Hood River, OR Real Estate Market Forecast 2023

Hood River, OR Real Estate Market Forecast 2023

Scenic natural beauty, the choicest windsurfing and kiteboarding in the world, an abundance of outdoor activities, a thriving wine, craft brewery, and food scene, and excellent weather – the traits that make Hood River outstanding could go on ad infinitum. As such, the town, situated at the junction of the Cascade Range and the Columbia River Gorge, is one of the most sought-after regions on the West Coast to call home.

If you own a prime piece of Hood River, Oregon real estate, you know full well just how appealing your town has become and may be contemplating selling your home while the market is still white-hot. For those on the other side of the equation, you might have chosen to move to the vibrant town for the reasons listed above–to say nothing of its terrific schools and range of housing options.

Either way, you are bound to want to know as much as you can about the changes the Hood River real estate market may experience as we say au revoir to 2022 and head into an exciting new year. With this in mind, top-producing real estate agent Julie Gilbert has put together a list of important predictions to consider so that you can make an informed decision when considering buying or selling in the Hood River area.

Home buyers may want to purchase a home before mortgage interest rates rise even higher

If you’re eager to move to Hood River, you may want to act fast: mortgage rates have continued to climb as the Federal Reserve aims to counter the effects of inflation. In 2023, mortgage interest rates are likely to level off between 5 and 6%. However, unless the economy sees a radical shift away from the possibility of a recession, some experts indicate these rates will only continue to rise. Your solution may be to lock in interest rates now. This certainly isn’t a suggestion to move forward with a home that doesn’t meet your needs and desires; rather, it means you should strategize your timing accordingly and take this possibility into consideration. Many buyers, and you may be one of them, may be against the idea of waiting even longer to purchase a property in case interest rates climb even higher. A local mortgage professional can help you strategize with a lending product that is right for you, while your Realtor® can advise what fits into your budget.

Low unemployment rates, job growth, and a continuation of remote work flexibility will amplify Hood River’s appeal

Hood River isn’t just home to some of the most exhilarating outdoor activities in the state: It also caters to a wide range of industries. Finance, technology, science, health care, food service, information, and tourism–all of these fields are flourishing. In response, Hood River has a low unemployment rate of 2.6%. This is well below the national average. In addition, the seemingly here-to-stay trend of remote job opportunities across the state and the country as a whole positively impacts the real estate market and increases Hood River’s overall desirability.

Home appreciation will continue to rise in Hood River neighborhoods

Oregon as a whole enjoys healthy appreciation rates, and several Hood River areas are expected to lead this trend. Hood River, as a whole, has low inventory and caters to full-time residents and vacation home buyers alike, so it continues to see higher demand than inventory. Translation: there are more people wanting to purchase in Hood River than there are properties for them to purchase. Popular areas in Hood River County include the City Center and the May Street district, the west side, the east side, Odell, and Mt Hood Parkdale. If you’re keen on purchasing a property in Hood River, you may want to explore these charming areas. If you are an investor, getting creative will help you dive into investments in these areas as well.  As a seller, working with your trusted real estate advisor will help capitalize on Hood River’s strong real estate market while also recognizing the shift in the market in terms of buyer expectations; expectations that have changed due to mortgage rates and the economy. You want to be prepared so that you and your property have a path for success in the home selling process.

Inflation will determine home buying viability

The hike in prices for goods and services throughout the nation has affected nearly every demographic. If you have searched for the cost of living in Hood River, you may be aware that this popular town is 16.7% above the national average – a small price to pay for the incredible beauty you’re treated to on a daily and the healthy lifestyle the area encourages. However, suppose inflation continues to rise well into 2023 (and beyond). In that case, some hopeful homebuyers will have to delay purchasing a home – or find a different job – to compensate for the rise in prices and the spike in interest rates. For homeowners, this may translate to your home spending more time on the market and higher inventory. If this is the case, the seller’s market we have seen for the past few years will start shifting in the direction of buyers – giving them higher leverage during negotiations.

The addition of ADU's and cottages may increase

Image courtesy of Rick Obst via Flickr
To mitigate the effects of low housing inventory and rising rent costs in Hood River, the city has adopted a code permitting the construction of accessory dwelling units (ADUs), which are 800 square feet or less, as well as other housing types that will better utilize the limited land in the area. The goal is to increase density and hopefully inventory as well. This bodes well for investors who are searching for Hood River real estate that can be used for long-term rentals. It will also be beneficial for Hood River residents as a whole, as it will lead to more housing options, something that is very important in a notoriously low-inventory market.

Home prices are predicted to stabilize in the middle of 2023

Homeowners who elected to list their homes in 2021 and 2022 enjoyed multiple offers, only a few days on the market, and, for some, a handsome profit. But the price of homes across the nation is expected to normalize in the coming year, not only because the growth rate was unsustainable but also because of economic factors such as inflation and its consequent high cost of living. Certainly, this will put some prospective buyers in a tricky situation: should they lock in interest rates before they are raised again, or should they press pause on their search until the middle of 2023 when home prices possibly stabilize? Only a highly knowledgeable, economic-minded real estate agent will be able to give you an informed answer on this.

Julie Gilbert is just the Realtor® to call to help you navigate the new year’s anticipated changes. Specializing in Hood River luxury homes (and Hood River real estate in general), she stays ahead of the game by remaining on top of every change, both subtle and significant, in the local and national real estate market. With over 17 years of experience, she has helped innumerable buyers and sellers reach their real estate goals – and she ensures a seamless, pleasurable process. Book a consultation with her today to discover your possibilities.

*Header image courtesy of Sam Beebe via Flickr

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Julie believes in the relationships developed as Realtors, and knows that a successful transaction starts with understanding her client's interests and needs. She looks forward to hearing from you.

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