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June 17th, 2019 by Marco Santarelli
How is The Portland Real Estate Market 2019?
If you are looking at buying a house in Portland as a potential investment opportunity, you must read till the end. If you are a investor based in Portland, you’d be aware that the Portland real estate has a track record of being one of the best long term investments through the last decade. Let’s take a look at the current state of Portland, Oregon. Then we’ll discuss the revolutionary opportunities in Portland, Oregon for real estate investors.
Portland is home to around 600,000 people. However, the Portland real estate market in reality includes the more than two million people who live in the Portland metropolitan area. That makes Portland the second largest city in the Pacific Northwest.
For a long time we’ve been hearing how the major housing markets in the Pacific Northwest (like Seattle and Portland) have been on fire with fierce competition and limited supply of properties. Is Portland going to be one of the hottest real estate market for investors in 2019?
Well, the Portland housing market is currently undergoing some changes. Property appreciation has slowed considerably over the last year or so. Even though home prices are rising more slowly, and sales are down, there’s still a lot of competition among real estate buyers in Portland.
Anyone planning to invest in Portland real estate in 2019, should start early. In a tight housing market like Portland, it can take some time to find a property that meets all of your criteria. In this article, we shall discuss about the current trends in the Portland real estate market. Let us discuss the latest housing market trends which make investing in Portland real estate in 2019 potentially profitable for new investors.
Portland Real Estate Market Forecasts 2019 & 2020
The median home value in Portland is $422,500 on Zillow. Portland home values have declined -1.2% over the past year and Zillow’s Portland real estate market prediction is that the prices will fall -1.5% in 2020. The median list price per square foot in Portland is $298, which is higher than the Portland-Vancouver-Hillsboro Metro average of $233. The median price of homes currently listed in Portland is $465,000 while the median price of homes that sold is $416,200. The median rent price in Portland is $1,995, which is higher than the Portland-Vancouver-Hillsboro Metro median of $1,900.
According to LittleBigHomes.com, the Portland real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Portland real estate market trend prediction is 85%. Accordingly, they estimate that the probability for rising home prices in Portland, OR is 85% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Portland Housing Market Forecast 2019 – 2021
The Portland housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Portland housing market trend prediction is 77%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Portland, Oregon is 77% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Portland, Oregon Real Estate Forecast.
Portland Real Estate Market Trends
Latest Portland real estate market trends indicate a decrease of $5,000 (-1%) in median home sales and a 2% rise in median rent per month over the past year. The average price per square foot for this same period rose to $296, up from $292. Trulia has 3,929 resale and new homes for sale in Portland, OR, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Portland for Mar 1 to May 29 was $420,000 based on 2,419 home sales. Average price per square foot for Portland was $296, an increase of 1% compared to the same period last year. The median rent per month for apartments in Portland for May 4 to Jun 4 was $2,135.
Data by Redfin shows The Portland housing market is very competitive. Homes in Portland receive 1 offers on average and sell in around 16 days. The average sale price of a home in Portland was $463K last month, up 7.3% since last year. The average sale price per square foot in Portland is $255, up 2.0% since last year. Homes typically receive 1 offer. Homes in the Portland housing market sell for around list price and go pending in around 16 days. Hot homes in Portland can sell for about 2% above list price and go pending in around 5 days.
Portland Housing Market Statistics
There are 3,757 homes for sale in Portland, ranging from $13.9K to $7.7M on Realtor.com. 500 of which were newly listed within the last week. Additionally, there are 972 Portland rental properties, with a range of $670 to $6.5K per month. In April 2019 the housing market in Portland, OR was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
The median list price of homes in Portland, OR was $470,000 in April 2019, trending down -1% year-over-year. The median listing price per square foot was $251. The median sale price was $430,000. On average, homes in Portland, OR sell after 48 days on the market. The trend for median days on market in Portland, OR is flat since last month, and flat since last year.
As per a report published in Oregonlive.com, in June, the Portland area saw 3,187 home sales, a decline of 7.6 percent from a year earlier. The median sale price, meanwhile, climbed 7.2 percent to $417,900. There were more than 6,000 homes on the market, the most the metro area has seen since 2014.
But if sales continue apace, that’s just a two-month supply, at least three months short of what’s generally considered a balanced market. Still, the bolstered supply of homes means buyers will have more leverage than they’ve become accustomed.
The slowdown hasn’t been felt evenly across the market. There’s still far more competition at price points below $400,000, where most buyers are looking for their first home. It’s become far harder to find buyers in the move-up and luxury price ranges.
The median list price in Portland, OR is $$620,000 on Movoto.com. The median list price in Portland went down 3% from May to June. Portland’s home resale inventories is 459, which increased 9 percent since May 2019. The median list price per square foot in Portland is $240. May 2019 was $241. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.
Portland, OR Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Portland, OR is $464,496, which indicates that home prices in Portland are well above the national average for all cities and towns. Single family detached homes are the single most common housing type in Portland, accounting for 55.75% of the city’s housing units.
Other types of housing that are prevalent in Portland include large apartment complexes or high rise apartments ( 29.01%), duplexes, homes converted to apartments or other small apartment buildings ( 9.62%), and a few row houses and other attached homes ( 4.02%).
