Market News

blog posts about Portland and Oregon real estate market

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Market News

Found 37 blog entries about Market News.

Core Logic just released the March 2018 Market Pulse.  There are three interesting articles: two are retrospective looks at 2017, when the average homeowner gained $15K in home equity, and the average rent went up 3%.

The third article explores the impact of mortgage rate increases on affordability.  The core logic analysis tracks the changes in the "typical mortgage payment" for the median-priced house in the US.  They assume a 20% down-payment, a 30 year amortization schedule and ignore property taxes and insurance from their calculation.  This is the most often used metric in the industry to talk about affordability.

The Core Logic consensus estimates almost a 14% increase in the typical mortgage payment during 2018.  The increase of the 

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Three years ago, we wrote a blog post claiming Portland is ADU City (Baby) and predicted we’d see more and more pop up in our neighborhoods. Well, sure enough, Portland’s ADU trend is rising to new heights.

Why? Simply put, there’s still a housing shortage. Because ADUs are allowed in more areas than duplexes, triplexes, and apartments, many people are turning to building a second, compact home right in their backyard. Moreover, local government in Portland and other major cities with housing shortage are widely encouraging this movement, so much so that since 2010 the City of Portland has been waiving expensive system development fees, saving up to $19,000 in building costs. In 2016 alone, the city issued 615 permits for new ADUs.

So what is an

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Each year the National Association of Realtors reports on the cost of common remodeling projects and how much they add to the value of a typical home. The following are the estimates for the Portland area published in 2018.

The cost data comes from HomeTech Information Systems, a remodeling estimating software company, and is adjusted for regional pricing variations.  The added value estimates are based on sampled NAR members’ professional judgment, not actual sales. ©2018 Hanley Wood, LLC. Reproduced by permission. Complete city data from the 2018 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.

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This week, the Portland Home Team principal brokers discuss the new Tax Act and its effects on Portland real estate & homeowners following up on our December blog post written by Phil Wax. Part 1 of 2. Keep an eye out for our followup podcast talking about how this will impact investors.

Listen now & share! 

We're happy to answer your questions. Give us a call at 503-222-3400.

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Are you or someone you know considering selling your home after December 31st, 2017?

Chances are yes, eventually...so no matter what chapter of homeownership you are in, you're going to want to listen up! The City of Portland has issued a mandated Home Energy Score Assessment and Report* to be provided by the sellers of single-family homes and townhomes starting January 1st, 2018 within the Portland jurisdiction. 

What is it? A Home Energy Score (HES) is the measurement of energy efficiency a home has based on an onsite evaluation of the physical characteristics of the house and where it is located on a scale of 1-10. It's similar in concept to the MPG ratings for automobiles.  The score is not determined by current energy usage influenced by

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I wanted to follow up Phil's October 10th blog post declaring our market a "screaming buy" and our 10/13 podcast with Phil's prediction of a 10% market rise in next year's first half with some additional context.

This chart shows data from RMLS statistical reports for the Portland market.  Over the past two years, most of the price appreciation has happened in the first half of each year.  The market has been essentially flat in the back half of each year.  Part of the explanation is that inventory tends to build in the second and third quarter (see boxes in chart above), and get sold off over the back half of the year.

The other part of the explanation is the mix of home sales: larger, family, homes at higher price-points tend to be more

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In a few days, the RMLS Market Action Report will tell us about Portland's real estate market in September. We predict that the report will be seen as negative, and in that is opportunity.

Here is what has happened: In August the number of Portland properties that went under contract was 7.6% lower than August 2016, and also 7.6% lower year-to-date in 2017 compared with a similar period in 2016. These numbers will result in fewer reported closings last month compared to September 2016, August 2017, and year-to-date 2016 vs 2017 through September.

Number of Homes Sold in Portland

Those that closed in September will probably also be at lower price points. OregonLive and a few talking heads will claim that tight supply and affordability issues mean the market may have peaked, that

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Jon Bell wrote an interesting post in this past week's Portland Business Journal that highlight the underlying or root cause of the run-up in both home prices and rents.  

The average Portland home price is roughly 44% higher than the national average, and the average apartment rent is a whopping 150% higher than the national average. That's right sports-fans, by this metric, rents are 3 times more inflated than home prices. No wonder there has been so much recent discussion about rent-control, and new legislation designed to help tenants.

The recent landlord ordinance is in effect as long as Portland remains in it's current "Housing Emergency (declared in 2015 and extended, currently through Fall 2017). Jan Bell's April 7 article in the

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We've launched a podcast!

We'll be checking in weekly to let you know what's going on in the Portland Real Estate market. In this week's episode, Phil and Bob talk about which market trends do and don't affect mortgage rates, including the Federal Funds Rate, GDP, and inflation, and what this all means for your home buying timeline.

 

 

If you missed our first episode, you can find it on Soundcloud. Let us know what you think!

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The Federal Funds Rate & Fixed Mortgage Rates

The Federal Funds Rate sets the interest rate banks charge each other on overnight loans made to meet reserve requirements. The Federal Funds Rate also determines the Prime Rate, upon which many business and consumer loans are based. When the Federal Funds Rate is low, the Fed is attempting to promote economic growth. When it is high, the Fed is attempting to dampen inflation. Manipulating the Federal Funds Rate is one way the Federal Reserve manages its dual charter of fostering maximum employment and maintaining stable prices.

U.S. mortgage rates are not set by the Federal Reserve. There is no direct connection. Want proof? In November, 2008 the average thirty year mortgage rate was 5.70% higher than

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