Portland Metro Area Homes Posted the Third-Fastest Annual Gains in the Country

According to the monthly Standard & Poor’s/Case-Shiller home price index, Portland metro area homes posted the third-fastest annual gains in the country in the month of September (10.1%). Finishing just behind San Francisco (11.2%) and Denver (10.9%) and ahead of Dallas (9%) and Seattle (8.2%).

David M. Blitzer, the Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices said in a news release that, “home prices and housing continue to show strength with home prices rising at more than double the rate of inflation, the general economy appeared to slow slightly earlier in the fall, but is now showing renewed strength.”

The Regional Multiple Listing Service also reported that the Portland region has 2,996 pending sales in the month of October, making it the most for the month of October since 2005.

With unemployment rate in the country at only 5%,  most analysts expect the Federal Reserve to raise its Fed Funds target range to 25 to 50 basis points, the first increase since 2006. While this will make news, it is not likely to push mortgage rates far above the recent level of 4% on 30 year conventional loans.

With these statistics, it appears the sellers-market is here to stay for the time being and buyers will have to compete against each other to secure the purchase.