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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.
Hi, I’m Julia Robertson, Living Room Realty’s new Designated Managing Broker in Washington. I’m here to tell you what you need to know about the market for Early August 2024.
Over the last decade I’ve personally witnessed Vancouver, Camas, and Ridgefield blossom. The area has a rich history and the overall vibe is clean and safe. The cost of housing and utilities in Vancouver are below the national average, 11% lower than the state average. When we compare Vancouver to Portland, housing is 39% lower and the cost of living is 16.5% lower. Of course you have your outliers: luxury, lakeside living, and riverfront communities- but overall your dollar is stretching further here.
Did you know that Vancouver is an extension of Portland Metro? The two locations live differently, but at the same time, living near the Columbia River gives you the best of both worlds.
Living in Washington has its luxuries, such as lower property taxes, no state income tax, larger parcels of land, affordability, accessibility to outdoor recreation, the ability to shop with no sales tax, and easy access to the Portland international airport. It’s what makes living in SW Washington unique!
Vancouver itself offers a more suburban feel compared to the bustling city atmosphere of Portland. This might be appealing if you prefer a quieter, more community-focused environment. The downtown Vancouver area has a mix of historic architecture and modern developments, a vibrant public art scene, which is experiencing growth and revitalization with new businesses, restaurants, community events and farmers’ markets. Camas is another suburb with a strong sense of community and is known for its highly regarded public school system. Camas and Wahougal are the gateway to the Columbia river gorge.
If there’s one thing home owners love to hear, it’s how much equity their home has earned from the previous year, so let’s talk about the market in Clark County. When we say Clark County and the greater Vancouver area, we’re talking about areas such as Camas, Washougal, Ridgefield, Battle Ground, Vancouver and everything in between.
In a report given on August 5th by the NorthwestMLS, Clark County Washington home prices have gone up 4.58%, since this time last year. Available listings are up 37.7% and closings are up 12.12%. Active listing inventory is at the highest it has been in the last 5 years. With this much inventory, homes are still selling fast, and at Living Room our most recent listings in these areas have an offer within the first 2 weeks of being on the market. 1-2 offers are coming in at listed price or just below. This is a good market for both Sellers and Buyers!
Living Room Realty is committed to connecting you with as much information to help you make an informed decision. We have dual licensed Brokers that can help you explore both sides of the river > If you’re ready to make a move to the Couve, give us a call today, we’d love to help you find your next Living Room.
Hi, I’m Kim Parmon, listing specialist and Principal Broker with Living Room Realty here to tell you what you need to know about the Portland Metro market for mid May, 2023.
You’ve likely heard that the way real estate commissions are structured will soon be changing. Starting in August of this year, buyer agent commissions will no longer be advertised as part of a house listing’s marketing.
This means that buyers and their agents will need to agree on a compensation structure before touring properties. In the event that a seller won’t agree to pay for the buyer’s agent’s commission, the buyer would be responsible for paying for their agent’s fee as well as their down payment and closing costs. Yikes!
I am a listing agent only, and yet I still believe that working with a quality buyer’s agent is the right move for EVERYONE in a real estate transaction. Why does working with a buyer’s agent matter anyway? We’ll get to that in a second.
Despite higher mortgage interest rates sticking around longer than expected, we are still in a strong seller’s market where competition over good homes is normal. At Living Room this week the average days on market for homes was less than a week across the board!
Remember, selling your home, period, is not the goal: I can offer you $5 for your house it right now. Do you want to sell for that price? Of course not! The goal is not AN offer, it’s THE BEST offer that works for you.
As a listing agent, I want to make sure my clients are not only choosing an offer with the best price and terms, but with the greatest chance of making it to closing with the least amount of stress. Which is EXACTLY why working with a buyers agent is so important.
A strong buyer’s agent understands the current market conditions and also will be able to help a buyer research a home and talk through potential concerns before even submitting an offer in the first place, reducing the risk of the buyer walking away due to cold feet. They can help make sure the buyer is sticking to their goals and plans, that their choice of home fits within their budget, and that the buyer is aware of a host of details that they aren’t thinking about when they’re excited because they just saw a cute home that they love.
As a listing agent, I’m listening for how buyers’ agents respond to disclosure items, how they ask questions, and I’m generally interviewing them to see how adept they are at navigating potential issues during the buyer’s many contingencies.
Having a strong partner helping guide a buyer through a complicated, stressful process full of pitfalls and liability makes the chances of success (for both the buyer & seller) significantly higher. As I always tell my clients, someone can offer you hundreds of thousands of dollars above your list price, but it’s all Monopoly money until they actually close. A great buyer’s agent’s job is to help their client navigate this process and smooth out the kinks. We may be on opposite sides of a transaction, but we have the same goal: to make it to closing!
Do you have questions about why working with a buyer’s agent may or may not be the right move for you? If so, reach out! We are fiduciaries whose job it is to help you figure out the best possible moves for YOU in this market.
If you’re ready to make a move, call us today, we would love to help you find your next Living Room.
Hi I’m Jacob Weigel with Living Room Realty. I’m here to tell you what you need to know about the market for Mid April 2024.
Anyone who’s familiar with the 12 seasons of Oregon (or allergies) knows that we are currently in the Pollening. And with all the itchy eyes & blooming flowers and trees comes the spring market, which is heating up – but there is a tale of two listings within this data. Pending sales are up 2.8% month over month, but this doesn’t tell the full story.
Let me tell you about what I refer to as “depressed inventory.” New listings are up 16.3%, new pendings are up 22.7%, and closed sales are up 22.9%. HOWEVER, total market time went up? Are days on market and a rise in pending transactions mutually exclusive data points? Nope – they are not.
