Tag: Portland Housing Market

How to Navigate Portland’s STR Permit Process: Insider Tips

Posted on by Will Sing

Unlocking Portland’s STR Permit Maze

If you’re eyeing the short-term rental market in Portland, getting your hands on the right STR permit can feel like solving a complex puzzle. The city’s vibrant market and strict rules mean you’ve got to be on your toes. Luckily, I caught up with Melissa Wright, the go-to expert for all things STR permits in Portland, to help you find your way through this maze with ease.

Type A vs. Type B: Choosing Your Path

Melissa broke down the two main permits: Type A for the casual host looking to rent out a room or two, and Type B for those planning a more extensive setup, renting up to five bedrooms. Your choice here sets the stage for what comes next.

Step by Step Through the Permit Process

For Type A hopefuls, expect a smooth sail. Gathering your paperwork might take a week, with the city typically responding in two to four weeks. Melissa’s pro tip? Keep nudging the city to keep things moving.

Type B applicants, gear up for a longer journey. You’re looking at a detailed review, including traffic studies and architectural plans, with the whole process potentially stretching over six months.

Insider Advice for a Breeze Application

Melissa emphasized two golden rules: ensure your bedrooms meet legal standards and remember the residency requirement. Keeping these in check can save you from future headaches.

What’s on the Horizon for STR Permits?

Good news on the way: Portland plans to streamline the STR application process with a new digital platform. This change, though a couple of years out, promises a smoother path for future STR hosts.

Dive Deeper

For those ready to dive deeper into Portland’s STR permit intricacies, Melissa Wright’s insights are invaluable. Don’t miss out on our detailed discussion for more expert advice and tips. Catch the full conversation here.

Exploring Houseboat Living in Portland, Oregon: Benefits and Drawbacks

Posted on by Will Sing

Houseboat Living in Portland, Oregon: Is It Right for You?

Are you considering houseboat living in Portland, Oregon? If you love the water and crave a unique living experience, houseboat living might be the perfect fit. In this guide, we’ll explore what houseboat living entails, the pros and cons, and help you decide if it’s the right choice for you. Let’s dive in!

What is a Houseboat?

A houseboat is a boat designed or modified to serve as a home. While many houseboats are stationary, some are mobile, allowing for the freedom to move to different docks as desired.

Pros of Houseboat Living

  • Waterfront Living: Enjoy wonderful waterfront views and easy access to water activities.
  • Affordability: Typically, houseboat living can be more affordable than traditional waterfront properties.
  • Mobility: If you don’t like your current location, you can move your houseboat to a different dock.

Cons of Houseboat Living

  • Depreciating Asset: Similar to mobile homes, houseboats usually depreciate over time.
  • Limited Financing Options: Few lenders offer loans for houseboats, and the associated fees can be higher.
  • Maintenance: Houseboats often require more maintenance and upkeep.
  • Ongoing Fees: Expect to pay higher fees, including HOA or mooring fees, since you don’t own the water or land beneath your houseboat.

Is Houseboat Living Right for You?

Only you can decide if houseboat living is the right fit. Here are some factors to consider:

  • Lifestyle: If you seek a flexible, water-centric lifestyle, a houseboat could be perfect for you.
  • Cost Considerations: While upfront costs and ongoing fees can be higher, houseboats can be more affordable than traditional homes.
  • Long-Term Goals: If you’re looking for an appreciating asset, consider condos or townhouses instead.

Things to Consider Before Buying a Houseboat

  • Five to Ten-Year Plan: Think about your long-term goals and whether houseboat living aligns with them.
  • Maintenance Needs: Be prepared for ongoing maintenance and higher costs associated with houseboat living.
  • Financing and Fees: Understand the financing options and the various fees involved in houseboat ownership.

Houseboat living offers a unique and flexible lifestyle, but it’s essential to weigh the pros and cons carefully. If you value mobility and waterfront living, it might be a great option. However, if you’re looking for a traditional home that appreciates over time, you might want to explore other options like condos or townhouses.

