Oregon Real Estate Market Still In An Uptrend
Portland home prices in October are up again to highest average sale price. Based on the newest report from the RMLS, the average sale for a residential home in the Portland Metro area is $516,500. There have been many factors that have caused the record breaking average sale price in the Portland area.
A few of these factors include record-breaking low interest rates that have made it attractive for many people to get a mortgage at the low rates. In addition, there just isn’t as much housing supply in Portland to meet the new demand for people wanting to buy a home. The lockdowns have made many reconsider leaving in an apartment during these unique times. Furthermore, many that would generally list their homes have avoided listing as they have safety concerns with having random people visit their home during these tough times.
So a combination of these rate, low inventory and high demand has caused the average home sale price in Portland to reach record highs.
Generally in the fall months the demand for homes from buyers is low compared to the spring and summer seasons. But it seems like 2020 is much different as pending home sales are up compared to the same period last year.
October 2020 data has shown that a roughly 87% of home sales have been below the price point of $750,000. The result of this is that first time homebuyers are competing with one another driving home entry-level homes. This situation also puts those attempting a 1031 exchange in a tough place as well, since they have a limited period of time to purchase a house to move into.
But not everyone is motivated to purchase a new home with these record low interest rates. Many have held of looking, as they are afraid if they list their home for sale, they won’t have enough time to get an offer accepted. They have a good reason as the average time a residential home stays on the market before getting sold is about 38 days.