Portland Home Values - October 2015

Hello Winter!  

Good news continues as we head into the holiday season. The average price of a Portland home is currently $353,000 - an increase of 6% this year, and a combined 29% over the past 3 years!

It also remains a seller's market with the supply of houses for sale at just 1.8 months of unsold inventory. A more buyer/seller market would have between 4 to 5 months. The number of homes placed up for sale this year has risen almost 9% from last year, but unfortunately hasn't kept up with demand.   

Click here for market information including your neighborhood. I’ll be sending this email periodically to a large group of clients and friends. Just let me know if you’d rather not get this.

What can we expect over the next few months?   

Well don't be fooled, the holiday season and wet winter months are mistakenly considered the worst time of year to buy or sell a house. In reality, these distraction-packed-months (November - February) carry benefits for determined buyers and sellers. Here are some things to think about:

• Buying a home in the wet winter months can tell you a lot about what to expect from a property. Visit a house during a hard rain and you'll see for yourself. Drive by houses after a fresh snowfall and discover which are well insulated (snow on roof) and which are losing costly heat (no snow on roof). Tour a house on a very windy day and discover how drafty those old windows and doors can be.

• A seller listing their home for sale in the wet winter months is committed to selling.  They understand what they're up against, and have decided to go for it in what is traditionally a stronger buyer's market. Buyer's who brave the wet winter months are also committed to their task. These buyer's typically "need" to find a home.

• A buyer could join the "herd" of buyers who are active during the traditional "good weather" months - and this competition for properties can mean buyers pay more, lose out on good-value listings, and receive less attention from swamped real estate agents and mortgage help.

These wintry months can be a terrific time to be out home shopping. So, what do you get from sitting on the ice too long? ...Polaroids!

Hope this helps. 

Mortgage interest rates are about 4%.  Call Brent Schreiber with Consolidated Community Credit Union at 503-872-9455 if you think it’s time to refinance or buy. You’ll be happy with Brent’s experience and commitment to serving his clients.

Call me when it’s time to buy or sell a home. I’ll work hard for you!

Darin Provost, Broker
Portland Digs Real Estate
503-784-7626

  

Portland Home Values - September 2015

Portland home sales remain steadfast!

The average price of a Portland home has risen between 6% to 7% this year, and a combined 29% over the past three years! Who would have guessed this three years ago? The average cost of a home in the Portland Metro Area is currently $352,500.   

The supply of houses on the market is also at just 1.9 months of unsold inventory. A more balanced buyer/seller market would have between 4 to 5 months. The low supply of homes for sale continues to put an upward pressure on home prices. It's a great time to sell a house! 

Click here for market information including your neighborhood.

Know someone running into obstacles trying to buy?

Here's a few tips to pass along -  

Get a Financial Leg Up 

In a seller's market, cash is definitely king. More than one-third of Portland homes sold in the past three years were all cash purchases. If you're like me, that's not an option! The next best thing is get "underwritten pre-approved" with a legitimate lender. This type of pre-approval goes further than a standard pre-qualification phone call because you submit all the required paperwork up front. The lender verifies the amount you can afford to pay and shows a seller you can back up your offer with real money.

Stay Patient and Don't Wreck Your Budget 

Patience can be hard to come by when you feel pressure to beat other buyers to the punch. Prices can rise very quickly when there are competing offers on the adorable homes, and all cash buyers are more willing to increase the price in their favor. Stay focused on the big picture and stay within your financial goals.  

Gain Some Knowledge

Get really familiar with the areas you want to buy and what homes are selling for (not asking prices). Take your time and have some fun. The knowledge acquired = an advantage above others. A determined home buyer should feel confident when they find their home to make a quick decision and write a smart offer. 

Keep Calm and Carry On

Buying a home is stressful in any market, but a seller's market cranks up the pressure on all sides. Get some experienced help. A home buyer in this market needs someone who will be honest, wise in ways of negotiations, and experienced in navigating the process. I am happy to help!