If you currently live on a houseboat or have experience with this lifestyle, I’d love to hear your feedback!

Watch the Full Video: Houseboat Living in Portland, Oregon | Real Estate Guide

If you have any questions about buying a home or need more personalized advice, feel free to reach out to me. Connect with me on YouTube, Instagram, or Facebook.

For a more detailed consultation or to get started on your home buying journey, schedule a free strategy session here. You can also access my Free Buyer’s Guide to help you through every step of the process here.

Navigating Home Inspections in Portland: Your Ultimate Guide

Posted on by Will Sing

Buying a home is exciting, but inspections can be nerve-wracking. To make sure your investment is sound, understanding the inspection process is essential. This guide breaks down what an inspector does, how to read inspection reports, and how to tell major issues from minor ones. Let’s explore what you need to know to approach your home inspection confidently.

Home Inspections: What to Expect

A home inspection is like a comprehensive health check-up for a property. Most inspections are performed by general inspectors who identify red flags in a home’s structure and systems. If needed, they will suggest that you consult a specialist for further evaluation, such as an electrician or plumber.

Think of your inspector as a general practitioner. They look at everything broadly and point out areas that need more attention. For example, they might notice an issue with plumbing, but only a licensed plumber can evaluate the severity and cost.

Common Types of Inspections and Costs

In the Portland area, buyers often encounter several types of inspections. Here’s what you should know:

  1. General Home Inspection
    • Cost: $400–$600 (depends on property size)
    • Details: This inspection covers the home’s major systems and overall structure.
  2. Sewer Scope
    • Cost: $140–$175
    • Details: A camera inspects the sewer line for proper connection and damage. This test helps prevent surprises with sewer repairs down the line.
  3. Radon Testing
    • Cost: Often included in general inspections or available as an add-on
    • Details: Radon is a naturally occurring gas. It can accumulate, especially in basements. Proper ventilation helps keep radon levels safe.
  4. Oil Tank Inspection
    • Cost: $125–$150
    • Details: Older homes may have underground oil tanks. These need decommissioning to prevent environmental risks.
  5. Septic Inspection
    • Cost: Varies; the seller may cover pumping costs for inspection
    • Details: If a home isn’t connected to city sewage, a septic inspection checks that the system works properly.

Common Issues Found During Inspections

Inspections often reveal issues. Understanding what’s critical versus cosmetic helps you navigate this stage smoothly. Here are common findings:

  1. Mold
    • Mold is typical in the Pacific Northwest due to the wet climate. Professional mold remediation can fix the issue, provided the moisture source is corrected.
  2. Water in the Crawl Space
    • This issue can be resolved with French drains and sump pumps. Water damage is serious, so addressing it promptly is key.
  3. Dry Rot
    • Dry rot weakens wood. Small areas can be managed with targeted repairs. However, extensive dry rot requires immediate attention.
  4. Rodent Infestations
    • Rodent problems are fixable. Sealing entry points and setting traps usually solve the issue. The cost can range from $800 to $1,000 over several months.
  5. Structural Concerns
    • Vertical foundation cracks usually mean normal settling. However, horizontal cracks or diagonal ones around windows and doors may indicate a more serious issue.

Key Systems to Evaluate

During your inspection, certain systems deserve special attention:

  • Plumbing: Inspectors will check copper, PEX, galvanized, and PVC pipes. Galvanized pipes, for example, corrode from the inside out and may need replacement.
  • Electrical: Watch for outdated wiring like knob-and-tube, which poses fire risks. Also, check the electrical panel. Older panels, such as those from Federal Pacific, can have a higher chance of failure.
  • Roof: The most common types are asphalt shingles, metal, and clay tiles. Asphalt roofs last 20–30 years, while metal can last up to 100 years.
  • HVAC System: Make sure to check the age and efficiency of the system. A new HVAC system is a plus, especially during Portland’s hotter months.

Negotiating After the Inspection

Inspections often open the door for negotiations. Major issues, like a damaged roof or significant plumbing problems, can become points for discussion. However, don’t expect sellers to cover cosmetic upgrades or major remodels. Those responsibilities typically fall to the buyer.

