Helping Families One Home at a Time

Portland Metro Area Home Prices

Residential Home Prices in the Portland Metro Area

Home Prices - May 2006  The Portland area's average sale price for the months of June 2005 through May 2006 was $301,300 – a 17.4% increase when compared with the $256,700 average for the twelve months immediately prior. Also, using the same date range, the median sale price ending in May 2006 was $253,000–up 17.7% from the $215,000 median from the twelve months prior.

The Portland-area figures cover sales of new and existing homes and some condominiums in Clackamas, Columbia, Multnomah, Washington and Yamhill counties - the figures do not include Washington's Clark County (i.e., Vancouver). Many new condominium sales are handled in-house by agents and not listed in the system.

In Southwest Washington's Clark and Cowlitz counties, comparing the 12 months ending with May 2006 to the 12 immediately prior, the average sale price climbed 19.5% ($278,600 v. $233,100). Using the same formula the median sale price increased 23.6% ($243,900 v. $197,400).

Should you desire more information about home prices for different Portland neighborhoods and suburban communities, you can read the current as well as past issues of my monthly newsletter.  View the newsletters at Susan's Newsletters.  You can subscribe to my monthly newsletter at Moving to Portland Newsletter - just give your name and e-mail address.

June 2006:  Portland Metro Area 54th Most Overvalued Single-family Market

Everyone knows that home values in the Portland area have gone up-up-up for years, but the question that keeps some recent buyers tossing and turning at night is, "Did I pay too much?" A joint study by National City Corporation and Global Insight released in early June 2006 cranks up the heartburn-o-meter by naming the Portland metro area the 54th most overvalued single-family home market among 317 metro areas nationwide. Portland weighed in at 41.1 percent overvalued, with a median home price of $268,500 in first-quarter 2006. That's a big jump from the companies' previous first-quarter reports, which tallied Portland's overvaluation at 6.2 percent in 2002, 12.3 percent in 2003, 16.2 percent in 2004 and 22.8 percent in 2005.

2005 Prices

The Regional Multiple Listing Service (RMLS) reported that the average price for residential homes in the Portland metro area for 2005 rose 15%.  The average sale price was $282,900 compared to $246,000 in 2004.  The median sales price appreciated 16.1% ($237,500 v. $204,500). 

Year’s end saw an increase in overall market activity with 13.1% more closed sales, a 10.7% increase in accepted offers and a 5.9% greater number of new listings when compared with 2004.  The metro area had a record breaking total volume in real estate sales of $10.6 billion compared with 2004’s $8.1 billion, that is an increase of 30.9%.

The Portland metro area figures above encompasses these five counties in Oregon: Clackamas, Columbia, Multnomah, Washington, and Yamhill.  The RMLS report includes separate data for Southwest Washington's Clark and Cowlitz counties.

City of Portland 2005 Prices

In West Portland (southwest and northwest), the average price was $410,700, and the average price increase was 14.5 percent.  North Portland was the leader in appreciation as the average price increased 18.1% ($208,800 v. $176,400) in 2005.

Suburban Communities 2005 Prices

The two appreciation leaders in close-in metro areas suburban communities were Clackamas\Gladstone\Milwaukie\Sunnyside (CGMS) along with Sherwood\Tigard\Tualatin\Wilsonville (STTW).  They had increases of 18.9 percent and 24.8 percent respectively.  The 2005 average price for CGMS was $255,000 and the median price was $$293,200.  STTW average sales price was $328,500 in 2005 and its median sales price was $290,000.

The lowest average price in the close-in metro area suburban communities in 2005 were the combined communities of Hillsboro and Forest Grove at $243,500.  Further out was the Mt. Hood (communities of Brightwood, Government Camp, Rhododendron, Welches, Wemme, Zigzag) area where the average sales price was $231,400. 

Clark County (Vancouver, Washington) 2005 Prices

The RMLS report also included separate data for Southwest Washington's Clark and Cowlitz counties, where the median sales price rose 18.5 %, to $225,000, compared with the $189,000 median in 2004.  The average sales price increased 16.4% ($260,800 v. $224,000).  Sales activity for the area resulted in a $2.6 billion in dollar volume–a 36.8% increase over 2004’s $1.9 billion.

Condo Prices

The average sales price for condos in the Portland metro area increased 27.2 % in 2005.  The average sales price was $233,800 compared to $183,800 in 2004.  The National Association of Realtors reported that nationally, the median condo prices increased by almost 13 percent, to $218,200, in 2005.

