By The Dream Digs Team, March 12, 2021
This week Jenelle, owner of Living Room Realty, takes a closer look at our market and talks about how we got where we are and where we are going next.
SEE HER VIDEO HERE
THE NUMBERS THIS WEEK
Avg sales price was $576,395.
Avg # of offers – 5
Avg amount over list price was 8% = $46,000 over.
Inventory inched back up over 500 but buyer demand outstripped inventory keeping the market action index revving at 70.
THE NUMBERS THIS WEEK
Avg sales price was $576,395.
Avg # of offers – 5
Avg amount over list price was 8% = $46,000 over.
Inventory inched back up over 500 but buyer demand outstripped inventory keeping the market action index revving at 70.
WHY IS THE HOUSING MARKET SO HOT?!
1. Interest rates are at historic lows – 3% and under has been the norm, incentivizing buyers to shop, but causing potential sellers to hang onto their homes as rentals and investments rather than sell them.
2. People are living longer and today’s baby boomers are choosing to stay in their homes. Covid 19 isn’t over yet and while it’s still here, those who might have chosen adult living communities have put that off for the time being until that move looks safer.
3. Working remotely has become the new normal, but will it stick? Some people have decided against buying, and selling, because they don’t know if they’ll be heading back to the workplace or creating a more permanent home office. Purchasing their “forever” homes may have to wait until after Covid ends.
THE BIGGEST FACTOR
The biggest factor, by far, is that less housing has been built in the past decade, since the 2008 housing crash, than ever before. A tight labor pool, high timber prices and more building restrictions have slowed new construction. We, as a nation and city have not kept up with the demand for housing. We need more housing and it’s unlikely we will see enough inventory to meet demand for years to come.
ARE WE IN A BUBBLE?
Demand and the restricted pipeline of inventory, leads us to think not.
Second, the amount of cash in the market compared to the years leading up to 2008 is greater. The strong equity in our housing market will help prevent foreclosures.
Lastly, economists examine home prices in relation to rents—if rents don’t keep up with home prices that can be an indication of a bubble. In Portland the average rent for a single family home is $2,023. The average sale price is $575,000. Purchased with 20% down that equals a monthly mortgage payment of $1,900. Add in taxes and insurance, and rents and mortgage payments are currently comparable our market.
THE DREAM DIGS TEAM
Aryne + Dulcinea, Earth Advantage Principal Broker | Earth Advantage Broker | ADU Specialists | OR
The Dream Digs Team are full-service, high-producing agents, who know how to navigate the unique challenges facing the Portland real estate market. The secret to their success lies in their professionalism and complementary skill sets. In 2012, Aryne + Dulcinea seized the opportunity to combine their creative and technical acumen to create a values-driven, client-driven team unlike any other. We are expert negotiators and project managers with a strong background in creative marketing. The Dream Digs Team are fierce advocates for our clients.
Our passion for real estate is connected to our commitment to the Portland way of life - a dedication to sustainability and appreciation for all things local. As Earth Advantage Brokers and ADU Certified Specialists, our team is savvy in all aspects of alternative living practices from versatile housing additions, green building practices, and revenue-generating strategies. Whether you’re looking to buy or sell, The Dream Digs Team will work in collaboration to guide you in investing in your future and reaching your real estate goals.
Dedicated to serving buyers and sellers with expertise, enthusiasm, and attention to detail, Aryne adeptly navigates the Portland real estate market. Licensed since 2005, she honors our clients' wants and needs using her sharp negotiating skills and professional know-how to achieve the best results for everyone she serves. Aryne loves the Pacific Northwest! Outside of work, she enjoys hanging out with her husband, listening to music, going on road trips, and talking about everything under the sun. She looks forward to visiting her grown-up kids at college and watching them succeed in all their endeavors. She loves yoga, hiking, dinner parties, podcasts, and embracing all that Portland offers.
Dulcinea thrives on working with clients with a range of real estate goals. Born and raised in Oregon, Dulcinea comes to real estate with a background in design and education. She is an award-winning professional and a steadfast advocate when working for our clients. She has a keen eye for preparing properties for listing and finding properties that best serve our buyers' objectives. Licensed since 2013, Dulcinea works in and around Portland. She is the mother of two and wife to her high school sweetie. In her free time, she stays busy with her family, traveling, creating community, cooking, gardening, making art, exploring, and dreaming big!
Click here to get to know Aryne + Dulcinea!- T: 503-380-5124
- aryne@livingroomre.com