Final Takeaways

A home inspection report can be overwhelming, but it’s an invaluable resource for understanding your investment. Prioritize issues based on their urgency and importance. Remember, every home, whether new or old, requires maintenance. Setting aside part of your budget for repairs and upkeep can help you manage these expenses smoothly.

Have questions or need help navigating the home-buying process in Portland? Reach out anytime. I’m here to ensure everything goes as smoothly as possible.

For more insights, watch the video: Navigating Your Home Inspection: Key Areas to Focus On

The Top 5 Mistakes to Avoid When House Hunting in Portland

Posted on by Will Sing

Embarking on a house-hunting journey can be as daunting as it is exciting. With the Portland housing market’s unique dynamics, knowing what to look for in a home can save you from potential headaches and financial pitfalls. In this blog, we dive into the top five aspects you need to scrutinize to make an informed decision and secure a home that’s both a sanctuary and a wise investment. Watch the full video here for a detailed guide.

1. Inspect the Roof

The roof of a house does more than just top the structure; it protects everything underneath from water intrusion and other environmental elements. A well-maintained roof is crucial for the longevity of the home. Most roofs, such as those made from asphalt shingles, have a lifespan of 20 to 30 years, while metal roofs can last up to 100 years. Ensure the roof is in good condition to avoid costly repairs down the line.

2. Evaluate the HVAC System

Heating, Ventilation, and Air Conditioning (HVAC) systems are pivotal, especially in Portland where air conditioning isn’t standard due to historical building codes. Replacing an HVAC system can cost anywhere from $10,000 to $20,000. Before making an offer, verify the age and condition of the system to gauge any upcoming expenses.

3. Check the Water Heater

Who doesn’t love a hot shower at the end of the day? The water heater in your prospective home should be up to the task. Typically lasting 5 to 15 years, replacing a water heater can cost between $1,500 and $2,000. It’s important to check its current state and prepare for its replacement if it’s nearing the end of its lifecycle.

4. Assess Electrical Systems

Electrical systems are the lifeline of your home’s functionality. Older homes might have outdated systems like knob and tube wiring, which poses a fire hazard. Check the electrical panel brand; for instance, Federal Pacific panels are known to fail and could cost $4,000 to $8,000 to replace. Ensuring the electrical system is up to date will save you from potential dangers and expensive upgrades.

5. Plumbing and Pipes

From copper to PEX, the type of plumbing in a home can significantly impact its maintenance needs. Copper and PEX are preferred for their longevity and reliability. However, CPVC can become brittle, and galvanized pipes may corrode internally, leading to rusty water. Understanding what type of pipes are installed will help you anticipate maintenance or a complete replacement, which is crucial for long-term planning.

Bonus Tip: Structural Integrity

Lastly, don’t overlook the structure itself, including the foundation and walls. Signs of excessive sagging or diagonal cracks around doors and windows indicate undue stress. Horizontal cracks in the foundation are particularly serious, signaling potential structural failures.

Conclusion

House hunting is more than just finding a visually appealing space; it’s about ensuring the home you choose can stand the test of time without burdening you with unforeseen repairs. If these tips were helpful, consider subscribing to my instagram or youtube channel for more insights into navigating the real estate market effectively. For a deeper dive into what to watch out for when buying a home, check out our full video here.

If you are wanting a more in-depth chat, schedule a time to meet or contact me at hello@agentlivinginpdx.com

Your feedback is invaluable—drop us a comment below with your thoughts or additional tips you’d recommend. Happy house hunting!

Portland Oregon Real Estate Market Update for April 2024

Posted on by Lily Ray Wyss

What we discuss:

Multiple offer situations returning to the market.

Seller motivation returning to the Portland Real Estate Market.

New predictions for interest rates.

Listings are UP UP UP!!!

We are finally seeing a huge increase in listings to the market with 2,425 homes hitting the market last month, a 16% bump.

While high rates have maintained, buyer demand has been strong over the last month or so (and seem to only be increasing) and sellers are finally following suit.

