Real Estate Information

The Portland, Oregon real estate market's latest stats are in for October, 2018 courtesy RMLS.  The local market continues to cool somewhat with new listings down 14% over September, which was also down 14.4% over August.  Pending sales (homes with an agreed upon sales contract, but not yet closed) were up 0.5% over September, but September was also down some 10.5% over August.  Closed sales for October (which in most cases went pending in September) improved 7.4% over September when they were down a whopping 23.4% over August so thats some good news!  Inventory crept up to 53 days average selling time although we and othere top local Realtors are seeing a steady increase, especially over about $400,000 in home value.

Comparing 2018 with 2017 so far, the average sales price is up 5.6% from $429,900 to $453, 600.   To see the FULL 7 page report, CLICK HERE!

Our featured home of the month is a terrific single level home in the Garden Home area.  Built in 1992 this home features wood and laminate floors, lots of vaulted ceilings, open and bright kitchen, living room AND family room with fireplace and on a large corner lot minutes from downtown Portland and Beaverton.  Check it out by CLICKING HERE

CLICK HERE TO HELP CHOOSE THE CHARITY! 

That's right, we are donating money to six local charites in your honor and are asking for for your help to choose your favorite charity.  Please click on the link above and let us know your personal favorite of the six to celebrate our 30 years in business.

The average Realtor has been in business for 10 years, so this means we have seen much more than most others and now as the market is slowing down some experience is more important than anything!

Thanks to ALL of you - our past sellers, buyers, freinds of the firm, team members, fellow agents, national Realtor freinds.  There is no way we could be here today celebrating 30 years in business without you!

This article, as seen in Readers Digest talks about 13 projects that you can easily do on your home that pay off big in both resale value if you sell, as well as for your enjoyment while you live there.   It is an interesting article in that is also estimates the added value of your home after each project is done. 

Today I was asked by the National Association of Realtors to contribute my opinion to their annual "Cost vs Value" survey, which also covers many of the same things. I will share those results when they arrive.  In the meantime, be sure to read the entire Readers Digest article by clicking here.

This article as seen in The Portland Business Journal identifies the top 50 most sought after zip codes in the Portland Metro area.

They too indicate the market is slowing down a bit, and the results are interesting with a tie of Gilbert and Centennial being 50th with 132 sales in Q2, for an average sales price of $327,194 and selling in 39 days. 

Sherwood is in the middle of the pack at 154 homes sold (in quarter 2) for an average price of $509,843 and selling in 45 days. and number one.... 

Well I hate to spoil the party but its not urban homes, its not downtown condos..... Nope its suburbia, Beaverton/Aloha with 248 homes sold for an average sales price of $440,680 and selling those in 25 days. 

You can see the entire article by clicking on this link.

Recently one of my sons and his girlfreind purchased a home for $400,000 and he asked me "Dad, what happens if my house loses 10% of its value?".  My answer was "Well, you are a math major, so you know you just lost $40,000 but let me ask you this.... If you buy that same house at 10% less for $360,000 BUT the interest rates were at 6% vs. the 4% how much more would you be paying a month?"

Interestingly, a $350,000 loan at 4% is $1,671 a month BUT if that same house dropped 10% and the loan is now $310,000 (same $50k down off a now lower $360k purchase price) that payment is $1,859 or a whopping $188 a month more for a $40,000 cheaper home! So it shows the importance of lower interest rates.   

Yes, I know at 4% they are higher than where we bottomed out in the high 2% range back in the middle of the recession, but they are still historically very low, well lower than the long time average rate of 8.2% (yes I am old enough to remember them peaking at about 19%).  So if you are concerned about our rising prices and still looking to buy a home, clearly now is one of the best times in recent years to do so.  Contact us today and let us know how we can help.

The June 2018 numbers are out for housing in the Portland Metro area and as expected they are down a little from May.  Typically our sales drop in the summer a little bit, so its a GREAT time to buy a home as buyers are (a little) more in the drivers seat.  

