Oregon’s Housing Market Is Seeing a Comeback in Demand and Prices
Every seasoned real estate agent knows the ebb and flow of the seasonality of real estate and its effects on the industry’s home inventory and activity. What’s important about this change in seasonal activity is how it affects your market. Having a firm understanding of your community and the clientele that inhabit it will determine your success throughout the year.
Oregon’s Fall Season Outlook
While Oregon’s housing market had a tough spring and early summer, home sales are on the rise. June’s huge 20.7% jump in home sales is giving support to a more promising housing market forecast for the rest of 2020. New home sales are still down from last June by 11.3% but, given the severity of this shutdown - and that most businesses are still shut down in some capacity - this is a great sign for the remainder of the year.
Rising home sales will continue to rise as long as mortgage rates remain low and jobs continue to rise.
As we look at this upcoming school year, we know there will be differences from years prior due to the coronavirus. What we need to focus on now is how to move forward and recover. Throughout the state, demand for housing is increasing, which in turn is creating a very competitive market.
“There continues to be pent-up demand, generally speaking, for properties priced below $700,000,” says Todd Prendergast, Co-Owner and President of Windermere Realty Trust. “The lower to mid-price range, in many cases, is still experiencing multiple offers” if priced right.
As parts of the economy reopen, buyers are coming back. Purchase applications for mortgages rose 11% last week, the fourth weekly increase in a row. But sellers have been more cautious, which is leading to a lack of inventory throughout the state. New listings are down about 40% from this time last year, according to Realtor.com.
Oregon’s Fall School Year Seasonal Effect
Before the coronavirus outbreak hit its peak in the United States, Oregon’s residential real estate market had a robust launch into 2020. Contracts for home sales increased 14.4% in February over January and closed sales rose 14.1%, according to the local listing service RMLS.
This positive push early in the year was quickly halted by the coronavirus, but as we emerge from the summer lockdowns, housing market activity is heating up again. Some residents are still fearful of opening up their homes to strangers, given social distancing guidelines.
What Does This Mean For Oregon’s Real Estate Market?
As current and future homeowners become comfortable with the current market and coronavirus concerns, overall activity throughout the state is heating up. The current inventory within the state is about two months ahead of demand, still resulting in low inventory, and thus more competition. Current numbers for Portland look good heading into the tail end of the summer.
In Portland, the housing market is making a comeback:
- Median sales price was $423,000
- Average sales price was $468,500
- Closed sales was 2709, an increase from the previous month (1963)
- Pending sales were 3654, an increase from the previous month (3112)
- New listings were 3658, an increase from the previous month (3419)
In Bend, the housing market was not as quick to bounce back as Portland, but current trends still show a strong comeback.
- Median sales price up 12.6% to $529,000
- Average sales price up 12.1% to $612, 465
- New listings down 8.4% to 274
- Homes for sale down 75.6% to 244
- Pending sales up 153.1% to 620
- Sold homes up 31.1% to 320
Oregon isn’t the only real estate market making a quick comeback. Throughout the country, states are seeing more homeowner activity as individuals are feeling comfortable enough to put their home on the market.
“All signs continue to point to a solid recovery in home sales activity heading into the summer as prospective buyers jump back into the market,” said Sam Khater, Freddie Mac’s Vice President and Chief Economist.
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