BANK ON YOUR NEIGHBOR
Melissa is passionate about using seller financing to unlock financial freedom and redirect wealth away from financial institutions and back into our neighborhoods.
Hi, I’m Josh Nusbaum, licensed real estate broker with Living Room Realty. Here to tell you what you need to know about the Portland Market for Mid October, 2024.
It’s a big week, friends – Halloween is just round the corner, we are eyeballs deep in full blow pumpkin spice season, and here in Oregon, ballots are hitting mailboxes this week, as in just 19-ish days (depending on when you’re watching this) we’ll be having local and federal elections.
It’s common to hear people talk about market uncertainty before an election. However, if we look at the data, we can see historical market trends that suggest the next few weeks might actually be a great time for real estate, especially if you’re a buyer.
A typical misconception is that elections cause the market to slow down. But data from the Department of Housing and Urban Development and the National Association of Realtors shows that home sales tend to increase following a presidential election. This has been the case after 9 of the last 11 elections. The only exceptions were in 1980 and 1988.
Nationally, home prices have risen after 7 of the last 8 elections. While this may be promising for sellers next year, it suggests that now is an ideal time to buy—before prices rise. Locally, prices are slightly lower compared to this time last year as well as last month, following the typical seasonal trend where prices dip in the fall.
Additionally, interest rates have decreased before 8 of the last 11 elections, and this election season is no exception. Even if you’re hoping for a return to the 3% lows of 2020, today’s rates in the mid-6% range are still historically low. Some of you might remember when rates were 14% in 1984, or even 8% in 2000?
So what does all this mean? It means elections don’t tend to create instability or lags in real estate markets. It means that the upward trend in post-election home sales could mean more competition for buyers in December and into the new year. So, with inventory in Portland up compared to last month, historically low rates, seasonally low prices, and expectations for prices to rise post-election, now could be a great time to buy.
At Living Room Realty, we’re committed to providing the information you need to make informed decisions. If you’re ready to make a move, give us a call today. We’d love to help you find your next Living Room.
In 2018, Tasa, reached out to me because she wanted to flip a house. I didn’t know it would lead to this, but since then, we have spent many hours talking about house remodeling, key improvements, and how to ensure a profitable investment. Just finishing up her third successful home remodel, I wanted to share some of her work with Kara Mack on Afternoon Live. Below are a few before and after photos. For the full 8 minute segment, and more of the work she did to the house, check out the link below.
My Client, Tasa’s, Third House Flip
Today I talked with Kara from Afternoon Live about multifamily houses in Portland. To see the full 7 minute video, click here
Here’s an example of a duplex that was for sale in Portland that I thought was a great long term investment.
Not in the buying market or interested in multifamily, but thinking of selling your home? Check out my tips here.
Professional House Flipper and Real Estate Agent, Bobby Curtis gave tips on how to sell your house faster in this “neutral” market. See tips below or click here to see the full interview on KATU’s Afternoon Live with Tra’Renee.
1.Price it right- don’t hold out waiting for your buyer. It may work on occasion if you have a very unique property- but let someone in the real estate business be the judge of that.
2.Effective staging. Of the homes that sell within the first week on the market with multiple offers, most of them are staged or appear staged.
3.Once in contract to sell your house, stay in contract. Negotiate after they do their inspections.
4.All of this will be made easier if you are working with a great real estate agent.
For more from Bobby, and some great contractor tips for your next home remodel, click here
In today’s Portland housing market, home prices are increasing at a slower pace (3.7%) than they have over the last eight years (6-7%). However, they are still are above historical norms. Low supply of listed homes and high demand from buyers has pushed prices to rise rapidly.
In the mind of the homeowner, annual home price appreciation over 6% has become the new normal. This becomes a challenge when a homeowner looks to refinance or sell their home, as the expectation of what the homeowner believes the home should be worth does not always line up with the bank’s appraisal.
Every month, the Home Price Perception Index (HPPI) measures the disparity between what a homeowner seeking to refinance their home believes their house is worth and what an appraiser’s evaluation of that same home is.
Over the last five months, the gap between the homeowner’s opinion and the bank’s appraisal has widened to -0.78%. This is important for homeowners to note, as even a 0.78% difference in appraisal can mean thousands of dollars that a buyer or seller would have to come up with at closing (depending on the price of the home).
The chart below illustrates the changes in home price estimates over the last 12 months.
According to realtor.com, “the share of homes which had their prices cut increased by 2% compared to last year”. Thirty-seven out of the 50 largest US housing markets saw an increase in overall price reductions. Earlier this year, we saw over half of all Portland listings go through at least one price reduction.
In today’s market, you need an expert agent who can help price your house right from the start. Homeowners who make the mistake of overpricing their homes will eventually have to drop the price. This leaves buyers wondering if the price drop was caused by something wrong with the house. In reality, nothing is wrong- the price was just too high!
If you are planning on selling your house in today’s market, let’s get together to discuss how price is a moving target based on a continual source of data. Let’s hit it!
