RMLS just published the stats for June, 2017.
We've been feeling a bit of slowing in the market; its been discussed 1n Realtor facebook groups and in offices around the city. These new numbers show slight slowing, but not much. Yes, there is usually some slowing in the summer, while folks are busy vacationing. Comparing to previous years normalizes for seasonal changes.
Our inventory, which we count by the number of months it would take to sell the current inventory at our current rate of sales, is 1.6 months. This is every so slightly up from 1.5 months. It is thought that a balanced market, favoring neither buyer nor seller is somewhere around 5-6 months. Clearly, we've got a way to go.
Our market time, the average number of days it takes to get a pending sale, is 38 days. This time last year, it was 48 days. That's pretty quick, as this includes sale fails and over priced properties.
Our year to date median price is $375,000, as compared to $339,000 year to date at this time last year. Year to date closed sales are indeed down 3.9%.
What does it mean? It means the market is good. For sellers, you can still get a reasonably quick sale on your property at a good price. But don't count on a frenzy driving the price up far above comparable properties in your area. Sellers often hope for that "California buyer who will pay over the value". While folks from out of state may have an amount of money to spend, and find our properties reasonably priced, they too will look at neighborhood values. For buyers, things are easing a bit. You may be able to buy a property at or even slightly below the list price. And we are seeing some contingent offers accepted (where a buyer must first sell their current house before being able to purchase a new property).
If you have questions about the market, or want more information. Please get in touch. leslievjones@gmail.com 503-312-8038.
Showing posts with label Portland Housing Market. Show all posts
Showing posts with label Portland Housing Market. Show all posts
Thursday, July 13, 2017
Saturday, May 13, 2017
Latest Portland Market Stats
Hmm. I've been feeling like the market has slowed just a tad, and the latest stats from RMLS, released this week, may back me up.
All of the year to date numbers, that is, comparing April 2017 to April 2016, show slowing. New listings are down 7.9%, pending sales are down 10.0 %, and closed sales are down 15% .
Inventory crawled up a bit, from 1.3 months in March 2017, to 1.7 months in April 2017. April 2016 had 1.4 months of inventory. Remember, this is how long it would take to sell all the properties on the market, at the current rate of sales. The 1.7 months of inventory is still VERY low inventory. We consider a balanced market, when neither buyer nor seller have an advantage, to be around 5 or 6 months. We're a heck of a long way from there!
Prices are still going up; comparing the median price of homes sold in the 12 months ending April 30th 2017, with the median price of homes in the twelve months preceding April 2016, we have seen an increase of 11.6%, Market time is shortening; 42 days on April 2017, down from 58 days in March 2017. Increasing pirces are often attributed to a shortage of inventory.
What are the factors that could be at play? Elliot Njus, at the Oregonian, attributes the slowing to a lack of inventory. But our inventory is a bit higher than last month, and higher than it was last year at this time. Slightly increasing interest rates? Political unrest? Rent stabilization measures by Portland and Milwaukie?
What's to come? We usually see a bit of slowing in the summer, Its so gorgeous here in summer, I feel like a significant percentage of buyers and sellers are vacationing at any given time. I expect that will be the case this summer too. That will mean fewer houses on the market, and fewer buyers looking.
If you have questions about the market, or are thinking of buying or selling, give a call, text or email. leslievjones@gmail.com 503-312-8038.
All of the year to date numbers, that is, comparing April 2017 to April 2016, show slowing. New listings are down 7.9%, pending sales are down 10.0 %, and closed sales are down 15% .
Inventory crawled up a bit, from 1.3 months in March 2017, to 1.7 months in April 2017. April 2016 had 1.4 months of inventory. Remember, this is how long it would take to sell all the properties on the market, at the current rate of sales. The 1.7 months of inventory is still VERY low inventory. We consider a balanced market, when neither buyer nor seller have an advantage, to be around 5 or 6 months. We're a heck of a long way from there!
Prices are still going up; comparing the median price of homes sold in the 12 months ending April 30th 2017, with the median price of homes in the twelve months preceding April 2016, we have seen an increase of 11.6%, Market time is shortening; 42 days on April 2017, down from 58 days in March 2017. Increasing pirces are often attributed to a shortage of inventory.
What are the factors that could be at play? Elliot Njus, at the Oregonian, attributes the slowing to a lack of inventory. But our inventory is a bit higher than last month, and higher than it was last year at this time. Slightly increasing interest rates? Political unrest? Rent stabilization measures by Portland and Milwaukie?
What's to come? We usually see a bit of slowing in the summer, Its so gorgeous here in summer, I feel like a significant percentage of buyers and sellers are vacationing at any given time. I expect that will be the case this summer too. That will mean fewer houses on the market, and fewer buyers looking.
If you have questions about the market, or are thinking of buying or selling, give a call, text or email. leslievjones@gmail.com 503-312-8038.
Friday, August 12, 2016
I was right! I was right ! I was right!
RMLS released market data for July 2016 and I was right! We DO have more houses on the market to sell. We measure inventory by dividing the active residential listings in the month (July), by the number of closed sales in the month (July). July 2016 came in at 1.9 months, up from 1.5 in June. We consider a balanced market (favoring neither buyer nor seller) to be around five or six months.
The market is showing slight cooling in both pending and closed sales. Pending sales are down 2.6% from June and 2.8% for the year to date. Closed sales are down 12.1% from June 2016 and 2.8% for the year to date.
But...the market time still fell (by one day) from 33 days in June 2016 to 32 days in July 2016. Market time in July of 2015 was 45 days. And prices are still increasing. The year to date median sales price rose 11.5% from $304,900 at the same time in 2015 to $340,000 in 2016.
Is the sky falling? No. Has a bubble burst? No. We are seeing some houses sit, and only sell once their prices are reduced. We're still seeing multiple offers and houses selling well over list price. The market time in North Portland is 16 days. And in Northeast and Southeast, 24 and 25 days respectively.
Pricing listings is as challenging as ever. It seems swell priced and well prepared listings are selling quickly and in competitive situations. Speculatively priced listings, and those not in tip top shape, seem to be sitting a bit.
Is it a good time to buy? I'd say yes. Interest rates are at crazy lows. Sellers are feeling the easing in the market and are cognizant of the approaching fall market. We usually see is busy flurry after school starts, but before Thanksgiving. Sellers of properties that aren't selling now have a good chance to get their property sold if they reduce that price and do some spiffing.
Is it a good time to sell? Yes, IF it is priced well. That doesn't mean a fire sale. Prices are still up. And buyers are anxious to take advantage of these great interest rates before they start rising.
You can read the full report here. And since its such a crazy market, feel free to contact me with questions or for guidance.
The market is showing slight cooling in both pending and closed sales. Pending sales are down 2.6% from June and 2.8% for the year to date. Closed sales are down 12.1% from June 2016 and 2.8% for the year to date.
But...the market time still fell (by one day) from 33 days in June 2016 to 32 days in July 2016. Market time in July of 2015 was 45 days. And prices are still increasing. The year to date median sales price rose 11.5% from $304,900 at the same time in 2015 to $340,000 in 2016.
Is the sky falling? No. Has a bubble burst? No. We are seeing some houses sit, and only sell once their prices are reduced. We're still seeing multiple offers and houses selling well over list price. The market time in North Portland is 16 days. And in Northeast and Southeast, 24 and 25 days respectively.
