Tag: portland market update

Portland Market Update Early-April 2024

Posted on by Gabrielle Enfield

Find out what’s happening in the Portland real estate market for Early-April 2024.



Hi, I’m Gabrielle Enfield, Real Estate Magician at Working Magic Group and Oregon Broker for Living Room Realty, here to give you the scoop as we enter peak real estate season here in Portland, Oregon.

A Major Shakeup?

Headlines may make you think there’s commotion happening in the real estate world. In short, the National Association of Realtors is facing a Department of Justice settlement tied to buyer agent fees and how they’re communicated, as well as the agreements that need to be in place before a buyer can tour a home for sale with a licensed agent.

While it may sound like a shakeup, it’s really just putting a bold underline on what we – as licensed agents in the Northwest – have been doing all along, especially here at Living Room Realty.

It’s tied to client advocacy and what’s in their best interests, while clearly communicating the value we, as Realtor Fiduciaries, have in one of life’s biggest decision making moments. Right now, we are in a wait and see period, with regulatory changes expected in July. If you have questions or want to discuss your options and what this means for you, please reach out, we are here to help.

Buyers

Now, onto the really juicy stuff – what’s happening in our local real estate market?

At this week’s Living Room team meeting, our agents put gobs of homes under contract, representing mostly buyers. So if you were wondering if now’s the right time to hit the touring circuit – the answer’s a big old yes! Really, anytime you’re ready to enter the real estate market is a good time, it all just comes down to the strategic levers you and your agent can pull.

Here’s the deal…. if you run the numbers on a home that you could see yourself in for the next few years, and you can afford it now, you should probably make a play for it. Rates are expected to head below six percent sometime in the future. The minute they do, buyers are going to rush forward and create a very competitive landscape. This will likely push pricing further upward and in some cases further out of reach. You being the smarty pants you are, you’ll have the option to refinance on your rad house down the line.

Let’s Look At The Numbers

Right now, at Living Room, homes under contract averaged 2 offers, and went for roughly $15,000 over asking with an average pending price is $702,000 dollars

Across Portland Metro, the market action index is hovering around 47, still tipping in favor of sellers. Median days on market is 42. The median listing price for new listings is $675k – that’s about 40 grand more than this time last year.

Get Your Home On The Market

No matter the political or economic climate, real estate operates on a somewhat predictable cycle. If you’re thinking about selling, NOW is the time for action. It’s important to have your house on the market before the first week in July. After that, we Oregonians goof off and want to be settled before fall routines kick in.

An advocate like me will help you identify your punch-list to get your house ready for its close up. You’d be amazed what changing the front door color does for a place – my favorite is saffron yellow. 3 cheers for color!

 

Make A Move

Real estate is a lot, and takes practice, precision and market intelligence. If you’re feeling like you’re ready to make a move , call us today! We’d love to help you find your next Living Room.

 

Portland Market Update Late-March 2024

Posted on by LeAnn Raschke

Find out what’s happening in the Portland real estate market for Late-March 2024.

 

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.

The Spring Market

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.

Competition Returns

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.

Connect With Your Agent

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.

 

Make A Move

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.

 

Portland Market Update Late-February 2024

Posted on by Bonnie Roseman

Find out what’s happening in the Portland real estate market for Late-February 2024.

Hi, I’m Trish Sunderland, licensed broker in Oregon at Living Room Realty, here to tell you what you need to know about the Market for late February, 2024.

 

Hang In There

Right now in Portland we are seeing two different Markets existing simultaneously.

The first being older listings that have been sitting since last year, having price drops and languishing for a variety of reasons. We’re seeing this truth in the average days on market, which is currently registering at 118 days. This is the highest it’s been since this time in 2020.

Historically, February sees the longest days on Market as we transition from the lull of the holidays to the seasonal flurry of activity in the Springtime.

If you’re one of these sellers with a lengthy time on market, don’t lose hope. Hang in with me til the end where I’ll give you a few game changing tips to help refresh that listing to get it sold.

