As the overall US economy is making a come back, Portland is no different and reflects this with a 13.8 percent increase in median home prices in July 2013 when compared with July 2012. The regional MLS shows the average home prices in Portland at $273,800, and the average condo sale price at $326,100. Inventory is down as well with the supply going from 11 to 3 months since July 2011. This means that there will be more competition, and buyers will see it in the form of multiple bids and cash offers dominating. Almost 300 condos were sold in July alone with it up nearly 100 sold condo units when compared with July 2012.
The affordability index in Portland has dropped from 185 to 135 since March of this year. When the affordability index reaches 100 it signifies that the median household income can afford to buy a home, anything above is a considered a more affordable time to buy and anything less difficult for people to buy. Part of this reason is that mortgage rates are increasing in the last few months rapidly. Although they are still at record low levels as compared with the past, we do not anticipate them to stay this temptingly low.