Listings within living room realty are currently seeing an average of 3.5-4.5 offers per week, and averaging $20-$30 thousand over asking.
While more inventory is coming on the market, a ton of listings that have been sitting for many weeks. This market is a price war and a beauty contest. If you are an active seller in this market, you need to make sure your asset looks good and shows VALUE.
Last week the fed signaled that our current interest rate market is here to stay longer than investors previously thought. While the buying demand continues to stay strong, buyers are less and less willing to take on repairs without seller concessions. If you are a home seller – listing prep is EVERYTHING.
Reach out to a professional like myself to consult around what the highest value adds are that can be done prior to going on the market. It’s never too early to be thinking about this. I have many clients who have consulted with me on design elements for up to one year prior to their desired launch date to market
Any of these additions to your property should be giving you greater than a dollar for dollar return. This is exactly what a good agent can help build a plan around.
Living Room Realty is committed to connecting you with as much information to help you make an informed decision. If you’re ready to make a move, give us a call today. We’d love to help you find your next Living Room.
What we discuss:
How we are seeing higher real estate market activity across the board.
The benefits of this market for sellers.
How competition is high for buyers even though rates are still high.
The NAR settlement.
The Spring real estate market is in full swing and it shows in the numbers:
New listings were up 7% last month with 2,085 homes hitting the market.
Pending sales were up 16% with 1,742 homes going under contract.
Sold home activity was up 16% with 1,284 homes going to new homeowners.
Inventory of homes went back below 3.0 months down to 2.8 months.
The average sales price also did not move much with an average of $609,000.
Overall we have been trending back to a hot sellers market and that market is here.
Even with high interest rates (which unfortunately are predicted to stay at current levels through the summer) buyers are finding new motivation and are out there and ready to buy.
If you are a potential home seller this is great news.
When we take the proper steps to prep your home, stage it, market it and most importantly price it right (this is especially important with rates still being high) we have a higher likelihood of entering into a multiple offer situation than we have seen in the last year or so.
We should see buyer activity remain high through the rest of the Spring and early Summer but it will likely tapper off as we head further into the year. So time is of the essence to some degree if you are looking to take advantage of the current market.
If you are a home buyer or someone thinking of buying a home this year, competition certainly is back.
When we find a home you love, you can expect that you will likely be competing with at least one other buyer.
But don’t fret, we have a bunch of high level negotiation strategies we can use to help you compete and win.
Also, if you have seen the news lately, you have probably heard of the NAR (National Association of Realtors) Settlement regarding agent compensation and transparency. I talk a bit about it in the video above (I believe around minute 5) but if you have any questions and or want to talk about it in more detail I am here.
And as always, if you are wanting to talk more about your Spring home buying or selling plans I am here for you. While this market is seeing higher activity overall, different areas/price points/style of homes have their own unique micro markets, so its important that we talk one on one about what you can expect based on your own needs. You can find my contact information below.
Hi I’m LeAnn Raschke, a licensed OR & WA broker at Living Room Realty, here to tell you what you need to know about the market for late March 2024.
With the re-emergence of the sun, the first day of Spring, and the cherry blossoms afoot, it’s hard not to notice Portlanders have a bit more pep in their step! Welcome to the spring real estate season, where the chill of winter thaws, and a new cycle of opportunity begins!
For Sellers, Spring is typically the ideal time to list your home. With longer days, warmer temperatures and gardens blooming, properties tend to show better, attracting more potential buyers.
With that, over the last 2.5 months, we’ve seen new listings slowly make their way to market. There has been an average of 72 new listings per week across the entire Portland Metro Market since the beginning of 2024.
So, just as the Spring brings warmer weather, it also brings competition.
Buyers have now adjusted to the 6.5 – 7% interest rates, and they are awakening from their winter hibernation.
In our office, which holds the number one market share in Portland, we’re seeing multiple offers on new listings that are priced well and move-in ready.
Many lending experts are predicting that we won’t see rates fall much further through the end of the summer.
In this ramp up to a busy season, it’s crucial for buyers to act fast and for sellers to price their homes strategically.
Buyers, in this market, now more than ever, it is crucial to have a knowledgeable buyers agent on your team. We will help you navigate this wild time by providing up-to-date information on new market listings, getting you to the negotiating table with strategically strong offers and guiding you gently through to closing.
If the buzz of competition isn’t for you, this is a great time to schedule a strategy session with your agent to examine your home buying goals so you’re in a better position when you are ready to take flight.
Whether you’re buying, selling, or simply dreaming about your next move, give us a call today. We’d love to help you find your next Living Room.
What we discuss:
The Spring Real Estate Market already coming to town.
How home buyers can be set up for success in a hot market.
And what opportunities this new market will have for home sellers.
Want to co create your winning home buying and or home selling strategy together? Let’s chat. Reach out at the contact information below.
Howdy, I’m Steve Brian, broker at Living Room Realty. Today I’m taking a deep dive into the age-old question: Should I continue renting, or should I buy my own home?
Well, it’s a nuanced conversation that doesn’t have a one-size-fits-all answer. So I’m gonna take you on the adventure of looking at all the math with you. Oh don’t worry, I’ve got my trusty TI- 84 here to help us crunch these numbers. Let’s do this!
For this case study, we’re going to use the average sale price of a 2 bedroom 1 bath house in Multnomah County in December of 2023, which was roughly $430,000 at the time I ran these numbers. I’m also gonna put taxes at $4,000 a year and insurance at $1,200 a year.