Pricing listings is as challenging as ever. It seems swell priced and well prepared listings are selling quickly and in competitive situations. Speculatively priced listings, and those not in tip top shape, seem to be sitting a bit.
Is it a good time to buy? I'd say yes. Interest rates are at crazy lows. Sellers are feeling the easing in the market and are cognizant of the approaching fall market. We usually see is busy flurry after school starts, but before Thanksgiving. Sellers of properties that aren't selling now have a good chance to get their property sold if they reduce that price and do some spiffing.
Is it a good time to sell? Yes, IF it is priced well. That doesn't mean a fire sale. Prices are still up. And buyers are anxious to take advantage of these great interest rates before they start rising.
You can read the full report here. And since its such a crazy market, feel free to contact me with questions or for guidance.
Friday, May 15, 2015
Pricing in this crazy market
I'm hearing from some buyers the thought that real estate agents are under pricing properties in an effort to create bidding wars. I'm not so sure. Most of us are pricing properties as we always have; by looking at the recent closed sales of properties similar to the subject property in size, location and amenities. We might bump the listing price of a property up or down depending on how it compares to the similar properties. But, in general, we look to recent sales for pricing.
Indeed, as a listing agent, it is my job to get the best price and terms for my seller client. So indeed, I do try to market the property to maximize the sellers proceeds. This means counseling the seller to properly prepare the property for sale. Many sellers spend weeks, if not months on a lengthy to do list which includes minor projects, painting, de-cluttering, oil tank decommission and so on. We're sure not to market the property until professional photos have been taken, the sign is installed, and the sellers are ready for showings to begin. Often, I'll suggest sellers take a weekend away when their home first hits the market, so the property can be easily shown. And, we want to expose it to the market for a few solid days before looking at offers.
I work carefully with a seller client to help them understand why waiting too long for offers can be counter-productive and alienate good buyers.
So the property hits the market well priced (supportable by comps), looking good, and readily available to be seen. I don't think we've manipulated the market, we're just doing a good job.
The scarcity of listings, combined with a desperation on the part of buyers, has panicked buyers offering well over the list price. Yes, it can be nice to have a few good offers from which to chose. Different sellers have varying priorities, from price to close date, terms or possession date. A few good offers increases the seller's chance to getting what they want. We evaluate offers based on these varying factors, usually accepting one offer and perhaps putting another offer in aback up position should the first sale fall through. A side note, with buyers jumping to make high offers, we are seeing an unusually high number of failed sales as remorseful buyers back out.
Above that, as a listing agent, I see very little benefit to a large number of offers. Oregon statutes require every written offer to be presented to the seller, and I believe every buyer who has written an offer deserves to have their offer considered. I use a spread sheet to organize multiple offers to help my seller client keep track and focus on the components of the offers. The seller only has one house to sell, so aside from the insurance of a back up offer, the difference between 5 and 20 offers is rarely a benefit to the seller.
Should I be pricing the house higher then the market data suggests? That feels reckless, and a bit unethical to me. And I do know, I could price the property too high, attracting no offers; a real disservice to the seller. I'd prefer to price a property where I know the comps support the price, and see if the market chooses to take the price higher. By "the market" I mean see if buyers choose to offer more.
And, unless the offers are cash, in the back of my mind, I'm considering if the appraiser will be able to support the high price when establishing value for a bank loan. In this market appraisers are allowed to trend prices up a bit if the available comparable properties closed several months ago and thus don't reflect this recent run up. But, while appraisers may do this, they aren't required to do so.
A low appraisal requires further negotiation between buyer and seller with the possible solutions being the seller coming down in price, the buyer bringing in more cash, or a combination of the two.
We real estate agents are taking a lot of heat for driving prices up, pricing the working poor out of Portland's neighborhoods, playing pricing games to drive prices up and so on. Mostly, we're trying to do our jobs by doing right by the seller. In my most recent multiple offer scenario, I realized, it is the buyers who are driving those prices up, not the supposedly greedy sellers.
If you have questions about this crazy market, from the buying or selling side, I'd be glad to talk with you. leslievjones@gmail.com 503-312-8038
Indeed, as a listing agent, it is my job to get the best price and terms for my seller client. So indeed, I do try to market the property to maximize the sellers proceeds. This means counseling the seller to properly prepare the property for sale. Many sellers spend weeks, if not months on a lengthy to do list which includes minor projects, painting, de-cluttering, oil tank decommission and so on. We're sure not to market the property until professional photos have been taken, the sign is installed, and the sellers are ready for showings to begin. Often, I'll suggest sellers take a weekend away when their home first hits the market, so the property can be easily shown. And, we want to expose it to the market for a few solid days before looking at offers.
I work carefully with a seller client to help them understand why waiting too long for offers can be counter-productive and alienate good buyers.
So the property hits the market well priced (supportable by comps), looking good, and readily available to be seen. I don't think we've manipulated the market, we're just doing a good job.
The scarcity of listings, combined with a desperation on the part of buyers, has panicked buyers offering well over the list price. Yes, it can be nice to have a few good offers from which to chose. Different sellers have varying priorities, from price to close date, terms or possession date. A few good offers increases the seller's chance to getting what they want. We evaluate offers based on these varying factors, usually accepting one offer and perhaps putting another offer in aback up position should the first sale fall through. A side note, with buyers jumping to make high offers, we are seeing an unusually high number of failed sales as remorseful buyers back out.
Above that, as a listing agent, I see very little benefit to a large number of offers. Oregon statutes require every written offer to be presented to the seller, and I believe every buyer who has written an offer deserves to have their offer considered. I use a spread sheet to organize multiple offers to help my seller client keep track and focus on the components of the offers. The seller only has one house to sell, so aside from the insurance of a back up offer, the difference between 5 and 20 offers is rarely a benefit to the seller.
Should I be pricing the house higher then the market data suggests? That feels reckless, and a bit unethical to me. And I do know, I could price the property too high, attracting no offers; a real disservice to the seller. I'd prefer to price a property where I know the comps support the price, and see if the market chooses to take the price higher. By "the market" I mean see if buyers choose to offer more.
And, unless the offers are cash, in the back of my mind, I'm considering if the appraiser will be able to support the high price when establishing value for a bank loan. In this market appraisers are allowed to trend prices up a bit if the available comparable properties closed several months ago and thus don't reflect this recent run up. But, while appraisers may do this, they aren't required to do so.
A low appraisal requires further negotiation between buyer and seller with the possible solutions being the seller coming down in price, the buyer bringing in more cash, or a combination of the two.
We real estate agents are taking a lot of heat for driving prices up, pricing the working poor out of Portland's neighborhoods, playing pricing games to drive prices up and so on. Mostly, we're trying to do our jobs by doing right by the seller. In my most recent multiple offer scenario, I realized, it is the buyers who are driving those prices up, not the supposedly greedy sellers.
If you have questions about this crazy market, from the buying or selling side, I'd be glad to talk with you. leslievjones@gmail.com 503-312-8038
Monday, August 18, 2014
I'm loving this stagnant, flat market!
I've always been a bit puzzled by the mentality that things must always be growing and improving. Bigger, better, more isn't always best, at least in my mind.
