Portland's Real Estate Market Increases in December of 2016
Portland Real Estate ended on a high note in 2016 according to fresh data
The Index
The Case-Shiller Index is the product of researchers Karl Case and Robert Shiller. The data in the index is maintained by Standard and Poor’s (aka “S&P”), calculated from are repeat-sales house prices across the United States. There are multiple Case-Shiller indices including composites of 10 and 20 cities and those individual cities (i.e. Portland Case Shiller). The National Case-Shiller index is the most commonly cited figure for Real Estate economic indicators.
Portland, Oregon happens to be one of those 20 cities that make up the composite index, and since we’re based in Portland, we pay special attention to this figure. This figure can make a nice counter weight to all of the anecdotal observations about Portland’s housing market you’d be likely to hear in any coffee shop here. As far as using it for a “timing tool,” we simply can’t speak to that- we don’t invest in individual real estate properties, so that’s not area of expertise of ours. What we do know about the Portland Case-Shiller index is that it speaks volumes to the health of the regional economy of the Pacific Northwest.
By the Numbers
Portland Case Shiller numbers have come in consistently positive throughout 2016. The Index increased over 0.3% in December- a relatively modest amount, competitive with the National Index’s increase. It caps off a year of just over 10% growth in the housing price index for Portland in a year where the National average clocked in at 5.85%. Regional Real Estate investors should be pleased with this annual growth rate, as it compares favorably to long term averages. It does not exceed the annual growth rate of the largest Real Estate Investment Trust Exchange Traded Fund (ETF)- NYSE:VNQ (Vanguard REIT ETF)- which has grown 16.85% in a 1-year time frame according to ETFdb.com.
Portland Case Shiller
National Real Estate
Percent Changes at a Glance
National Case Shiller Monthly Change
Portland Case Shiller Monthly Increase
U.S. National Case Shiller Yearly Increase
Portland Case Shiller Index
Thanks for reading our Portland Real Estate report for December of 2016. Stay tuned for more Oregon focused Economic & investing reports, as well as national and international news and analysis.
Meet the Author & Portfolio Manager
Victor Schramm is a Certified Fund Specialist (CFS®), with expertise in Mutual Funds & Variable Annuity Separate Accounts. He focuses on long term investing geared toward our annuity clients as a Fee Only Investment Advisor. He lives in Portland, OR.
Victor Schramm, CFS®Analyst & Portfolio Manager
Disclaimer
This information is solely a representation of publicly available facts intended for educational use only. This is not a solicitation to buy or sell any public or private Security, in any city named in the article or elsewhere. Real Estate is a very serious investment and one that requires in depth research beyond the scope of this article.