Home prices in the Portland, Ore., area rose last year at their slowest rate since 2012.
Prices were 3.9% higher in December than a year earlier, according to the S&P CoreLogic Case-Shiller home price index. That’s the slowest rate of annualized growth since September 2012, when the region was just emerging from the housing bubble collapse.
Portland as recently as 2016 led the nation in rising home prices, but its gains now lag the nation as a whole, which saw prices climb 4.7% over the course of last year.
Metro home sales have slowed, as well, and the number of homes on the market has climbed as a result.
Housing markets across the county are seeing price increases slow. The cool-off comes as prices in some of the most expensive markets, like Portland and Seattle, appear to have exceeded the capacity of the average resident to pay for a typical home.
Mortgage rates also spiked in November and December, taking a bite out of buying power. Rates have since retreated to their lowest level in more than a year, with the average 30-year mortgage rate hitting 4.35% last week.
In December, Las Vegas had the nation’s fastest-growing home prices, at 11.4% year-over-year. It was followed by Phoenix (8%) and Atlanta (5.9%). Each of the 20 cities included in the index saw prices climb on an annual basis.
The Case-Shiller index uses repeat sales of the same homes to measure changes across the market. Its numbers reflect a three-month rolling average.
The Portland area’s median sale price was $390,000 in December, according to the Regional Multiple Listing Service. It fell slightly to $384,900 in January.
Tribune Content Agency