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Portland Real Estate Update By Rob Levy

Portland Real Estate Update August '19

The Portland, Oregon real estate market ended July 2019 with strong closings (representing sales actually made mostly in June) but lower numbers of pending sales and new listings.  At 2,994 closed sales outpaced July of 2018 by 7.5% and June of this year by 6.8%.  Pending sales as mentioned are down 2.4% over last July, and 2.8% over June this year.  New listings ended up down about 7% over last month.  Homes are sitting on the market about 43 days on average, although we are seeing less for homes under the magic $450,000 mark and much longer for luxury homes, or homes over about $750,000.  

Interestingly with the tarrif mess with China as well as the ongoing Brexit issues, investors are seeing mortgage backed securities as a good, safe investment.  Add to this the stock market drops of the last few days resulting in low yeilds are causing mortgage interest rates to be near historical lows again.  I am seeing rates in the low 3% range.  To put this in persepctive, if you are borrowing $400,000 at 3.5% vs 5.5% the difference is a whopping $475 per month, every month!  Put a different way a $475 mortgage payment at 3.5% would buy you about $80,000 worth of additional house!  Contact me today if you want to be put in touch with a quality mortgage lender either to buy your new home, or refinance your current home.

You can view the entire MLS report for all Portland areas here.

Our home of the month is a terrific 1938 Cape Cod with an attic and full basement in close-in west side neighborhood of West Slope.  This 2680 square foot home sits on a large almost 1/2acre lot that may be sudividable for an additional lot.  You can view the home here. 

December Residential Highlights
The Portland metro area saw mixed numbers this December, but new listings made gains compared to December 2016. At 1,617, new listings showed a 13.8% increase compared to December 2016, despite a 33.1% decrease from last month in November 2017 (2,416). This was the strongest December for new listings in the Portland metro area since 2011, when 1,700 new listings were offered.
Pending sales (1,757) exactly matched the 1,757 offers accepted last year in December 2016 but showed a 25.9% cooling from the 2,371 offers that were accepted last month in November 2017.
Closed sales, at 2,350, ended with a 10.3% decrease from December 2016 (2,621) and fell 1.6% short of the 2,387 closings recorded last month in November 2017 as well.
Total market time in December ended at 55 days, with inventory decreasing slightly to 1.6 months.
Year to Date Summary
Activity in 2017 was a little cool compared to 2016. New listings (40,805) decreased 0.8%, closed sales (31,624) decreased 3.6%, and pending sales (31,330) decreased 5.7%.
Average and Median Sale Prices
Prices continued to rise in the Portland metro area in 2017. Comparing the entirety of 2017 to 2016, the average sale price rose 8.5% from $395,000 to $428,700. In the same comparison, the median sale price rose 9.5% from $347,000 to $379,900.Information courtesy RMLS.

It costs more to sell with iBuyers

You may have seen the marketing for iBuyers, or internet companies that offer to buy your home from you without it being on the market.   This type of buyer has been around my entire 31 years in real estate sales but they used to be the "I buy ugly homes" posters on telephone poles.  The only difference is they now initiate this service via the internet.   What I have found is this type of sale is beneficial to very few home sellers, in the ones I have had happen its been a seller who already bought a new home and needed the cash, or a home that needs lots of repairs and the seller does not want to deal with them.  But for most it will cost you money, sometimes a LOT of money.  You can read the entire article here.

Metro Portland's Top 15 In-Demand Neighborhoods

The Portland Oregonian just released their latest market study of the top 15 most in-demand neighborhoods in the Portland metro area. Again Beaverton, Aloha and Tigard round out the top three with #15 being South Mt Tabor but even that area has an average sales time of 30 days.   As mentioned above the luxury market even in these top areas is still slow.  You can see the Oregonian article here.