Portland's real estate market, of the last months, has been a healthy one. Sales have been brisk, inventory low but present, and interest rates low. So while our numbers haven't changed much month to month, we're in a healthy place. Its like the Dr. saying your health is stagnant and flat because your cholesterol has stayed low, blood pressure has stayed steady and you've maintained a healthy weight.
Hooray for the stagnant and flat.
At our current rate of sales, it will take 2.9 months to sell all the properties on the market, that is after three months with inventory at 2.8 months.
Pending sales were up 2.3% from July 2013 and fell 5.5% from June 2014. Closed sales rose 2.3% from June 2014, but are down 3.2% from July 2013. Summer of 2013 was a kickass market. So being "flat" compared to last year is fine by me.
Our market time got a tad shorter; 57 days in July 2014 vs. 59 days in June. July 2013 had a market time of 63 days.
The median year to date sales price is $284,900, up 9.2% from the median year to date sales price in July 2013 of $261,000.
So, prices continue to increase, we've had a slight increase in the number of houses on the market, but the pace of sales and number of active buyers make for a busy real estate industry. There is still a lot of cash in the market, making it harder for first time buyers, with low down payments, to compete.
We tend to see a bit if a flurry in the market in September and October as both buyers and sellers rush to get transactions completed before the holidays. Frustrated buyers, I expect to see an increase of new listings in early and mid-September.
Sellers, there is still time to get your place on the market if you've been thinking of selling. Give me a call. 503-312-8038.
read the full Portland area report here
Portland's real estate market, of the last months, has been a healthy one. Sales have been brisk, inventory low but present, and interest rates low. So while our numbers haven't changed much month to month, we're in a healthy place. Its like the Dr. saying your health is stagnant and flat because your cholesterol has stayed low, blood pressure has stayed steady and you've maintained a healthy weight.
Hooray for the stagnant and flat.
At our current rate of sales, it will take 2.9 months to sell all the properties on the market, that is after three months with inventory at 2.8 months.
Pending sales were up 2.3% from July 2013 and fell 5.5% from June 2014. Closed sales rose 2.3% from June 2014, but are down 3.2% from July 2013. Summer of 2013 was a kickass market. So being "flat" compared to last year is fine by me.
Our market time got a tad shorter; 57 days in July 2014 vs. 59 days in June. July 2013 had a market time of 63 days.
The median year to date sales price is $284,900, up 9.2% from the median year to date sales price in July 2013 of $261,000.
So, prices continue to increase, we've had a slight increase in the number of houses on the market, but the pace of sales and number of active buyers make for a busy real estate industry. There is still a lot of cash in the market, making it harder for first time buyers, with low down payments, to compete.
We tend to see a bit if a flurry in the market in September and October as both buyers and sellers rush to get transactions completed before the holidays. Frustrated buyers, I expect to see an increase of new listings in early and mid-September.
Sellers, there is still time to get your place on the market if you've been thinking of selling. Give me a call. 503-312-8038.
read the full Portland area report here
Thursday, June 19, 2014
Those May market stats: when flat means busy
The Portland market continues to suffer from low inventory, with only 2.8 months of houses on the market. At our current rate of sales, it will take 2.8 months to sell all the properties on the market. We haven't seen lower inventory since May of 2013. This, with listings up 15.5% from April 2014. As market times have decreased, the increased inventory is absorbed.
Pending sales were up 5.8% from April 2014, and just a 0.4% increase from May of 2013. Closed sales rose 15.9% from April 2014, but are down 7.4% from May 2013. Spring of 2013 was a kickass market, maybe even a bit too kickass. So being "flat" compared to last year is fine by me.
Our market time got a tad shorter in May; 67 days in April 2014 vs. 77days in May. May 2013 had a market time of 85 days.
The median year to date sales price is $278,500, up 10.1% from the median year to date sales price in May 2013 of $253,000.
So, prices continue to increase, we've had a slight increase in the number of houses on the market, but the pace of sales and number of active buyers make for a busy real estate industry. There is still a lot of cash in the market, making it harder for first time buyers, with low down payments, to compete.
There is still time to get your place on the market if you've been thinking of selling. Give me a call. 503-312-8038. Buyers, there is hope, with 2483 closed sales in Portland last month, clearly some folks are getting their offers accepted.
read the full Portland area report here
Pending sales were up 5.8% from April 2014, and just a 0.4% increase from May of 2013. Closed sales rose 15.9% from April 2014, but are down 7.4% from May 2013. Spring of 2013 was a kickass market, maybe even a bit too kickass. So being "flat" compared to last year is fine by me.
Our market time got a tad shorter in May; 67 days in April 2014 vs. 77days in May. May 2013 had a market time of 85 days.
The median year to date sales price is $278,500, up 10.1% from the median year to date sales price in May 2013 of $253,000.
So, prices continue to increase, we've had a slight increase in the number of houses on the market, but the pace of sales and number of active buyers make for a busy real estate industry. There is still a lot of cash in the market, making it harder for first time buyers, with low down payments, to compete.
There is still time to get your place on the market if you've been thinking of selling. Give me a call. 503-312-8038. Buyers, there is hope, with 2483 closed sales in Portland last month, clearly some folks are getting their offers accepted.
read the full Portland area report here
Saturday, April 12, 2014
Portland Market Update - busy busy
With the recently released stats for March 2014, we see the Portland market continues to suffer from low inventory, with only 3.1 months of houses on the market. At our current rate of sales, it will take 3.1 months to sell all the properties on the market. We haven't seen lower inventory since July of 2013. And this, with a 31.3% increase in new listings from the month before.
Activity, that is the number of pending and closed sales, is down a bit. Pending sales were up 37.1% from February, but down 3.6 % from March of 2013. Similarly, closed sales rose 26.6% from February, but were down 4.0% from March 2013. Remember, February had that snow storm, which slowed our business.
Our market time got a tad shorter in March; 85 days vs. 100 days in February. March 2013 had a market time of 112 days. But, looking at pending and closed sales in the Cleveland and Grant High School areas, I see median days on market of seven days for days for houses with pending sales and 12 days for houses with closed sales. Wow.
The median year to date sales price is $271,600, up 9.9% from the median year to date sales price in March 2013 of $247,100.
Good houses are still in short supply, and potential buyers are out in force. We are in, what is usually, the peak of our active market time. By mid-June, we can start to see some summer slowing; school is out and vacations start. Give me a call if you are planning to sell this year and we can map a plan. Thinking of buying? Better get started on that loan pre-approval.
Read the full report for the Portland Metro Area
Wednesday, April 2, 2014
A peek inside the mystery of multiple offers
I listed a house recently that drew five offers in as many days. It was a nice, three bedroom two bath ranch, built in 1974 in a good close in neighborhood. The systems were all reasonably new and were high quality, when installed in 2009. It was listed at $307,500. This was at the upper end of where comparable houses had sold.
This house did not have wood floors, a fireplace, built-in, granite etc. A nice, but perhaps slightly humble house. I predicted it would be a classic first time buyer house; drawing buyers with low down payments using first time buyer loans (FHA insured, or even 0% down).
I put the listing live in our multiple listing service at 10:00pm on a Thursday. By Friday at 5:00pm we had one very nice offer, with conventional financing and over $100,000 down payment. Wow.