Closed sales in the meantime were up over May, which is a reflection on our busy April and May with 2,946 closed sales vs. 2,803 in May.  However, this was the slowest June closings month since 2014.  New listings still arent filling the pot enough though, only 4,515 in June which is 3.2% fewer than May.  We need inventory for sellers to sell their homes which many are resistant to do as there isnt much to choose from for them to buy.  For the year so far though new listings are up 2.7% at 22,079 homes listed for sale in 2018 through end of June.

Average and median prices are still rising, ableit not at such a high clip which is healthy.  Comparing the first half of 2018 with the same period in 2017 our average price is up 6.2% to $453,400.  The median is also up 6.7% to $400,000 even.

The time on market as of the end of June is 2.1 months.  That's a bit higher than the 1.6, 1.8 and 1.9 months for the previous few months, but still well into a "sellers" market.  The balance point is always considered to be 5.5 months of inventory.

You can view the entire report (Courtesy RMLS) by clicking here.

This is an interesting article given how it affects us....  Oregon is the 7th hottest market for incomes increasing as our employment continues to increase.  GIven our home prices are significantly lower than say Seattle, our big neighbor to the north and also that Seattle's incomes are higher, this may affect our housing market significantly.  We are already seeing people move their companies to Portland from the LA and Bay area markets due to their employees not being able to afford a house but many have gone in the past to Seattle, skipping Portland altogether.  Now we may see more of this migration.

You can view the full article here....  

This article recently published by the Oregon office of Economic Alalysis talaks about the importance of housing supply in Oregon. In particular there is a good section on the affordability issue in Portland, in particular the last graph shows our issue...  no builders can afford to build in the lower 3rd of pricing, so its hard to buy a home as a rental.  There are many reasons for this...  For one when I started as a Realtor the City of Portland charged about $2,000 for a building permit and you could get it in a few days. Now, its just under $50,000 and it takes almost a year.  In addition to this the cost of lots has gone through the roof.  There are many reasons for this too; builders leaving the business in the recession, developers also leaving the business in the recession, a huge delay in getting new lots and subdivisions approved, and of course the large influx of residents to the Portland area.   You can view the entire article here... https://oregoneconomicanalysis.com/2017/12/14/why-housing-supply-matters/

This interesting story shows how much money you need to make in the top 50 real estate markets in the USA.  Its interesting to see in San Jose, CA where the average home price is $1,165,000 you need to make over $216,000 to buy the average priced home!  At the bottom end of the list is Orlando, Florida where the average home is only $247,900 and the salary required is $54,148.  This survey of course does not even consider smaller towns, as a long time well connected top Realtor I have dear Realtor friends all over the USA where homes average less than $100k, these are nice, liveable homes!  Check out the full story at https://www.hsh.com/finance/mortgage/salary-home-buying-25-cities.html#most_expensive_25_metros

In November, 2017 the Portland metro area saw gains in the number of listings compared to November of last year.  There were 2,416 new listings, a 16.2% increase over last year BUT a 19% decrease compared to last month.  Pending sales also increased 4.6% compared to November 2016, but fell 12.3% compared to last month (October 2017).  Closed sales at 2,387 fell 1.9% short of the 2,434 closings recorded in November last year and also 6.9% short of the 2,565 closings in October 2017.  

Inventory is still tight....  1.9 months supply of homes with the total marketing time increasing to 51 days.  In fact, 2017 has been cooler this year as a whole with closed sales down 3% (29,098) and pending sales also down 6.2% (29,628).    Prices though continue to rise in the metro area, comparing November to November the average sales price rose 8.7% from $394,800 to $429,000.  The median sales price in the same period rose 9.5% from $347,000 to $379,900. You can download the entire 7 page PDF MLS report byCLICKING HERE.  Inside you will see charts and graphs all relating to specific areas of metro Portland.