Tag: 2023 Market Update

Portland Real Estate Market Update December 2023

Posted on by Lily Ray Wyss

Find out what’s happening in the Portland real estate market for Early-November 2023.

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.

Holiday Slump

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 To Expect

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.

 

Increased Competition

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.


Make A Move

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.

Portland Real Estate Market Update Early-November 2023

Posted on by Jessica Ward

Find out what’s happening in the Portland real estate market for Early-November 2023.

 

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.

 

Market Action Index

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.

 

Good News For Buyers

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.

 

Make A Move

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.

Portland Real Estate Market Update Late-October 2023

Posted on by Ella Gray

Find out what’s happening in the Portland real estate market for Late-October 2023.

 

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

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

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.

Make A Move

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.

 

Vancouver Real Estate Market Update Late-September 2023

Posted on by Carrie Struss

Find out what’s happening in the Vancouver real estate market for Late-September 2023.


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.

Let’s Talk Numbers

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. 

 

Inventory

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.

Seasonal Changes

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.

Make A Move

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. 

Portland Real Estate Market Update Mid-September 2023

Posted on by Drew Burchette

Find out what’s happening in the Portland real estate market for Mid-September 2023.

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.


The Market

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.


Timing The Market

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.


Inventory

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.


Make A Move

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.

 

Portland Real Estate Market Update Mid-August 2023

Posted on by Jacob Weigel

Find out what’s happening in the Portland real estate market for Mid-May 2023.

 

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.

Inventory

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?”

 

Rates

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. 

 

Locked in?

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.

 

Make A Move

 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.

Portland Market Update For Early-August 2023

Posted on by Tony Le

Find out what’s happening in the Portland real estate market for Early-August 2023.

 

 

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.

 

Market Action Index

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.


Rate Buydowns

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. 


When Should I Buy?

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.

 

Make A Move

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.

 

Portland Market Update For Late-June 2023

Posted on by Lydia Hallay

Find out what’s happening in the Portland real estate market for Late-June 2023.

 

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.

 

Buyers

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.

 

Plan Ahead

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!

 

Summer Market

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.

Portland Real Estate: What we’ve seen and what’s to come.

Posted on by Jessica LeDoux
2023 MARKET UPDATE VIDEO
Our team lead and data aficionado Karim Alaeddine has this insight to share about the Portland market: 
 

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/early June 2023. 

Let’s take a peek under the hood of the Portland market, look for trends and try our hat in prophecy… 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 Spring 2021, when inventory was non-existent and buyer competition was fierce, like… super competitive. We are at that absolute sales price average 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. It’s steady… or it’s a slog, depending on who we are talking with. Not overly volatile though.

That means homes are taking longer to sell… and we’re creeping into the spring/summer 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.) It went as high as 55%. Yeah – more than 1/2 of homes on the market had taken price reductions. 

However, in May 2023 we were in the 33% range (middle range of even the smokin’ market) and that stat was trending downhill. We’ll see what Summer brings. Low inventory (the major issue in our market) should keep reductions down – prices up. But demand remaining low will stall things. We’ll see.

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, in earnest. Lifestyle drives home purchases. Purchases drive market trends. It takes a lot of pressure to turn off the natural incentives of people to move, purchase, sell as these things are life-and-times driven.

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 were looking to be 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. Rates may slow things further but the inventory and demand balance does seem to have some natural strength to it… steady or sloggy though this year.

So… with sales strengthening and inventory as low as it is, current supply and demand levels show no sign of prices changing course too dramatically. 

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. Hashtag honored.

We’d love to help you find your next home.