Portland-area home prices gain at 7.2 percent annual clip
Prices of Portland-area houses continued to show gains in January, contributing to a year-over-year price rise of 7.2 percent, according to the closely watched S&P/Case-Shiller Home Price Index, released Tuesday morning.
The report marked Portland as the fifth-fastest gaining city among the top 20 markets tracked. Portland trailed only Denver, Miami, Dallas and San Francisco in terms of year-over-year price rises.
Around the country, year-over-year prices rose 4.5 percent from January to January, the index notes. Case-Shiller’s 10-city and 20-city composites — the latter of which includes Portland — showed January gains.
“Despite price gains, the housing market faces some difficulties,” said David Blitzer, chairman of the Index Committee for S&P DowJones Indices. “Home prices are rising roughly twice as fast as wages, putting pressure on potential homebuyers and heightening the risk that any uptick in interest rates could be a major setback. Moreover, the new home sector is weak; residential construction is still below its pre-crisis peak. Any time before 2008 that housing starts were as low as the current rate of one million, the economy was in a recession.”
While Case-Shiller numbers are released well after other price and volume indicators, they are constructed to accurately track the price path of typical single-family homes by combining matched price pairs for thousands of individual houses.
— Mike Francis