You May Be Busier Than Ever in Oregon’s Hot Real Estate Market
Despite the onset of the COVID-19 pandemic last year, the Oregon real estate industry has remained strong. In fact, 12 Oregon homes sold for $200,000 over asking price or more in 2020. This year, markets across the state are forecasted to continue that momentum. With high demand, limited inventory, and rapidly rising home sale prices, real estate agents all across Oregon should gear up for another booming year.
2021 Oregon Real Estate Outlook: Hot
In November 2020, the average home in Oregon was priced at $393,710, an 8.5% increase year-over-year. There’s little sign of prices stalling, though, as Zillow predicts this figure will rise another 10.4% within the next year. Rising prices echo the gradual healing of the economy statewide, signaling that this year could be profitable for agents and sellers alike, while low-interest rates maintain some degree of affordability for buyers.
Along with rising home prices, home sales in Portland alone grew 26.0% year-over-year in December 2020, despite inventory falling 37.0%. This momentum illustrates a departure from the typical seasonality of home buying and is a good sign for the coming winter months. Buyers are still eager to commit, even in historically slower months. Between lasting low-interest rates bolstering demand and a consistently low supply, Oregon is a seller’s market as 2021 unfolds.
After the economic tribulations of 2020 and as more and more people flock to the Beaver State, rent prices increased 3.0% statewide and 2.3% in the Portland metro area. Meanwhile, only 0.3% of Oregon homeowners fell delinquent on their mortgage, and equity slipped into the negative on only 1.4% of homes statewide. So, while new renters and buyers alike make the move to Oregon, current homeowners continue to thrive as well.
2020 Oregon Real Estate Market Data
|Zillow Home Value Index||$393,710|
|1-Year Change on Home Values||+8.5%|
|1-Year Change on Rent Prices||+3.0%|
|Homes With Negative Equity||1.4%|
|Delinquent on Mortgages||0.3%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Oregon
In November 2020, the statewide unemployment rate fell from 6.8% to 6.0%. This rate is slightly lower than the national average and illustrates the localized view of a larger trend, with more people returning to work and the economy gradually healing. As strong economic activity often correlates with growth in the real estate industry, falling unemployment rates are a promising sign for agents in the year ahead.
While Oregon’s economy grapples with the effects of the COVID-19 pandemic, the resilient housing market is a bright spot in the new year. Rebounding suburban and rural areas as well as a gradual return to air travel and outdoor recreation could further help mitigate some of the economic damage. Federal assistance may also bolster economic growth and compound success in real estate. Here’s how the state currently ranks among the nation:
- First in infrastructure
- Fifth in economy
- Seventeenth in healthcare
With a strong 2021 forecast, Oregon real estate agents will need to be at the top of their game. From buyers battling rising prices to sellers fielding multiple offers, there has never been a better time to serve your fellow Oregonians. This year, agents can expect to benefit from and help contribute to a booming local and national economy as the Oregon real estate market heats up.
Take On 2021 With the Best Oregon Real Estate Courses From The CE Shop
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Oregonians with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything Oregon? Join the Western Real Estate Facebook Group!