Is the Housing Market Going to Crash in Oregon?

Danielle Jackson • June 9, 2022

Thinking of Buying or Selling?

Are you wondering if the housing market is going to crash in Oregon anytime soon? Keep reading and learn more about it here.

Millions of dollars were set aside to help cities in Oregon meet their housing needs. It comes when the prices of homes are doubling, or more, compared to previous years. However, such massive spikes are a common part of the modern housing market.

The market is mostly driven by a lack of supply to meet new demand. There aren't enough houses on the market, so sellers can list houses for much higher than they paid for them. It has also caused people to wonder how long this kind of real estate market can last.

People are wondering if a housing market crash is on the horizon. Keep reading below to learn more about the market, and if a crash is destined for its future.

Oregon's Housing Market Is Closely Watched

For years, housing markets across the U.S. have been hotter than people believed they could ever be. The prices of homes have ballooned by almost 20% compared to the year before. And in that year, prices were also rising.

Oregon's housing market is being closely watched by real estate groups because of its unique situation. The state as a whole is in a similar predicament as the rest of the country. However, big cities like Portland are seeing more homes put up for sale.

This can be due to common, seasonal fluctuations in the housing market. As spring and summer get nearer, more people tend to put their homes up for sale. Typically, that means the buyers have more choices when it comes to finding a house and more competition between sellers.

However, as the past few years have shown, nothing is typical in the modern housing market. Whatever happens in big cities could also trickle to smaller areas, like Dundee or Carlton.

A Housing Market Crash Isn't Too Likely

An outright crash is not likely in Oregon, at least not how it is imagined. For example, in 2008, the housing crash was caused by a significant amount of risky mortgages being issued. The easy availability of money led to people borrowing more than they could pay back, leading to massive amounts of evictions.

That issue is not prevalent in the modern housing market. So, it is not likely people will have their homes foreclosed because they couldn't pay back loans on them. More people are likely to hold onto their houses once the market cools down.

However, there could be a disruption in the market trends that Oregon has seen recently.

A Market Correction Could Be in the Forecast

Instead of a housing crash, the state could instead go through a market correction. Experts predict this could happen as a result of a larger supply available to buyers, without falling prices. The rigid price of homes in the state could indicate people are buying homes for more than they're worth.

J.P. Morgan has models that show that the increased supply of homes on the market should lead to falling prices. Since prices are not falling, the market could enter a bubble. This is when the price of a home does not reflect what it is worth.

Homeowners could see prices fall fast in a correction. Sellers frustrated by being unable to sell their houses could reduce prices, trying to attract buyers. That trend could spread, causing the housing market to tumble.

Now Is the Time to Sell for Maximum Profit

Sellers who want to take advantage of the hot housing market in Oregon should sell now. Waiting can cost them massive amounts of possible profit. If a market correction comes, they could learn that their house isn't worth what they thought it is.

When that happens, they could be stuck paying bills on a house they don't even want. To avoid this from happening to you, just reach out to us and we will help you sell your house!