The rise in Portland-area home prices slowed through 2017, new figures show.
Prices climbed a relatively modest 6.8% over the course of the year, according to the
Prices continue to rise, however, and they're going up far faster than wages or inflation.
And the increase continues to hurt affordability. Rising mortgage rates could widen that gap.
Portland led the Case-Shiller index for the 11 months leading up to September 2016. The price increase peaked in June of that year, when home values were up 12.5% from a year earlier.
"You really can't sustain that kind of growth," said Cheryl Young, a senior economist at the real estate website Trulia.
The Rose City now sits near the middle of the 20-city index, with the ninth-fastest growth in home prices. Prices are now rising at rates close to the national average of 6.3%.
Leading the group are Seattle (12.7%), Las Vegas (11.1%) and San Francisco (9.2%).
Portland, like the rest of the country, is seeing the biggest price increases in its most affordable homes.
"Affordability is taking a hit at that starter-home segment," Young said. "Even though prices aren't growing at the same rate, they're still up, and it's really putting a squeeze on homebuyers."
The median home price in the Portland area was $380,000 in December, according to the Regional Multiple Listing Service. It climbed to $390,000 in January.