If You're Also Selling a Home...

Selling will be easier than finding a new house to call home, and scrambling to find a new place will add stress. Home sellers should be negotiating a rent-back of their home from their buyers of not less than 2 extra weeks, not rule out moving into an apartment or other short-term rental, or even crashing with family (and saving extra money in the process!). Moving twice can be no fun, but it's better than rushing into a purchase that may be regretted later.

Hope this helps. 

Mortgage interest rates are about 4%.  Call Brent Schreiber with Consolidated Community Credit Union at 503-872-9455 if you think it’s time to refinance or buy. You’ll be happy with Brent’s experience and commitment to serving his clients.

Call me when it’s time to buy or sell a home. I’ll work hard for you!

Darin Provost, Broker
Portland Digs Real Estate
503-784-7626

  

Portland Home Values - August 2015

Portland's real estate market saw slightly cooler activity in August but overall remains the most productive summer on record. (A slight dip in home sales in August is common as people find more fun things to do!) The volume of homes sold is up 22% this year, and the average price of a Portland home has risen between 6% to 7%.

The supply of houses on the market is also at just 1.9 months of unsold inventory. A more balanced buyer/seller market would have between 4 to 5 months. The low supply of homes for sale continues to put an upward pressure on home prices. It's a great time to sell a house! 

Click here for market information including your neighborhood. I’ll be sending this email periodically to a large group of clients and friends. Just let me know if you’d rather not get this.

The Federal Reserve is getting closer to increasing short-term interest rates.  

In 2008 the Federal Reserve put its benchmark rate close to zero to help boost the economy.



This rate is likely to increase soon as the economy has improved enough to return borrowing costs to more "normal" levels and keep future inflation from accelerating to much. A decision could be announced this week, mid-December, and or March 2016. I've read rate increases will be slow and gradual, with a minimal impact on our home budgets for the first 12 to 18 months. Ultimately, the impact may be felt on future mortgages, credit cards and bank loans. It could be a great time to refinance an existing adjustable-rate mortgage, and or chip away at any variable-rate debt including credit cards, student loans, and home equity lines of credit. For savers, it could signal higher returns on bank balances. Savings account rates could top 1%...whew hew!  

How can this impact the housing market? 

Projected home sales aren't likely to face any major setbacks due to a gradual rise in interest rates. There may be some volatility in home prices at the start if the media gets carried away, but there are too many other forces driving the housing market including a serious back-log of pent-up demand for housing and extreme low inventories of homes for sale. Home ownership is driven more by need and life events (new job, pay raise, getting married, kids), than by interest rates.      

The average cost of a home in the Portland Metro Area is currently $353,200.    

Mortgage interest rates are about 4%.  Call Brent Schreiber with Consolidated Community Credit Union at 503-872-9455 if you think it’s time to refinance or buy. You’ll be happy with Brent’s experience and commitment to serving his clients.
 
Call me when it’s time to buy or sell a home. I’ll work hard for you!
 
Darin Provost, Broker
Portland Digs Real Estate
503-784-7626

Portland Home Values - A New Housing Bubble? Perhaps Not.

Portland's real estate market has remained very active this summer. Home sales are up 22% from last year including the most productive July in Portland on record. This is real amazing. The average price of a Portland home has risen between 6% to 7% this year, and the supply of houses on the market are at just 1.7 months of unsold inventory. A more balanced buyer/seller market would have between 4 to 5 months. The low supply of homes for sale continues to put an upward pressure on home prices. It really is a good time to sell a house. 

Click here and read below to see how this can benefit you. 

Are we experiencing another housing bubble? Some analysts have suggested that we've entered a new housing market bubble. Lawrence Yun, Chief Economist for the National Association of Realtors has said hard facts suggest otherwise. Mr. Yun says underlying conditions today are fundamentally different from the bubble of a decade ago. Back then, credit was easy to obtain and the volume of home sales were 40 percent higher than now. By comparison, credit is still very tight, which has led to an unusually high level of all-cash sales. Mortgages balances are falling, home owners are paying their mortgages on time and few are seeking cash-out refinances and equity lines of credit.