People in Portland primarily live in small (one, two or no bedroom) single-family detached homes. Portland has a mixture of owner-occupied and renter-occupied housing.
Currently, there are 1,886 single family homes for sale in Portland, OR on Zillow. Additionally, there are 312 single family homes for rent in Portland, OR. Under potential listings, there are about 25 Foreclosed and 215 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Portland, OR Foreclosures And Bank Owned Homes 2019
Foreclosures will be a factor impacting home values in the next several years. According to Zillow.com, in Portland 0.4 homes are foreclosed (per 10,000). This is lower than the Portland-Vancouver-Hillsboro Metro value of 0.8 and also lower than the national value of 1.2.
The percent of delinquent mortgages in Portland is 0.4%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Portland homeowners underwater on their mortgage is 3.7%, which is higher than Portland-Vancouver-Hillsboro Metro at 3.4%.
There are currently 375 properties in Portland, OR that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,770. In May 2019, the number of properties that received a foreclosure filing in Portland, OR was 17% higher than the previous month and 8% lower than the same time last year.
Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Portland was $0. The median sales price of a foreclosure home in Portland was $0, or 0% higher than non-distressed home sales.
Portland Home Prices And Real Estate Appreciation 2019
Portland real estate appreciated 50.86% over the last ten years, which is an average annual home appreciation rate of 4.20%, putting Portland in the top 10% nationally for real estate appreciation.
During the latest twelve months, Portland’s real estate appreciation rate, at 6.35%, has been at or slightly above the national average. In the latest quarter, Portland’s real estate appreciation rate has been 1.24%, which annualizes to a rate of 5.06%.
The above statistics on real estate appreciation in Portland were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Oregon, their data shows that Portland’s latest annual real estate appreciation rate is lower than 80% of the other cities and towns in Oregon.
Where Should You Buy Real Estate In Portland, OR?
There are 387 schools in Portland, OR. There are 152 elementary schools, 78 middle schools, 47 high schools and 110 private & charter schools. There are 128 neighborhoods in Portland. Some of the best neighborhoods in or around Portland, Oregon are Hazelwood, Bethany and Southwest Hills.
Southwest Hills has a median listing price of $925,000, making it the most expensive neighborhood. Hazelwood is the most affordable neighborhood, with a median listing price of $305,000. Here are the 10 best neighborhoods in Portland to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Portland Real Estate In 2019?
Is it worth buying a house in Portland, OR? Investing in real estate is touted as a great way to become wealthy. Is buying an apartment in Portland a good investment? Many real estate investors have asked themselves if buying a property in Portland is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Portland housing market 2019 forecast for answers on why to put resources into this sizzling market. Although, this article alone is not a comprehensive source to make a final investment decision for Portland, but we have collected ten evidence based positive things for those who are keen to invest in the Portland real estate in 2019.
Here is the list of 10 positive things going on in the Portland real estate market which can help investors who are keen to buy real estate in this city. And no, we’re not going to cite things like the TV show “Portlandia” or vague things like “it’s hip and diverse!”
1. It Is a “Hot” Market for Millennials
One of the major factors driving the Portland real estate market is the fact that the city is hot with Millennials. Nor is it just students coming to Portland driving up prices in the Portland housing market. They want to buy homes in a family-friendly, cultural city, something many cannot afford to do in California.
2. The Likely Future Demographic Momentum
When a city sees people move there for work, this could include everyone from 25 year old grads to 50 year old mid-career professionals. The fact that the Portland real estate market is especially attractive to young adults trying to buy houses, means there will be a strong demographic momentum into the future as they start families, increasing the local population and the odds they’ll stay.
3. The City Lacks Room to Grow
One of the beautiful things about Portland is proximity to the ocean and the mountains, while much of the area is covered in protected forests. The downside of this is that the city lacks room to grow the way many inland real estate markets do.
Developers could tear down older buildings and build skyscrapers, but that’s expensive compared to going five miles down the highway and building a new suburban neighborhood. The relative lack of room to grow keeps rents high in the Portland real estate market for both residents and commercial firms.
4. Property Is a Deal Compared to Silicon Valley
While Portland residents complain about the rent, Silicon Valley’s insane rents are pricing firms out of San Francisco Bay Area, and enough have moved north to get the area called Silicon Forest. Google’s moved both people and jobs here.
Other tech firms followed suit, opening offices here or simply relocated. Increased demand for housing guarantees higher rental rates and property values. The Portland housing market could adapt somewhat by turning older single family houses into multi-family units or building micro-hotels; that certainly creates renovation opportunity for investors in the Portland real estate market.
5. Jobs, Jobs, Jobs
Portland may have a growing tech sector, but the overall job market is growing rather quickly, too. Oregon experienced the fifth fastest growing job market in the country between 2017 and 2018. When you look at only private employers, it came in second. Furthermore, most of those jobs are in the big cities like Portland.
For example, when you look at logging and mining – traditional rural employers – Oregon only came in 9th in the U.S. This means many people are moving to Portland for work, whether or not they’re in the tech pool. In short, the wide range of jobs and growth in demand for labor are powering the Portland real estate market.
