The Portland market continues to thrive, despite everything else 2020 has brought us. With only 1.1 months of inventory at the end of September, the market remains strong for sellers. For buyers, the competition is fierce as ever. Here is a quick snapshot of how things are looking versus last month & last year:
2020 has brought so much change to our communities. While the real estate market has thrived, buyers and sellers make decisions in a different way. New trends are popping up as we re-evaluate how and where we want to live. Here are the top 3 trends we are noticing in the Portland market.
1. “We need more space!”
A few weeks into lock down this March, I received a call from a buyer who simply needed a home NOW. They had downsized a few years earlier and were doing fine in their small condo, until COVID hit. With the extra time spent at home, a growing daughter and the need to work from home – it was time for them to purchase a house again. I have heard this anecdote over and over this year. Buyers recognize the need for extra home office space, a garage to work out in, and maybe a she-shed for some personal space away from the family. Many people don’t plan on going back to work in an office for quite some time. With interest rates being so favorable, we are seeing more first time home buyers joining the market as well.
We are also seeing a growing number of buyers searching for homes with a mother-in-law suite. This trend isn’t brand new, especially with the popularity of ADUs in Portland. However, the onset of COVID-19 has increased the need for families to be under the same roof. Many families with elderly parents feel that caring for their loved ones in their own home is safer. Others have noted that they need extra help with the kids while working from home. These homes are in high demand right now and they are not easy to find!
2. “We want LAND.”
For the last five years my businesses has primarily been focused on Portland and the close in suburbs of Lake Oswego, West Linn, Tigard, Tualatin and Beaverton. This year the number of buyers who have contacted me wanting land has increased substantially. I have buyers are looking for properties with 1-5 acres from Wilsonville to Damascus. A popular anecdote is, “if we are going to be stuck at home, we need room to roam.” Buyers are also looking for property with a separate shop and a view of Mt. Hood. Not surprisingly, home prices in these areas are up between 5-12% over last year.
3. “We are moving to Idaho!”
Raise your hand if you have heard someone say, “I’m moving to Idaho.” As your hands go up, so will mine. I have heard this from multiple people over the last few months. While Oregon isn’t seeing a mass exodus of people fleeing the state, we are experiencing some movement. And according Business Insider, “Idaho had the largest net gain, where 194% more people moved into the state than out during the pandemic.” Oregon ranked number 7 on the list, where only 2% more people moved into the state than out during the pandemic.
Our friends and clients say they are attracted to the lower cost of living and the beauty of the state. The pace is slower yet there are plenty of outdoor activities. Our next door neighbor purchased a small home in Boise this summer. They have it set up as an Airbnb and plan to retire there eventually. Another client sold one of her rentals in Beaverton and will purchase an investment property in Idaho this fall.
If you or someone you know is in the market for more space, room to roam or a move out of state – contact me today!
