It’s always a good idea to stay informed about the latest trends and statistics. Luckily, we’ve got you covered! In this post, we’ll take a look at some exciting updates about the housing market in Portland, including home sales, median prices, and days on market.
While there have been some fluctuations in the past year, the overall trend indicates a healthy and growing housing market in Portland. With a steady decline in unemployment rates and a growing GDP, the local economy is thriving, creating more demand for housing in the region.
So, if you’re considering investing in real estate in Portland, now is a great time to do so. With competitive prices and increasing demand, the market is ripe for new opportunities. Stay tuned for more updates and insights on the Portland housing market!
Number of Homes Sold
The number of homes sold in Portland, Oregon for the first quarter of 2023 was 3,384, representing a decrease of 19.2% compared to the previous quarter and a decrease of 35% compared to the same quarter in the previous year. When looking at the past five years, there has been a general trend of increasing home sales until Q1 2021 when there was a sudden drop before increasing again slightly in 2022.
This overall trend indicates that the housing market in Portland is healthy and growing. However, it also shows that there can be fluctuations which could be due to factors such as changes in interest rates or economic conditions that impact buyer confidence and purchasing power.
Despite the decrease in Q1 2023 that put it below pre-2021 levels, Portland’s housing market continues to remain strong with more homes being sold every year since 2018.
Median Sales Price
The median sales price of homes sold in Portland, Oregon for the first quarter of 2023 was $550,000, representing a decrease of 2.2% compared to the previous quarter and a decrease of 4.3% compared to the same quarter in the previous year. When looking at the past five years, there has been a general trend of increasing home prices from 2018 until Q1 2021 when there was a slight dip before increasing again over the next two quarters.
The fluctuations could be due to seasonal variation or temporary changes in market conditions such as a rise or drop in demand due to interest rates or economic conditions that affect buyer confidence and purchasing power. Despite this variation, overall it appears that prices are currently trending upwards which is indicative of an increasingly competitive housing market in Portland.
Median Days on Market
The median days on market of homes sold in Portland, Oregon for the first quarter of 2023 was 33, representing an increase of 600% compared to the previous quarter and a 560% increase compared to the same quarter in the previous year. When looking at the past five years, there has been a significant decrease in the number of days on market since 2018 with the lowest numbers being recorded in Q1 2021 and Q2 2022.
These fluctuations could be due to seasonal variation or changes in market conditions such as an influx of buyers resulting from low interest rates or other economic incentives. Since hitting its lowest point during early 2021, we have seen a steady increase in median days on market which could indicate that buyer demand is cooling off and sellers may have less leverage than they did several quarters ago.
This is good news for buyers who are now likely to find more competitive prices and better negotiation terms. For sellers, it means that patience will likely be key if they want to maximize their profits when selling their property.
Portland Metro Unemployment
The Portland Metro area has seen a steady decline in unemployment rates since 2018. In June 2020, Washington and Yamhill Counties had the lowest unemployment rates in the Portland-Vancouver-Hillsboro, OR-WA Metropolitan Statistical Area at 9.9%. This was followed by Multnomah County with 10.5%.
As of February 2023, the unemployment rate for the Portland-Vancouver-Hillsboro area is 4.2%, which is lower than the national average of 6.2%. This low unemployment rate has had a positive effect on the local housing market.
In 2022, private firms in Portland Metro (Multnomah and Washington counties) saw job vacancies reach record highs due to an influx of new businesses and industries moving into the area. This influx of new jobs helped to further reduce the unemployment rate and created more demand for housing in the region.
The low unemployment rate has also led to an increase in wages for those employed in Portland Metro, which has allowed people to purchase homes they may not have been able to afford before. As a result, home prices have risen significantly over the past year, making it difficult for some people to find affordable housing options.
Portland Metro GDP
The Portland Metro Area has seen a steady growth in its GDP per capita since 2017. In 2017, the GDP per capita was $52,270 and the average growth rate was 0.89%. This growth rate is expected to continue into 2022 and beyond.
The total Gross Domestic Product for Portland-Vancouver increased from 2001 to 2021 by 186,570.323 million dollars annually. This increase is indicative of a strong economic outlook for the region in 2022.
Oregon’s economy as a whole grew from $232.6 billion in the second quarter of 2022 to $229.5 billion by the end of the year, representing an increase of 2.2% from 2021. The Portland metro area also experienced a 12% growth over the last decade, ranking it 18th among the 50 largest US Metro regions.
The State of the Economy report for 2023 showed that employment in Portland metro grew faster than the US average in 2022 and jobs recovered across Oregon but declined in Multnomah County specifically. Construction activity also saw an increase due to new housing projects being built throughout the area.
Portland Metro Population Growth
The Portland metro area has seen a steady population growth over the last few years. According to recent census data, the population in 2022 is estimated to be 646,396, and in 2021 was estimated to be 642,220. Despite population loss within the city of Portland, the Portland metro area saw an overall population growth of 1.05% over the last year.
A recent Forbes article found that Portland is the 10th fastest growing metropolitan area in the United States with a stable growth rate of 1.8% per year. This growth rate is higher than most other cities in Oregon, which have seen a decline in their populations over the past few years. The Bend metro area in central Oregon, which includes all of Deschutes County, saw its population grow 2.7% — the 13th fastest growth among the 50 largest US metros according to Oregon Live’s report on Census estimates for 2021.
Overall, the population growth and household formation patterns are driving up demand for housing and influencing housing prices in the Portland Metro area. As more people move into the area and competition for available homes increases, it’s important for buyers to be aware of these trends so they can make informed decisions about their real estate investments.
In conclusion, the Portland housing market is healthy and growing, with fluctuations that could be due to factors such as changes in interest rates or economic conditions that impact buyer confidence and purchasing power. Despite the decrease in the number of homes sold and median sales price in Q1 2023, Portland’s housing market continues to remain strong with more homes being sold every year since 2018.
The low unemployment rate and steady population growth in the region are driving up demand for housing and influencing housing prices. This presents a great opportunity for buyers who are now likely to find more competitive prices and better negotiation terms. For sellers, patience will likely be key if they want to maximize their profits when selling their property.