By Andy Meeks, April 7, 2020
Let’s get right to the point: we’re collectively facing what the United Nations Secretary General has called the biggest global threat since World War II. Indeed, not since 2008 has there been a greater disruption to the real estate industry — or life in general — as the coronavirus pandemic has arrived in full force to the United States. The speed and scope of the changes have been mind-boggling, and makes one wonder whether the past three weeks of quarantine have actually been three years. And the big looming question of how long will all of this last still remains unknown.
Real estate brokers across the country have been struggling with how to respond and adapt to this new reality where social distancing and shelter-in-place orders dominate the public consciousness and override all facets of our ‘normal’ lives. So, with the background of rapid changes and big unknowns, I want to humbly attempt a brief update about the state of our Portland metro real estate market.
But, first, some quick context: the Portland real estate market started off 2020 in a fast and furious way, as historically low interest rates helped support already strong buyer demand. Furthermore, low inventory resulted in greater competition, lower average days on market, and frequent multiple offer situations. In fact, this January and February felt more like a typical April and May. For both buyers and sellers, the year was off to a powerful and encouraging start.
While the past few weeks have been quite hazy and filled with questions, we’re now seeing data emerge that provide more clarity around recent market activity. And so far, it seems that things are holding fairly steady, although with much less volume than before. Many brokers I’ve spoken with speculate that a similar number of buyers and sellers have backed out of the market, leaving the remaining actors in a relatively competitive status, as before coronavirus arrived. In fact, we’re again seeing quite a bit of buying and selling activity. While the overall volume is lower by 24.4% from this time last year, year-over-year median sales prices are up 5.3%, and average days on market is 16% lower than during this same time period last year. All of this points to the seller’s market holding up well, but perhaps starting to rebalance with slightly more inventory. (Click HERE to download the full report.)
A big question that remains to be answered is how the mortgage industry will hold up as we move through the first month of missed mortgage payments and record-setting levels of unemployment. Mortgage rates continue to stay low, but underwriting requirements are tightening to reflect the increased risks of tenuous employment scenarios and the economics of the secondary mortgage markets impacting the cost of doing business.
There’s no doubt that houses are still being shown and going under contract, and transactions are still closing — but getting to closing is a more delicate process than ever before. Even small details have become amplified and it’s taken much more back-end work from all parties to get to the finish line.
In spite of all of this, the fundamentals of being a successful seller and buyer in this market is no different than any other. Stellar, technically-saavy marketing employed on behalf of houses in good condition that are well-priced will continue to sell. Buyers who are pre-approved with their finances in good order, with clear targets and a willingness to jump when the right property arises will continue to be key factors for their success.
I’m honored to walk beside my clients as a partner and a teammate. The trust implicit in that relationship is something that I value deeply and work hard to establish and maintain. My clients are always my top priority, and my singular focus is to help them achieve their goals efficiently and effectively. This is the intention I set every day, and how I define success. This will never change, no matter the circumstances.
If you have questions about how to navigate this new market as a buyer or a seller, or know someone who does, please reach out. I’m always available for a phone call, Zoom meeting or virtual coffee meet-up. Now, let’s get back to navigating our quarantined lives with joy, health and resiliency.
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ANDY MEEKS
Living Room Realty
Licensed Oregon Broker | Earth Advantage REALTOR®
andy@livingroomre.com | 971.400.0195 | PDX
Your referrals are at the heart of my business,
and always greatly appreciated. Thank you.
Andy Meeks
Principal Broker | OR
My clients are always my top priority, and my singular focus is their success. This is the intention I set every day. My training and background as a licensed attorney helps me lead with a sharp attention to detail, a keen ear and focused voice, and an unwavering commitment to integrity, transparency and discretion...
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