PORTLAND, Ore. (PORTLAND TRIBUNE) — Portland home values increased faster than any other major city over the past year, according to a new report by the Zillow online real estate research firm.
The average home value in Portland increased 14.6 percent to $342,100 since last September. The national average increase was 5.5 percent to $189,400.
According to the report, both increases were driven by growing demand and a shortage of home for sales. September’s inventory was 9.5 percent below last year’s level in Portland, the Third Quarter 2016 Zillow Real Estate Market Report says. Nationally, the supply of homes for sale dropped 6 percent.
“Increasingly strong demand has been contributing to dwindling inventory stocks across the nation,” says Zillow Chief Economist Dr. Svenja Gudell. “Healthy demand for for-sale homes amidst low inventory has been driving the market, which is another sign that the housing market is recovering nicely. Buyers in the nation’s fastest moving markets can expect the search process to last a few months, as market conditions are often extremely competitive with homes selling for above asking price and receiving multiple offers. It’s definitely a seller’s market right now, with some homes being more expensive than ever.”
Portland rent increases were also among the highest in the country, jumping 7 percent since last September to an average $1,784. Only Seattle and Minneapolis-St. Paul experienced higher increases. Nationally, the average rent increased 1.5 percent to $1,403.
According to Zillow, one reasons that buyers are outnumbering sellers in an increase in first-time homebuyers. Over the past year, almost half (47 percent) of people that bought homes were first-time home buyers. Unlike repeat buyers, first-time homebuyers don’t list a home for sale when looking for another to buy, contributing to inventory constraints, the report says.
In another new report, Zillow says that Millennials are now entering the housing market in large numbers.
“Half of home buyers in the U.S. are under 36, meaning a new generation — Millennials — is shaping the future of real estate. Despite demographic reports about young adults’ urban lifestyles, Millennials share their parents’ aspirations for a single-family home, often in the suburbs,” Zillow said in a September report on Consumer Housing Trends.