Experts are turning in more in depth analysis and issuing predictions for the US housing market for the rest of the year. The Portland home market is one of the fastest-growing in the nation. January 2016 was the fourth straight month where the price gains of metro Portland real estate led the rest of the country. Between January 2015 and January 2016, Portland home prices gained 11.8 percent. Seattle and San Francisco held the second and third place, with gains of 10.7 percent and 10.5 percent, respectively.
From December 2015 to January 2016, Portland was also near the top of the list for price gains, with a gain of 0.4 percent. Miami and San Diego had the same monthly gain. Los Angeles topped the list with a 0.5 percent gain. San Francisco lost 0.7 percent over the same period.
Low inventory seems to be the major drive behind Portland’s rising housing costs. In January and February, there was a 1.8 months’ supply of homes, that is, it is estimated that at the current prices, it would take less than two months to sell off the inventory of homes for sale. The increase in housing prices is hardest for first-time buyers and those with lower incomes. However, the high prices are also enticing for those who might want to sell a home to trade up, which could have a positive effect on supply.