Portland Metro Area¹ Residential² Home Prices for the Last Six Years

Portland Metro Area¹ Residential² Average Home Prices and Appreciation³

2000 Census Data

Release in mid-May 2002 for the Portland metro area, the US Census Bureau report entitled "Profile of Selected Housing Characteristics: 2000" indicates that Portland area housing became less affordable for homeowners in the 90s.  Housing costs have become less affordable in many Western metro areas.  Although not all of the data is available from the Census Bureau, it appears that Portland's had fared better than most cities in the West with regards to housing affordability.

   General Information:

• Housing units:  total of 652,270 and 401,817 or 61.6% were single-unit detached homes.

• 107,659 units or 16.5% were built in 1939 or earlier.  88,425 units or 13.6% were built in from 1995 to March 2000.

• 12.9% of the units has a value of $300,000 or higher.

   Home Owners:

• The median value for owner-occupied homes was $172,800.

• The median monthly mortgage payment was $1,260 (includes property taxes, insurance, most utilities).

• 27.5% of home owners paid more than 30% of their household income on housing in 1999.

• Home ownership increase to 62 percent from 61 percent (1990).

   Renters:

• The median monthly rent was $670.

• 38.8% of renters paid more than 30% of their household income on rent in 1999.

• 45.6% of renters' gross rent was between $500 and $749 per month.

Median Sales Prices of Existing Homes - 4th Quarter 2005

The 4th quarter metro area single-family home price report, covering 145 metropolitan statistical areas, shows a record 72 areas with double-digit annual increases in median existing single-family home prices and only six areas posting price declines. The previous record for areas showing double-digit price appreciation was 69 metros in the third quarter of 2004.

The national median existing single-family home price was $213,000 in the 4th quarter, up 13.6 percent from a year earlier when the median price was $187,500. The median is a typical market price where half of the homes sold for more and half sold for less. In the third quarter of 2005, the annual rate of home-price appreciation was 14.7 percent.

The following document (PDF format) shows the median sales price of existing single-family Homes for metropolitan areas for the 4th quarter of 2005:  Median Sales Price of Existing Homes.

Here are some of the Western states metro area median prices from the report.

• Bounder, Colorado:  $349,500

• Colorado Spring, Colorado:  $209,200

• Eugene and Springfield, Oregon:  $209,000

• Las Vegas, Nevada:  $315,900

• Portland, Oregon and Vancouver, Washington:  $256,600

• Riverside-San Bernardino-Ontario, California:  $392,300

• Salem, Oregon:  $194,100

• Sacramento--Arden-Arcade--Roseville, California:  $380,900

• San Francisco-Oakland-Fremont, California:  $718,700

• San Jose-Sunnyvale-Santa Clara, California:  $747,000

• Seattle-Tacoma-Bellevue, Washington:  $335,000

• Spokane, Washington:  $168,600

• Yakima, Washington: $135,200

Source:  National Association of Realtors

Urban Boundaries and Home Prices

The cost of housing is one of the most contentious issues related to Portland's metro planning.  With an median sales price of $237,500 in 2005, this is beyond the reach of many people.

Does the Urban Growth Boundary (UGB) cause Higher Home Prices? (see Portland Planning for a discussion of UGB).  The NAHB desire more land on which to build homes.  In their document called The Truth About Regulatory Barriers to Housing Affordability the NAHB identified 42 markets with barriers, Portland being one of these markets.  They called the UGB the "Wall of Portland" and attack it accordingly. The Home Builders Association of Metropolitan Portland, has been among those critical of Metro for being too restrictive in its UGB.

2000 Census Bureau figures indicates that the density in downtown Portland has increased by 30 percent, which is what planners had in mind.  Only a few cities in the USA have increased their core city population.

Applying Science to the Debate  Northwest Environment Watch (NEW), an environmental organization located in Seattle, used some science to compare urban sprawl in Clark County in Washington State and Portland. Clark County is just across the Columbia River and part of the Portland metro area. NEW used satellite imagery of open space, farmland and pavement, along with digital mapping of US Census data to track patterns of growth during the 1990s.  They found that if Portland had taken the same approach to land-use planning as Clark County in the 1990s, an additional 14 square miles would have been developed.  Read the full report (released in early May 2002) at Sprawl and Smart Growth in Metropolitan Portland.

For a review of Washington State's Growth Management Act, visit the 1000 Friends of Washington Web site.

Rating Portland's Density

A study released in August 2003, called "Measuring the Health Effects of Sprawl," commissioned by Smart Growth America, a national advocacy group, and financed by the Robert Wood Johnson Foundation, a health promotion group, found that U.S. adults who live in compact cities are more likely to walk or bike to work, school, stores and other everyday destinations than they are to drive. This translates to slightly lower weights and blood pressures.

