The increasing number of wealthy buyers coming to Portland has energized the luxury market. From 2015 to 2016 in Portland home purchases above $800,000 have increased 21.5% and above $1,000,000 the increase is 27%. Luxury Portfolio International projects 25% of the wealthy in the US plan to purchase real estate in the next 3 years and globally 45% of the wealthy plan to purchase in that time frame.
In Portland luxury is defined by location, history, architectural significance and is generally above the $750,000 price point. While prices continue to increase in Portland this $750,000 price point is beckoning more common place in desirable neighborhoods.
Over the past two years it seems there have been cranes on every corner and they were all building new apartments. As most of these apartments are coming to market renters in the city core are feeling a little relief in the search for a rental home.
The number of units that have been completed recently are creating a slight renters market. These new apartments are offering move in specials and concessions. Established rental buildings are being forced to follow suit to attract renters. This is a much needed change from the explosive rent growth over the past few years in Portland. A cooler rental market leads to more opportunity for first time home buyers to prepare for a home purchase through savings and credit strength.
Read the OregonLive Article
The City of Portland is proposing a mandatory energy audit to be completed by each home owner before listing their home for sale. The
Real estate market reports from February reflect the the effects of snowpocalypse with a 19% increase in accepted offers since January. New listings in February were also up 14% since January. Inventory is up just slightly at 1.9 months (6 months is a balanced market). The average market price in Portland is now over $400,000 at $400,800, a 12.1% increase from January of 2016. As interest rates are creeping up and appreciation continues to increase the market in Portland is getting tighter. The increase in interest rates has the potential to be offset by credit expansion for buyers in the market.
This report shows stats for the entire Portland metro area. If you would like stats specific to your neighborhood please contact me.