Friday, March 14, 2014

Portland's Real Estate Market Remains Active

Portland’s real estate market has remained active this winter.  February saw an increase in home sales of almost 7% from last year.  In fact, it was the best February in Portland since 2007!

Click here and my summary below for an update on Portland Home Values.  

Portland Home Values

The new year appears to be kicking-off where 2013 ended.  Home sales have been on the rise in both January and February from last year, and the inventory of homes for sale remains low at just 3.9 months.  This continued demand combined with very few homes for sale should maintain an upward pressure on home prices.  Reports I read project a 3% to 5% rise in Portland Home Values over the next year.

This graph displays the average and median sale prices of Portland Area Homes between 2005 and today.  Between this period, home prices have steadily increased from a market bottom in 2011.  The average price of a Portland Home is currently $325,500 – up almost 13% in the past twelve months.  



How are things selling in your neighborhood?

Portland’s close-in neighborhoods in N, NE and SE continue to be hot zones with houses selling quickly.  Home prices in SE Portland have risen an average of 18.4% in the past twelve months.  North Portland was a close runner-up at almost 16%.  NE Portland rose 12.2% this past year, but have sustained their home values better than any Portland area over the past 8 years.

Area’s in SW Portland including Beaverton, Aloha, and Hillsboro are also selling quickly.  These area’s had a larger share of distressed bank-owned and short-sale properties selling at lower prices.  Home prices in Beaverton and Aloha rose almost 18% over the past year. 

Area’s outside of Portland including Gresham, Troutdale, Oregon City and Milwaukie have seen price increases of 13% - 15%.

Mortgage interest rates are averaging about 4.5%.

Hope your winter was warm.  It’s daylight savings time now, so hopefully you’re outside enjoying the longer days!

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

Darin Provost, Broker
Vintage Real Estate
503-784-7626

Sunday, February 16, 2014

Portland Home Values - Happy New Year


It may seem late to say “Happy New Year”, but it’s timely in reference to Portland’s Real Estate Market.  It is generally the month of March when the weather begins to clear that starts-off a new real estate year.  Homes often sell nicely this time of year with less competition and an active group of determined buyers who've waited through the holidays for something they want.

Click Here and read below for an update on Portland home values.

Portland Home Values    

The new year appears to be kicking-off where 2013 ended.  There was a slight rise in pending home sales through January and the inventory of homes for sale remains low at just 4.1 months.  This demand combined with very few homes for sale should maintain an upward pressure on home prices.  Market reports that I follow seem to agree that a rise in home prices will continue in 2014 between 3% to 5%, with five important things to watch:
  • The Inventory of homes for sale – Prices have risen largely because of the shortage of homes for sale.  Economists are suggesting that inventories hit bottom last year and some markets are returning back to normal levels.
  • When will home builder’s start building again?  New construction isn't expected to be at normal levels for many years as the cost to build is still higher than relative home values and credit is still tight for smaller contractors.
  • Home Mortgages – Getting a home loan has eased up, but is by no means a given.  The housing recovery is hinged on threats of rising interest rates even though they are still well below historic levels.
  • What will property investors do next?  A handful of institutional investors have purchased tens of thousands of homes that are being rented out.  These investors played a key role in stabilizing prices.  What will happen after the initial rush to invest subsides, and what will they do with all of that inventory?
  • Will the rise in home prices tip the scales on home affordability?  Rising home prices are a double-edged sword.  On the one hand, rising prices are giving many homeowners equity in their homes again.  This increase also makes housing less affordable.  This will be a problem when home prices are no longer attractive to property investors and/or if interest rate rise in a meaningful way.

The average price of a Portland home is currently $317,000 – up almost 13% in the past twelve months.

Mortgage interest rates are about 4.25% - 4.5% and projected to be closer to 5% by the year end.

Hope your winter is going well.  Stay warm!

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

Darin Provost, Broker
Vintage Real Estate



Wednesday, December 18, 2013

Portland's Home Values - What's Ahead


Happy Holidays!

Burr…  It’s cold outside.

Home sales in the Portland Area have cooled slightly for the winter, but for the year have rebounded with a 16% rise in the number of homes sold, reduced market times to sell by more than 25%, and a 13.5% increase in the average sales price of a home.  These are high marks, and Portland is ranking very well among turnaround cities.  Nationally, home prices have risen about 10% this year. 