 

Buyer Tips

Buyers, let’s talk. The lengthy time on market doesn’t paint the whole picture here. Don’t get left behind thinking you have days or weeks to think about a property you may be interested in.
When we look at homes that have had an offer accepted since January 1, the number of days on market drops significantly to from 118 to 9 – NINE!

Which brings me to the second market we’re seeing. Get ready, don’t blink. That’s the advice for all you buyers out there, eager to snatch up that well manicured, instagram-able, no-repairs-needed home. The hot ones simply are not waiting around.

Sellers are looking for serious buyers they feel confident will get them to the finish line. When they see an offer come through conveying just that, you’re not always guaranteed a window to submit an offer. It’s like one of my favorite versatile sayings, “see something, say something.”

Did you just walk through an open house and feel you’re falling in love? Did you do a drive-by of a new listing that feels perfect? Tell your agent, get in there, write your offer. If you don’t, someone else certainly will.

 

Seller Tips

Alright, sellers, what does all of this mean for you? It means that if you want to get in on the best time of year to sell, i.e. the highest chance of multiple offers, highest bids, best terms, now is the time to be prepping your home to sell.

The peak of the Spring market will be here before we know it and often fades out by Summer. Portlanders looooove the sun and that’s when we historically see the selling season slow.

Last thing, I promised you tips to refresh your listing and get it sold. A few that have worked very well for my team.. A small change like new photos, fresh paint on the front door or adding a floor plan, can be simple, cost effective ways to catch the eyes of your home’s next owner!

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

Renting vs Owning: Should I continue renting…or is it time to buy?

Posted on by Steve Brian

The video is way more fun, but if you want to read the script and review all the numbers, scroll down, down, d-d-d-down…

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!

The Home

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.

Number One: The Actual Purchase Of The Home

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…

  • Down payment = $21,500
  • Inspection costs = $1,000
  • Closing Costs = $10,000
  • For a grand total of $32,500

That brings us to…

 

Number Two: The Cost Of The Mortgage

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…..

Number Three: The Cost Of Maintenance

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:

  • Getting into the home which is around $32,500
  • The monthly mortgage around $3,450/month
  • And the maintenance which we’re rounding up to around $5,000 a year.

 

Financial Gains

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.

Renting

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.

Buying 5 Years Later

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.

Make A Move

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.

 

Portland Real Estate Market Update Late-January 2024

Posted on by Tracey Henkels

 

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!

 

2008 All Over Again?

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.  

 

What About Interest Rates?

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. 

Make A Move

If you’re ready to make a move, call us today, we would love to help you find your next Living Room. 

 

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.

 

Navigating the Portland Real Estate Market: September 2023 Update

Posted on by Will Sing

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!

Current Market Dynamics

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.

Predicting the Market’s Path

As we venture further into 2023, there are a few scenarios we might see unfolding in the Portland market:

  1. Interest Rates Decreasing: This would be a boon for buyers, potentially bringing about 5 million new buyers nationally. However, it could spur a demand-supply imbalance, pushing the prices up.
  2. Steady Interest Rates: If the rates remain unchanged, we might be looking at a stable market for the next 12 to 18 months, albeit with a persistent demand in the affordable first-time homebuyer range. This is the most likely scenario of the three.
  3. Interest Rates Increasing: Not the best news for buyers as affordability would take a hit. Sellers might have to get creative with offers to attract buyers. We may also see a slight decrease in pricing but not 20-30% drops.

Golden Advice for Buyers

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.

Seller’s Corner

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.

Let’s Connect

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.

Portland Real Estate Market Update Late-August 2023

Posted on by Nicole Chavira

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

 

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.

 

Seasonal Changes

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. 

 

Let’s Talk Numbers

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.

 

Highly Motivated

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.

 


Buyer Tips

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.

 

 

Make A Move

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

 

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.