Market Update

Portland’s 2019 Real Estate Trends

2018’s Portland housing market was a little different than it has been in recent years. Homes aren’t moving quite as quickly as they have been, inventory is up a bit, and home prices are still rising but not as fast. In short, we’re seeing a shift in the housing market, so let’s dive in!

#1. The Population Boom is Fading

One of the biggest reasons that Portland home prices got so high were incoming out-of-state buyers that could afford more expensive homes. For several years, Portland was one of the quickest growing spots in the country. But that’s changed.

We’re seeing the slowest growth we’ve had since 2013. The Portland area is still growing fast (about1.1% for 2018), but it’s not growing nearly as fast as it was during 2015 and 2016.

#2. Inventory Will Stay Tight

Portland has had very tight home inventory for the past few years. Unfortunately, there doesn’t seem to be an end in sight for this problem.

Home inventory increased some during 2018, but it’s still well below what we’d see in a normal market. We’ve had around 2 months of inventory for some time, and that’s actually an increase from what we’ve had for the past little while. (Six months of inventory is considered a balanced market).

Home construction has been very low, which hasn’t helped our inventory shortage at all.

#3. It’s Becoming a Little Easier to Buy

The affordable starter home has been especially elusive for buyers over the past few years. The market has been heavily skewed in sellers’ favor due to price increases and the lack of inventory we just mentioned.

Existing homeowners have stayed in starter homes longer because of the worry that they wouldn’t be able to find a home to move into. Plus, low interest rates enticed homeowners to refinance and stay put.

The good news if you’re looking to buy in 2019? The market is beginning to see a balance between buyers and sellers. While home prices continue to steadily rise, there are fewer offers on homes, and it might be a little easier for buyers to find something than it has been. Also, homes aren’t moving quite as quickly as they were, giving you a little more time to make an offer.

#4. Home Values Are Increasing at a Slower Rate

In the past year, home prices in the Portland area increased 0.7%. The current median home value is $426,300.

However, home prices are projected to increase a little more than that in 2019. The 1-year forecast, according to Zillow, is 3.1%.

Both 2018’s increase in home prices and the projected increase in home prices in 2019 are far lower than the steep price increases we’ve seen in the past few years.

#5. Mortgage Rates

Mortgage rates will likely continue to rise in 2019. They’ve climbed steadily for the past two years, and nobody expects that to change anytime soon. Nearly all major housing authorities agree that rates will climb to above 5% in 2019. While rates are still historically low, if you’re thinking of buying, it might be smart to do it before rates go any higher and limit your purchasing power. They’ll be between 5.0% and 5.5% for most of the year, according to experts.

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Words of Praise

Marika came to us as a reference from a close friend who moved to Portland from the LA area late last year. Being in a similar circumstance to him (eg. No strong connections to the area, no idea as to reputability, first-time home buyers), we were grateful for the reference for someone he obviously trusted impeccably. Any and all expectations/preconceptions we had were entirely blown away. Marika was a paragon of professionality. She remained patient, amiable, flexible and always smiling despite the grueling amount of properties and questions we threw at her. She even took the time to scout out potential listings up to 3 months before our big listing visit days to better direct our focus and optimize yield for a limited time frame. When we finally found a property, Marika held our hand each step of the way: from offering to escrow. She was there during the inspection, and there for the assessment. She was always there for us and our future home.

Finding a home can feel like a pitched battle. Everything has weight. Everything is time sensitive, urgent, and profound. It’s easy to stress out to the point of shutting down. Had it not been for Marika’s organizational skills, advice, and guidance, my wife and I honestly don’t know how we would have found our way through this process.

So, with all of that being said, I would recommend Marika without hesitation to any and all potential clients. She really made it a good experience.

Eric Schub

Marika has worked with our family on several projects. In each instance, she has demonstrated that she is Professional, Knowledgeable, and Competent. She has the ability to communicate in a clear and concise manner addressing all of our concerns. The very first time that I was able to work with Marika she was assisting our family with a difficult situation. Her guidance and direction were key to bringing about a quick and positive resolution for our family. The most recent instance involved providing research and guidance concerning the selling of our family home, her input allowed us to understand what we should expect for our property and what to expect from the process ahead of the family. I do not and would not hesitate to use Marika Feibel as my Principal Broker.

John Mikkelson

During the summer and early fall of 2017, Marika was my real estate agent for the sale and also purchase of a house in Portland. What impressed me the most about Marika is that she was very responsive and available when needed or a question came up. Marika’s list pricing strategy was wise and resulted in many over asking offers. Marika was on site and arranged many of the details needed to get our house sold. She is efficient and keeps the ball moving forward and remains calm and professional throughout the entire process. Marika did a great job keeping me informed about the details and what to expect next. I would not hesitate to use Marika’s services again.

Sylvia Baltzer

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Tony Tranquilli

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Desiree Inaudi

I highly recommend Marika and her team. We had an aggressive time frame in which to sell our home and Marika Feibel absolutely crushed it! From market analysis to open houses and everything in between, Marika was a true professional and always available to communicate via our preferred medium. We will definitely look to her for our future real estate needs.