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Portland home price increases are slowing but new homes still in short supply

• Portland single family home prices rose 6.7 percent year-over-year in February, the slowest rise since October 2014. Despite the slowdown in price increases, Portland house price increases continue to outpace the national average which reached 6.3 percent in February. The cities with the largest increases in the country were Seattle (12.7 percent), Las Vegas (11.6 percent) and San Francisco (10.1 percent).

• The slowing of house price increases is welcome news for house hunters in Portland who had to deal with the largest price increases in the country for most of 2016. Portland held the number 1 spot for 11 straight months until September 2016, with price increases peaking at 12.5 percent in June 2016.

• A contributing factor to the rapid increase in house prices throughout the metro is the lack of new supply. Since the recovery in house prices began in April 2012, house prices have increased 74 percent. During that time, permits for just over 37,000 new single unit homes have been issued, which equates to 1 new single unit home permitted for every 5.3 new residents added to the metro, well below the 1 unit per 3 new residents added in the 5 years prior to the 2008 recession.


Source: JLL Research, S&P/Case-Shiller, US Census Bureau




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