Are you considering the pros and cons of investing in real estate in Portland, Oregon? Before you make a move, it’s a good idea to do some research into the housing market there, and to look into what experts are predicting will happen in the near future. That way, you can make the most strategic decision that will yield the highest returns.
Below are some things to keep in mind as you think about pursuing your next real estate project in Portland.
Low Inventory Might Mean Higher Prices
One important thing to realize before you go on your real estate hunt in Portland is that inventory has been low, leading to increased competition and prices that might still be higher than you anticipate. When comparing median sale prices from 2018 to those of 2019, there was an increase of around 2.5%.
As you look at listings, bear in mind that there is more demand than supply, including in the starter home market from the $200,000 to $300,000 range, which might be the range you’re looking in if you’re aiming to complete a fix and flip project.
Where inventory is low, prices have been affected, causing them to climb. At the same time, however, what you find will depend on the Portland neighborhood and price range that you’re searching in as well. For example, while the bottom 25% of Portland housing prices appear to be climbing, the top 25% of prices appear to be falling. In other words, the luxury real estate market, along with the condo market, seem to be most affected by falling prices.
Tip: Also consider that low interest rates could be a plus for buyers and investors right now. If you qualify for a low interest rate, you might be able to be more competitive when making an offer, even if other buyers are vying for the same property.
A Cooling Market Allows for Some Correction
Despite low inventory overall, there has been a small decline in prices in the recent past, since the autumn of 2019. Also, a correction has been predicted by experts, so you might find that property prices decrease to a more affordable level.
Yet, Portland should continue to remain a stable housing market that’s attractive to homebuyers and investors alike. There is an expectation that appreciation of property values will be strong, and that prices will climb again after the cooling period is over.
The good news is that forecasters are not predicting a crash in the Portland housing market. Instead, it is just a cooling and correction phase that will pass. Therefore, if you want to make an investment, this year might be a good time to do it before prices begin climbing again. Tip: It’s important to remember that, even if some parts of the market are seeing prices stall or fall, inventory is still, generally, low. So get ready to compete if you have to when you find a property that you absolutely want to invest in.
Contact Us When You’re Ready to Take Out a Loan!
Whether you want to be involved in some of the new construction going on in the Portland area, you want to invest in a commercial property or rental property, or you’re prepared to complete a fix and flip project, Merchants Mortgage is here to help you get the loan you need to make your dreams a reality.
Contact us today to speak with one of our loan officers specializing in the Oregon market.