Time in the Market Beats Timing the Market: A Portland Perspective

Are you debating whether to buy a home in the Portland-Vancouver metro area now or wait? It’s a tough call, but one key takeaway from experts is this: trying to time the market often leads to missed opportunities. Instead, focusing on time in the market is the smarter strategy.

Why Buying Now Makes Sense in Portland

Portland’s housing market, like many across the country, is shifting toward more moderate growth. While price increases have slowed from the record pace of 2020-2022, they’re still projected to continue steadily. As Bankrate notes:

“No matter which way the real estate market is leaning, buying now means you can start building equity immediately.”

This concept rings especially true in the Portland-Vancouver area, where the demand for housing remains robust. Whether it’s inner-city neighborhoods like Alberta Arts District or suburban spots like Happy Valley, prices are expected to rise, creating opportunities for equity gains.

Equity Growth: What the Experts Predict

Let’s dive into the numbers. According to Fannie Mae’s Home Price Expectations Survey (HPES), home prices are projected to appreciate steadily through 2029, though at a more normalized pace compared to recent years.

For example, consider the following scenario based on these projections:

• If you purchase a home today for $400,000 in the Portland-Vancouver metro area, by 2029, its value could rise significantly based on HPES data.
• Over just five years, this could equate to an equity gain of $83,000 or more.

This type of growth is a powerful reminder that even if market conditions aren’t “perfect,” starting your journey into homeownership sooner rather than later positions you to benefit from long-term appreciation.

Missing Out by Waiting

Now, let’s compare that to the alternative: continuing to rent. Portland’s rental market remains competitive, with rising costs across neighborhoods like the Pearl District or Vancouver’s Waterfront. The thousands spent on rent each year provide no return on investment, unlike owning a home.

Visualizing the Difference

Two graphs help illustrate this point:

1. Projected Home Price Appreciation: This graph shows the steady increase in home values over the next five years, highlighting why purchasing sooner rather than later is advantageous.

1. Equity Growth Over Time: Using a $400,000 home as an example, this graph visualizes the potential $83,000+ equity gain by 2029 when buying now versus waiting.

These projections demonstrate the wealth-building potential of homeownership in Portland and beyond.

Creative Ways to Enter Portland’s Housing Market

Even if today’s market feels challenging with rising mortgage rates or tight inventory, there are plenty of options to make homeownership in Portland, Vancouver, or nearby suburbs achievable:

1. Explore Up-and-Coming Neighborhoods: Areas like Lents, Montavilla, and Vancouver’s Heights District offer more affordable entry points while still providing excellent amenities and growth potential.
2. Consider Condos or Townhomes: Portland’s condo market, especially downtown or in the South Waterfront, offers opportunities at lower price points than single-family homes.
3. Leverage Local Assistance Programs: Oregon and Washington offer down payment assistance programs to help first-time buyers overcome upfront costs.
4. Look at New Construction in Suburbs: Communities in Happy Valley, Hillsboro, or Ridgefield are seeing an increase in new builds, often with incentives for buyers.

Bottom Line

If you’re debating whether to buy now or wait, don’t overlook the power of time in the market. Starting sooner allows you to benefit from appreciation and equity growth, especially in a thriving area like Portland.

Let’s connect to discuss your goals and explore strategies tailored to the Portland-Vancouver market. Together, we’ll find the right path to homeownership for you!