[Synopsis: Portland’s average home now tops $400,000. Is Oregon’s boom about to bust?]
In our industry, it’s no secret that Oregon has become a top destination for interstate moves. Whether you look at United’s inbound/outbound percentages or Atlas’s inbound move totals, Oregon has in the last few years shown itself to be economically strong. Not surprisingly, Portland is leading the charge.
But there are more than two ways to skin a cat. (This industry really is an animal!) And this month we are going to look at the situation in Portland from a few new angles, to see if Oregon really is the horse to bet on as Destination King.
Real estate news and information source Redfin identify the nation’s hottest housing markets using their ‘Hot Homes’ algorithm. The question they tackle:
How long does it take for the average home to sell once it goes on the market?
After crunching the numbers, Redfin tells us that (2016 Super Bowl Champ City) Denver leads the nation in percentage of homes forecast to sell within two weeks of listing. (2014 Super Bowl Champ) Seattle places second while Portland comes in at third. “In April, a typical home found a buyer eight days after it went to market in Seattle and Portland, Oregon,” reports Redfin. “In Denver, that number was 10 days.”
“Homes are finding buyers seemingly the day they are open for tours,” they add. This suggests, quite strongly, that Portland remains one of the places people are most drawn to (even though they don’t even have a football team).
But all those people moving in means a lot of people moving out too, right?
Not necessarily. “Last year,” we learn via Oregon Public Broadcasting, “…more people moved inside Multnomah County than moved into all of Oregon from out of state.”
Multnomah County includes the City of Portland where this May – for the first time – the average home sale price topped $400,000. So people are not only moving in, they are staying, even as the homes they are moving into are getting more and more expensive.
But how long can these gravity-defying home values continue to rise?
“With higher prices comes the prospect of an inflating housing bubble,” states KOIN 6 News of Portland. However, unlike the pre-2008 sub-prime housing bubble that exploded all over everyone, Portland’s present situation stems from the perceived value of the city’s local economy, its growing technology sector and the overall desirability of the area.
“The question is whether the Portland market does provide that value for the correct price range offered for its housing market,” says realtor Peter Park.
In other words, as with the coffee-splashed cups of ice at Starbuck’s, will someone get the idea that the value for the money might not be there?
Time will tell, but for now, the home-buying public seems to think Portland is worth it.
And so they keep on moving in – and moving up. That’s what the data tells us to date.