Market News

blog posts about Portland and Oregon real estate market

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Market News

Found 40 blog entries about Market News.

Has the market changed, or is this a normal seasonal variation?

Short Answer: The market is balancing, and the seasonal variation is temporarily exaggerating the change. We see continued price softening over the next couple of months, followed by a comparatively robust spring.

September By the Numbers

  • Median sale price ($392,500): 3.3% up from September 2017 ($380,000), 3.7% down from August 2018 ($407,500). 
  • Number of homes sold (2,272): 14.6% down from September 2017 (2,660), 23.4% down from August 2018 (2,967).
  • Number of homes on the market (7,082): up 18.1% from September 2017 (5,998), up 2.2% up from August 2018 (6,929).
  • Months supply of inventory (3.1): up from September 2017 (2.3), up from August 2018 (2.3).
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The Headlines

The media is starting to report on a slowing residential real estate market, even suggesting the broadest slowdown in years. What does that mean for buyers and sellers in Portland? What does it mean for you?

The Data on Sales Volume

Total active residential listings in June 2018 increased 12.5% over May (6,054 vs 5,380) and 16.2% over June 2017 (6,054 vs 5,211).

The number of closed sales in June increased 5.1% over May (2,946 vs 2,803) and decreased 6.0% from June 2017 (2,946 vs 3,187).

A Little Perspective

Activity has slowed since the spring. It slowed last year about this time, and the year before that, and the year before that, and... So the better question is whether the slow down is due to typical seasonality or to a

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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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