Using these numbers as our “control”, let’s really take a look at what the actual costs of buying and owning a home are. There are three main costs I’m going to break down: The actual cost of purchasing the home; the cost of the mortgage; and the cost of maintenance.
First, you’ve got the down payment, which can range anywhere from 3-20% (or more) but for this case study, we’re gonna go with 5% down or roughly $21,500. Next, you’ve got the inspection fees, which are gonna be around $1000.
Then there are the closing costs and prepaids: things like lender fees, prepaid taxes, title and escrow fees, etc. For this specific price range, these are probably going to be somewhere in the $10,000 range.
Just a quick side note: Agents used to say things like, “As your buyer agent, I don’t actually cost you anything and, since my commission is coming out of the sale from the listing agent, I’m basically free.” While that’s sort of true, I’ve always felt that it’s a bit misleading, as you are, in fact, paying a slightly higher price in order to have representation. However, that buyer’s agent commission is not actually a hard cost that comes out of your own pocket, it comes out of the total cost of purchasing the home. All in all, that commission would be around $10,750 – but for this scenario, we’re not going to include it in the cost of purchasing the home, since it’s not a hard cost.
Now, I could have an entirely separate video on what a buyer’s agent brings to the table but, for this example, let’s say that we both agree that you should definitely have a buyer’s agent in your corner (wink -ding sound, hold for a beat).
Okay, moving on.
So to review we’ve got…
That brings us to…
Now this one is a little easier than the actual purchase of the home. You’ve essentially got the principal balance and the interest you pay on that principal balance along with the taxes and the homeowner insurance.
So with our theoretical home purchase being $430,000 at a 7.5% interest rate (which is almost an entire point higher than current rates as of the time of this recording) your all in monthly mortgage payment is going to come in at roughly $3,450
Which brings us to…..
In general, you should plan to spend 1% of the sale price of your home every year to maintain the home. For our example here that would be $4,300 but for the sake of ease let’s just round that out to 5K even.
Summarizing all three of these costs:
Now setting aside all the avocado on the floor moments and memories you make in this home, which are the emotional reasons for buying a home, there’s also the financial gains you make in home ownership. To calculate this, I did some historical comparisons and it’s safe to say that, over time, through the ups and downs, the housing market conservatively appreciates at about a 5% increase year over year.
This means that at the end of 5 years, the home you paid $430,000 for is now worth $550,000, leaving you with $120,000 of equity.
Okay now, let’s say it’s 5 years later and you’re looking to sell this house,
To keep this simple the total costs of selling this home subtracted from the equity you will have gained, will be around $30,000 dollars for an investment that you got to live in while you would have otherwise been paying rent.
Keep this in mind for later: All things considered, to buy and sell a house over 5 years, you will make a profit of around $30,000 and it will cost you $3,450/month for your mortgage.
Now, let’s talk about the cost of renting. This is much less complicated. When I ran this report the average rent in Multnomah County for 2 bed 1 bath houses was around $2,300.
For the 5 year comparison, we factor in an increase of 3% per year, which is justified by the annual property tax increase. This will give us an average rent of $2,450 a month for the first five years.
So on the rental side of the coin, you save: $1,000 a month; $12,000 a year and over 5 years, you will have saved up $60,000.
Remember the $32,500 that we were going to spend on a down payment, closing costs & inspections? Well since now we’re renting and not buying, let’s add that to the $60,000 and you’ve got $92,500 cash in hand at the end of 5 years.
On the homeownership side of the coin, after 5 years you’ll have roughly $140,000 in equity.
Now let’s pretend you didn’t buy this house, but it’s 5 years later and you’re looking to purchase it now.
By the time we hit this 5 year mark, and assuming a 5% year over year appreciation rate in the housing market, the same home that was $430,000 dollars is now around $550,000 dollars.
Which means if interest rates stay the same, you would need roughly $130,000 toward your down payment and closing costs to purchase the same house five years later, if you wanna keep that same monthly payment around $3,450.
Now I get that interest rates might come down, but they also might go up. There’s no crystal ball here. But if they do go down, you have the ability to refinance and bring your monthly payment down.
So how much do you save by renting over the first 5 years? $1,000 a month.
How much do you lose? Well, that’s not as simple, there are a handful of variables to consider here-Inventory, Prices, Interest rates. Any fluctuations in these factors affect the equation for each of us individually on whether we should rent or buy.
To wrap things up, whether you rent or buy is a nuanced conversation, but hopefully this information helps give you more context for your own situation.
If you’re ready to make a move – whether it’s to rent or buy, call us today. We’d love to help you find your next Living Room.
Hi, I’m Tracey Henkels, principal broker at Living Room Realty, here to tell you what you need to know about the Market for late January, 2024
I don’t know about you but I’m having major de jevu!
The last few years the real estate market has felt shockingly akin to the days of the subprime mortgage crisis of 2008. Let’s look back at the stats for the Portland Metro area to see just how similar the numbers are: In 2021, before interest rates started rising, the number of closed transactions was 35,182 – compared to only 20,941 transactions in 2023 when interest rates hit a high of 8%.
That’s over a 40% decrease within a 3-year timeframe and nearly IDENTICAL to the contraction we saw when shit hit the fan in 2008.
Ok, check this out: In 2006 there were 32,403 transactions closed. By 2008, it dropped drastically to 19,132. Again, a 40% decrease over 3 years.
The good news: this year is going to be a GORGEOUS time to make a move! All signs are pointing towards interest rates continuing to drop throughout 2024 and into 2025. Many are predicting that rates could even drop below 6% by the end of this year!
