some stage of foreclosure. According to RealtyTrac, the number of Portland foreclosures in the month of July was two percent lower than the previous month and 42 percent lower than the same period in 2015. The number of REO properties in Portland increased 12 percent from the previous month, but fell 42.5 percent from the same time last year.

Portland, OR: Real Estate Market Summary:

Portland real estate investing

  • Current Median Home Price: $356,700
  • 1-Year Appreciation Rate: 13.3%
  • 3-Year Appreciation Rate: 35%
  • Unemployment Rate: 5.1%
  • 1-Year Job Growth Rate: 3%
  • Population: 609,456
  • Median Household Income: $59,168

Portland, OR: Real Estate Market (2016) — Q2 Updates:

Portland real estate investing

In addition to rising home prices and never-ending equity gains, a thriving economy continues to push the Portland real estate market in the right direction. One-year job growth in Portland continues to surpass the national average, as new jobs increased at a rate of three percent during the second quarter, compared to the rest of the country which grew at a rate of 1.9 percent. On the flip side, while unemployment in Portland was better than a year ago, it was slightly above the national average during the second quarter: 5.1 percent compared to 4.9 percent. The second-half of 2016 should see unemployment rates in Portland lower as job growth continues to rise.

Another element lifting the Portland real estate market right now is new housing construction. The second quarter saw new home construction reach 63.7 percent above the long-term average, while single-family permits in Portland increased to 19.8 percent, compared to the national average of 10.6 percent. Although low housing inventory continues to wreak havoc across the nation, construction in Portland is on the rise relative to last year, suggesting the local inventory has stabilized. That said, one aspects investors and homeowners should pay special attention to is home affordability, which now equal to the national average. Homeowners in the second quarter paid 15.7 percent of income to mortgage payments, whereas the national average paid 15.8 percent. Although still more affordable than most markets, the Portland housing market is on the rise.

Moving forward, the Portland real estate market is expected to grow consistent with the national average in the second-half of 2016. The National Association of Realtors (NAR) has forecasted higher price growth in Portland than in the U.S. in the next 12 months, with price expectations for Portland real estate anticipated to grow by a whopping 6.4 percent in the second-half, as opposed to the national average of 3.6 percent. The Portland real estate market should continue to unleash its dominance in the second-half of 2016.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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