Portland Home Values - January 2017

Hello!

And Happy Winter.

The new year for selling homes has started off a little mixed from where 2016 ended. The number of homes placed up for sale rose in January by almost 56% from December, but the number of homes sold fell short by almost 30%. This gave us a slight rise in inventory of homes for sale to 1.7 months. The holidays and winter weather made for an interesting two months. (Heck, I was out of town for most of it including the snow!)

The average price of a Portland home is currently $409,900 - an increase of 12% over the past 12 months. Market reports suggest a rise in prices of about 3% to 5% for 2017 - See Predictions for 2017 below.

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.

Predictions for 2017

We have a new Administration that'll have an impact on the housing market. It's too early to predict what the impacts will be for 2017, but reasonable to feel alert to how new policy changes will affect the market for years to come. Stay tuned!

Here are a few indicators we can rely on for now -

An Ongoing Housing Shortage
Lawrence Yun, Chief Economist of the National Association of Realtors says there's nothing on the horizon in the coming year that will likely bring any relief or improvements to the housing shortage. Sigh... A low inventory of homes for sale should maintain an upward pressure on home prices through 2017. Market report suggest a rise in the Portland Metro Area of 3% to 5% this next year.

New Housing Construction
Nationally, single family new construction increased 9% in 2016. This is low considering the lack of new construction over the past 10 years. One big reason housing construction hasn't returned to normal levels, despite increased demand, is lack of labor. A lot of workers left the industry when construction jobs dried up in 2007. Interesting statistic, about one in four construction workers are foreign born. New immigration policies might make this problem worse.

Mortgage Rates May Increase, But Not by Much
Experts predict 30-year fixed mortgage interest rates to be about 4.5% in 2017.

Slower Market Growth Due to Affordability Pressures
Availability of affordable homes for sale has declined over the past 4 years and won't likely be much different for 2017. Redfin is predicting median home sale prices to increase nationally 5.3% year over year and the volume of homes sold up just 2.8% in 2017.

More People Will Have Access to Home Loans
It seems mortgage lending has relaxed some from the height of the housing crisis. For those with particularly good credit, some lenders are introducing mortgages that require down payments as low as 3%.

2017 Will Be A Very Fast Moving Market
We've had a persistent inventory shortage for 4 years in Portland, especially in lessor expensive starter homes. These homes are selling very quickly. The development of new technologies via the internet and smartphone applications is also contributing to homes disappearing quickly. It's been commonplace to arrive at a new listing with someone already inside viewing it, and 1 to 2 parties arriving behind my clients and I. Another Sigh... Oh, and you should see how FAST a millennial buyer can find a home for sale! 

Hope this helps. 

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 - June 2016

Hello - Hope you're having fun outdoors!

The longer days and warmer weather gets people outside - including home buyers. It's a perfect time to catch up on those house projects, and get your house on the market to sell. Home sales are up 4% from last year, while the number of homes for sale has dropped another 25%! This has put a real tight squeeze on things and continues to put an upward pressure on home prices. The average price of a Portland home this past month rose to $402,500 - an increase of almost 12% over the past 12 months. Portland has become a destination city and is catching up in price to it's west coast neighbors in California and near-by Seattle.      

Click here and read below to see how this can benefit you. 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 graph below displays the average and median sale prices of Portland Metro Area homes between 2008 and today. During this period, the average price of a house has risen almost 65% from a market bottom in 2011!
 

Condominium sales are on the rise too.  The low inventory of houses for sale has put an upward pressure on condominium sales. Condo sales in the past three months have exceeded new inventory = a very high absorption rate. Condo prices have risen almost 20% this year alone.

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 14.4% in the past 12 months. Portland's NE increased 10.8%, and SE rose 10.3%.

SW Portland including Tigard, Beaverton, Ahoha and Hillsboro are also selling well. Homes are selling the quickest in Beaverton and Aloha with just 22 days of average market time. House prices in Tigard and Willsonville have led the way with an annual increase of 11.8%.

Area's outside of Portland including Gresham, Troutdale, Oregon City and Milwaukie have seen price increases of 9-15% over the past 12 months. Oregon City has led the year with an average price increase of 14.6%. Gresham and Troutdale continue to be the most affordable locations with an average house price of $282,400.  Buyer's are thinking very positive about moving to Gresham and Troutdale right now.

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.

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

  

Negotiating On Your Behalf

Hello!  

The new year appears to be kicking-off where 2015 ended. There was another rise in pending home sales in January and the inventory of homes for sale remains low at just 1.8 months (a more balanced market would have between 4 to 5 months). The continued demand combined with very few homes for sale should maintain an upward pressure on home prices. Market reports suggest a rise of between 3 to 4 percent for 2016.

The average price of a Portland home is currently $355,500 - an increase of 6.7% over the past 12 months, and a combined 30% over the past 3 years!

Click here for market information including your neighborhood.

Negotiating On Your Behalf

I recently completed a real estate course on Negotiating.  "Negotiation skills are the bread and butter that lead to caviar and champagne."  So, I thought I'd share with you some tips that might benefit you.

First, let's identify the two leading Negotiator styles -

A COLLABORATIVE negotiator will have a win-win mindset and focus on interests rather than position, be open to explore alternatives, and will have interest in building trust to meet a better ending. A collaborative negotiator will ask questions, and generate positive emotions.

A COMPETITIVE negotiator will have a win-lose mindset and focus on their position, hide information, may speak aggressively, and likely have little or no interest in building trust. A competitive negotiator may use intimidation tactics to pressure the other party into agreement.

A most effective negotiator can be Collaborative and sometimes use Competitive “tactics.”
 
Do you see yourself in either of these descriptions? Keep reading to sharpen your Negotiating skills.

Characteristics of a Skilled Negotiator

Skilled negotiators ask questions, speak positively, explore options, plan ahead and stay organized, argue less, negotiate from a position of strength and moral code, and have a win-win mentality.

Tips to Becoming a Skilled Negotiator

Remain emotionally rock solid - like the storm chaser who flies into the eye of a hurricane, remain calm, cool and steady. Manage your emotions. And please, don’t fly into the eye of a hurricane :).

Be funny - generates higher levels of trust and mentally disarms people.

Be willing to walk away - single most powerful element of negotiation.

Let the other party speak first - giving you the ability to define the mid-point of the negotiation.

Know your leverage.

Be nice, polite, and optimistic.

Listen more, talk less - learn to “pause” in a conversation.

Constantly seek common ground.

Always get the last concession - by always asking for, and getting something in return, the other party may shy away from asking for more. Might work with your kids or parents.

Check your ego at the door - stay focused on interests, not positions. Stay collaborative.

There is much more to all of this. The bottom-line - helping you reach agreement on the sale of a property, and maximizing the outcome for you. Surprisingly, the National Association of Realtors says only 5% of home sellers want help in negotiation and dealing with buyers while 99% of buyers believe Negotiation Skills are important in their purchase.  Either way, I am ready and better educated to help you.

Hope this helps. 

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 - 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