It's fair to ask, though, whether at some point affordability problems will slow this pace down. Home prices are expected to rise continuously as long as mortgage rates remain under 6%. Rates have been averaging about 4% for some time, though analysts say them may rise to 5.5% by the end of next year. Robust job creation and meaningful increases in income levels will help. Mr Yun says for now, no bubble or impending crash in sight.

The average cost of a home in the Portland Metro Area is currently $351,600.

The graph below displays the average and median sale prices of Portland Metro Area homes between 2006 and today. During this period the average price of a house rose 51% from a market bottom in 2011.



Mortgage interest rates are about 4%! Call Brent Schreiber with Consolidated Community Credit Union at 503-872-9455 if you think it’s time to refinance or buy. You’ll be happy with Brent’s experience and commitment to serving his clients.

Call me when it’s time to buy or sell a home. I’ll work hard for you!

Darin Provost, Broker
Portland Digs Real Estate
503-784-7626

  

Hello - Portland's Real Estate Market is on Fire!  The supply of houses on the market is lower than it's been for 10 years. There is currently just 1.8 months of unsold inventory in the Portland Metro Area with some popular close-in eastside neighborhoods fewer than a month. A more balanced market would have between 4 - 5 months. Home sellers can expect multiple offers. 

Click here for RMLS statistics and read below to see how this can benefit you.
 
It really is a good time to sell a house. Home buyers are plentiful. It's quite a seller's market and likely to continue this year with an upward pressure on home prices. I wrote an offer this month for a close-in N Portland house that competed with 26 offers! This was an extreme, but not unheard of in popular neighborhoods. The average cost of a home in the Portland Metro Area is currently $347,500, up 4.8% so far this year.  

The graph below displays the average and median sale prices of Portland Metro Area homes between 2006 and today. During this period the average price of a house rose 42% from a market bottom in 2011.

 

Condominium sales are on the rise again.  The low inventory of houses for sale has put an upward pressure on condominium sales. Condo sales in the past two months have averaged almost 60% of available inventory = a very high absorption rate.  The low inventory of houses has also allowed many hard to sell homes to get some action.  It's a great time to put that house on a busy street up for sale!

How are homes selling in your neighborhood? Portland's close-in neighborhoods in N, NE and SE continue to sell quickly. Home prices in N Portland have risen an average of 9.6% in the past 12 months. NE Portland rose 5.9%, and Portland's popular SE increased 10%.  N Portland is becoming a market leader to watch.

SW Portland including Tigard, Beaverton, Ahoha and Hillsboro are also selling well. The number of homes sold in Beaverton and Aloha rose just over 56% from last year. House prices in Hillsboro and Forest Grove have led the way with an annual increase of 9.4%.

Area's outside of Portland including Gresham, Troutdale, Oregon City and Milwaukie have seen price increases of 6 - 8% over the past 12 months. Gresham and Troutdale continue to be the most affordable cities with an average house price of $245,600. Milwaukie is leading the way in popularity with a house costing about $318,000 - up 32% from the market bottom in 2011.

Mortgage interest rates are about 4%! Call Brent Schreiber with Consolidated Community Credit Union at 503-872-9455 if you think it’s time to refinance or buy. You’ll be happy with Brent’s experience and commitment to serving his clients.
 
Call me when it’s time to buy or sell a home. I’ll work hard for you!
 
Darin Provost, Broker
Portland Digs Real Estate
503-784-7626

Portland Home Values

Portland's real estate market is feeling like 2007 again returning to levels achieved before the national housing downturn. February home sales outpaced last year's same month by 12.3%. In fact, similarly pending sales bested last years February by 37.1%! The inventory of homes for sale has fallen to 3 months (a more balanced market would have between 4-5 months). This demand combined with very few homes for sale should maintain an upward pressure on home prices.  
 
Read below to see how this can benefit you.
 