Now, think about this from the seller's perspective for a moment. The house has been on the market for less than 24 hours. There have been no open houses, the Craig's list ad isn't in yet, no advertising placed. Do we really expect a seller to accept the first offer, that quickly? Some do. But most often, the house is the seller's biggest asset, and a seller would like to at least know the property has been on the open market and had full exposure. The seller and I agreed that we'd wait to review offers until Tuesday afternoon. That would give us time for a Sunday open house, and a few days for buyers to have a chance to look at the house.
My phone and email were barraged by buyer's agents asking if it was still available. I communicated to the agent who wrote that first offer, when we'd be reviewing offers. I told anyone who called, texted or emailed, that we had an offer, and that we'd be reviewing offers Tuesday afternoon. Over the next few days, four more offers came in. All of them had conventional loans, all of them were subject to the buyers approval of professional inspections and all of them had down payments over $65,000.
As the subsequent offers knew there was an offer on the table, I contacted the agent who wrote the first offer and let him know we had others. This gave his client a chance to re-write his offer knowing there was competition. Remember, when that first offer was written, there were no competing offers. Indeed, buyer #1 came back with a higher offer.
Did I create a "bidding war"? I don't think so. My intent was to level the playing field for all potential buyers. The agent for buyer #1 seemed to appreciate the opportunity for his client. I did not, play offers off each other. I did not make a series of phone calls telling agents if they raised their offer a tad,it might be the one. That, is what I think a bidding war looks like. And that behavior is why many agents won't submit an offer until just before the time offers are being presented. They don't want their client's offer to be "shopped", or used to get better offers. By contacting the agent of buyer #1, I did use the existence of other offers to get a higher offer.
Some would say I didn't do a full job for my seller client if I didn't shop the offers. Maybe so. But in my experience, it is rarely a good idea to push buyers to the tip top when they are in an emotional state. They'll often regret going that high, and are sure to feel entitled to "make it up" in the home inspection negotiations.
An aside, a risk with these high offers is a seller feeling invincible since they had all those offers, and a buyer feeling like they paid too much. Should any issues need to be negotiated on the inspection, buyer and seller enter those negotiations miles apart.
In preparation to sit down with my client, I prepared a cover sheet for each offer, focusing on the essentials of each offer. I printed each offer and all the accompany documents; pre-approval letter, any agent cover letter, any letter written by the buyer to the seller, signed property disclosures etc. Though I had asked for offers an hour in advance of my appointment with the seller, the last one came in 1/2 an hour before the appointment. I was racing to get those packets together.
Many of these offers were VERY similar. But there were differences. Differences in down payment, in asking the seller to pay buyer closing costs. Only one buyer wrote a letter to the seller, and boy was it a good letter. The letter made the buyer come alive and gave the seller a mental picture of who would be in the house. Including the dog's name and some verbal images of how owner and dog would enjoy the house and neighborhood brought tears to the seller's eyes. Really. I've seen some letters that include pictures of the buyers, kids, dogs etc. Corny? Maybe, but it works. This buyer letter was SO much more powerful than any agent comments about their buyer client.
In the end, my client carefully considered each offer. The highest offer was the increased offer made by buyer #1. This was also the only buyer who had written the letter and who's agent had taken the time to have the buyer sign the property disclosures and included them with the offer (most agents wait to submit disclosures until after an offer has been accepted).
Whether you are a buyer or a seller, I'd love to help you navigate this busy market. Give me a call at 503-312-8038 or email at leslievjones@gmail.com
This house did not have wood floors, a fireplace, built-in, granite etc. A nice, but perhaps slightly humble house. I predicted it would be a classic first time buyer house; drawing buyers with low down payments using first time buyer loans (FHA insured, or even 0% down).
I put the listing live in our multiple listing service at 10:00pm on a Thursday. By Friday at 5:00pm we had one very nice offer, with conventional financing and over $100,000 down payment. Wow.
Now, think about this from the seller's perspective for a moment. The house has been on the market for less than 24 hours. There have been no open houses, the Craig's list ad isn't in yet, no advertising placed. Do we really expect a seller to accept the first offer, that quickly? Some do. But most often, the house is the seller's biggest asset, and a seller would like to at least know the property has been on the open market and had full exposure. The seller and I agreed that we'd wait to review offers until Tuesday afternoon. That would give us time for a Sunday open house, and a few days for buyers to have a chance to look at the house.
My phone and email were barraged by buyer's agents asking if it was still available. I communicated to the agent who wrote that first offer, when we'd be reviewing offers. I told anyone who called, texted or emailed, that we had an offer, and that we'd be reviewing offers Tuesday afternoon. Over the next few days, four more offers came in. All of them had conventional loans, all of them were subject to the buyers approval of professional inspections and all of them had down payments over $65,000.
As the subsequent offers knew there was an offer on the table, I contacted the agent who wrote the first offer and let him know we had others. This gave his client a chance to re-write his offer knowing there was competition. Remember, when that first offer was written, there were no competing offers. Indeed, buyer #1 came back with a higher offer.
Did I create a "bidding war"? I don't think so. My intent was to level the playing field for all potential buyers. The agent for buyer #1 seemed to appreciate the opportunity for his client. I did not, play offers off each other. I did not make a series of phone calls telling agents if they raised their offer a tad,it might be the one. That, is what I think a bidding war looks like. And that behavior is why many agents won't submit an offer until just before the time offers are being presented. They don't want their client's offer to be "shopped", or used to get better offers. By contacting the agent of buyer #1, I did use the existence of other offers to get a higher offer.
Some would say I didn't do a full job for my seller client if I didn't shop the offers. Maybe so. But in my experience, it is rarely a good idea to push buyers to the tip top when they are in an emotional state. They'll often regret going that high, and are sure to feel entitled to "make it up" in the home inspection negotiations.
An aside, a risk with these high offers is a seller feeling invincible since they had all those offers, and a buyer feeling like they paid too much. Should any issues need to be negotiated on the inspection, buyer and seller enter those negotiations miles apart.
In preparation to sit down with my client, I prepared a cover sheet for each offer, focusing on the essentials of each offer. I printed each offer and all the accompany documents; pre-approval letter, any agent cover letter, any letter written by the buyer to the seller, signed property disclosures etc. Though I had asked for offers an hour in advance of my appointment with the seller, the last one came in 1/2 an hour before the appointment. I was racing to get those packets together.
Many of these offers were VERY similar. But there were differences. Differences in down payment, in asking the seller to pay buyer closing costs. Only one buyer wrote a letter to the seller, and boy was it a good letter. The letter made the buyer come alive and gave the seller a mental picture of who would be in the house. Including the dog's name and some verbal images of how owner and dog would enjoy the house and neighborhood brought tears to the seller's eyes. Really. I've seen some letters that include pictures of the buyers, kids, dogs etc. Corny? Maybe, but it works. This buyer letter was SO much more powerful than any agent comments about their buyer client.
In the end, my client carefully considered each offer. The highest offer was the increased offer made by buyer #1. This was also the only buyer who had written the letter and who's agent had taken the time to have the buyer sign the property disclosures and included them with the offer (most agents wait to submit disclosures until after an offer has been accepted).
Whether you are a buyer or a seller, I'd love to help you navigate this busy market. Give me a call at 503-312-8038 or email at leslievjones@gmail.com
Monday, February 17, 2014
A glimpse of Portland's 2014 housing market
By now, we are a solid year into the housing recovery. Looking back a year no longer has us looking down into the cavern that was the fall of the housing market. This time last year, we were busy, slightly shell shocked from the previous five years and a tad bewildered at once again navigating a quick and competitive market.
