Oregon Home Sales Strong, But Construction Stagnant
Major metro areas in Oregon continue to grow and thrive, but new home construction across the State remains stagnant. Even though homes aren't getting built, that doesn't mean the real estate market is quiet.
Oregon's economy continues to expand. The State unemployment rate is hovering around 5%. Many job sectors are posting gains, and the national economic expansion is causing migration trends. But, even though the population is increasing, single family homes aren't getting built. Tim Duy is an Economics Professor at the University of Oregon.
Duy: "So if you talk to the local real estate agent, they'll probably tell you that they are selling houses faster than they have in many years, in some cases, faster than they have in the "bubble period."
Duy says people moving to Oregon are driving up the prices of current homes, but single family home construction is barely keeping up with demand.
Duy: "The housing bubble collapse really did in fact weigh on the willingness of developers to put new land into production."
Duy says banks remain reluctant to finance production and land use restrictions have created an unbalanced construction market.
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