The Portland housing market has cooled slightly in the past year, but not at all like other metro areas. Seattle and Denver, for example, are in the midst of a dramatic downturn compared to 2016 and 2017. The difference being obvious – Portland is not in a market “bubble,” and fears of a repeat crash of 2008 are subsiding.
Portland’s population boom is also subsiding, which is the primary reason the housing market is auto-correcting. While other Oregon cities are topping the growth charts, Portland is no longer one of the country’s fastest growing cities.
The housing inventory in the Portland metro area is up to about three months, which is higher than inventory has been in some time. Price cuts indicate homes are sitting on the market longer – which means more options for buyers, less competition for homes and more room for buyers to negotiate.
The average interest rate for 30-year fixed-rate mortgages is around 4.94%, about .75% higher than a year ago. Today, the Federal Reserve raised its benchmark interest rate .25%, the fourth increase of 2018. The good news from the Fed is only two rate hikes are now projected for 2019.
1) Don’t panic, the Portland housing market is holding steady.
2) The balancing market is finally giving buyers some leverage.
3) Portland homes increase in value at more than 5% per year on average, which will offset your mortgage interest.