Today, we are a year wiser. Buyers entering the market know they'll be challenged to get their offer accepted. Brokers representing buyers are adept at counseling their clients in the strategies of competitive offers. Sellers are starting to understand the importance of a well presented property to realizing top dollar; it must be prepared for the market; in good repair,clean, attractive and well presented. It must be easily viewable, quickly.
With the recently released stats for January 2014 we see the start to the year with 4.1 months of inventory. At our current rate of sales, it will take 4.1 months to sell all the properties on the market. 2013 started with 4.7 months of inventory. hmm
As expected, January 2014 saw an increase in pending sales over December 2103; 36.6% higher, and up 6.3% over January 2013. Correspondingly, January's slight dip in closed sales is a result of December's lower pending sales.
Our market time got a tad longer in January; 96 days vs. 87 days for December 2013. January 2013's market time was 114 days.
Our median sales price of $265,000 in January is up 6.9% from $248,000 in January of 2013.
Good houses are still in short supply, and potential buyers are out in force. Contrary to popular belief, Winter, as in now, is the best time to put your house on the market. By mid-June, we can start to see some summer slowing; school is out and vacations start. Give me a call if you are planning to sell this year and we can map a plan. Thinking of buying? Better get started on that loan pre-approval.
Read the full report for the Portland Area.
Today, we are a year wiser. Buyers entering the market know they'll be challenged to get their offer accepted. Brokers representing buyers are adept at counseling their clients in the strategies of competitive offers. Sellers are starting to understand the importance of a well presented property to realizing top dollar; it must be prepared for the market; in good repair,clean, attractive and well presented. It must be easily viewable, quickly.
With the recently released stats for January 2014 we see the start to the year with 4.1 months of inventory. At our current rate of sales, it will take 4.1 months to sell all the properties on the market. 2013 started with 4.7 months of inventory. hmm
As expected, January 2014 saw an increase in pending sales over December 2103; 36.6% higher, and up 6.3% over January 2013. Correspondingly, January's slight dip in closed sales is a result of December's lower pending sales.
Our market time got a tad longer in January; 96 days vs. 87 days for December 2013. January 2013's market time was 114 days.
Our median sales price of $265,000 in January is up 6.9% from $248,000 in January of 2013.
Good houses are still in short supply, and potential buyers are out in force. Contrary to popular belief, Winter, as in now, is the best time to put your house on the market. By mid-June, we can start to see some summer slowing; school is out and vacations start. Give me a call if you are planning to sell this year and we can map a plan. Thinking of buying? Better get started on that loan pre-approval.
Read the full report for the Portland Area.
Tuesday, December 31, 2013
Year-end real estate thoughts, Portland style
2013
brought us a very active real estate market.
The dearth of homes on the market led to a selling season of multiple
offers, offers over list price and a prevalence of cash in the market place. It
is estimated 30% of all residential real estate transactions, were cash
transactions. A mere offer from a buyer
pre-approved, with 20% down payment on a conventional loan was often not
“enough” to win the house. Most buyers
I worked with wrote at least three offers, good offers, before getting an offer
accepted.
A
few issues we dealt with in 2013; radon is still an issue, for which most every
buyer is testing in a transaction. In
general, the installation of a mitigation system isn’t too spendy (under
$2000), and in most cases, sellers do pay for radon mitigation. Though the supply of oil tanks is now
limited, and we’ve been working our way through getting them all tested and
decommissioned and documenting the decommissions. If you have an existing buried oil tank I
encourage you to consider decommissioning it.
Waiting for the tank to leak, while regulations around clean ups become
more stringent is not a wise choice. If
you have a decommissioned oil tank, hang onto that paperwork. Proof of the completed work is key.
Thursday, December 12, 2013
Most recent Portland market stats
The November market stats are out from RMLS, with no particular surprises. What I see as seasonal slowing is evident in lower pending sales; down 14.0% from October 2013, and but up 5.6% when compared with November 2012. Closed sales decreased 16.8% from October 2013, but are up 5.1% over November 2012.
Our market time got a tad longer in November; 80 days vs. 76 days for October 2013. In the fall, we see houses that didn't sell in the busy time sitting on the market, pushing the days on market higher.
The median home price for the first 11 months of this year up 13.3% over the same period in 2012 to $265,000.
And inventory; measured by how long, at the current rate of sales, it will take to sell all the houses on the market, is at 3.7 months, the same as September 2013, and a tad up from, the 3.4 of October 2013. November of 2012 had 4.2 months of inventory, and November 2011, 6.2 months. Remember, a balanced market; neither seller's nor buyer's market, is thought to be about 5 to 6 months of inventory.
I'll be posting my year end review, and 2014 predictions soon. Keep a look out!
Read the full report for the Portland area.
Our market time got a tad longer in November; 80 days vs. 76 days for October 2013. In the fall, we see houses that didn't sell in the busy time sitting on the market, pushing the days on market higher.
The median home price for the first 11 months of this year up 13.3% over the same period in 2012 to $265,000.
And inventory; measured by how long, at the current rate of sales, it will take to sell all the houses on the market, is at 3.7 months, the same as September 2013, and a tad up from, the 3.4 of October 2013. November of 2012 had 4.2 months of inventory, and November 2011, 6.2 months. Remember, a balanced market; neither seller's nor buyer's market, is thought to be about 5 to 6 months of inventory.
I'll be posting my year end review, and 2014 predictions soon. Keep a look out!
Read the full report for the Portland area.
Thursday, November 14, 2013
Portland Housing Market Update
The October market stats are out from RMLS, with no particular surprises. What I see as seasonal slowing is evident in lower pending sales; down 4.2% from September 2013, and down 2.4% when compared with October 2012. Closed sales did increase a bit; 1.4% from September 2013, and 4.1% over October 2012.
Our market time got a tad longer in October; 76 days vs. 72days for September 2013. In the fall, we see houses that didn't sell in the busy time sitting on the market, pushing the days on market higher.
The median home price for the first nine months of this year up 14.0 over the same period in 2012 to $265,000..
And inventory; measured by how long, at the current rate of sales, it will take to sell all the houses on the market, has decreased slightly from 3.7 months in September 2013 to 3.4 months in October 2013. Remember, a balanced market; neither seller's nor buyer's market, is thought to be about 5 to 6 months of inventory.
I do believe the government shut down in October slowed our market a bit. The processing of some loans was hampered, and certainly folks who were furloughed weren't buying.
Call or email me if you have questions about your own real estate situation. leslievjones@gmail.com 503-312-8038.
Read the full report for the Portland area.
Our market time got a tad longer in October; 76 days vs. 72days for September 2013. In the fall, we see houses that didn't sell in the busy time sitting on the market, pushing the days on market higher.
The median home price for the first nine months of this year up 14.0 over the same period in 2012 to $265,000..
And inventory; measured by how long, at the current rate of sales, it will take to sell all the houses on the market, has decreased slightly from 3.7 months in September 2013 to 3.4 months in October 2013. Remember, a balanced market; neither seller's nor buyer's market, is thought to be about 5 to 6 months of inventory.
