I must have been the smartest man alive to start a business in real estate 8 years ago.  (I say in jest.)  My career started off with a bang.  Back in 2004 and 2005 Portland home values rose just over 35 percent!  Every home listed sold within a month.  Buyer’s kept my phone ringing so much I wore one of those silly blue blinking ear devises as I darted through the office, restaurants, the gym, and even outside on my mountain bike or in route to kayak.  How comical in hindsight.  Where is that ear-piece now? 

Well, at everyone’s surprise things changed quickly in 2006 as the media drew massive attention to the bursting of the housing bubble.  This attention helped put a panic in the market as buyers drew weary and it seemed “everyone” wanted to put their house up For Sale with hopes of cashing out big returns.  Below is my brief highlight of the changes experienced in the years after 2004-05 I’ll call the “7-year Itch”:

2006 – The media’s relentless attack on the housing market crash…a national phenomenon.  Home buying slowed substantially as consumers drew weary of things to come.  The inventory of homes For Sale grew substantially as home owners and property investors tried to cash out with inflated home prices.  It was growing clear to everyone that home prices were too high.  Portland’s housing bubble began to deflate... notably a year after other US cities.

2007 – A continued rise in the number of over-priced homes placed up for sale.  Property investors disappeared and traditional home buyers drew increasingly wearing of pricing.  I believe at this time there was still denial by home sellers and people working in the industry that this draw-down would continue.

2008 – The inventory of homes placed up for sale peaked at over 18,000 homes in the Portland Metro area.  This was 3 times the inventory of homes For Sale back in 2004-05, and it seemed everything was overpriced.  The few home buyers that remained wanted to see 40 – 60 homes before making a decision.  I ditched the ear-piece!  Home buying was down over 60%.  A real fun time to be a real estate broker…  I had doubts of being the smartest man alive.

2009 – Home buying bottomed out.  Portland experienced a very cold and snowy winter that helped put the brakes on home buying.  On the bright side, the volume of homes placed up For Sale declined.  On the downside, this inventory was largely made up of distressed homes for sale at reduced prices (i.e. short-sales and foreclosures).  Homes sold at BIG discounts from original inflated asking prices.

2010 – Portland’s housing market was bloated with inventory including distressed homes.  Home sales were flat in all price ranges.  Home values continued to decline.

2011 – Home values bottomed out in the winter of 2011-12.  Home values were back to median prices in 2004 with all of the housing bubble gains disappeared - a loss of over 40% in home values.  On the bright side - the inventory of homes For Sale declined rapidly including distressed properties.  This tightening of supply combined with a rise in consumer confidence started a new trend for Portland’s housing market.  Property investors returned to the market with cash purchases buying at bottomed out prices. 

2012 – Consumer confidence and interest in home buying continued to rise.  This was coupled with a rapid decline in inventory of homes For Sale.  The media remained positive on the future of the housing market and buyers began to compete for homes in popular neighborhoods with multiple offers.  Portland’s home prices rose 6.3% in median values, and 4.4% in average values.  It became apparent to many economists the housing decline had bottomed out in 2010-11.  The stock market boomed and personal wealth began to rise after a 7 year decline.

2013 – Forecast remains positive for the housing market in Portland and abroad.  The number of homes For Sale will be at an all time low with a declining inventory of distressed properties that had plagued the market.  Consumer confidence shows improvements with increased buying in most consumer goods and services.  Economic indicators including Job reports continue to improve.  Interest rates remain incredibly low.  An increased interest in home ownership and tight inventory of homes for sale is projected to raise home values further in 2013.

What a cycle it’s been.  A test of endurance and lessons learned for everyone.  It really appears things are on the up-tick and to everyone’s amazement a marathon cycle that lead from excitement, to confusion, worry, denial, acceptance, and a cautious sigh of relief. 

I appreciate the business you’ve brought me and relationships made running this marathon.  Please stay in touch and keep me in mind when it comes time to move…again. 

Darin

503-784-7626

I also have a lender you can trust.  His name is Steve Welch at Northwest Mortgage Group, Inc.  His direct number is 503-805-6810.  Interest rates remain unbelievably low around 4%!     

Portland Home Values - Building Steam

Home sales this year are at their best for Portland since 2006.  This has put an upward pressure on Portland home values that has climbed an average of 3.4% over the year.  The down cycle experienced over the past six years appears to be ending with all reported measures of real estate activity improving.

Click Here for some Portland Real Estate Statistics produced by our Multiple Listing Service.

