Tag: Oregon real estate market

How to Understand the Real Estate Market Like a Pro

Posted on by Sofia Gallamore

Much of my value as a real estate professional is delivered through coaching and educating my clients. It brings me joy to witness my clients’ confidence blossom as they gain the tools and knowledge to navigate the intricacies of real estate. Below, I’ve outlined and defined the basic elements of understanding real estate market activity and its patterns. 

 

1. Median vs. Average Home Price

  • Median Price: The “middle value” of all homes sold (half sold for more, half for less). Typically, this is a better indicator of the typical home price since it’s not skewed by fixers or overpriced homes. 
  • Average Price: The total sales price of all homes divided by the number of sales. This can be misleading if there are a few very high or low sales.

2. Days on Market (DOM)

  • The average number of days a home stays on the market before going under contract (AKA the seller accepts an offer from a buyer).
  • Lower DOM = Homes are selling quickly (stronger seller’s market).
  • Higher DOM = Homes are sitting longer, possibly indicating a buyer’s market.

3. Months of Inventory (MOI)

  • Measures how long it would take to sell all the homes currently on the market if no new homes were listed.
  • Less than 3 months = Seller’s market (low inventory, high demand).
  • 3-6 months = Balanced market.
  • Over 6 months = Buyer’s market (more supply than demand).

4. List-to-Sale Price Ratio

  • The percentage of the asking price that homes actually sell for.
  • Above 100%: Homes are selling for more than asking (bidding wars, competitive market).
  • Below 100%: Homes are selling for less than asking (buyers have more negotiating power).

5. Price Per Square Foot

  • Useful for comparing similar properties in the same area.
  • A rising price per square foot suggests increasing demand or higher-end homes being sold.

6. Pending Sales vs. Closed Sales

  • Pending Sales: Homes under contract but not yet sold (a leading indicator of future closings).
  • Closed Sales: Homes that have officially sold (represents past market conditions).
  • A decline in pending sales may indicate a slowdown, while an increase suggests a hot market.

7. New Listings vs. Active Listings

  • New Listings: Number of homes recently listed for sale (homes are most often listed on Thursdays and Fridays, so they are fresh to the market for open houses and touring on the weekend)
  • Active Listings: Total number of homes currently on the market.
  • If new listings increase but homes aren’t selling, inventory builds up, signaling a possible shift to a buyer’s market.

8. Interest Rates & Their Impact

  • When interest rates go up, buying power decreases, often slowing home sales. This has been the climate we have been in for the past few years. We typically see a swing toward buyers being able to negotiate more and secure homes at a lower price due to less buyer competition. 
  • When rates go down, more buyers enter the market, increasing competition. For those “waiting on the sidelines” for rates to go down, are likely to find increased competition of other buyers waiting to do the same, and an increase in home prices to offset the lower rates. 

9. Market Trends & Seasonality

  • Spring and summer generally see more listings and higher prices. 
  • Fall and winter often bring fewer buyers, making it a better time for “deals” and buyer opportunities. I always tell my buyers that if the seller is listing their home over the holidays, then they NEED to sell. Nobody likes moving during the holiday season!
  • Year-over-year trends are more reliable than month-to-month fluctuations.

10. Inventory Turnover

  • When evaluating neighborhoods, take a look at how long people tend to live in their homes before selling and, in general, how many homes are currently listed for sale
  • Areas with high turnover may indicate nuanced elements of the area that are not immediately apartment to some buyers (freeway noise, packed on-street parking when getting home from work, home is on a flight path, etc). 
  • Neighborhoods with lower turnover tend to have lower DOM when homes sell, as there is less competition and likely a pent-up buyer demand for homes in that area

 

I hope you gained some insight from these points and have a clearer understanding of the nuances of real estate market data. If you have any questions about Portland’s current market and what opportunities are out there, please reach out! I’m happy to have a zero-pressure exploratory conversation to see what makes sense for you (even if that means staying exactly where you are!).

Your friend & realtor,

Sofi

From Frustration to Fulfillment: Hannah and Luke’s Journey to Finding Their Dream Home

Posted on by Will Sing

Buying a home is more than just a transaction; it’s a journey filled with hopes, dreams, and sometimes, challenges. For Hannah and Luke, the journey was anything but straightforward. They started out in a small 1-bedroom, 1-bathroom townhouse but dreamed of moving into a single-family home where they could start their family. However, after working with two different sets of realtors and feeling let down, they were starting to lose hope.

When Hannah and Luke found me, they were understandably cautious. We worked together on and off for about two years, with no pressure to rush into a decision that didn’t feel right. They appreciated that I wasn’t pushing them to buy just any house. My priority was to find them the right home—a place where they could envision their future. It wasn’t just about a transaction; it was about ensuring they found a home they would love for years to come.

The Turning Point: Finding “The One”

After seeing numerous houses, we finally found one that seemed perfect. But, as with many things in real estate, there was a potential “gotcha”—this time, it was the solar panels. The house itself was everything they wanted, but the solar panels came with a $40,000 loan, which was a huge shadow over the property. This was a significant concern for Hannah and Luke, and understandably so.

Guiding Through Negotiations: A Win for the Clients

I knew this was a deal-breaker for them, so I went into negotiation mode. We successfully negotiated for the seller to cover the entire $40,000 loan on the solar panels, ensuring Hannah and Luke wouldn’t have to take on that burden. Additionally, we secured $12,000 in closing costs covered by the seller—a huge win for my clients.

The key to these successful negotiations was preparation. I had worked closely with Hannah and Luke throughout the process, making sure they were ready to act when the right opportunity came up. A year prior, they had been pending on another house, but that deal fell through. From that experience, we learned the importance of being “patiently aggressive.” We were ready to jump on this house as soon as it hit the market, with all the necessary ducks lined up far in advance.

The Final Outcome: Thrilled with Their New Home

The outcome couldn’t have been better. Not only did Hannah and Luke move into their dream home in Tigard, OR, but they also walked away from the process feeling supported, informed, and truly cared for. Their feedback says it all:

“Where is the 6-star option?!?!?!? Will went well ABOVE AND BEYOND my expectations to get my wife and I our dream home after 2 years of searching with him. The best thing about Will is that he LISTENS to your input! He also provides excellent home advice from his personal experiences, is very proactive in communication, and is extremely patient. I can’t recommend working with Will enough!!!

Will was wonderful to work with – patient and understanding, willing to work through the details and all of our tedious questions. After a long search, Will helped us land in a house that checked almost all of our boxes. He followed that up with helping sell our previous home in what felt like record time! He is very knowledgeable, kind, professional, and provides many informative resources to ease the process for an anxious buyer like me. Would highly recommend. Thank you, Will!”

For me, stories like Hannah and Luke’s are why I love what I do. It’s not just about helping clients buy or sell a home—it’s about making sure they’re truly happy with one of the most significant decisions of their lives. If you’re looking for someone who will listen, guide, and go above and beyond to find the right home for you, I’m here to help. Let’s start your journey today by setting up a 1:1 meeting to discuss.