Oregon Housing Market Trends for 2023
The real estate market in Oregon saw a decline in home prices in January 2023 compared to last year, according to a recent report. The number of homes sold was also down year over year, while the number of homes for sale was up. In this blog post, we'll examine the Oregon housing market trends for 2023 in more detail.
What is the housing market like right now?
As per the report by Redfin, in January 2023, home prices in Oregon were down 1.5% compared to last year, selling for a median price of $462,300. On average, the number of homes sold was down 44.4% year over year, with 2,310 homes sold in January this year, down from 4,109 homes sold in January last year. The median days on the market were 54 days, up 29 year over year.
Median Sale Price (All Home Types)
The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. The median price of a home in the United States is currently $462,300.
What does this mean?
The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. The median price of a home in the United States is currently $462,300.
Top 10 Metros in Oregon with the Fastest Growing Sales Price
The report highlights that the top 10 metros in Oregon with the fastest-growing sales price are Klamath Falls, Bethany, Corvallis, Woodburn, Aloha, Newberg, Salem, Keizer, Albany, and Dallas.
Oregon Housing Supply
In January 2023, there were 11,488 homes for sale in Oregon, up 19.0% year over year. The number of newly listed homes was 2,929 and down 33.0% year over year. The average months of supply is 3 months, up 2 year over year.
Oregon Housing Market Forecast 2023
The Oregon housing market has been one of the hottest in recent years, with home values steadily increasing. According to the Zillow Home Values Index (ZHVI), the average home value in Oregon is now $474,360, up by 0.8% over the past year. But what does the future hold for the Oregon housing market? In this section, we'll provide a comprehensive analysis of the Oregon housing market trends for 2023 based on the latest report released by Zillow.
Key Takeaways
According to the latest report released by Zillow, here are some key takeaways for the Oregon housing market:
- Typical Home Values: The typical home value in Oregon is $474,360, up by 0.8% over the past year.
- Market Forecast: Zillow's 1-year market forecast for Oregon is positive, which means home values are expected to rise in the coming year.
- Median Sale-to-List Ratio: The median sale to list ratio in Oregon was 0.989% as of January 31, 2023.
- Percent of Sales Over List Price: 22.9% of the homes in Oregon were sold over list price as of January 31, 2023.
- Percent of Sales Under List Price: 56.0% of the homes in Oregon were sold under list price as of January 31, 2023.
- Median Days to Pending: The median days to pending in Oregon was 33 as of February 28, 2023.
MSA Level Forecast Data
Zillow also provides MSA-level forecast data for various regions in Oregon. According to this data, the Portland MSA is expected to experience a slight decrease in home values by -0.1% by March 31, 2023, and a further decrease of -0.6% by May 31, 2023. By February 29, 2024, home values in the Portland MSA are expected to decrease by -2%.
The Salem MSA, on the other hand, is expected to see a slight increase in home values by 0.1% by March 31, 2023, with no change by May 31, 2023, and by February 29, 2024, home values are expected to increase by 0%. Other regions, such as Eugene, Medford, and Bend, are expected to experience slight decreases in home values, while regions like Hermiston, Klamath Falls, and Ontario are expected to experience significant increases.
Therefore, based on the data provided by Zillow, the Oregon housing market is expected to experience some changes in 2023. While some regions may experience slight decreases in home values, others are expected to see significant increases. However, Zillow's overall market forecast for Oregon is positive, which means home values are expected to rise in the coming year. If you're looking to buy or sell a home in Oregon, it's important to keep these trends in mind and work with a trusted real estate agent to navigate the market.
Will the Housing Market Crash in Oregon?
It's difficult to predict with certainty whether the Oregon housing market will crash or not in response to rising interest rates. While higher interest rates can have a cooling effect on the housing market, it's important to consider other factors that could impact the market as well.
One such factor is the strength of Oregon's economy. According to the latest data from the Bureau of Labor Statistics, Oregon's unemployment rate was 4.8% in January 2023, which is lower than the national average. Additionally, the state has seen strong job growth in recent years, particularly in industries like technology and healthcare.
Another factor to consider is the supply and demand dynamics of the housing market. While interest rates are rising, there is still a significant shortage of housing inventory in many parts of Oregon, particularly in urban areas like Portland. This can help support home prices even as interest rates increase.
It's also worth noting that while interest rates have risen in recent months, they are still historically low compared to previous decades. This means that while some buyers may be priced out of the market due to higher rates, there will still be many who can afford to buy homes.
Population growth can also have a significant impact on the housing market. Oregon has been experiencing steady population growth in recent years, with many people moving to the state for its natural beauty, job opportunities, and quality of life. According to the United States Census Bureau, Oregon's population grew by 9.3% between 2010 and 2020, making it the ninth-fastest-growing state in the country.
This population growth has increased the demand for housing, which has helped to drive up home prices in many areas of the state. However, it has also led to a shortage of affordable housing, particularly in urban areas like Portland. As a result, policymakers are exploring ways to address this issue, such as increasing funding for affordable housing programs and encouraging the development of more housing units.
Overall, population growth is likely to continue to have an impact on the Oregon housing market in the coming years. While it will help to sustain demand for housing, it may also exacerbate affordability challenges and put pressure on local governments to address these issues. As such, it is important for investors and homebuyers alike to carefully monitor population trends and their impact on the housing market.
Ultimately, whether the Oregon housing market crashes or not will depend on a complex interplay of factors, including the strength of the economy, supply and demand dynamics, and interest rates. While rising interest rates can have an impact on the market, it's important to consider these other factors as well when making predictions about the future of the housing market
All-Transactions FHFA House Price Index for Oregon (Quarterly)
- Q4 2022: 798.38
- Q3 2022: 817.87
- Q2 2022: 823.18
- Q1 2022: 777.84
- Q4 2021: 753.40
Sources:
- https://fred.stlouisfed.org/series/ORSTHPI#
- https://www.zillow.com/or/home-values/
- https://www.redfin.com/state/Oregon/housing-market
- https://www.neighborhoodscout.com/or/real-estate
- https://sos.oregon.gov/blue-book/Pages/facts/economy-overview.aspx