As part of the study, researchers from Rutgers and Cornell universities used six variables, including housing density and block size, to create a "sprawl index" for 448 urban counties across the United States. The index was set with 100 as the average; more sprawling counties had lower scores.

New York's boroughs had the least sprawl - especially Manhattan, with a score of 352. The most sprawling place was Geauga County, Ohio, near Cleveland, which scored 63.

Multnomah County (where the city of Portland is located), the Northwest's most compact county, ranked 24th densest among the 448 urban counties, just missing the top 5 percent.

Groups with Different Positions on Housing Costs

Read the opinions of the Cascade Policy Institute, a Portland group that advocates a free-market approach. 

1,000 Friends of Oregon feels that the Oregon regulations work well.  1000 Friends of Oregon is a nonprofit charitable organization, founded in 1975 by Governor Tom McCall and Henry Richmond as the citizens' voice for land use planning that protects Oregon's quality of life from the effects of growth.

Oregonians in Action is a non profit lobbying organization that leads the fight for land-use regulatory reform and protection for private property rights. OIA authored two ballot measures in 1998: one to require landowner notification and another to give citizens the right to petition for legislative review of bad state regulations. In 2000, OIA helped pass Measure 7, a constitutional amendment that requires compensation to landowners for losses they suffer from regulatory takings.

Resources

• The Community Development Network CDN is an association of nonprofit community development organizations in Multnomah County located in Portland, Oregon. Their Web site states that "CDN strives to strengthen nonprofit community development organizations and to provide a collective voice for healthy, diverse communities."

• Home Ownership a Street at a Time (HOST) 1818 NE MLK Blvd, Portland, Oregon 97212.  Phone: (503) 331-1752  Fax: (503) 280-2135.  HOST is dedicated to providing affordable homeownership opportunities for low- to moderate-income families. HOST believes strong, healthy communities are created and sustained when homeowners have a stake in their neighborhoods.

• Housing Authority of Portland  HAP is committed to providing safe, decent and affordable housing to individuals and families in Multnomah County, Oregon, who face income or other life challenges. HAP offers support through a wide variety of programs and services. HAP's Web site is designed to educate citizens about these programs and services, and to share how HAP is working to build a stronger community.

• Portland Bureau of Housing & Community Development  Their goal is "To make Portland a more livable city for all by bringing low-income people and community resources together."

• Portland Housing Center  The Portland Housing Center is certified by the U.S. Department of Housing and Urban Development as both a HUD Certified Counseling Agency and a HUD Certified Non-Profit Provider of Secondary Financing.  It offers resources on how to buy a home.

• Oregon Housing and Community Services Home buying information to include first-time home buyers, low-interest programs, and grants/tax credit programs.  Phone 503-275-3660.

• U.S. House and Urban Development - Oregon  HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination.

• Washington County Department of Housing Services  Extensive information for finding affordable homes in Washington County (west side of Portland).

Compare Cost of Living Between Metro Areas

There are a number of free sites that allow you to compare living costs between metro areas but the numbers don't always make sense.  We recommend using the ACCRA Web site (the acronym means nothing it was created by a group of US Chamber of Commerce researchers years ago).  Its a member organization whose mission is strictly research.  For under $20 you can compare the cost of living with where you're living to five other USA/Canadian metro areas.

Office of Federal Housing Enterprise Oversight (OFHEO)

The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 mandates that OFHEO publish a House Price Index (HPI), a measure designed to capture changes in the value of single-family homes in the USA.  It also includes a HPI in various regions of the country, individual states, and the District of Columbia.  You can view the HPI by the state of Oregon and by the MSA (Metropolitan Statistical Area).

National Association of Realtors (NAR)

NAR is the "Voice for Real Estate." It is America's largest trade association, representing 1 million members, including NAR's institutes, societies and councils, involved in all aspects of the residential and commercial real estate industries.  Their "Existing Home Sales Data" measures the health of the residential real estate industry. Each month, statistics on sales of existing single family homes are reported for the national and four regional levels. Statistics on existing condo/co-ops are released quarterly, and figures on existing single-family home sales (detached and condo/co-ops) by state are released quarterly.

Case Shiller Weiss

To learn more about housing cost, visit the Web site of Case Shiller Weiss, Inc.   CSW is a home price research company, founded in 1991, that serves a client base principally comprised of leading mortgage lenders, insurers, and Wall Street firms.  The New York Times called CSW ". . . The country's leading residential real estate analysts."