With that in mind, let’s do a quick recap of the concept of supply and demand.
As real estate agents, we don’t set the price – in fact, the seller doesn’t even really determine the price. It is based on the “demand” in the market, driven by the volume of buyers. And “supply” which is simply the available homes for sale. With so many buyers AND sellers waiting…and waiting and waiting some more…, we are soon going to have the largest pool of buyers in U.S. history! With very little inventory to show (or sell) unless sellers finally get off the fence.
So what does that mean for you?
Whether you’re a buyer or seller, the longer you wait, the more competitive it’s going to be, as the inventory of homes remains low, but the demand continues to rise along with the prices. Waiting to try and time the market until interest rates drop to 5.5 – 6% may sound like a good option, but my advice to both buyers and sellers would be to get in the game now before the flood gates open.
If you’re ready to make a move, call us today, we would love to help you find your next Living Room.
No one knows for certain what 2024 has in store in the world of real estate. But in the video above we discuss a few widely predicted trends.
Here are a few highlights:
Interest rates are already trending downwards (whoohoo).
With this we are already showing higher motivation from home buyers which will continue to increase.
Hopefully, this means we will also see higher motivation from home sellers (as sellers notice the higher demand from buyers). Leading to more homes and more options to the market.
Meaning we can predict an active Portland Oregon Real Estate Market for most of 2024. We could potentially see the market slow down in the second half of the year, if we follow trends from past election years.
Want to discuss your potential home buying or home selling needs for 2024? I would love to connect. Reach out and we can set up a time.
You can contact me below or reach me at lily@lilyrayres.com.
I’m Lily Wyss, licensed realtor with Living Room Realty, here to tell you what you need to know about the market for early December 2023.
We have officially hit our yearly holiday market slump in which people are busy getting their egg nog on, stringing up lights and attending copious holiday parties.
But if you are an active buyer in the market don’t fret. Homes are still being listed and you can find some really great opportunities.
Are you a home seller with your home still actively on the market? Don’t let this slow down scare you either. There are active buyers out in the market right now and they are the most serious and intentional people to work with who will take you from offer to the closing table.
What should we expect from the 2024 real estate market? While no one can predict economic conditions with much certainty in today’s world, most experts predict that we should see a robust Spring 2024 market with interest rates starting to drop as early as the beginning of the new year.
However, if you are hoping for the 2-4% interest rates of the 2021 peak market, I would not get that excited.
At a recent meeting here at Living Room, local economist Noah Blanton confirmed that we should see rates fall in the beginning half of the year to somewhere around the 6% range.
This is great news for both home buyers and home sellers as it should provide the boost to the Portland real estate market that we have all been hoping for.
If this happens, as a future home seller you can likely expect home prices to rise again. At this very moment, the Median List Price for a home in Portland is around $687,000, which is still roughly $4,000 dollars more than the median list price at the peak of 2021.
If you are a home buyer we predict that you will see your home affordability rise with lowering rates but just know competition will grow again and you will be competing with other buyers to get into a home. It was recently reported that 66% of home buyers are holding off until interest rates fall (US News Reports). So when you enter the market, so will a lot of others.
Whether you are buying, selling or both preparation and education will be key to your success.
Living Room Realty is committed to connecting you with as much information to help you make an informed decision. If you’re ready to make a move, give us a call today. We’d love to help you find your next Living Room.
Hi, I’m Jessica Ward, licensed real estate agent with Living Room Realty. Here to tell you what you need to know about the market for Early November 2023.
The Holiday season is among us and if you’re serious about buying, selling, or investing in real estate, right now is the coziest time of year for finding your new Living Room. As your expert home girl, I’m here to break down what’s happening in Portland right now.
As real estate agents, we use The Market Action Index to help showcase the balance between supply and demand. Currently, the Market Action Index for single family homes is 41 and 33 for condos.
Compared to previous months, November marks a decrease in the Market Action Index for single family homes. However we’re still leaning towards a Seller’s market. This is great news for anyone considering listing their home in Portland, which currently has 1,322 available homes with a median list price of about $679,000.
Now, let’s talk about some good news for all you buyers out there. As the hot market continues to cool down, mainly due to changing interest rates, the average number of days a house sits on the market has increased to just under 90 days. What does this all mean for you?
Well, more inventory means you have more choices, and this extended time on market provides you with more room to have your expert realtor negotiate on your behalf and find a deal that suits both your budget, and your preferences.
We’re currently seeing an influx of price reductions, closing cost and repair credits, as well as seller paid interest rate buy-downs. So, remember that the holiday season brings the gift of unique opportunities.
Sellers, you’re in a good position with the overall market in your favor. And buyers, it’s an EXCELLENT time to explore more favorable terms and less competition than previous years.
Living Room Realty is committed to connecting you with as much information to help you make an informed decision. If you’re ready to make a move, give us a call today. We’d love to help you find your next Living Room.
Hi I’m Ella Gray, Broker with Living Room Realty, here to tell you what you need to know about the Portland market for “ Late October 2023”
Make no bones about it, Halloween is just around the corner, and we know what that means! There’s only about 40 days remaining in the home-buying season if you want to close on a home by December 31st and grim reap those sweet sweet tax write offs.
Buyers don’t be spooked, there’s some sweet news for you! This month inventory is the highest since LAST October at 1,296 homes, benefitting you with more choices and bargaining power and that’s no trick.
Additionally, over 50% of homes have seen price reductions, and some Portland neighborhoods have seen slight decreases overall. Demand still surpasses supply, maintaining the status quo of a seller’s market.
