Top 4 Trends Predicted for the 2020 Oregon Real Estate Market
The new year is here! As we head into 2020, we’re excited to see what the year will bring to the housing market, both nationally and in the Portland, Salem, and Eugene markets. Many sources are predicting some big trends – here are a few of the ones we’re most intrigued by!
Trend #1: Strong growth
In Oregon, we’ll continue to enjoy a strong economy, low interest rates, and a low unemployment rate. Plus, while the influx of people moving to Oregon has slowed slightly, we’re still experiencing growth. The state’s population grew over 1.3% in 2019. These conditions, along with the high percentage of millennials and renters who are eager to become first-time home buyers, mean that houses will be in high demand.
Trend #2: Low supply
The housing market — especially in Portland — will continue to experience low inventory due to a variety of factors, including increased tenure length (the tendency for homeowners to stay in their homes longer), and increasing home prices. Additionally, as seen nationally, millennials in Oregon’s metro areas are eager to purchase their first home. Armed with a good salary but seeking moderately priced houses, they’re generating a huge demand for housing. There are also many renters in Portland, specifically, who are seeking to become first-time home owners and will jump at the first options that are in their price range. While the Portland market has cooled slightly, sales aren’t much slower than they were a year ago, which suggests it’s still a seller’s market
Trend #3: Bidding wars
Some market forecasters, like Redfin, believe that bidding wars will soon resume in the new year after a decline in 2019. The reason? Increased demand, limited inventory and continued low mortgage rates. With the decline of new homes for sale, fewer homes will be on the market in 2020 and market will shift back to the seller’s favor.
Trend #4: More FHA lenders
Banks cut back on FHA loans recently because it was believed that the federal government was enacting severe punishments when errors were made. Because of this, nonbank lenders proliferated. The government is now encouraging banks to resume FHA lending by enacting penalties that better match the specific violation. If more banks begin lending, then borrowers will benefit from increased competition, and may see both lower costs and better service.
What are your predictions for the new year?
No matter what the future holds, AIC Loans will continue its mission: to help you make money in the Oregon real estate market. Let’s succeed together! Contact us today for details on first trust deed investments and common-sense real estate loans.
Categories: Real Estate News & Trends