What’s Ahead

Through the past year, a sense of urgency drove home buyers taking advantage of still-affordable home prices and historically low mortgage rates.  These home buyers were faced with a limited supply of homes for sale, and were often forced into bidding with investors and other buyers who paid with cash.  “Cash” buyers represented almost a third of home sales in 2013!  Sellers were rewarded with quick sales, often above their asking prices.  Market reports that I follow seem to agree that home prices will rise in 2014, but at a slower, more steady pace between 3% to 5%.  An interesting find reported by Kiplinger Business Forecasts says the percentage of consumers who intend to buy a home in the next six months is the highest since the year 2000.  Adding to this push is a pent-up demand among younger adults paying premium rents.  Can you believe studio and one-bedroom apartments located in the various hipster Portland neighborhoods run between $1,250 - $1,500 a month (some even higher)?

How are homes selling in your neighborhood?  Well, over the past year Portland’s leading area was inner-SE with an impressive 16.2% increase in the average price of a home.  A close runner up was North Portland with a 15% increase, followed by the inner-NE neighborhoods at 13.2%.  Area’s on the Westside including Beaverton and Aloha that had a larger share of distressed bank-owned and short-sale properties beat Portland’s best with a 17.8% average price increase.

Mortgage interest rates are about 4.5% and projected to be closer to 5% in 2014.

Hope your holidays are wonderful.  Stay warm, but get outside and have some fun!

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

Darin Provost, Broker
Vintage Real Estate
503-784-7626



Monday, November 18, 2013

Hello Winter


Don’t be fooled, the holiday season and wet winter months are often considered the worst time of year to buy or sell a home.  In reality, these distraction-packed months – November to February – carry benefits for determined buyers and sellers.  

Click Here and read my summary to see how this can benefit you.  

In Summary:

The good news continues as we head into the holiday season.  Portland’s real estate market rebounded this year with an 18% rise in the number of homes sold, reduced market times to sell by almost 40%, and a 14% increase in the average sales price of a home.  These are high marks, and Portland is ranking very well among turnaround cities.  Nationally, home prices have risen about 10% this year. 

What can we expect in the next few months?  Rain.  Certainly, but also a great time for determined home buyers and sellers.  Here are some things to think about:
  • 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 new 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.
  • 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.  Or spend some time in a house on a cold day and study how well it heats up everywhere, or not.
Almost everywhere, home sales through the year have been their best since 2006.  Lawrence Yun, Chief Economist for the National Association of Realtors has said a multiyear housing recovery is also likely.  “Steady job creation and household formation have been helping to unleash a pent-up demand in the housing market,” he said.  “A continued housing shortage will prime home prices even higher, by as much as an additional 13 percent in 2014.”

Mortgage interest rates are between 4.25% – 4.5%.

Hope your holidays are fantastic! 

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

Darin Provost, Broker
Vintage Real Estate
503-784-7626



Tuesday, September 17, 2013

A Terrific Summer for Portland's Real Estate Market


Home sales this past summer were at their best for Portland since 2006.  The average price of a Portland home rose slightly more than 14% this year, and the number of homes sold increased 44% from when the market bottomed out in 2010.

Click Here and read my summary to see how this can benefit you.

In Summary:

Portland’s real estate market cooled slightly in August as people were likely pursuing other summer adventures.  Home sales through the year however have been their best since 2006.  Lawarance Yun, chief economist for the National Association of Realtors has said a multiyear housing recovery is also likely.  “Steady job creation and household formation have been helping to unleash a pent-up demand in the housing market,” he said.  “A continued housing shortage will prime home prices even higher, buy as much as an additional 13 percent in 2014.” 

Investment home sales in Portland also jumped to elevated levels in 2012 and are holding up this year.  I have one duplex listing in NE Portland that has so far received 6 offers, a few of which came from California cash buyers.  Many California metros are ranking at the top for turnaround cities which has historically had a strong influence on overall housing trends.

How are things selling in your neighborhood?

Close-in neighborhoods in NE and SE Portland continue to be hot zones with houses selling quickly and often with multiple offers.  These areas have experienced the greatest share of home sales in price increases above 15%.