But, while buyers initially face seller’s market conditions, negotiations often favor buyers as we get to the elephant skeleton in the room. Interest rates are around 8% limiting competition and real estate price growth in many areas.
With increased inventory and longer time on the market, buyers have an edge in negotiations. As winter approaches, savvy buyers could, with the right real estate agent, benefit from the sellers’ reluctance in a potentially declining winter-season buyer pool.
Sellers! September data brightened Portland Metro’s 8-month declining price trend, with a 6-year September year-over-year growth, increasing the average sales price by almost 1% over September 2022. This validates last year’s crystal ball pontificators with prices “plateauing”, not dropping.
Case in point- the current Median list price for a home in Portland is around $695,000. To put this in perspective, the PEAK Median list price during the highly competitive Market of 2021 was nearly $12,000 LESS at around $683,000.
The suburbs continue to experience modest growth. Lake Oswego & West Linn had a robust summer, while Vancouver maintained slow but steady growth over the past year.
No matter what, real estate continues to move throughout the year with different strategies and paths to help achieve your goals.
Living Room Realty is committed to connecting you with as much information to help you make an informed decision. If you’re ready to make a move, give us a call today. We’d love to help you find YOUR next living room.
Hi there, I’m Carrie Struss licensed real estate agent in OR and WA with the Bridge To Portland team at Living Room Realty, here to tell you what you need to know about the Southwest Washington real estate market for Late September 2023.
Last month in Clark County we had an average sale price of $553k, with houses selling at 100.2% of their listing price in 11 days on average.
But….that was August. It is late Sept and it feels like someone suddenly HIT THE BRAKES. Let’s look at the numbers for active listing to get the current temperature of Southwest Washington. This is the last week of August, the active listings time on market was 21 days. Fast forward 3 weeks to the 3rd week of Sept and the time on market practically doubled to 40 days.
So what happened between the end of August and now? Well, for one, school started which triggers a statistically slow time in the market. But specifically in Clark Co both Evergreen and Camas School District teachers went on strike, preventing kids from being able to go to school for two weeks. So my clients with kids were MIA. Additionally, affecting everyone, interest rates continued to unsteadily climb by almost half a point from 7.1% to 7.5%.
With higher payments and loans costing more, I am seeing a lot of my Buyer clients be very picky, or I should say particular and realistic about what they can buy and want to buy. What condition the house is in plays a huge factor in that decision. The fact that the same house now costs 4% percent more a month than it did just 3 weeks ago makes buyers less inclined to purchase something that might need a little work or might not fit all of their needs.
Alternatively, inventory sucks. We have 1.6 months of inventory in Clark Co. So Sellers have the opportunity to give the market what it needs, which is inventory. But you need to do so with patience and understanding that right now your house may take longer to sell than you expect and that you are likely going to be asked to contribute towards buyers closing costs for temporary or permanent rate buy downs and/or asked to do repairs or give the Buyer credit towards their closing cost.
Despite 42% of this week’s active listings having price reductions, inventory levels still puts us in a Sellers market. Seeing how September’s average sales price compares to August will give us a better sense of what the current rates will do to future prices. However, economists are predicting rates will remain at or above current levels well into 2024 if not longer. This will likely cause enough downward pressure on prices to put us into a more neutral buyer/seller market through winter.
Winter is coming, but so is opportunity when both buyers and sellers understand what’s going on in the local market week by week and have knowledgeable agents to guide them through.
Living Room Realty is here to help you make an informed decision. If you’re ready to make a move, give us a call today. We’d love to help you find your next living room.
Hello! I am Drew Burchette, Principal Broker at Living Room Realty and I’m here to tell you what you need to know about the market for Mid-September, 2023.
Labor day has come and gone and the kids are back in school. These events mark the reopening of the Portland real estate market and the home stretch before the winter holiday season.
If you’ve participated in the Portland Real Estate market in the past year, I’ve got to give a tip of the hat. It has been a bit of a ride and I respect your intestinal fortitude for giving it a go.
In the immortal words of Mathew McConaughey… NO, NOT THOSE WORDS. This quote from the Wolf of Wallstreet- “I don’t care if you are Warren Buffett or Jimmy Buffett (RIP) nobody knows if this thing is going to go up, down sideways or in ****ing circles.”
The point is this: as a buyer or seller, it is difficult to impossible to time the market. Buyers: at this moment, you are treasured. Sellers: the market is hungry for your house. You are both in a great place to take advantage of these factors.
Buyers- are you trying to time the market? I’m not going to wiz on your leg and tell you it is raining. Rates today are ****ing terrible and they’ve been that way for awhile.
On the bright side, agents in our market have been able to negotiate some amazing seller credits and repairs, which really hasn’t been a thing in the last several years. Additionally, multiple offers are not a foregone conclusion as they once were.
If rates do come down, it will cut both ways. Yes, your monthly payment will be lower. But there is a ton of pent up demand in this market and we are likely to see a flood of buyers, causing more competition and ultimately higher sale prices.
My advice is this – marry your house (the sale price) and date your loan (interest rate %). With a little luck you can refi in the next few years.
In spite of what I am about to say about inventory…it is a great time to be house hunting because there are actually houses to tour and some of them are pretty rad.
Around this time last year there was a gravitational shift in our market because of rising interest rates, but this fell well short of adding a ton of inventory to the market. Inventory, measured in months, remains in the low 2’s. This is slightly higher than where we were this time in 2022 and is DOUBLE the 2021 inventory.
Ask any buyer about inventory 2 years ago and they would unanimously say “there was nothing out there”.
