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What’s not to love about Portland, Oregon? If you’re a homebuyer, you may be charmed by everything about the city–– except for that competition on your dream home. Before you make an offer, we’ll give you an overview of the current state of the housing stock, a comparison of the benefits of buying and renting in Portland, a forecast of the potential change to the market coming up, and advice about getting pre-approved for a loan.
Based on current home prices in Portland, Oregon, and using average mortgage rates, the average monthly mortgage payment in Portland was approximately $1,890 as of July 2024. That’s base don today’s average home price of $544,136, a 20% down payment, a 30-year fixed-rate mortgage, and today’s rate of 2.78%.
Of course, there are several variables that can affect a homeowner’s monthly payments, so yours could be quite different from this average figure. (Please contact us if you would like a more precise estimate on your Portland home loan.)
Mortgage rates across the country are lower today than they were just a few weeks ago. Home prices in Portland, Oregon have declined over recent months.
There are no official data sources that track and record average mortgage payments, at least not at the city or metro level. But we can get a ballpark estimate by examining current home prices in Portland and average mortgage rates.
This exercise is also helpful in the sense that it brings home buyers up-to-speed on current housing market conditions and mortgage rate trends. Here’s how it breaks down:
For the sake of simplicity, we’ve left out property taxes. Depending on the property value and the exact location, property taxes could add another $200 to $300 per month, or more. But this simple calculation gives us a general idea of the average monthly mortgage payment in Portland, Oregon, in mid-2024.
As you can see, there are many variables that determine the size of a homeowner’s monthly mortgage payment, and we haven’t included them all. Actual payments will vary based on the exact size of the loan, the length of the term, the mortgage rate, discount points paid at closing, and other factors.
The point here is to offer some basic insight into the average monthly mortgage payment in Portland. More importantly, this section shows how you might estimate your own monthly payments, and what factors can influence them.
You know you need a place to live. But should you rent an apartment or buy a home in Portland, Oregon? Recent data relating to home prices and rents appear to make a strong case for buying in 2024, and we’ll show you why.
Above, we determined that the average monthly mortgage payment would be somewhere around $1,701. So how does that compare to the average rent in the Portland area? Is it more affordable to buy or rent a home here?
The costs of renting and buying a home in Portland vary slightly. As of July 2024, the average apartment rent within the city was $1,565 (regardless of size or number of rooms).
Buying a home in Portland falls somewhere just over this range. By calculating the median home price, average down payment, and current mortgage rates, we found that the average monthly mortgage payment for someone buying a home in Portland would be $1,890. So, statistically speaking, you’re not saving much by renting in the city.
Your monthly housing costs are one of the most important considerations, when deciding whether to rent or buy. But there are other factors as well.
As you can see, there are a lot of angles to consider when weighing the benefits of renting or buying in Portland. The cost factor is an important consideration, but it’s certainly not the only one.
Having an estimate of your monthly housing costs will help you decide if renting or buying is right for you. And we can help. Our financing experts can give you an estimate of your monthly mortgage payments and closing costs, based on the amount you want to borrow. Contact us today to get started.
The latest housing market forecast for Portland, Oregon suggests that home prices will increase over the next 12 months. The Portland real estate market is very active right now, with stiff competition among home buyers. A recent report showed that first-time buyers, in particular, are facing challenges. Here’s an updated Portland housing market forecast, and a look at other real estate-related trends in the area.
During the last 12-month period, the median home price in Portland, Oregon increased by around 15.6%. That’s based on an analysis by the real estate data company Zillow. Homeowners in the Portland area can expect that this trend to continue over the next 12 month period.
He median home value in Portland is $544,136 … values have increased 15.6% over the past year and Zillow predicts they will continue to rise over the second half of the year.
Historically speaking, house values in the U.S. tend to rise by around 3% annually (outside of bubbles, of course). Double-digit gains are abnormal, and in this case they were the result of supply and demand imbalance.
The Portland housing market itself will remain very active for the foreseeable future.
First-time buyers in particular appear to be having a hard time finding suitable properties, according to a recent report.
Not long ago, The Oregonian reported that “starter” homes (those toward the lower end of the pricing spectrum) were particularly hard to come by in the Portland metro area. The region’s growing population, combined with steadily rising home prices in the area, have made the Portland housing market challenging for first-time buyers.
To quote the Oregonian article: “[Housing] inventory in the ballpark of $300,000 is rapidly disappearing as prices far outpace wages, a scenario exacerbated by the continuing fallout of a home-building drought, the region’s surging population and the tendency of current homeowners to stay put instead of move up.”
In some cases, first-time buyers have to compete with house flippers, real estate investors, developers and other cash buyers. This increases the level of competition, particularly among lower-priced homes. This doesn’t mean first-time home buyers can’t succeed in the Portland real estate market. They certainly can. It just means that the house-hunting process might take longer than expected. Home buyers planning to enter the market in 2024 should have their financing squared away ahead of time and should be prepared to move quickly when the right property comes along.
Disclaimer: This section contains home price and housing market forecasts for Portland, Oregon in 2024 These predictions were provided by third parties not associated with our company.
There’s no doubt about it; competition is high among home buyers in Portland. Buyers entering the market in 2024 need every advantage they can muster. And that’s where mortgage preapproval comes into the picture.
Pre-approval is basically a financial pre-screening process conducted by a mortgage lender. You’ll come out of it knowing if you’re a good candidate for a loan and how much the lender is willing to let you borrow.
Getting pre-approved for a home loan before house hunting will help you narrow the field. It also makes sellers more inclined to accept your offer. Here’s how that relates to buying a home in Portland, specifically.
Mortgage pre-approval is an essential step for Portland, Oregon home buyers. But there are other things you can do to improve your chance for success. Here are four tips for buying a home in a hot housing market like Portland.
Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.