For Portland Home Builders, Housing Markets are on the Rise
As mortgage rates fluctuate and slowly recover, Portland home builders find themselves particularly busy. The sale of new homes between August 2012 and August 2013 rose 12.6 percent higher, according to The Oregonian and the number of new homes available for sale since July 2013 is up 3.6 percent. Contemporary home builders across the nation are experiencing similar upward trends.
Signs of Economic Health
Economists speculate that the increase in new home purchases and higher mortgage interest rates may coincide with higher employment rates. Realtor.com reports that August 2013’s national unemployment rate fell to 7.3 percent, the lowest it’s been since December 2008.
As the nation recovers from its economic battles, the number of foreclosed homes continues to fall. In July 2013, 4.8 percent of Oregon homeowners were delinquent on their mortgage payments by 90 days or more. The national delinquency rate is 5.4 percent.
Implications for Home Buyers
Positive housing trends are great news for Portland home builders. As the economy gets healthier, home buyers can expect mortgage rates to increase. Zillow.com warns that “local bubbles,” like the Portland-metro area, will see an increase in mortgage interest rates that are more expensive than their historic norms. The realty site predicts that the Portland-area rate will be 7 percent more expensive than the historic average.
Interestingly, homeowners find that the purchase of a new home may be overall more affordable than purchasing one that was pre-owned thanks to features like low-maintenance siding, high-efficiency windows and energy efficient appliances. Talk to the contemporary home builders at H. Hudson Homes to learn more about the benefits of today’s housing market and new homes.
George Hale is the owner of H. Hudson Homes. H. Hudson Homes specializes in building new modern homes in the Portland, Oregon and surrounding areas with an emphasis on cutting-edge design and sustainability.