It really is a good time to be a home seller. Our office tours homes on Tuesday's, and this week we made a visit to a classic Eastmoreland craftsman near Reed College listed at $689,000.  We all agreed the house will sell quickly, and had to laugh at how spoiled we've become when the listing agent spoke with grave concern that the house hadn't yet sold after being on the market a week and a half!

What does it cost to rent in Portland? You may want to sit down... Units at a recently opened complex at NE 32nd & Broadway (seen traveling on I-84 near Lloyd Center) range from $1,194 for a studio to $2,619 for a three-bedroom. At a newer development on N. Mississippi rents range from $1,100 to $2,590.  And, in North Portland a newly built apartment next to the St. Johns Bridge rents from $973 for a studio to $1,576 for a two-bedroom. According to Zillow, the Portland Metro area's median rent is $1,587 a month. The average price of a Portland home is currently $328,000 - roughly $2,000 a month (loan with 3.5% down payment, 4% interest, property taxes, insurance).

According to Oregonlive.com, rents in the Portland Metro area rose 20.5 percent over the last five years, giving the area the sixth-fastest rise in the nation. Rents rose faster in New York, Seattle, San Jose, Denver, and St. Louis. In a somewhat surprising note, incomes of Portland Metro area renters aged 25-44 nearly kept pace with the rise in rents. I once rented a 2 bedroom house in NE Portland for $190 a month! ...I won't tell you when.  

Mortgage interest rates have fallen below 4%!  Call Brent Schreiber with Consolidated Community Credit Union at 503-872-9455 if you think it’s time to refinance or buy.  You’ll be happy with Brent’s experience and commitment to serving his clients.
 
Call me when it’s time to buy or sell a home.  I’ll work hard for you!
 
Darin Provost, Broker
Portland Digs Real Estate
503-784-7626

Portland Home Values - 2014

Portland Metro Area home sales rose again this past month!  In fact, the number of homes sold were up 25.6% from the same month last year, and the strongest December since 2005.

The good news continues as we finish 2014. Combined with a very busy December, the number of Portland homes shown by agents also rose over 71% the first two weeks of January!  This is a very good indication of things to come.  2014 was a terrific year for existing home owners in building equity.  The average price of a Portland home ended the year at $333,000 – up 7.2% for 2014, and 21% over the past two years.

What can we expect for 2015?
 
A stronger economy and solid job growth is expected to boost home sales even higher in 2015.  According to the National Association of Realtors Chief Economist Lawrence Yun, “the volume of sales are forecast to rise about 7 percent, and the median home price between 4 to 5 percent.”  Over the past two years, Portland has out-paced the national average.

It's a great time to sell a house!  There is currently just 2.3 months of inventory for sale which should maintain an upward pressure on home prices.  It's been a great time for home sellers - a more balanced market would have between 4 to 5 months of inventory.

Buying a home?  Thinking about buying a home this year but think it’s best to wait until summer?  The wintery months can be a great time to look.  A buyer could join the “herd” of buyers who are active during the traditional “good weather” months – and this competition can mean buyers pay more, lose out on good-value listings, and receive less attention from swamped real estate agents and mortgage help.  Buying a home in the wet winter months can tell you a lot about what to expect from a property.  Visit a house during a hard rain or cold windy day and you’ll see for yourself.

Mortgage interest rates are below 4%!  Call Brent Schreiber with Consolidated Community Credit Union at 503-872-9455 if you think it’s time to refinance or buy.  You’ll be happy with Brent’s experience and commitment to serving his clients.

You might have notice I changed offices?  I joined a group of very smart and busy agents at Portland Digs Real Estate. We've got a terrific office located at 2737 SE 21st Avenue, Portland – next to the popular Division & Clinton streets.  Please stop by and say hello.  I’d love to see you and treat for lunch!

My new email address – darin@realtor.com

Call me when it’s time to buy or sell a home.  I’ll work hard for you!

Darin Provost, Broker
Portland Digs Real Estate
503-784-7626