Pending sales increased by 22% with 2,138 homes going under contract.

And sold homes saw an increase of 23% with 1,578 homes going to new homeowners.

Inventory went DOWN to 2.3 months which shows that even with the big boost of new listings buyer demand is so intense that the inventory is being quickly absorbed.

While we are finally seeing this new activity show in the data I will say that the new bump in activity has increased even more in the last two weeks.

At certain price points clients are seeing a huge jump in the amount of homes available to them.

BUT we are also seeing a major increase in buyer competition.

I helped one client write an offer on a home last weekend that got 15 offers and went for almost $200k over the asking price.

This was the coolest house in the hottest neighborhood but shows that we are re-entering a true hot seller’s market.

On new homes to the market that are getting a lot of activity, you can expect that they will likely sell for $50k+ over asking at this point.

But as a homebuyer don’t let this worry you too much.

This is where strategy will come into play for us.

If you want the cool home in the hot area we will just want to make sure that we are shopping well below your top budget so we have room to offer up.

And if you don’t want to deal with bidding wars we can view the great homes that are still sitting on the market from the last market and or we can view homes in the areas that are still amazing, but don’t have hoards of buyers circling them.

Also, we can talk about which homes draw a lot of attention and which ones don’t. People tend to be really drawn to homes with extra living spaces, fresh upgrades, character homes, etc. So if you are also attracted to those style of homes be ready to compete. We can also talk about how you can add those things into a home later so you don’t have to deal with that competition and can be the one to gain the equity from those upgrades.

In terms of interest rate predictions, unfortunately I don’t have the best news here. It is no longer predicted that we will see rates lower 2-3 times this year as originally predicted. Now it is said that we should only see 1-2 rate drops and that they won’t happen until late in the year.

For home sellers, this is your market. If you have been on the sidelines waiting to sell your home, now is your best chance to enter the market.

As mentioned above, buyers are out shopping and they are ready to buy.

Not every home is selling for over asking, in the first weekend, but the ones that are priced right, marketed well (things I help you with), and prepped properly, are.

If you want your house to sell with multiple offers, well over asking, with strong terms, and for it to sell quickly, listing your home in the next few months may give you the highest chance of that.

Whether buying or selling, or both, strategy and education are going to be huge in order to be successful in this new market. But luckily I am here to help you with it all.

If you want to talk about your options and your future move I am here for you. You can find my contact information below.

House Hacking Success Story in North Portland

Posted on by Will Sing

I am thrilled to share a success story. It’s the story of Amanda and Shiv, a determined couple who embarked on a house hacking journey with dreams and a clear vision in their minds. Let’s dive into their journey!

The Dream: House Hacking in North Portland

Amanda and Shiv had been on the lookout for a golden house hacking opportunity for over a year. For those new to the term, house hacking involves buying a multi-unit property, living in one unit, and renting out the others to offset your mortgage. It was a dream they nurtured, and I had the privilege to guide them in this journey, equipped with my custom deal calculator to run the numbers meticulously.

The Find: A Duplex with Potential

Our persistent search led us to a promising duplex in North Portland. A place that whispered potential and promised a positive cash flow in just the second year! Yes, it required a bit of a nudge to enhance the rents, but nothing too daunting.

The Victory: Winning Against the Odds

In the competitive Portland market, we found ourselves up against another eager offer. But Amanda and Shiv had a winning spirit, and guess what? We won, securing a place that was more than a house; it was a canvas of opportunities.

The Inspection Period: A Time of Diligence

Entering the inspection period, we rolled up our sleeves, ready to delve deep into every nook and cranny. We scrutinized the property’s financials, keeping an eagle eye on the major issues. Our diligence paid off, securing a substantial $7,500 towards a new roof and a comforting home warranty to boot.

The Closing: A Happy Beginning

As we neared the closing, the joy was palpable. Not only did we secure the home, but we also managed to get a generous $9k in closing costs. Amanda and Shiv were all set to move into their new abode, ready to infuse it with their personal touch, one improvement at a time.