I do believe the government shut down in October slowed our market a bit. The processing of some loans was hampered, and certainly folks who were furloughed weren't buying.
Call or email me if you have questions about your own real estate situation. leslievjones@gmail.com 503-312-8038.
Read the full report for the Portland area.
Monday, July 15, 2013
Recent Portland Housing Market Stats
As you may have heard, we're seeing a bit of a bump in interest rates. Most buyers aren't particularly bothered by the increase, though affordability of houses is sure to be impacted. Some buyers are even rushing to buy and lock their interest rate .
Statistically, prices have continued to rise, market times are shorter than previous months, but the volume of sales has slowed a tad, and we've seen a miniscule increase in the number of homes available for purchase.
The median price for the first six months of this year up 14.2% over the same period in 2012 to $257,500.
Closed sales decreased 6.4% compared to May 2013. but still showed an increase of 11.9% over the closed sales in June of 2012. Pending sales decreased 5.8% compared to May 2013, but showed an 11.9% increase over June 2012.
The number of days a house is on the market decreased from 85 days in May 2013 to 70 days in June of 2103. Yes, many houses are selling in their first few days on the market; houses that have it all - condition, price, location and preparation. But with 70 days being the average, you know plenty of houses are still taking months to sell.
And inventory; measured by how long, at the current rate of sales, it will take to sell all the houses on the market, has bumped ever so slightly from 2.5 months in May 2013 to 2.9 months in June 2013. Contrast this to June of 2012 with 3.9 months of inventory and June of 2011 with 6 months on inventory.
If you've been thinking of selling, now is a pretty good time. Rising prices and a shorter market time sound like a seller's dream.
See the full report.
Statistically, prices have continued to rise, market times are shorter than previous months, but the volume of sales has slowed a tad, and we've seen a miniscule increase in the number of homes available for purchase.
The median price for the first six months of this year up 14.2% over the same period in 2012 to $257,500.
Closed sales decreased 6.4% compared to May 2013. but still showed an increase of 11.9% over the closed sales in June of 2012. Pending sales decreased 5.8% compared to May 2013, but showed an 11.9% increase over June 2012.
The number of days a house is on the market decreased from 85 days in May 2013 to 70 days in June of 2103. Yes, many houses are selling in their first few days on the market; houses that have it all - condition, price, location and preparation. But with 70 days being the average, you know plenty of houses are still taking months to sell.
And inventory; measured by how long, at the current rate of sales, it will take to sell all the houses on the market, has bumped ever so slightly from 2.5 months in May 2013 to 2.9 months in June 2013. Contrast this to June of 2012 with 3.9 months of inventory and June of 2011 with 6 months on inventory.
If you've been thinking of selling, now is a pretty good time. Rising prices and a shorter market time sound like a seller's dream.
See the full report.
Friday, April 5, 2013
Sell your house now or later?
A client asked the other day, for a primer on timing the sale of their Portland home. They've relocated out of town and, should they move back to Portland, they've realized it wouldn't be to their existing house.
They have great tenants in the property, but the rent doesn't cover their monthly payment, so they are subsidizing the rent by about $300 a month. Should they sell this year, or wait until 2014?
Here, in a nutshell, was my response:
Our current market, close in on the eastside is moving incredibly quickly. The comparable houses to theirs are getting accepted offers with in days, as in 2-3 days, of going on the market. There is high demand from buyers and a low inventory of good homes for sale, so prices are rising.
Interest rates are low, and are being kept artificially low by the Fed. As the economy recovers, (and housing), we expect the Fed to stop keeping those rates low. As rates rise, fewer buyers will be able to afford the home.
We expect prices to continue to rise for the rest of this year, perhaps with some seasonal slowing. But, as prices rise, we will most likely see more sellers entering the market; especially those who previously couldn't get enough for their home to warrant selling. As so much of the current price increases are a result of high demand and low supply, those increases will likely slow.
These particularly clients are most likely planning to sell. The unknowns of waiting, combined with the amount they subsidize the rent each month makes waiting not particularly attractive. They'll likely wait until their tenant's lease is up, or perhaps offer the tenants some sort of consideration for their cooperation in letting us market the home during their occupancy.
If you have questions about your property and situation, get in touch as I'd be glad to chat and give you answers that take your specific factors into account. leslievjones@gmail.com
Wednesday, March 13, 2013
In Portland, it's a seller's market alright
The Regional Multiple Listing Service released stats for February, showing more of the same.
More rising prices; median price is up 8.5% to $238,500 in the last twelve months.
We have more pending and closed sales and inventory remains low with 4.5 months of inventory city wide; pending sales increased 11.8% from January 2013. Some desirable close-in neighborhoods are seeing inventory as low and 1.5 months. At the current rate if sales it would only take 1.5 months to sell all the houses on the market.
And our average market time remains low at 116 days city wide. This is an average, so imagine how quickly the good ones are actually selling.
The real estate conversation is all about inventory. There are plenty of buyers in the marketplace right now hoping to get in before prices and interest rates rise too much more. But...there aren't so many houses to choose from, making multiple offers and bidding wars commonplace. We are even seeing multiple cash offers; in some cases buyers needing to buy using financing need not even submit offers.
So if you've been thinking of selling, now is a pretty good time. Interest rates remain reasonably low such that more buyers can afford to buy at a certain price range. As both interest rates and prices rise, the pool of buyers for any given price range will decrease.
See the full report.
More rising prices; median price is up 8.5% to $238,500 in the last twelve months.
We have more pending and closed sales and inventory remains low with 4.5 months of inventory city wide; pending sales increased 11.8% from January 2013. Some desirable close-in neighborhoods are seeing inventory as low and 1.5 months. At the current rate if sales it would only take 1.5 months to sell all the houses on the market.
And our average market time remains low at 116 days city wide. This is an average, so imagine how quickly the good ones are actually selling.
The real estate conversation is all about inventory. There are plenty of buyers in the marketplace right now hoping to get in before prices and interest rates rise too much more. But...there aren't so many houses to choose from, making multiple offers and bidding wars commonplace. We are even seeing multiple cash offers; in some cases buyers needing to buy using financing need not even submit offers.
So if you've been thinking of selling, now is a pretty good time. Interest rates remain reasonably low such that more buyers can afford to buy at a certain price range. As both interest rates and prices rise, the pool of buyers for any given price range will decrease.
See the full report.
Monday, March 11, 2013
Be a Strong Real Estate Buyer
Resume? Personal letter? Pre-approval letter and proof of funds?
As you may have heard, Portland's housing market is in a bit of a crisis. No, not that housing bubble crisis. We have WAY more buyers than houses to sell! Multiple offers are common place, as are sales prices well above asking prices.
Buyers are challenged to differentiate themselves from the competition to get their offers accepted. Obviously price is a big concern, but many sellers like an emotional connection with a buyer and may forgo a higher offer for a financially well qualified buyer with whom they identify. Here are a few tips:
1) Get pre-approved through a local mortgage lender or mortgage broker; preferably one with a solid reputation in the real estate community. If a listing agent has worked with your lender and liked them, they'll most likely pass on that positive report to the seller. With loan underwriting guidelines as strict as they are, we see plenty of loans fail from loan processors not knowing how to correctly verify and document assets and liabilities. Get a good lender and do the legwork of pre-approval up front.