Buyer’s have re-entered the market taking advantage of affordable pricing and low interest rates.  This is a great turn for those who have been waiting to sell their house.  Home sales in the Portland Area were up 20% from the year prior, and 24% from the bottom Portland hit in 2010.  The number of homes placed up for sale also continues to be the lowest inventory at just 3.8 months since July 2006.  This increased buying and low inventory has put an upward pressure on home prices, and often homes that are located well are selling with multiple offers.  In the past six year cycle, it appears Portland hit a low point in home sales and pricing between 2010 and 2011. 

The average market time to sell a home in the Portland Metro Area is currently 102 days – a decrease of 29% from this time last year.  The market time to sell a Portland home that is priced right and located in a popular close-in neighborhood is just under ONE-week!

The average sale price of a Portland Home is currently $284,600.  The median price $243,300.

Homes are affordable and there are great investor opportunities.  First-time buyers can find quality homes priced around $200,000.  Higher-end homes are affordable to middle-income wage earners.  And, Mortgage Interest Rates are still hovering 4%! 

Do you know someone looking to buy or sell a home?  Please have them call me at 503-784-7626.

Hope you’re staying dry!

Darin

Home sales this past summer were at their best for Portland since 2006.  This has put an upward pressure on Portland home values that has climbed an average of 3% over the year.  The down cycle experienced over the past six years appears to be ending with all reported measures of real estate activity improving.  Read my summary below to see how this may benefit you.

Click Here to view some Portland Real Estate Statistics produced by our Multiple Listing Service.

Buyer’s have re-entered the market taking advantage of affordable pricing and low interest rates.  This is a great turn for those who have been waiting to sell their house.  Home sales in the Portland Area were up 18% from the year prior, and 22% from the bottom Portland hit in 2010.  The number of homes placed up for sale also continues to be the lowest inventory since July 2006.  This increased buying and low inventory has put an upward pressure on home prices, and often homes that are located well are selling with multiple offers.  In the past six year cycle, it appears Portland hit a low point in home sales and pricing between 2010 and 2011. 

The average market time to sell a home in the Portland Metro Area is currently 115 days – a decrease of 21% from this time last year.  The market time to sell a Portland home that is priced right and located in a popular close-in neighborhood is just under ONE-week!

The average sale price of a Portland Home is currently $281,400.

Homes are affordable and there are great investor opportunities.  First-time buyers can find quality homes priced around $200,000.  Higher-end homes are affordable to middle-income wage earners.  And, Mortgage Interest Rates are still hovering 4%! 

Call Steven Welch at Northwest Mortgage Group if you think it’s time to refinance or buy.  And please, if you know someone looking for help buying or selling have them call me at 503-784-7626.

Summer is in full swing!  Hopefully you’re outside enjoying the warm weather.

Click Here for some Portland Real Estate Statistics produced by our Multiple Listing Service.     

Home sales in the Portland Area continue to improve.  Every measure of real estate activity is positive when comparing July 2012 to the prior year.  The number of homes sold this past month had increased 15% and the median sales price increased 7.8% (see the Average and Median Sale Price Graph below).  

The number of homes placed up for sale continues to be the lowest inventory since July 2006.  It would take just 4.6 months to sell the 9,041 active listings – substantially less than the 19.2 months of inventory we had in Portland in 2009.  Buyer’s have re-entered the market taking advantage of affordable pricing and low interest rates. 

The average market time to sell a home in the Portland Area is currently 100 days – a decrease of 25% from this time last year.

Homes are affordable and there are great investor opportunities.  First-time buyers can find quality homes priced around $200,000.  Higher-end homes are affordable to middle-income wage earners.  And, Mortgage Interest Rates are still hovering 4%!

Do you know someone looking to buy or sell a home? 

Please have them call me at 503-784-7626.

Darin

Every measure of real estate activity is positive when comparing June 2012 to the prior year.  The number of homes sold increased 22% and the median sales price rose 8.6%.  This represents the highest number of homes sold since August 2007.  

The number of homes placed up for sale dropped again in June and continues to be the lowest inventory since March 2007.  It would take just 3.9 months to sell the 8,800 active listings – substantially less than the 19.2 months of inventory we had in Portland in 2009.  Buyer’s have re-entered the market taking advantage of affordable pricing and low interest rates. 

The average market time to sell a home in the Portland Area is currently 114 days – a decrease of 25% from this time last year.

Profile of Home Sellers

On July 13, 2012, in Did You Know, by Meredith Dunn, Research Communications Representative

Here are some interesting characteristics of today’s home sellers: 

• About half of home sellers traded up to a larger sized and higher priced home and 60% purchased a newer home.
• The typical seller lived in their home for nine years.  In 2007,the typical tenure in a home was only six years.
• Eighty-seven percent of sellers were assisted by a real estate agent when selling their home.
•  Recent sellers typically sold their homes for 95% of the listing price, and 61% reported they reduced the asking price at least once.
• Forty-one percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.

