Oregon Housing Market
The beautiful state of Oregon is a desirable destination for many Americans, even California expats, for jobs in technology and for living in its natural splendor.
The title graphic above attests to its astonishing natural beauty with mountain vistas, spectacular rivers and waterfalls, and magnificent nature trails that attract tourists from around the world.
This state’s generous social programs and strong economy make it appealing for migrants arriving to join in one of the best lifestyle experiences in the continental US.
However, restrictions on industry and housing make it an expensive proposition to buy a home in the state. Here’s a brief synopsis of the economy and residential real estate market in Oregon. Home sales and prices are included below.
Oregon is comprised of eight metro housing markets that account for nearly 83% of the state’s population. The state is home to a diverse range of businesses and trades across various sectors including technology, manufacturing, agriculture and food processing, renewable energy, outdoor products, forestry products, healthcare and biotechnology and tourism.
These industries color the politics and character of Oregonians. For example, renewable energy production and the tech sector create a push for low carbon footprint services products and an environment slant to strong government regulations. This makes developable land scarce and raises housing prices considerably.
The state hosts a large number of Californians who bring their money and politics with them. It’s made the state a tumultuous place to live in the last 3 years with concerns about crime. In July 2022, the state’s population reached 4.2 million. The median family income is $70,084 while 12% of the population live in poverty.
Oregon’s income tax is 4.75% to 9.9% and there is no sales tax. The median property tax is $2,241 per year, an assessment of .87% of property’s values statewide. According to SoFi, the average cost of living in Oregon is $47,779 per year.
Oregon’s GDP growth reveals a state with strong economic fundamentals. GDP rose 6.5% during last 2 quarters of 2022, and personal income in the state rose 8.2% according to the latest BLS data. Unemployment rate is currently 3.7%
Home Sales and Prices
House prices hit $506,336 while condo prices averaged 4353,995 in May. The median price of a home in the United States is currently $510,900. 31% of homes in Oregon saw a price drop compared to 12 months previous. 4240 homes were sold in May 2023.
Home prices are highest in Portland, Bend, Hood River, Eugene and Salem.
Redfin reports there are 13574 homes for sale currently which is down 8.7% from May of 2022. New home listings are down 26.1% year over year to 5704 units which equals 2 months of supply. Homes site on the market for 23 days, up from 13 days one year ago.
Home construction in Oregon over the last 10 months has plummeted and the high cost of mortgages makes purchasing a home very difficult in the state. There are low income homebuyer programs but a lack of affordable homes makes that program ineffective.
Oregon Cities with the Fastest Rising Home Prices
The Dalles is seeing the high price growth at 12% year over year pushing median home prices there to $399,500. Just 19 homes were sold in May 2023, down 20% from 12 months ago.
In second, was Klamath Falls where home prices rose13.9% vs last year, selling for a median price of $307,500. Just 19 homes were sold and that’s down 41% from 12 months ago.
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