2) Be willing to provide proof of your down payment funds. This can be in the form of a banking or investment statement, with the account numbers blacked out. It does need to show at least the amount of money required for your loan and your name(s). Waiting for a payout from your deceased Aunt Tillie's estate does not a down payment make.
3) Put a few kind gestures in your offer. If the sellers are going on to buy another property, they are stressed out and challenged about selling and buying and moving in a short period of time. Offer the sellers a few days in the house after closing, at no cost to them, and then be generous in allowing them to rent back for another week or so. Yes, this will cost you a bit as you'll have ownership costs, but it may well get you the house you want. If the house is an estate, consider offering to dispose of unwanted household goods and personal effects. This will cost you a bit of time and money, but may be invaluable to the heirs.
4) Work on a generic letter ahead of time, which you'll customize for each offer you write. This is a letter to the seller about you, complimenting the house and talking about the features that draw you to the house. Clearly the second part is done specific to each house. This may well be the sappiest thing you ever write. " The work you've done to the yard is just wonderful;. My partner is an avid gardener we look forward to summer evenings under the gazebo etc." Or, "our children, ages 4 and 6 are so excited to live so close to the park and to have their own rooms". Really tell your story and include pictures.
5) If the seller is an investor or a bank, they may be more interested in the price. But a clean offer; reasonable close date, ample earnest money, respectable price and a strong pre-approval letter should do the trick. Don't clutter your offer with small one-off requests such as removing the cat door or re-keying the locks. Less is more.
Email me for more tips on getting your offer accepted at leslievjones@gmail.com
As you may have heard, Portland's housing market is in a bit of a crisis. No, not that housing bubble crisis. We have WAY more buyers than houses to sell! Multiple offers are common place, as are sales prices well above asking prices.
Buyers are challenged to differentiate themselves from the competition to get their offers accepted. Obviously price is a big concern, but many sellers like an emotional connection with a buyer and may forgo a higher offer for a financially well qualified buyer with whom they identify. Here are a few tips:
1) Get pre-approved through a local mortgage lender or mortgage broker; preferably one with a solid reputation in the real estate community. If a listing agent has worked with your lender and liked them, they'll most likely pass on that positive report to the seller. With loan underwriting guidelines as strict as they are, we see plenty of loans fail from loan processors not knowing how to correctly verify and document assets and liabilities. Get a good lender and do the legwork of pre-approval up front.
2) Be willing to provide proof of your down payment funds. This can be in the form of a banking or investment statement, with the account numbers blacked out. It does need to show at least the amount of money required for your loan and your name(s). Waiting for a payout from your deceased Aunt Tillie's estate does not a down payment make.
3) Put a few kind gestures in your offer. If the sellers are going on to buy another property, they are stressed out and challenged about selling and buying and moving in a short period of time. Offer the sellers a few days in the house after closing, at no cost to them, and then be generous in allowing them to rent back for another week or so. Yes, this will cost you a bit as you'll have ownership costs, but it may well get you the house you want. If the house is an estate, consider offering to dispose of unwanted household goods and personal effects. This will cost you a bit of time and money, but may be invaluable to the heirs.
4) Work on a generic letter ahead of time, which you'll customize for each offer you write. This is a letter to the seller about you, complimenting the house and talking about the features that draw you to the house. Clearly the second part is done specific to each house. This may well be the sappiest thing you ever write. " The work you've done to the yard is just wonderful;. My partner is an avid gardener we look forward to summer evenings under the gazebo etc." Or, "our children, ages 4 and 6 are so excited to live so close to the park and to have their own rooms". Really tell your story and include pictures.
5) If the seller is an investor or a bank, they may be more interested in the price. But a clean offer; reasonable close date, ample earnest money, respectable price and a strong pre-approval letter should do the trick. Don't clutter your offer with small one-off requests such as removing the cat door or re-keying the locks. Less is more.
Email me for more tips on getting your offer accepted at leslievjones@gmail.com
Thursday, November 15, 2012
Seasonal Slowing? I don't think so.
Wow, none of that seasonal slowing for Portland real estate.The RMLS just released statistics for the month of October, and the numbers are quite good. We continue to see increases in activity; the amount of pending and closed sales. There were 15.9% more accepted offers in October 2012 than in October 2011. From September 2012 to October 2012, pending sales increased by 5.8%. Similarly, closed sales were up 42.9% in October 2012 when compared to October 2011, and up 11.0% from September 2012..
Prices continue to show gains. The median year to date sales price rose 3.8% when comparing October 2012 to October 2011; $232,500 compared with a median year to date sales price of $221,000 in 2011.
Inventory, the number of homes available on the market, fell to a new low of 3.8 months. That is, at our current rate of sales, it would take 3.8 months to sell all available properties. This is quite low, with a balanced market thought to be somewhere around 6 months. We continue to see multiple offers and very short market times for well priced properties in good condition.
So far in November, we are seeing the some seasonal slowing. Buyers tiring of fighting for the few good houses on the market are taking some time off for the holidays. Beleaguered buyers are tiring of multiple offer situations and are resorting to sweetening their offers by waiving inspections, giving earnest money up front directly to the sellers, and of course making cash offers over list price.
Most of my current buyer clients right now are investors. Still reasonable prices, low interest rates, Portland's low vacancy rates and dismal investment returns from other investment vehicles, make buying that rental house or plex kind of attractive. If you've been thinking of selling, we expect the strong buyer demand to surge at the beginning of the new year.
I'd be glad to talk with you about what is happening in your neighborhood. Give me a call at 503-312-8038 or email me at leslievjones@gmail.com.
Read the full RMLS market report.
Prices continue to show gains. The median year to date sales price rose 3.8% when comparing October 2012 to October 2011; $232,500 compared with a median year to date sales price of $221,000 in 2011.
Inventory, the number of homes available on the market, fell to a new low of 3.8 months. That is, at our current rate of sales, it would take 3.8 months to sell all available properties. This is quite low, with a balanced market thought to be somewhere around 6 months. We continue to see multiple offers and very short market times for well priced properties in good condition.
So far in November, we are seeing the some seasonal slowing. Buyers tiring of fighting for the few good houses on the market are taking some time off for the holidays. Beleaguered buyers are tiring of multiple offer situations and are resorting to sweetening their offers by waiving inspections, giving earnest money up front directly to the sellers, and of course making cash offers over list price.
Most of my current buyer clients right now are investors. Still reasonable prices, low interest rates, Portland's low vacancy rates and dismal investment returns from other investment vehicles, make buying that rental house or plex kind of attractive. If you've been thinking of selling, we expect the strong buyer demand to surge at the beginning of the new year.
I'd be glad to talk with you about what is happening in your neighborhood. Give me a call at 503-312-8038 or email me at leslievjones@gmail.com.
Read the full RMLS market report.
Friday, October 12, 2012
Fall is for buying (and planting)
The RMLS just released the statistics for the month of September, and they reflect what we've been seeing in my office. We continue to see increases in activity; the amount of pending and closed sales. There were 10.6% more accepted offers in September 2012 than in September 2011. Though we are seeing a bit of seasonal slowing with 13.8% fewer pending sales, in September 2012 than in August 2012. Similarly, closed sales were up 19.4% in September 2012 when compared to September 2011, but down 18.0% from August 2012.
