Portland Foreclosure Market and 2023 Forecast
I started selling homes in 2003 when the Portland real estate market was starting to get hot. I sold foreclosures and short sales after the 2008 crash until they statistically disappeared by 2016. The amount of available foreclosure and short sale homes for sale dropped to less than 1% in Portland, Oregon in 2019 and stayed that way through 2021 (despite the pandemic). So far in 2022, around one tenth of 1% of detached homes in Portland sold as foreclosures. However, with the recent dramatic increase in mortgage rates and current economic turmoil many are expecting foreclosures to rise in 2023 or 24. Keep in mind that foreclosures do not happen quickly. Notice number of 2008 foreclosures in the below chart vs. the number in 2011. There is always a delayed reaction to economic trouble as the bank can take six months to multiple years to foreclosure on a property that is behind on payments. If you want to start keeping an eye out for foreclosures or real estate investment opportunities in Portland, we have multiple recommendations for you.
Four Ways to Buy Foreclosures in Portland
We go over each method investors use to pick up foreclosures in our area here. If you want to search all available foreclosures, short sales, and auction properties for sale on the public market right now, use the links provided to go straight there. While you’re at it, check out our “smart fixer” list for rehab investment opportunities. Then contact our foreclosure certified buyers agent at 503-773-0000 to make an offer on the one you like.
Number of Portland, Oregon Foreclosed Homes Sold and Foreclosure Rate 2008 to 2022
Detached homes sold by year in RMLS.
|Year||All Properties Sold||Portland Foreclosures Sold||Portland Foreclosure Rate|
|2022 to Nov.||7808||10||0.1%|
2023 Portland, Oregon Foreclosure Forecast
We are unlikely to rise above 1% in publicly available foreclosures for purchase in the first half of 2023. The real question will come in the second half of 2023, as homeowners who are unable to sell their home due to price drops, and are unable to refinance their homes due to fast rising interest rates, stop making payments. If foreclosures rise to 2% or more in the second half of 2023, then that could be a sign of significant foreclosure activity coming in 2024.
Watch Mortgage Forbearance Rates
Another way to predict the foreclosure market is to find out what the current mortgage forbearance rate is. Mortgage forbearance is when the lenders allow the homeowner to reduce or pause their payments for a limited time. However, one can’t rely on this statistic completely. Mortgage forbearance shot through the roof during the 2020 pandemic, but resulted in little to no foreclosures as the government stepped in to stop them and home prices continued to rise, negating the reason for them for the vast majority of homeowners. The last report we found for 2022 (around July) had mortgage forbearance rates under 4%. We’ll be keeping an eye on this number moving forward into 2023 as well. Our final Portland, Oregon foreclosure prediction for 2023 is 1.5% of sales. Still not a lot, but something to keep an eye on.
Top 1% Buyers Agents
Kami Price, licensed since 2004, leads a top ranked buyers team in Portland, Oregon. She is short sale and foreclosure certified and has helped hundreds of local home buyers. Whether it is an auction, public foreclosure, short sale, multifamily complex, or rehab home, she has helped her clients pick up numerous real estate investment opportunities over the years. Give her team a call today at 503-773-0000 or chat with the bot on this site. We look forward to connecting with you!November 4, 2022