Area’s in SW and NW Portland, Beaverton, Aloha and Hillsboro are also selling quickly.  These areas have had a larger share of distressed bank-owned and short-sale properties selling at lower prices.  Average prices have risen between 9% - 14% with Lake Oswego, West Linn and Beaverton leading the bunch.

Area’s outside of Portland including Gresham, Troutdale, Oregon City and Milwaukie are seeing prices rise between 9% - 10%.

Mortgage interest rates are between 4.5% - 5%.

Hope your summer was fantastic!  September and October are also great months to enjoy the outdoors.  Make it a great adventure…

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

Darin Provost, Broker
Vintage Real Estate
503-784-7626



Tuesday, August 20, 2013

A Sunny Forecast for Real Estate in Portland


It has been sunny indeed for real estate in the Portland metro area.  The most compelling news remains with a 14% rise in the average sales price of a Portland home this year.  The number of Portland homes sold has also increased 40% from when the market bottomed-out in 2010.

Click here and read my summary to see how this may benefit you.

In Summary:

The housing market in Portland is accelerating faster than most other major cities.  Portland ranks No. 8 of “turnaround cities” according to the Oregonian.  Nationally, home prices have risen 10% this year.  Many California metros are ranking at the top which has historically had a strong influence on overall housing trends.  Home buyers have returned to the market with determination, which combined with very few homes for sale, has put an upward pressure on home prices.


This graph displays the rise and fall in home prices between 2004 and today.  The average sales price of a Portland home is currently 28% higher than it was in 2004, and takes into account the fallout in pricing between 2007-2012.  This is great news for long-term homeowners and testimony to the rewards of home ownership over the years.  An average priced home of $255,000 in 2004 would be worth about $327,000 today!

Close-in neighborhoods in NE and SE Portland continue to be hot zones with houses selling quickly and often with multiple offers.  These areas have experienced the greatest share of home sales and price increases of almost 15%.

Area’s in SW and NW Portland, Beaverton, Aloha and Hillsboro are also selling quickly.  These areas have had a larger share of distressed bank-owned and short-sale properties selling at lower prices.  Average prices have risen between 12% - 13%.

Area’s outside of Portland including Gresham, Troutdale, Oregon City and Milwaukie are also seeing prices rise between 8% - 9%.

Interest rates are about 4.5%.

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

Darin Provost, Broker
Vintage Real Estate
503-784-7626



Friday, July 19, 2013

Slightly Cooler Temperatures for Portland


June brought us slightly cooler temperatures in the real estate market for Portland.  However, through the year home sales are up 17% from 2012 and the average price of a Portland house up 14%!  The slight cooling is positive news as the market was moving too fast to sustain a healthy position.  There is currently 2.9 months of unsold inventory in the Portland Metro Area – a slight increase from last month.

Click here and read my summary to see how this may benefit you.

In Summary:

The most compelling news remains with a 14% rise in the average and median sales price of a Portland home this year.  This increase compares to a low-point in home prices last year, though represents a solid rebound from the end of the housing market downturn.  Home buyers have returned to the market with confidence and determination, which combined with very few homes for sale, has put an upward pressure on home prices.  This could be the right time to sell your house if you’ve been waiting to sell it quickly at a better price. 


This graph displays the rise and fall in home prices between 2004 and today.  The average sales price of a Portland home is currently 35% higher than it was in 2004, and takes into account the fallout in pricing between 2007-2012.  This is great news for long-term homeowners and testimony to the rewards of home ownership over the years.  An average priced home of $235,000 in 2004 would be worth about $315,000 today.  It’s hard to save that kind of money otherwise!         

Close-in neighborhoods within North, Northeast, and Southeast Portland continue to be hot zones with houses selling quickly and often with multiple offers.  Inner-SE and NE Portland have experienced the greatest share of homes sales and price increases.   

Southwest and Northwest Portland, Beaverton, Aloha, and Hillsboro are also selling quickly.  These areas have held a larger share of the distressed bank-owned and short-sale properties selling at lower prices. 

Area’s more rural East and Southeast of Portland like Gresham, Troutdale, Oregon City, and Milwaukie are also seeing prices rise between 6%-8%.

Interest Rates rose this past month to about 4.5%. 

Please call me if it’s time to buy or sell a home.  I’ll work hard for you.

Darin Provost, Broker
Vintage Real Estate
503-784-7626