Prices continue to show gains. The median year to date sales price rose 3.8% when comparing September 2012 to September 2011; $230,420 compared with a median year to date sales price of $222,000 in 2011.
Inventory, the number of homes available on the market, is bumping along, slightly higher in September 2012 at 4.6 months than August's low of 3.9 months. That is, at our current rate of sales, it would take 4.6 months to sell all available properties. This is still quite low, with a balanced market thought to be somewhere around 6 months. We continue to see multiple offers and very short market times for well priced properties in good condition.
So far in October, we are seeing the predicted seasonal slowing. Indeed, most of my current buyer clients right now are investors. Still reasonable prices, low interest rates, Portland's low vacancy rates and dismal investment returns from other investment vehicles, make buying that rental house or plex kind of attractive. In addition, buyers who REALLY want to be in their new homes by Christmas are pretty motivated too.
I'd be glad to talk with you about what is happening in your neighborhood. Give me a call at 503-312-8038 or email me at leslievjones@gmail.com.
Read the full RMLS market report.
Thursday, September 13, 2012
Still looking good
The RMLS just released the statistics for the month of August, and they reflect what we've been seeing in my office. We continue to see pretty big increases in activity; the amount of pending and closed sales. There were 9.1% more accepted offers in August 2012 than in August 2011, and essentially no change from July 2012. Similarly, closed sales were up 28% in August 2012 when compared to August 2011, and up 17.1% over July 2012.
Prices continue to show gains. The median year to date sales price rose 4.5% when comparing July 2012 to July 2011; $230,000 compared with a median year to date sales price of $220,000 in 2011.
Inventory, the number of homes available on the market fell again such that we are back to 3.9 months of inventory. That is, at our current rate of sales, it would take 3.9 months to sell all available properties.
So far in September, we are seeing a wee bit of normal seasonal slowing, but expect we'll also see healthy sales activity from mid-September to Thanksgiving. There are often pretty good deals to be had in the fall; folks who tried to sell in the spring, but somehow missed out. Getting a sale closed before the holiday can be sort of a last ditch effort. Many investors make a habit of buying in the fall. Similarly, buyers who REALLY want to be in their new homes by Christmas can be pretty motivated buyers.
I'd be glad to talk with you about what is happening in your neighborhood. Give me a call at 503-312-8038 or email me at leslievjones@gmail.com.
Read the full RMLS report here.
Prices continue to show gains. The median year to date sales price rose 4.5% when comparing July 2012 to July 2011; $230,000 compared with a median year to date sales price of $220,000 in 2011.
Inventory, the number of homes available on the market fell again such that we are back to 3.9 months of inventory. That is, at our current rate of sales, it would take 3.9 months to sell all available properties.
So far in September, we are seeing a wee bit of normal seasonal slowing, but expect we'll also see healthy sales activity from mid-September to Thanksgiving. There are often pretty good deals to be had in the fall; folks who tried to sell in the spring, but somehow missed out. Getting a sale closed before the holiday can be sort of a last ditch effort. Many investors make a habit of buying in the fall. Similarly, buyers who REALLY want to be in their new homes by Christmas can be pretty motivated buyers.
I'd be glad to talk with you about what is happening in your neighborhood. Give me a call at 503-312-8038 or email me at leslievjones@gmail.com.
Read the full RMLS report here.
Wednesday, July 18, 2012
What did you buy your house for?
Was there particular feature that made you buy your house? That sealed the deal? Was it that specific location? We always hear the three features one should look for are location location, location. Or was it how the living room, and dining room integrated with the kitchen?
When I'm working with buyer clients, I'm often trying to help them decide what to buy a house for; what is important to them. And when we say location, location, location, what does that mean for them? There is no wrong answer, as it is all quite specific and personal.
I'm working with a young couple who have just about nailed that question, and I'm guessing the question will be completely answered in the next few weeks when we find them their home. For this couple, a good location means close-in, east side. They are both bike and public transportation commuters. But more than that, they want to be walkable to great restaurants and food carts and the like. So, what others might think of as good neighborhoods: Alameda, Rose City, Mt. Tabor, feel too far away to them.
When Don and I were looking, about ten years ago, we looked in some of those neighborhoods also, but realized, after living four houses from SE 35th Place and Hawthorne, that we were more urban than we'd thought. So when we saw our current home, right on SE 26th (yes, the busy part), the location didn't bother us, and it's walkability was a plus. But what really sold us was the unpainted wood work, including the builtins, fireplance mantle, box beam ceiling and more. Later, the builder mentioned he'd though of doing the cabinetry and woodwork in in a composite product such that it would have been painted, and asked what we'd have thought. I realized, I probably wouldn't have wanted the house. So I guess we bought it for the woodwork.
Back to my current "young couple" clients. We saw a house close to upper Division, so with some proximity to The Woodsmen, North Bar, food carts and the like. It was a decent location. The house had a wonderful open feeling from the living room, dining room and out onto a really spacious and lovely deck. We were all drawn to those spaces. The rest of the house, meh. It was fine, but the upstiars bedrooms were small and the finishes of the house weren't cohesive. As a house, it wasn't anything special, but it was hard to deny the pull of those wonderful living spaces. My clients hung onto that house for awhile, until they were finally freed by someone else making an offer.
Sometimes though, I think buyers to buy a "package". They buy a house that as a whole; location, floor plan, feel and features, makes sense for them. There may be nothing in particular they love, but the whole thing works.
How about you? What did you buy for?
When I'm working with buyer clients, I'm often trying to help them decide what to buy a house for; what is important to them. And when we say location, location, location, what does that mean for them? There is no wrong answer, as it is all quite specific and personal.
I'm working with a young couple who have just about nailed that question, and I'm guessing the question will be completely answered in the next few weeks when we find them their home. For this couple, a good location means close-in, east side. They are both bike and public transportation commuters. But more than that, they want to be walkable to great restaurants and food carts and the like. So, what others might think of as good neighborhoods: Alameda, Rose City, Mt. Tabor, feel too far away to them.
When Don and I were looking, about ten years ago, we looked in some of those neighborhoods also, but realized, after living four houses from SE 35th Place and Hawthorne, that we were more urban than we'd thought. So when we saw our current home, right on SE 26th (yes, the busy part), the location didn't bother us, and it's walkability was a plus. But what really sold us was the unpainted wood work, including the builtins, fireplance mantle, box beam ceiling and more. Later, the builder mentioned he'd though of doing the cabinetry and woodwork in in a composite product such that it would have been painted, and asked what we'd have thought. I realized, I probably wouldn't have wanted the house. So I guess we bought it for the woodwork.
Back to my current "young couple" clients. We saw a house close to upper Division, so with some proximity to The Woodsmen, North Bar, food carts and the like. It was a decent location. The house had a wonderful open feeling from the living room, dining room and out onto a really spacious and lovely deck. We were all drawn to those spaces. The rest of the house, meh. It was fine, but the upstiars bedrooms were small and the finishes of the house weren't cohesive. As a house, it wasn't anything special, but it was hard to deny the pull of those wonderful living spaces. My clients hung onto that house for awhile, until they were finally freed by someone else making an offer.
Sometimes though, I think buyers to buy a "package". They buy a house that as a whole; location, floor plan, feel and features, makes sense for them. There may be nothing in particular they love, but the whole thing works.
How about you? What did you buy for?
Subscribe to:
Posts (Atom)