Conclusion

Today, Amanda and Shiv are happily settled in their unit, gradually transforming their space while enjoying the benefits of house hacking. Their story is a testimony to what determination, the right guidance, and a bit of house hacking savvy can achieve. Here is what they had to say:

Will was super helpful throughout the entire home buying process. He has a lot of knowledge about different types of housing options and knows the Portland area really well. He wants his clients to feel good about their purchase and we definitely do.

Inspired by Amanda and Shiv’s story and keen to start your own house hacking journey in Portland? Reach out to me at 📞 503-303-0822 or 📧 hello@agentlivinginpdx.com and let’s turn your home buying dream into reality!

Q1 Real Estate Market Update: Multnomah County

Posted on by Living Room Realty

Portland Real Estate Listings and Sales Slump in the First Quarter of 2023

A population decline hasn’t produced a drop in home prices

Activity in the Portland real estate market slumped in the first quarter of 2023, with new listings, pending sales, and closed sales all falling compared with the year-ago period, according to the latest report from the Regional Multiple Listing Service, a firm that tracks sales in the Northwest.

RMLS doesn’t give reasons for market changes, providing just data, but higher interest rates have been weighing on the market for months, and they appeared to suppress activity again in the first quarter. New listings fell 25% to 6,389, pending sales dropped 30% to 5,358, and closed sales tumbled 34% to 4,340, RMLS said.

Prices, meantime, held firmer, with the median sale price falling just 2.8% to $514,900. Inventory in March 2023 rose just 0.9% from March 2022, RMLS said.

Aryne Blumklotz, a broker at Living Room Realty, says the market is in flux because the outlook for interest rates is so murky. Rates on 30-year fixed-rate mortgages have gyrated between 4.72% and 7.08% during the past 12 months, according to Freddie Mac. They stood at 6.28% on April 6.

“There is no rhyme or reason to this market,” Blumklotz says. “If interest rates would just hold, we could all get our heads around it. The changes make people anxious about buying and selling.”

Some houses are sitting on the market, Blumklotz says, while bidders fight over others. A property in a posh eastside neighborhood got four offers, all of them over $1 million, and all in cash, she says.

“We were as aggressive as we could be,” Blumklotz said of her bidder.

Buyers are still coming to Portland from out of state, Blumklotz says. She has represented several from California, one of whom closed this week and another coming later this month.

Those sales are good news for sellers amid the shrinking population in Multnomah County. The county’s population stood at 795,083 on July 1, 2022, down 1.3% from 805,593 a year earlier, the U.S. Census Bureau said on March 30. Multnomah’s population fell by about the same amount in 2021.

Read the full article by Anthony Effinger in the Willamette Week HERE.

Portland, Oregon Housing Market Forecast with Jenelle

Posted on by Living Room Realty

Known for its great food and arts scene, Portland, Oregon, has become an increasingly popular place to call home for singles and families alike. As such, Jenelle Etzel, founder and CEO of Living Room Realty, isn’t surprised by the fact that demand for homes in Portland is still solid even with mortgage rates being as high as they are today.

But Portland’s housing market is a tricky one to navigate due to extremely low inventory, so if you’re looking to buy in the Portland-Vancouver-Hillsboro area, you’ll need to be prepared. Here’s what you need to know about the market today and looking ahead, based on information from the U.S. News Housing Market Index.

How the Portland Housing Market Changed in 2022

Single-family home construction slowed down in Portland in 2022 compared with 2021. Based on data from the U.S. Census Bureau, permit activity for single-family detached homes dropped from 536 in January 2022 to 375 in January 2023 – a 30% year-over-year decrease. Permit demand peaked in May 2022 at 651, but by the end of the year, it had plummeted to 335, a 48% drop.

A slowdown in single-family housing permits isn’t surprising to Etzel. “Portland has pretty tight urban growth boundaries, so it’s been hard to have new construction,” she explains. “But we need it to happen, and we’re starting to see some building happen.”

