It’s time to take a look back at 2014 and ask the big question: What kind of a year was it for the Portland real estate market, home buyers and sellers, and real estate agents? If you guessed “great”, you’re right. Home prices went up and so did the number of new listings, and Portland continued to build its reputation as one of the most desirable cities in the country to move to!
The Portland RMLS report gives the most reliable data, although reports abound from Case Schiller, Zillow and Truila as well. Starting with the RMLS, we see in this month’s report that the median home price rose 7.7% in 2014, with the average just behind at 7.2%. In terms of real home prices, in Portland the median for 2014 was $285,500. (A quick refresher: “Average” adds the prices of all the homes sold in the year together and then divides them by the number of homes sold; “median” lists all the prices from lowest to highest and then takes the one in the middle.)
The Case Schiller Index, according to the Oregonian, firmly establishes the Portland housing market as one of the strongest in the nation. The year-over-year price gain for the metro area was 6.6%, while nationally prices rose only 4.7%.
Zillow adds an interesting dimension to the year-end Portland market analysis. The online real estate platform’s data analysts say home prices at the bottom of the Portland real estate market rose 11% over the past 12 months. That means a home worth $100,000 at the beginning of 2014 could now be worth $111,000, while a home worth $1 million would have added value more slowly.
This effect has a broader market impact. Looking forward to 2015, a Zillow economist noted, ”More lower-end home sellers will help meet demand from entry-level buyers, and these sellers in turn will re-enter the market in search of a slightly pricier home, which will entice more middle- and upper-tier sellers to list their homes,” as quoted in the Oregonian.
Finally, we look at Trulia’s year-end market analysis for the Portland metro area. They add that “Sales prices have appreciated 23.6% over the last 5 years in Portland.” and that the “average price per square foot for Portland OR was $224, an increase of 12.6% compared to the same period last year. Popular neighborhoods in Portland include Southwest Hills, Centennial, Brentwood – Darlington, Pearl, Powellhurst – Gilbert, and Downtown.”
If it’s sounding like 2015 will be the year for you to sell or buy a Portland home, let’s talk! Most analyists expect a 3-5% increase in Portland area homes. Typically most of that appreciation is gained in the spring and early summer months, then it stays steady during the mid to late summer, finally falls a tiny bit in the fall an winter months. I offer a superior listing package to other local Portland real estate agents, a lower commission rate and top-quality customer service. See my listing package here. See our buyer’s services here. Don’t miss this opportunity to capitalize on strong prices and great selection on Portland homes!