2015 stats from our multiple listing service

RMLS released the December and 2015 year end stats this past week.  For anyone working in real estate, selling, or trying to buy a house, none of this will be startling news.

Housing in the Portland area is in short supply; both for rentals and home ownership.  The number of houses available for purchase, at our current rate of sales, fell in December to 1.2 months.  This is the lowest inventory since we began keeping track in 1999.

At the same time, our average sale price (Portland area wide) rose 6.5% in the 2015 calendar year, from $333,000 to $354,500.  The average sale price in North Portland rose 14.8% .  Northeast and Southeast Portland average sales prices rose 8.3% and 9,0% respectively.

The number of days a house stayed on the market fell from 70 in 2014 to 54 in 2015.  In high demand neighborhoods, we are seeing houses sell in just a few days.  While the average days on market in some west side neighborhoods; Lake Oswego/ West Linn and Tigard/Wilsonville are at 81 and 70 days respectively.

Activity on the financial markets indicate possible increases in interest rates.  But for the time being interest rates are staying enticingly low.

This morning I'm off to show a house to some first time buyer clients. They have written countless offers, well over asking price, to the top of their price range. I continue to be amazed at the enthusiasm and fortitude of buyers in these market conditions.  I sure wish we could bring more houses to the market.

And for the record, an amount of this real estate activity is spurred by folks moving in from out of state. In my practice, those people have been mindful people, moving here to be near family.   Indeed, development is making its mark on our neighborhoods.  Keep in mind, most often, folks selling to developers and investors have been long time residents who are benefiting from the money. Some of my seller clients have used such funds to pay for a kid's college education or to retire from public service.

Please give me a call if you have a house you've been considering selling; rental, family house no longer in use?   Someone out there really wants it.  Thinking of buying?  Buying could actually be easier than renting.  Give me a call.  Considering a remodel project and want some input?  Give me a call.

Read the RMLS Portland Area Report

Leslie Jones 503-312-8038
leslievjones@gmail.com

That year end real estate report

Well, boy were my projections for 2015 off.  Last year I said, “For 2015 I predict an amount of the same, but with a few more houses on the market.  So, slightly increasing values (I’d love something like 5%), slightly increasing interest rates (to 5%?), and slightly increasing inventory.  I think we’ll see a larger variety of loan products as lending eases a bit.”

Instead,   We saw the average sale prices increase as much as 13.5% in North Portland, and 8.3% and 7.7% in Southeast and Northeast respectively.  Our inventory shrunk to less than two month’s worth, for most of the year. Interest rates remained low, and sometimes dipped even lower.  We saw more multiple offer situations and prices driven quite high by emotional, “gotta have it” buyers.  We did see a larger variety of loan products available, giving buyers more choice.

But the big story this year is with regard to our rental market.  Often, pre-crash, an active ownership market (people buying and selling to owner occupy) meant a soft rental market.  Instead of renting, folks are buying.  This year, we have had both, with a vengeance.  The rental market is so tight, rents have escalated sky high, and the prices on multiple unit properties have increased accordingly. Long time landlords are selling off their rentals and getting good prices.  Many out of town investors, attracted to our rising rents and tight market, are jumping in.

Wholesale evictions and exponential rent increases led the City of Portland to declare a housing state of emergency.  Through this, required notice times for no cause evictions and rent increases over 5% were extended to ninety days.  This is a small piece, slowing rapid fire eviction and rent increases to give beleaguered tenants a chance to catch their breath.

The CFPB Consumer Financial Protection Bureau issued new rules that took effect on October 3^rd, furthering borrower protections with regard to loan costs and fees.  These rules, commonly called “Know Before You Owe” assure borrowers ample notice and disclosure when the terms of their loan changes beyond certain thresholds. This is a good thing.

As for my 2016 prediction:     

Seriously though. We’ll see more of the same; tight inventory, with not enough houses to satisfy demand, slightly rising interest rates if the FED makes their move and slightly longer close times to accommodate the new CFPB regulations.

We’re seeing some rumblings and action being taken by county tax collectors in efforts to include in the tax rolls, “omitted property”.  That is, improvements that have been made to a property, but not included in their assessed value, such that taxes aren’t being collected on the improvement.  For instance, you remodeled your kitchen and baths, and finished your basement into a family room.  But your tax assessment is on the house, without those improvements.

When assessors find omitted property, they notify the owner and add the property to tax rolls. The law allows them to assess the property in previous years as well: up to five years in Oregon.  Oh joy.  

Some of you took me up on my offer of radon test kits.  I hope you all got low results.  I do have a few more kits available should anyone else want to test.

I remain honored to help folks with some of the biggest decisions in their lives, and humbled by the trust that is put in me.  My business is based on referrals.  I will always take good care of anyone you send my way.  Be it selling or buying, or just curious, I’m always glad to answer questions and provide information.