By Aryne + Dulcinea, March 12, 2021
This week Jenelle, owner of Living Room Realty, takes a closer look at our market and talks about how we got where we are and where we are going next.
SEE HER VIDEO HERE
THE NUMBERS THIS WEEK
Avg sales price was $576,395.
Avg # of offers – 5
Avg amount over list price was 8% = $46,000 over.
Inventory inched back up over 500 but buyer demand outstripped inventory keeping the market action index revving at 70.
THE NUMBERS THIS WEEK
Avg sales price was $576,395.
Avg # of offers – 5
Avg amount over list price was 8% = $46,000 over.
Inventory inched back up over 500 but buyer demand outstripped inventory keeping the market action index revving at 70.
WHY IS THE HOUSING MARKET SO HOT?!
1. Interest rates are at historic lows – 3% and under has been the norm, incentivizing buyers to shop, but causing potential sellers to hang onto their homes as rentals and investments rather than sell them.
2. People are living longer and today’s baby boomers are choosing to stay in their homes. Covid 19 isn’t over yet and while it’s still here, those who might have chosen adult living communities have put that off for the time being until that move looks safer.
3. Working remotely has become the new normal, but will it stick? Some people have decided against buying, and selling, because they don’t know if they’ll be heading back to the workplace or creating a more permanent home office. Purchasing their “forever” homes may have to wait until after Covid ends.
THE BIGGEST FACTOR
The biggest factor, by far, is that less housing has been built in the past decade, since the 2008 housing crash, than ever before. A tight labor pool, high timber prices and more building restrictions have slowed new construction. We, as a nation and city have not kept up with the demand for housing. We need more housing and it’s unlikely we will see enough inventory to meet demand for years to come.
ARE WE IN A BUBBLE?
Demand and the restricted pipeline of inventory, leads us to think not.
Second, the amount of cash in the market compared to the years leading up to 2008 is greater. The strong equity in our housing market will help prevent foreclosures.
Lastly, economists examine home prices in relation to rents—if rents don’t keep up with home prices that can be an indication of a bubble. In Portland the average rent for a single family home is $2,023. The average sale price is $575,000. Purchased with 20% down that equals a monthly mortgage payment of $1,900. Add in taxes and insurance, and rents and mortgage payments are currently comparable our market.
Aryne + Dulcinea
Earth Advantage Principal Broker | Earth Advantage Broker | ADU Specialists | OR
She/Her
Aryne + Dulcinea are full-service, high-producing agents, who understand how to navigate the unique challenges facing the Portland real estate market. The secret to their success is in their professionalism and complementary skill sets. In 2012, Aryne + Dulcinea saw an opportunity to combine their creative and technical wisdom to create a values-driven, full-service agency unlike any other. Expert negotiators and project management mavens with a strong background in creative marketing, Aryne + Dulcinea serve as fierce advocates for their clients. Their passion for real estate relates closely to their commitment to the Portland way of life, which entails a dedication to sustainability and appreciation for all things local. As Earth Advantage Brokers and ADU Certified Specialists, Aryne + Dulcinea are savvy in all aspects of alternative living practices—from versatile housing additions, green building practices, and revenue-generating strategies. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching you real estate goals.
Aryne greets working with clients throughout Portland with open arms. Licensed since 2005, she appreciates the ever shifting desires her clients have as they move through their real estate goals. Investigative genius on her side, Aryne will strive to bring you the results you desire. When not working for you, Aryne is a constant cheerleader for her son and daughter’s pursuits on the basketball court and on the ballet stage! She practices yoga, hikes, loves to walk and explore Portland neighborhoods, reads, and delights in soaking up everything Portland has to offer!
Dulcinea thrives on working with clients with a range of real estate goals. Oregon born, with a design and an award-winning professional background, Dulcinea is steadfast when it comes to working for her clients and has a keen eye for properties that best serve client objectives. Licensed since 2013, Dulcinea works in and around Portland. A mother of two and wife to her high school sweetie—in her free time she stays busy with her family, travel, community activism, exploring the outdoors, curating art shows, and dreaming big!
Click here to get to know Aryne + Dulcinea!- T: 503-380-5124
- F: 503-961-8224
- aryne@livingroomre.com