Construction for multifamily homes, however, increased in 2022. In January 2023, there were about 698 housing permits issued for buildings housing two or more units, compared to about 569 one year prior. That’s an increase of almost 23%. Permit issuances peaked in February 2022 at 575 units, after dropping since December 2021. Since then, permits were on a downward trend until starting to rise in June. They didn’t regain to the February level until September, but ended the year at 782, a 16% increase.

Portland Housing Supply and Demand

A slowdown in single-family home construction is the last thing the Portland market needed over the past year. That’s because, as Etzel explains, a lack of inventory has long been a problem in Portland.

“Portland supply is super low,” Etzel says. However, there’s a silver lining.

“The market was becoming impossible a year ago,” Etzel says. But “having interest rates rise and forcing some people to have to sit out the market has balanced out the market a little bit.”

As of January 2023, based on data from Redfin, inventory in Portland sat at a 2.6-month supply. That’s actually an increase of 1.73% compared to a year prior. But it can easily take a six-month supply of homes to balance the real estate market and allow for enough inventory to meet buyer demand.

For context, on a national scale, housing supply in January 2023 sat at a 3.2-month supply, representing a 1.71% year-over-year increase.

Meanwhile, the rental vacancy rate for Portland as of January 2023 was 4.8%, representing a decrease of 0.8% from one year prior, based on data from the U.S. Census Bureau. The U.S. rental vacancy rate for the fourth quarter of 2022 was 5.8%, putting Portland’s vacancy rate below the national average.

Because there’s so much demand for homes in Portland, Etzel says, “We are technically still in a seller’s market here. We still see multiple offers on great homes, and I don’t expect that to change.”

However, sellers are making more concessions. “Sellers know they have one or two backup offers, but they don’t have 30 people waiting in line,” Etzel explains.

It’s also worth noting that for the week ending March 17, 2023, mortgage applications increased 3% from one week earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. On an unadjusted basis, the Market Composite Index, a measure of mortgage application volume, increased 3% compared with the previous week.

That same week, the average contract interest rate for a 30-year fixed, confirming mortgage decreased to 6.48% from 6.71% the previous week. But even with that decrease, borrowing has clearly gotten expensive.

Still, Etzel doesn’t think mortgage rates are impacting the Portland real estate market all that much.

“The interest rates are making way bigger news than they deserve,” she insists. And while Etzel does think mortgage rates will go down in time, she also thinks that “people are going to get comfortable again with the interest rates we’re seeing today.”

But while higher mortgage rates may not be affecting the Portland real estate market dramatically, it’s hard to overlook the fact that consumer sentiment is down. In January 2023, consumer sentiment sat at 64.9, according to the Survey of Consumers from the University of Michigan. A year prior, it sat at 67.2.

Portland Real Estate Market: Predictions

Etzel doesn’t expect the Portland housing market to change drastically over the next year. However, she thinks mortgage rates have the potential to drop, which could result in an uptick in buyer demand.

“I think the next 12 months are going to look similar to what we’ve been through,” she says. However, if rates drop, “In a market like we have where we don’t have the supply, I think it’s going to force a lot of folks back into a competitive environment.”

Meanwhile, Etzel says recession fears are not really a concern in the context of the Portland housing market. In Portland, wages have increased, she explains, and unemployment is still relatively low.

Because of this, “Owning a home looks like a good tactic to secure some financial stability,” says Etzel. “It doesn’t look like a very big risk.”

Looking to learn more? Reach out directly to get in touch with an expert agent today!

503-719-5588 | welcome@livingroomre.com

 

 

 

 

 

Read the full article from US News by Maurie Backman HERE

 

My 3 P’s for a Changing Market

Posted on by Robin Hakeman

As we head into a shifting market the conversations I’m having with my clients are taking on a new tone once again. Interest rates are up, buying power is down and some homes are staying on the market longer than 5 days (gasp!). Last summer the brokerage asked us if we could tell Buyers & Sellers one thing, what would it be?