Double of nothing is still pretty low and is still considered a “seller’s market” by any measure. However, there is an interesting dynamic at play. When trying to get an offer accepted, it FEELS like a seller’s market. Once that offer is accepted it flips to a buyer’s market feel.
As the buyer, you really put it out there in offer price and terms to get your offer accepted. The seller really NEEDS you to close because there is no backup offer or the backup offer is sh*t and the seller knows it. This tends to make the sellers begrudgingly flexible when you find issues in your inspection.
Inventory remains low because step up buyers are disincentivized to sell/buy, builder permits for new construction are down and there are no distressed properties on the horizon. Portland has an inventory problem.
On the selling side…when do you list? Exactly when YOU are ready. Yes, we have settled back into more of a normal seasonal real estate cycle post covid. But with uncertainty in the market, mostly around rates and buyer engagement, the market of today is the market that we know.
Living Room Realty is here to connect you with as much information to help you make an informed decision. If you’re ready to make a move, call us today. We’d love to help you find your next living room.
Hello, fellow Portlandians and prospective home buyers and sellers! It’s Will here, bringing you the latest scoop on the Portland real estate market as we step into September 2023. Buckle up as we dive deep into the current trends, predictions, and some golden advice for both buyers and sellers in the vibrant Portland market. Don’t forget to hit that like and subscribe button for more real estate insights!
First things first, let’s talk numbers. The interest rates have been hovering around the mid to low-sevens, and while core inflation has ticked down slightly, the overall inflation has seen an uptick. The median sales price has decreased by about 2.7% compared to last year, and we are witnessing a competitive market in the $300,000 to $700,000 price range.
As we venture further into 2023, there are a few scenarios we might see unfolding in the Portland market:
If you are a first-time homebuyer eyeing properties in the $300,000 to $600,000 range, brace yourself for some competition. But hey, don’t lose heart; you might just snag some cool concessions from the sellers, including a 2-1 rate buy down or additional closing costs assistance.
Sellers, it’s time to put on your aggressive hats when it comes to pricing. With fewer buyers in the market, you might want to keep a close eye on comparable listings to price your property competitively. And if you are selling a condo, patience is key as the days on the market have increased.
Got questions or need personalized advice? Feel free to reach out; I am here to guide you in your real estate journey in Portland. And before you go, do hit that like and subscribe button to stay updated with the latest in the Portland real estate world.
Hi I’m Nicole Chavira, Oregon Licensed Broker with Living Room Realty, here to tell you what you need to know about the market for Late August of 2023.
Heading into the end of summer, and the 4th quarter of the year, we typically see a seasonal decline in real estate activity. Some of the most common reasons that sellers choose to delay listing their home are the busy start of the school year, child care, and schedule changes. And as a parent, I can relate! Not to mention holiday plans, travel, and the inevitable colder weather.
That being said, current stats in the Portland Metro Area aren’t looking too bad! We have 5,646 active listings compared to 6,675 available listings this time last year. The current market shows 2.5 months of inventory compared to 2.2 months worth of inventory in August 2022. This is still showing a strong sellers market with homes selling on average close to 101% of their original asking price.
Currently we are seeing an average of 67 days on market vs last year’s average of 43 days on market. Average sales price is slightly over 1% higher than the previous year at around six hundred and fifty three thousand dollars.
So what does that tell us? Well, many of our homeowners that are ready to sell, tend to be highly motivated. For example, moving for an out of state job that requires them to relocate, health, relationship, financial status, or downsizing for a cozier retirement home.
The same can be said about the mindset of home shoppers. Buyers that have a high motivation to purchase, know they would rather enter the market and build home equity themselves, instead of holding out and continuing to rent, helping their landlord build equity. With good guidance, they know they can always refinance later when rates drop. Successful home buyers also know to lean on their real estate professional and lender to work as a team to come up with creative lending solutions – that’s why we’re here!
With less competition, we have more opportunity to negotiate with the seller. For example, interest rate buy-downs, credits towards future repairs, and/or repairs to be completed by the seller prior to your closing date.
Here’s a couple of my go-to buyer tips: do not be afraid to look at homes that have had extra days on market or had a previous sale fail and are now re-listed. Many of these homes tend to be dismissed because they are not showing up bright, shiny and new on everyone’s home search apps. These homes offer opportunities for us to work with the sellers to negotiate terms that were once impossible in the old 4% interest rate days.
Don’t let this typical seasonal shift in the real estate market, mixed with media headlines that deem a “housing market crash”, lower your confidence in making the right choice for your lifestyle needs. Remember, the best time to move isn’t dictated by the market, but by your needs.
Living Room Realty is committed to connecting you with as much information as possible to help you make an informed decision. If you’re ready to make a move, call us today, we would love to help you find your next Living Room
Hey everyone, this is Jacob Weigel, licensed Realtor in Oregon and Washington, with Living Room Realty, here to tell you what you need to know about the market for mid August 2023.
While total inventory jumped, hitting a seasonal high of 2.4 months, new listings dropped month-over-month, with 399 fewer homes coming to market in July as compared to the previous month of June of 2023. One may ask, “How is it that fewer homes came to market last month and yet inventory grew?”
Well… RATES. With the national average conventional mortgage rate hitting its seasonal peak this week of 7.24%, pending sales dropped 5.6% and closed sales dropped by 8.3% as buyers felt an extra squeeze in their affordability. However, if you are in the market right now – keep your head in the game, there are more options out there for you to see before the weather begins to turn.
This slight change in inventory still keeps our market far from balanced, which we consider locally to be 3 or 4 months. While many economists in 2021 believed that higher rates would dramatically increase the inventory in the national market, they did not consider the social impacts of higher rates.
