The Portland housing market continues to make local and national headlines, and it doesn’t seem to be slowing down anytime soon.
According to Zillow, Portland home values have gone up 17.3% over the past year and predictions show they will rise 5.3% within the next year.
There’s no way to deny that low inventory drives new home pricing, as well as trade partner and supply costs up. Potential homebuyers are often in multiple offer bidding wars and required to pay well over asking price to even be in the running. Increasing rental rates continue to make it more difficult for potential buyers to save up for a down payment. The region’s rents have increased 63 percent since 2006 according to a recent study released by Metro.
On the new construction side, the lack of available land makes it difficult for buyers to fulfill their dreams of building in the location they want as well as staying within their desired price range.
Frank Revard with Mountainwood Homes has a pulse on all things new construction in our area.
“The current condition in the new home market is that there is such depletion of available land to build on that it’s driving the cost of dirt through the roof. So your only options are to tear down existing structures or to move further and further out,” says Revard.
He says that both scenarios pose issues.
“The tear downs are getting resistance from existing dwellers in the neighborhood who want things to stay status quo. The lots further out start to get pricey because they are large parcels,” says Revard. “The combination of both scenarios make it extremely difficult to find available and affordable, buildable lots. The cost of construction is relatively the same, but fees are substantially higher these days because of the taxation structure.”
Remodeling has seen a surge because of these market trends. The upside for current homeowners? The low inventory drives up the value of existing homes.
Homeowners are reinvesting in their homes, updating important areas such as the kitchen and bathrooms so they can get better functionally of their spaces. Many of Mountainwood’s clients have found it difficult to find what they want, so they are staying put and remodeling or buying a new-to-them home and personalizing their new space.
There are endless possibilities to make your space work better for you. Invite us over to help find solutions that fit your home and current situation.