My answer: be PREPARED, PATIENT & PERSEVERANT.

be PREPARED: 

It’s important to work with an agent who is keeping up with the changing market. Have a plan before you start shopping for homes or listing your home on the market. Get an pre-approval with current rates to fully understand your buying power. If you are gearing up to sell this summer, spend extra time discussing pricing strategy with your agent. Past sales data is a great starting place but understanding the nuances of the changing market is also extremely important right now. Take your agent’s advice on how to get your home ready for the market – buyers are soon going to have more choices & will not feel as rushed into selecting a home. Make sure your home stands out!

be PATIENT: 

Make sure to go over expectations with your agent before listing your home. In 2022, market time has decreased by 21% compared to 2021 however that is expected to change. Especially as we head into the summer months where things typically slow down a bit. If you are heading out to start home shopping, know that fewer listings may be coming on the market in July & August. Take your time if you can!

be PERSEVERANT: 

These next few months (maybe years) are going to look a lot different than what we are used to. If you find yourself with a home staying on the market longer than a weekend, it’s going to be ok. Have a plan and communicate with your agent regularly. Buyers who have been fighting the good fight, writing offer after offer may start to find some relief with less competition. If increased rates have lowered your buying power, talk to a lender about creative options that may work for you. Don’t give up!

See the full instagram post here!

Is early Spring 2021 the time to list?

Posted on by Jené DeSpain

For many sellers, a crucial aspect of putting their home on the market is timing. “When is the best time to sell?” is one of the main questions I am asked as a realtor. Understanding demand, market climate, and current lending rates can all be influential factors for when a seller decides to list. While late Spring and Summer historically tend to be the “hot season” for new listings, the early Spring weeks of 2021 might be just the perfect time to put your property up for sale.

As our Living Room Realty community can tell you, we are experiencing record lows of available houses on the market. With interest rates at surprisingly low percentages, new buyers are flooding into the scene hoping to score their first time home. As of this week’s market report, the median price for a home in Portland Oregon is $695,000 with only 535 active listings available. In every Portland neighborhood, prices have increased a significant amount from the start of 2020 to today.

 

So what does all this new data point to? If you are considering making a move this year, these next few weeks might be an exceptional time to bring your home to this hungry buyer community and capitalize on this strong seller’s market. If you are wanting to learn more about your home’s Spring 2021 value, discuss options for listing your house while trying to find the next right place to move into, or want to hear what safety protocols I have developed to prioritize my sellers’ safety during Covid, please reach out to me with an email at jene@livingroomre.com or call me directly at 503-780-6270. I would be delighted to connect and share more details about cultivating a listing strategy that focuses on your best success.

How’s The Market? March 2020 Update

Posted on by Erika George & Kari McGee

This is always our most asked “realtor at a party” question, but boy is there a lot of heat around this question right now. Our high energy spring selling season seems to have started a month early and the buyer audience is clamoring for new listings! Our HouseLovePDX 2020 listings thus far have all had multiple offers resulting in “over asking” sales prices. Colleagues are telling stories of 18, 20 and even 30 offers at a time for that perfect pad. Here’s why:

  • Inventory continues to be low at 2.2% (that means it would take 2.2 months to sell everything that is currently on the market in the greater Portland area, if no new listings were added to the market). In many “close in” Portland area neighborhoods, that number is more like 1.6%.
  • Interest rates are hovering under the 3.5%* mark which means that money is incredibly cheap. (*3-4-2020)
  • Oregon is in a never-before-experienced year 11 of economic growth. We’re going to say that again: 11 straight years of economic growth. Traditionally Oregon has a recession every nine years or so. We are in some seriously uncharted waters, people!

So, what do we think? Well, we think that if you are considering selling in the next few years, you’ll want to seriously consider selling ASAP, or plan to hold for a few years to get through a down turn. Data just can’t help us out here so this is our gut feeling. Heck, data can’t even help us out with appraisals right now because the market data for our sluggish and low energy fourth quarter 2019 in no way reflects the buyer demand (resulting in a large increase in sales prices) for property we are seeing right now.