Nearly twenty six percent of American households that hold mortgages are amortized at an interest rate at 4% or lower, making it difficult for homeowners to consider moving to a home that may be a better fit for their lifestyle while having to upsize their interest rate. Looking forward – we will continue to see low inventory levels in our market for this reason.
I personally own a home with a sub 4% interest rate, yet I didn’t let this hold me back from finding my perfect living room. I made my own move last month, choosing to rent my home in Southwest Portland, trading up for a swanky south facing loft in the Sunnyside neighborhood of SE Portland.
If you are a homeowner and notice that your current property no longer fits your lifestyle needs, consider reaching out to us.
Living Room Realty is committed to connecting you with as much information as possible, to help you make an informed decision. If you’re ready to make a move, give us a call today. We’d love to help you find your next Living Room.
What’s up all, I’m Tony Le with the Houselab team at Living Room Realty, here to tell you what you need to know about the market for early August 2023.
Let’s face it, the current housing market presents some challenges. Inventory in Portland is limited, interest rates are still relatively high compared to this time last year, and sellers who were able to lock in those low interest rates aren’t looking to sell any time soon. As a buyer, things can look daunting, but don’t give up just yet.
The good news for buyers is that the Market Action Index is currently sitting at 49, down from 53 last month and inching towards a buyers market. Inventory, while still limited, is also up, currently sitting at an average of 1,235 homes with a Median List Price of $689,950.
One of the strategies that sellers are offering are rate buy down credits to potential buyers. There are two common types. Option #1 A permanent rate buy down and Option #2 a 2-1 rate buy down.
The key difference between a permanent rate buy down and the increasingly common 2-1 rate buy down, is that the 2-1 is temporary, lasting two years. Typically the first year will be 2 percentage points lower than the current rate and the second year will be 1 percentage point lower before returning to the “normal” interest rate at the time of closing. If you have any questions about buy downs, reach out to your agent or lender for more information.
The question is, when will rates go down? And even more importantly, when they do drop, and the market floods with new buyers, what will the competition do to sales prices? Will we see buyers give away the farm, just to get the house? This is why leveraging one of the rate buy-downs in today’s less aggressive market could be the key to getting your dream home.
Living Room Realty is committed to connecting you with as much information to help you make an informed decision. If you’re ready to make a move, give us a call today. We’d love to help you find your next Living Room.
Hi buds! I’m Lydia Hallay with Working Magic Group at Living Room Realty – here to tell you what you need to know about the Portland real estate market for the late of June, 2023.
The official start of summer was this week, and the Rose City is in full bloom. Since the end of May, we’ve seen a 7 percent increase in lockbox activity on listed properties in Oregon- a sign that more folks are out there shopping- even though interest rates are roughly twice what they were last June.
The good news for buyers is, inventory is up and you’ve got more to choose from! Compared to this time last month, there are about 200 more properties on the market; and more are on the way. Working Magic Group, the two broker team I’m part of, has five new properties coming to market in the next couple of weeks; and we’re seeing that spike in activity across Living Room offices.
But if you want to compete, you’ll need to be ready to rumble.
Buyers, it takes time to get finances in order for a purchase. No matter your price point- in this market, desirable homes in great neighborhoods are moving fast. Days on market have steadily decreased – from an average of 84 in early May, to 70 this week. Of the three properties Working Magic listed over the last two weeks- two went pending after a weekend of opens- and one went pending before the opens even happened.
Putting your lender/realtor team in place before you fall in love means you’re less likely to be heartbroken when a home that lists Thursday is pending before you have a chance to get prequalified or get inside. Establishing a relationship with a realtor before you start scrolling (or visiting open houses) means you’ll know who to text when your dream home hits your feed. If you’re looking for lender connections, we’ve got you covered!
Historically, it’s not unusual to see buyer and seller activity start to decline as summer days get sluggish. Who wants to shop for or sell a house when you could be at the river?
Most brokers I’ve spoken to seem to be in agreement that this year, we’re about a month or two behind where we usually are in terms of market voracity. Things are just getting started!
If you’re thinking of selling this summer- it’s not too late! But if you want to maximize your sales price- you’re going to need to dial in your listing. Homes with on trend updates, curb appeal, staging, and a strong marketing push- move faster (and, often over asking price).
Whether you’re looking to buy or thinking of selling, call me today! I’d love to help you find your next Living Room.
Hi! I’m Atika Hagen, Broker with Living Room Realty here to tell you what you need to know about the market for early June 2023.
You may remember me from the last market update where Jenelle started singing, “It takes two to make a thing go right.” Well I’m here to tell you that that’s still true. Entering into the summer months, the market has been known to slow down, but we in Portland are actually seeing the opposite.
The median price for a home in Portland right now is $699,000, this is the highest we’ve seen since the peak during the nutso market in the throes of the pandemic. At its peak – it’s peak!- in February of 2021, the median house price was only $950 more than right now, clocking in at $699,950.
In our office, which holds the number one market share in Portland, we’ve seen fifty deals close in just the last two weeks alone. As well, inventory has increased by 42% from April to now. We’ve also seen the number of days on market for homes steadily decrease since March, from 102 days to currently sitting at 75 days. This tells me that unlike my children, the housing market in Portland will not be taking a summer vacation.
But what does all this mean in terms of real world examples for someone currently buying or selling?
Well as the market has begun to warm, I’ve had a few clients forgo sought after neighborhoods for other homes that are clean, landscaped, staged well and have creative touches. What this is showing me is that if you do those extra things to make your property stand out, it can go a really long way.
