Typical Home Prices for Portland

Average Price Summary - 12 Year Appreciation Trend
Portland Suburbs' and Neighborhoods' Details

If you divide Portland Oregon into roughly four sections using Interstate 5 to divide East from West (see map link at left), and Hwy. 26 and I-84 to divide North from South, you would have an approximate layout of the greater Portland Oregon Metro Area. The Westside (includes NW and SW) is the area that we once called the suburbs or bedroom communities of the City of Portland. This is where you would find the largest concentration of Townhomes, Condos, and Patio Homes, in addition to single family homes. With the influx of high tech during the 80's and 90's, the area along Hwy 26 (Sunset Corridor) is referred to as the Silicon Forest. The demographics of the area are young and affluent. Most homes are less than 20 years old.

Our many planned communities are very attractive. The Eastside of Portland contains our older neighborhoods built between 1910 and about 1950. Lots are on a traditional 50 by 100 grid pattern and small neighborhood shops and restaurants make this area very charming. Below is a list of the Average Sales Price of all Homes Sold year to date in the different cities comprising the Portland Metro Area. This is not intended to imply that all homes in a particular area are selling at this price point, but it does give you a general idea.

Average Sales Prices for January 2010

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Current Market Conditions

January 2010 Update

Portland was named the 4th most stable housing market by Forbes Magazine in March 2009 (out of the 23 largest Cities in the US).

Portland’s real estate market has remained healthy through the 2009 primarily due to First Time Home Buyers and tax incentives offered as part of the Stimulus Package. Our inventory of unsold homes has continued to drop for the past six months. We currently have a 7.7 month supply (down from 19.2 in January 2009) which is much closer to the target of 6.0 which is considered a balanced market. Anything over 6.0 favors the Buyer and anything below 6.0 favors the Seller. Foreclosures and short sales are a factor but not as big as in many other areas of the Country. The East Side of Portland currently has more short sales and foreclosures than do the West Side suburbs. Portland still is and always will be a very desirable place to live. The number of people relocating to Portland from other parts of the Country (especially retired) is still growing which is a excellent sign.

What does all this mean? TIME IS RUNNING OUT. Why? I believe we hit bottom sometime during the late Summer. Prices have stabilized and inventory is modest. Most Buyers and Agents (including myself) are not even trying to show Short Sales because in my opinion they are not really for sale. Banks continue to jerk us around so very few of these deals ever close. Foreclosures on the other hand are a great deal and sell very quickly. When you take short sales out of the mix, the number of available homes goes way below the 7.7 months reported by the MLS. Fewer homes mean higher prices.

Interest rates are still low but have started to climb. I also believe we have seen the bottom for mortgage interest rates. How fast they will climb is anyone's guess, but experience has taught me that they go up far faster than they come down. The First Time Home Buyer Tax Credit of $8,000. is a once in a life time opportunity that ends on April 30, 2010. That means you would need to enter into a purchase contract no later than April 30, 2010 and close by June 30, 2010 (it takes 45 days to close a loan). I seriously doubt this program will be extended beyond April.

When you search the MLS for homes you should keep in mind that most homes are now priced at market value. A year ago, many Sellers were still dreaming and priced their homes behind the market (which was falling). That meant that Buyers could offer 10-15% less than list price and still get the house. Today, Buyers are priced behind the market. Offering 10% less than asking will get you a flat-out rejection. Most areas are selling at about 98% of list price.

Below is a chart showing appreciation for the past 12 years.

Portland Metro Area Appreciation 12 Year Trend

This site is full of useful information about Portland neighborhoods, including detail maps.
City of Portland Neighborhood Maps