Is there a bubble forming in Portland?
As those of us in the Portland, OR housing industry know the current imbalance between supply and demand in our local market is a little bit concerning. Stories of multiple offers, waving contingencies, and sales way above asking are everywhere and for some the prospect of buying a home may seem impossible.
Fortunately, I am hearing from Realtor professionals that they are getting more and more inquiries from sellers as we move into spring. This is a welcome sign because greater supply is the only thing that will ease the existing pressures. Portland is a very desirable place to live and we expect demand to remain strong.
That said, I have heard some participants voice concerns about a real estate bubble brewing. I thought I would share an info-graphic that John Burns released last week on his blog:
At this point I do not forecast a bubble popping in Portland. Demand remains very strong and the outlook for jobs in our area looks solid. As long as there is a lack of supply I don’t see how prices can fall. Should those dynamics change in the future, which is entirely possible, then I would have to adjust my forecast.
What are your thoughts? Please feel free to comment.