6. Work-Life Balance Is Better Here
Work-life balance is better in Portland. An estimated 7% of the population in Portland telecommutes compared to 2.6% nationally. The city’s high walk-ability score and somewhat better traffic than California’s cities are another plus, though many love the fact you can bike to work.
And the music scene and art museums – and the time and money to visit them – and it is no wonder so many Silicon Valley refugees move to Portland. That’s driving up rents and property prices in the Portland real estate market.
7. The Massive Student Market
There are more than three dozen private and public universities within 150 miles of Portland. The University of Oregon and Oregon Institute of Technology both have massive campuses here. Student enrollment for the STEM and IT programs is exploding because graduates are entering the hot tech market created by Silicon Valley refugee firms.
This means there is a strong Portland housing market for students in the vicinity of multiple campuses. Compare that to places like College Station, Texas – your property values and rents depend on the attractiveness of the one main school to students.
8. The Better Business Climate
If you ask people and businesses why they relocated to Portland, one answer is the lower cost of living. For many, the lack of a state income tax is another attraction. In national surveys on business friendliness, Oregon is middle of the pack. However, business friendliness is relative.
In terms of effective tax rate, it beats Washington and California. In fact, Oregon beats California in every regard. Forbes Magazine came out with an article in mid-2018 describing how California is unsustainable.
Infrastructure is crumbling, and they build trains to nowhere instead of roads and dams people need. It is hard to run a water dependent industry when they’re rationing water for homeowners soon. We already addressed taxes, but regulations are insane.
The new California rule mandating that businesses have at least one woman on the board by the end of 2019 is merely the camel’s nose under the tent; they could start mandating ethnicity based board membership, union or employee representation on boards and board membership based on sexuality.
A business could try to solve this by going private, or they can move their headquarters to Oregon. It is certainly easier to move a business and team north to Portland where their salaries go further, since the Portland real estate market is so much more affordable.
9. It Is Relatively Landlord Friendly – for Small Landlords
There’s an interesting situation in the Portland real estate market. If you own a large apartment building, you’ll find the Portland area difficult to manage because it is so tenant friendly. A small landlord with a single home for rent, though, is in a different category.
People buying and renting out a single home in the Portland housing market will have a much easier time. They don’t have to follow the same rules on renter protection like rental assistance payments if you evict someone without cause (like you’re going to rehab or sell the property).
Rental rates for smaller landlords can go up more in accord with market rates instead of being capped around 5%. Regardless of how many properties you own, Portland has only discussed rent control – and seen significant opposition to it.
10. The High ROI
The median home price in Portland was around $400,000. Rents for a single family home hover around $2000 a month. And that number includes a massive number of two bedroom starter homes that command $1700-$1800 a month.
To calculate the expected rental rates for a given property, multiply the square footage by $1.60. If you can find three and four bedroom houses or renovate a two bedroom into a four bedroom, you’ll have one of the premium properties on the Portland housing market.
Portland Real Estate Investment
Maybe you have done a bit of real estate investing in Portland, OR but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Portland real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Portland real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Portland, OR. The Portland housing market is booming because the economy is doing well on its own and the area is head and shoulders above California’s deteriorating situation.
The Portland housing market has experienced double-digit annual price growth in recent years. Home values rose 11.4% in 2016 alone, according to a report from the real estate data company Clear Capital. The home prices in the Portland, Oregon housing market have slowed considerably over the last few months. And that’s a good thing, from a sustainability standpoint.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Portland, Oregon is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Tacoma real estate in 2019. However, we always recommend to do your own research and take help of a local real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
Another hot market for investors in 2019 is the Charlotte housing market. Charlotte is the largest city in North Carolina. The city proper is home to more than 800,000 people. The metropolitan area is even larger – home to roughly two and a half million people.
It is one of the country’s fastest growing metro areas, and it was the second fastest growing city in the southeastern United States. Only Jacksonville, Florida was growing faster between 2004 and 2014.
One advantage to living in a big city like Charlotte is the constant demand for homes. Buying a home in Charlotte is a better investment, depending upon several factors.
There are so many major companies and professional sporting events that people will always be interested in residing here. Therefore, interested investors aren’t likely to allow the listing prices to get to low before they swoop in and take advantage.
Similarly, the St. Louis real estate market 2019 is red hot! Homes are selling fast because inventory is low, creating a banner selling season for homeowners looking to move. If you’re looking for an amazing opportunity, the St. Louis real estate market can’t be beat.
There are many opportunities in the St. Louis real estate market to investors regardless of who you want to target for renting or selling a newly renovated home. St. Louis is old enough to have aging inner-ring suburbs.
You can find redevelopment opportunities in suburbs like University City, home to Washington University in St. Louis. About 800 acres are slated for redevelopment in University City. Wellston is receiving funds from HUD specifically for redevelopment.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Silicon Valley moving people and jobs here – and quality of life
California is unsustainable
Hot with millennials
effective tax rate
Rent control discussions
Home values and rents
Housing Market Data, Trends and Statistics
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