 Homes are affordable and there are great investor opportunities.  First-time buyers can find quality homes priced around $200,000.  Higher-end homes are affordable to middle-income wage earners.  And, Mortgage Interest Rates are still hovering 4%!

Do you know someone looking to buy or sell a home? 

Please have them call me – 503-784-7626.

Home sales in the Portland Area continue to improve.  Home sales increased 13% over the first quarter of 2012, while the number of homes for sale has decreased almost 10%.  This buying activity and shrinking inventory of homes for sale is having a positive effect on home values.  Read my summary below and the attached to see how this may benefit you.

Click Here to view some Portland Real Estate Statistics produced by our Multiple Listing Service.

In Summary:

The number of Portland Area homes sold last year were up 4% from the year earlier, and surpassed 2008 and 2009 with a similar margin.  This positive trend has continued into 2012 with an increase in sale activity by 13%.  It seems buyer’s have re-entered the market taking advantage of affordable pricing and low borrowing costs.  In fact, with the exception of March and April of 2010 which were impacted by deadlines for the First-Time Homebuyer Tax Credit, the number of homes sold in April were higher than any month since 2007. 

All of this buying is combined with a reducing inventory of homes for sale.  Homes that are located well and priced correctly are selling quickly and often with multiple offers.  There are currently 8,500 Portland Area Homes for sale - a substantial decrease from a peak of over 18,200 homes for sale in the summer of 2008.  The number of homes for sale in the first quarter of 2012 were down almost 10%.  I believe Portland Home Values will likely increase into 2012. 

The average market time to sell a home in the Portland Area is currently 132 days – a decrease of over 18% from this time last year.

Nationally:

By Alan J. Heavens, Philly Daily News

The nation’s Realtors say they have just finished the strongest first quarter in home sales in five years, and sales contracts are pointing to a strong second three months. 

At the National Association of Realtors’ midyear meetings in Washington this week, chief economist Lawrence Yun said “positive underlying economic factors were helping spur home sales.”

Among the positives, according to Yun, are high affordability conditions, increased job creation, improving consumer confidence and an increase in rental costs that make mortgage payments look like a bargain.

Homes are affordable and there are great investor opportunities.  First-time buyers can find quality homes priced around $200,000.  Higher-end homes are affordable to middle-income wage earners.  And, Mortgage Interest Rates are still hovering 4%!

Do you know someone looking to buy or sell a home?  Please have them call me at 503-784-7626.

Home sales in the Portland Area continues to show improvement.  Home sales increased 18% this past month, 15% over the past 6 months, and the number of homes for sale has decreased by almost 30%!  This is having a positive effect on values.  Read my summary below to see how this may benefit you.

Click Here to view some Portland Real Estate Statistics produced by our Multiple Listing Service.

In Summary:

The number of Portland Area homes Sold in 2011 increased 4% from the year earlier, and surpassed 2008 and 2009 with a similar margin.  This positive trend has continued into 2012 with an increase in sale activity by almost 18% this past month.  This is great news for home values.  The average cost of a home in Portland is currently $251,300 – an annual increase of almost 2%, and great news considering values had steadily decreased since 2007.  Lawrence Yun, NAR's chief economist, said in a statement that "the trend in contract activity implies we are on track for a more meaningful sales gain this year."  “Movements in the index have been uneven, reflecting the headwinds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery," Yun added.

There are currently 8,300 Portland Area homes up for Sale.  This is a substantial decrease from a peak of over 18,200 homes for sale in the summer of 2008.  Portland Home Values will likely increase if this inventory reduces further in 2012.  Homes that are located well and priced to attract a buyer are selling quickly and often with multiple offers.


February National Existing Home Sales in Graphs

On March 21, 2012, in Economist Commentaries, by Lawrence Yun, Chief Economist

The spikes in sales in late-2009 and mid-2010 (shown below) were due to the home buyer tax credit deadlines.  Outside of these spike periods, the past two months of sales are at the highest levels in 5 years.

Inventory has been steadily falling.  The charts show the raw number of visible inventory of homes for sale.  There are seasonal patterns, with more listings in spring and summer compared to winter.

The median home price showed a slight increase in February from one year ago.  The increase is more due to the mix of homes issue where the upper-end market, which had been very sluggish in recent past, is beginning to move.  The market is still dominated by sales in the lower price points.

Homes are affordable and there are great investor opportunities.  First-time buyers can find quality homes priced around $200,000.  Higher-end homes are affordable to middle-income wage earners.  And, Mortgage Interest Rates are under 4%!  

Do you know someone looking to buy or sell a home?  

Please have them call me at 503-784-7626

Darin