Our guess is that by late summer the strong seller position that we are experiencing right now will have run out of steam just in time for the election to be taking center stage. Come September 2020, the Portland buyer audience will likely be even more distracted than normal with the election frenzy. Additionally, we think that it’s highly likely that late 2020/early 2021 will bring on some kind of recession or market softening (along with all the economic forecast folks we’ve been following).

The good news? Fourth quarter 2020 could be an awesome time to be a first-time home buyer! The wild card? Interest rates. It’s really hard to pass on a 30-year fixed rate mortgage with interest rates UNDER 3.5% (as of 3-4-2020)! That’s a lot of money saved if interest rates go up, even if prices go down in many cases. (Here’s a good article on buying power and the relationship of interest rates vs sales price.) Unfortunately our gut feeling has opted out of trying to predict 2020 changes in interest rates given the whole never before 11-year economic growth cycle coinciding with the highest ever national debt amount of $23.3 trillion.

If you are a seller and want to explore the idea of selling sooner rather than later, give us a call and we’ll schedule a walk through of your property and develop a custom listing plan that makes the most sense for you and for your property.

If you are a buyer and want to take advantage of the incredible low interest rates, we’re here for you too. We’ve had success for our buyer clients in all kinds of markets and while it can just take some time and a few offer attempts, we have some tricks up our sleeves to strengthen your chances of getting an accepted offer in a multiple-offer situation.

And having said all of the above, real estate sales happen all the time regardless of what the market is or is not doing. If you need or want to make a change, we can help you make informed decisions in all kinds of markets. We’d be happy to review your situation and help you evaluate your options.

The Market in Focus: Interest Rates & the Portland Housing Market

Posted on by Aryne + Dulcinea

By Aaron Nawrocki, Capital M Lending

It’s been an exciting 2018 so far in the stock and bond markets. The broad indices are down over 10% from their peaks. Treasury Bond and mortgage rates are at a four-year high. It may be a good time not to look at your 401k statements, but what about the effect on home prices and the Portland housing market?

Higher interest rates make homes more costly, even if prices don’t rise. The higher cost of borrowing generally slows price increases. If we looked back over the last 20 years, we’d see a general correlation between rates rising and prices stalling. Mortgage interest rates are up about .5% over the last month, and for the average Portland homebuyer that means an increase in monthly payment of about $150. That’s enough to slow appreciation down somewhat and that’s exactly what the Fed hopes to accomplish with their rate increases.

Is it the second coming of 2009? Not likely. Interestingly enough, a moderate increase in borrowing cost can slow price increases, but rarely does it dramatically slow the market. Buying a home is a serious decision and typically the largest single financial transaction a family will make. Most buyers make the decision to buy a home based on their financial prospects and choose the price based on the monthly payment. So, interest rates don’t necessarily keep folks from buying, but they do affect the price they are willing to pay. We have a growing economy with a shrinking middle class (that’s a discussion for another day) and many Americans feel confident about their jobs and prospects. That confidence is what make buyers feel comfortable about buying homes (and is much more important than interest rates in the buying decision.) We learned this during the recession. Lower interest rates and lower mortgage payments don’t bring buyers in from the sidelines if they are worried about their jobs.

As the Fed works to smooth out and proactively dampen the economic cycle, watch for a brief slowdown while buyers and sellers receive and react to rates. Once the new normal for interest rates is accepted by the Portland housing market, it’s likely we’ll see buyers continue to enter the market. Portland is a desirable destination and still affordable for many potential homebuyers. We’ll see if the rate changes are a correction or a sign of things to come. For now we expect robust sales and a healthy market balanced between buyers and sellers.

 

Aaron Nawrocki has over 20 years of direct experience overseeing mortgage and loan processes, working to provide clients the market insight and lending expertise required to make informed decisions.

 

About Us:
Over the course of their professional partnership, Aryne + Dulcinea have helped over 200 clients prosper in their new lives. During this time, they have prided themselves in their top-notch selling abilities, with homes outperforming market standards, consistently exceeding list price while most of their listings sell in under 7 days. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching your real estate goals.