The current Portland-Metro Real Estate market is sitting at 1 month of inventory. That is the lowest I have seen in my almost 24 year career in real estate. That means it is a strong sellers market. On the contrast, the interest rates are the lowest I’ve ever see also, in the 2%. The low inventory and the low interest rates balance each other out a bit. The market is dynamic and robust and is not expect to cool at all in 2021.
In 2021 we are expecting a 3%-7% increase in sales price. Entry level homes in the low-mid $300,000 will see fierce competition and multiple offers. While we saw some slowing in the luxury, higher end homes in 2020, I believe we will see more interest in that price point as the interest rates make it more attainable. Our mid priced homes, $400,000-$800,000, will be in high demand as people are looking to buy bigger and have more room for home offices, classrooms and multi-generational living. 2021 is expected to be the big migration.
Here are some predictions and reasons for a banner coming year in real estate:
NAR’s Chief Economist, Lawrence Yun, is predicting Home Sales will rise between 5%-10% in 2021
This will be due to continued job recovery combined with record low mortgage rates
Home prices are expected to increase 3%-5% nationally
Low rates are expected to stay around for the next few years, meaning there will continue to be an increase in demand for homes. It will stay a seller’s market!
The main factors impacting the market will be:
Decentralization: People moving out of the city and into the suburbs because they are able to continue working remotely or will only be going into the office part time.
Relocation: Remote workers are on the move. Right now stats show that nationally 14-23 million remote workers are looking to relocate and more than half of them want to move at least 2 hours away from their work location. Looking for places with better weather, areas that align with their ideologies, better high speed internet access, etc. This makes it important to build a referral network of agents in other areas.
Upsizing: More and more people are wanting bigger homes with more rooms to accommodate working from home and homeschooling.
The National Real Estate market isn’t expected to slow down anytime soon and neither is the Portland-Metro Real Estate Market. If you have been contemplating making a move I recommend you do it sooner than later. Now is the time to prepare for 2021. Call me for information on selling and buying in this fabulous Real Estate Market.
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Rachel Sheller, Realtor, CRS, ABR, SRS, GRI, SRES, RENE, Diversity Specialist-HOWNW, Earth Advantage Broker, MASTERS CIRCLE-Diamond-Platinum, CSA-Certified Staging Agent, Oregon First-Principal Broker, Washington First-Managing Broker
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