The housing market in Oregon has grown hot in the recent past and prospective homebuyers are truly feeling the brunt of all this pain. While the market is expected to grow stronger and more steady this year despite a national forecast indicating that the housing market is likely to slow down, the state continues to grow in size and popularity.
In the past few years, Oregon has grown substantially and there are no signs for a slowdown anytime soon. And with the state’s economy strong enough to sustain this growing population, Oregon has become a preferred “move to” destination for many people.
Even though the Oregon real estate market has witnessed a significant increase in the prices of homes in the past one year, the trend is likely to continue. Apparently, homes for sale are spending less than 30 days on the market. Why? Read on.
Oregon residential property market owes its increased popularity to the continued influx of residents that come into the state through the vibrant city of Portland. Nestled between California and Washington, the state of Oregon is experiencing a soaring growth as Californians look for more affordable housing while Washington residents seek an alternative to the rather high-priced Seattle market.
More Pressure On New Housing Listings
Portland is a key factor influencing Oregon’s housing market. Currently, the city has the most expensive home prices and home sale values in the state. Portland has evolved and is being modernized to fully meet the demands of the cultural habits and needs of its growing population.
The city boasts some of the best public schools that have consistently and overwhelmingly performed way above average on a national rank. The downtown regeneration projects in the city make it look more youthful, energetic and ready for new trends. This is one reason why Portland is a real attraction to college graduates. Unfortunately, the city lacks in housing availability and this is a factor that will keep its housing costs up.
The steady in-migration in the state is owed to the flourishing labor market that last year, recorded the best gains in 20 years; which also translates into higher earnings for the average worker. This is mostly attributed to the broad based increases in all the major regions and industries within the state and not just growth in the state’s rapidly growing tech field.
Besides Portland City, Other Factors Influencing Oregon Housing Market In 2016 Include:
Median home sale prices in the Oregon state now stand at $262,000. This is an equivalent of 11% increase for the past year. It is also up by $70K compared to the median sale price four years ago.
With the steady influx of homeowners, foreclosures will remain a big issue in the state. About 4.3 houses are foreclosed in every 10,000. The national average stands at 2.7.
Housing availability continues to be a major challenge for the Oregon real estate. Home values and rental prices in the state are estimated at $1,533 on average. This certainly exceeds the national mark of $1,380.
Job growth has been very impressive in recent years. Oregon State added 57,000 jobs last year, translating to a 3.3% increase over 2014.
The drought that affected the West Coast as well as the Southwestern United States is worrying. Drought conditions spilled over to Oregon and their impact were highly felt in the agriculture industry. The duration and severity of the drought’s effects this year are unpredictable but definitely they pose a risk to the state’s rural economies.
With the ever skyrocketing home values, high housing demand and low supply, we can’t deny it—Oregon is experiencing a serious housing crisis.
Just like Portland city, Oregon’s biggest challenge is its lack of housing to meet the Gen-Y demands. The current supply for rentals and homes for sale has not kept up with the strong boomer demand. Because of this, high rents are making unaffordability to be a major risk.
The new constructions scheduled for the near future are expected to help alleviate the dramatic rise in prices. All in all, a solution should be implemented the soonest possible lest the rental costs and home prices increase faster than wages or income for the average household.