In another instance a client had an offer accepted under list price, but to pull that off we had to get creative with terms. As a buyer it’s important to know that it’s not always about the dollar amount. Having a knowledgeable realtor by your side that can think outside the box is crucial.
Living Room Realty is committed to connecting you with as much information to help you make an informed decision. If you’re ready to make a move, give me a call today. I’d love to help you find your next Living Room.
Hi, I’m Jenelle Etzel, owner of Living Room realty, here with your market update for the last week of May, 2023.
Anyone else out there in the market hearing Rob Base and D.J. E-Z Rock singing “It takes two to make a thing go right It takes two to make it out of sight?”
Why 2? Because here in our office we saw 2 dozen deals over the weekend come together. The average number of offers was 2 and we saw accepted offers averaging roughly 20,000 over asking price.
I asked one of our agent’s Atika Hagen, how many offers she wrote this weekend and she said 4 (record scratch) and of those 4 she was able to get 2 accepted.
The median list price for a home in Portland is currently $700,000 and the Market Action Index, which we use to gauge the temperature of the market, continues its steady rise since the beginning of the year, clocking in this week at 57, up from 55 last month. Portland has seen fairly steady pricing for the past year but if this trend continues we expect to see home prices rise.
So in the spirit of two here are two key takeaways in today’s market…
Sellers my two bits for you to make a thing go right is; invest in staging and prepping. Don’t get too cocky and miss your chance to stick the landing. Meet with an agent to talk over what you can do to maximize your opportunity in this hot market. Our average number of offers may be 2 but that’s an average between a handful of homes with only 1 offer and a smaller handful of homes that are dialed and styled receiving 2-7 offers! You want to be the home that buyers are competing over, giving you the best terms and the security of a back up offer if for some reason the initial offer falls through.
Buyers my 2 bits to make it out of sight for you is; write a good clean offer quick and straight out of the gate if you see something you like. We see a lot of uneasy sellers whose confidence isn’t as high as the market’s thus we are seeing sellers accept a bird in the hand without waiting for the two in the bush to come forward. Sometimes it’s easier to get motivated to act once you know there is competition, it validates your gut that it’s a great home, but that validation is gonna cost you once other buyers start competing with you and each other for that home.
If you are looking for a partner to make things go right and out of sight, call us today. We’d love to help you find your next Living Room.
Hey I’m Karim Alaeddine, principal broker at living room realty here to tell you what you need to know about the market for Mid-May 2023.
While this update does have some tasty goodies buried in the data, let’s take a peek under the hood of the Portland market, look for trends and try our hat in prophecy… I mean forecasting.
Pricing is going up! It’s been headed north since the very first day of the year.
Fun fact – the rolling average for median home sales price in Portland is only $50 lower than the absolute high water mark in the spring 2021, when inventory was non-existent and buyer competition was akin to the final leg of an Australian regatta. Like… super competitive. We are at that same average sales price again today.
Days on market – a measure of how quickly the current pool of buyers is burning through the current pool of listed homes. This metric has been dropping for 2 or 3 months… as it nearly always does in the spring.
To give some perspective, this data (measuring the rate of homes being sold) was last at this level in the spring of 2020. So for most of 2020, all of 2021 & all of 2022, the average days a home spent on market was lower than this week. At its absolute low point in June of 2022, the # of days on market were half of today.
If you’re visual like me, you might imagine a roller coaster going up and down each year (as inventory increases, then gets bought up.) 2023 is a softer, easier ride. Not so dramatic and the downhill fun part, when a lot of homes are getting sold, is less steep… more of a family-friendly ride this year.
That means homes are taking longer to sell… and we’re creeping into the spring season more slowly.
Let’s look at an interesting data point about pricing, that sort of answers the questions;
“Should I wait?”
“Will I get buyers?”
“Are prices going to go up?”
“Are prices going to go down?”
A statistic that sheds light on these kinds of questions… the questions we ask when we have begun to think about a move, and are looking into the market crystal ball… is the rate of price reductions in listed homes. “How many listings took a price reduction?”
To frame the numbers for us, between March of 2020 and August of 2022, at any given time 20% to 40% of the homes on the market had price reductions, and this was in the middle of the hot AF market. In September 2022 that number was headed upward, as a direct result of rising interest rates and lower buyer activity, and it went as high as 55% meaning that more than 1/2 of homes on the market had taken price reductions.
Now for the May 2023 update: Currently, we’re in the 33% range (middle range of even the smokin’ market) and that stat is trending downhill.
Homes are selling, mostly without reductions. Price drops are – of course – used to stimulate buyer activity, but less downward pricing pressure is required to move property when buyers are interested in making a move. Lifestyle drives home purchases. Purchases drive market trends.
Lastly, competition is increasing amongst buyers. (We could do a whole hour on the ins and outs of niche sectors of the market that outpace the averages for metro area – within which competition is still super fierce.) Interest rates have leveled – with small dips and rises each week of course, but relatively stable. Pricing is actually quite strong meaning the sentiment amongst the market actors (mostly buyers) is that Portland is a good buy for long term housing & investment.
So… with sales strengthening and inventory as low as it is, current supply and demand levels show no sign of prices changing course.
In closing…
Spring is here.
Homes are selling.
Not as crazy as last year.
… Still Portland though.
Realtors are advocates who help buyers & sellers ask the very best questions, in order to guide clients through the market and into secure, positive transactions that align with their goals and dreams and we are honored.
If you’re looking to make a move, call us today.
We’d love to help you find your next Living Room.
