August Market Stats

The statistics for the last month are out so we now get to break down the numbers. The market is continuing to slow down and steady throughout the entire Portland Metro. We are still seeing multiple offers in certain areas, but for the most part things are selling for around asking price after sitting on the market for a week or more. If you want the full break down, read below!

Overall, we saw our numbers drop slightly across the board. Less homes came on the market than in July, less homes sold, and the average sale price fell from $466K to $462K for the metro area. However, the average sales price is still up from last august, so we are still appreciating, just more slowly.

We see less and less inventory come onto the market every year, but the drop off happened sooner this year than it did in previous years. We usually expect a strong market through September with new listings dropping off for the holidays. I think a large reason that we are seeing less and less homes on the market is due to the huge inventory we had at the beginning of the year. The media has been speculating about a recession for quite some time and that spooked sellers into selling early on in the year.

There are still lots of people buying and selling homes so make sure you choose a professional that can help you easily navigate the changing market. Please leave us a comment or send us a message if you have any questions!

If you are thinking of buying, we would love to talk you through how these numbers specifically can affect you. If you think you might want to sell, we would love to come chat with you! If you want an instant home evaluation you can click here!

Talk to you again soon.

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The Importance of the Home Inspection

Having a home inspection is perhaps the most important piece to buying a home. As a buyer it can be very easy to look over the little flaws in a home while you are walking around falling in love with it. Check out this awesome video we made explaining why inspections are so important! If video isn’t your thing, read the transcript below.

No matter the type of home that you are buying, whether a 1920’s bungalow, a midcentury modern, or a brand new home, you need to have a home inspection. A couple of weeks ago we discussed the importance of property disclosures, and the inspection is your opportunity to really dig deep into any issues that the home might have.

With older homes we especially want to look into the electrical system and plumbing, the foundation and the overall structure. With new construction you want to make sure the builder didn’t cut any corners and that everything is functioning the way that you want it to.

Inspections are also your best opportunity to negotiate with the seller on repairs. Anything that is a safety concern, a major defect, or is no longer functioning properly is a fair thing to ask the sellers to fix. Alternatively, we could negotiate for closing costs or a price reduction. We will be sure to discuss all the details and what will work best for your specific needs once we get to that point.

Another important thing to remember is that not all inspectors, like Realtors, are equally skilled. It often happens that we will have buyers that enter into contract on a home that was only purchased by the sellers within the last couple of years and our inspector finds major defects that were certainly around longer than that time period. Make sure you work with someone you can count on, otherwise you might end up on the wrong end of the repair negotiations when you eventually decide to sell! We, of course have fantastic recommendations for you if you need them.

Do you want a list of the most common issues found with new construction homes? You can find that here. As always, don’t hesitate to reach out with any further questions you may have! See you next time.

July Market Stats

The statistics for the last month are finally out and we can break down the numbers. As anticipated the market is leveling out throughout the Portland metro. We are still seeing multiple offers in certain markets, but for the most part things are selling for about asking price after sitting on the market for a week or more. If you want the full break down, read below!

We saw slightly less homes come onto the market in July, but this is not surprising as most people believe June is the best month to sell their home. The number of homes to go pending, and the number of homes sold is about the same as last month. This caused our months of inventory to dip slightly because there are still so many buyers in the market.

The average and median sales prices both dropped slightly in July over June, this is likely because Portland as a whole saw things selling closer to list price than it did in the heat of the spring. As we continue to come into a normalizing market we should expect these numbers to continue to drop slightly. This doesn’t mean that homes are losing value, it simply means things are selling closer to what they are truly worth vs. the bidding wars we have seen.

Southeast continues to dominate as the area with the most closings, in part because of its popular neighborhoods and it’s size compared to the other Portland quadrants.

Interest rates are what are primarily driving buyers at the moment, so even though the market may continue to soften, now is actually the best time to buy. Having an interest rate under 4% as opposed to last years interest rate of 4.65% can save you over $200 a month in your payment.

If you are thinking of buying, we would love to talk you though how these numbers specifically can affect you. If you think you might want to sell, we would love to come chat with you! If you want an instant home evaluation you can click here!

Talk to you again soon.

The cost of Instant offers

No doubt you have heard about open door at this point, but Zillow and Amazon also have programs that allow you as a home seller to get an offer without any showings or contingencies. Check out the full video for all the details!

It is terribly convenient to just sell your home to an internet company. As they say on their commercials, there are no showings, no contingencies, and you get to look over the pricing details before you make a decision. If this all sounds too good to be true, it’s because it usually is.

These companies are in the market of buying homes to make a profit when they re-sell them. This means you are selling your home for less than you would get if you listed it with a realtor almost every time. They want to pay wholesale for your home, do a couple repairs, which likely means paint, and then they re-list it at the price it was worth in the first place.

We have a great example of this. this offer below was presented to the client of an associate of mine. He needed to sell quickly but also wanted to be sure he was getting what his home was worth. He called his realtor to discuss what his opinion was and they needed up selling the home after 3 days on the market, for 6% commission at $550,000.

Had the seller chosen to go with this Zillow offer he would have left more than $100,000 on the table. Most the examples that we see aren’t this extreme, but in almost every case the seller could have received thousands more dollars if they had listed with a Realtor.

This model will of course work for some people, if you need to just sell and timing is more important than price, this is a great option. Just make sure you discuss everything in detail with a Realtor so you know all of your options.

Another issue we see with Open Door specifically is the way they send over offers can be very misleading. They don’t charge a real estate commission but they do charge a 7% service fee (also known as commission). They also over-estimate the time on market and time for closing, and lastly, they assume you will be paying 3.5% in seller concessions. You may have to pay some concessions for a buyer but this is rare, negotiable, and should not be thought of as a guarantee.

For this example the seller should have $18,000 more selling through a Realtor, but we don’t know what the home is actually worth either so they could have received even more. Again, it is very important to talk to a realtor about your home before you make any decisions.

If you have specific questions about your home and what it is worth, please reach out to us directly. Or if you want an instant valuation click here

We will talk to you again soon!

2019 Street of Dreams

Every year we visit the stunning homes designed by the top builders in the Portland area. This year the homes featured are in Wilsonville and we loved looking at them. Check out the video below to see some of our favorite highlights!

Are you planning on heading to the show this year? We would love to know what you thought and which home was your favorite! Please enjoy!

Market Update June 2019

Our stats are here! The Portland market is still performing incredibly well and is slowing significantly less than we anticipated and actually picking up speed in some areas. I you want the full breakdown, read below!

The Portland market stayed strong through June as we continue into Summer time. Last month we mentioned that June is frequently the time that most people list their homes for sale, and while we saw some great numbers, we actually had fewer homes listed in June that we did in May. The interesting thing is that we saw many more homes go pending than they have in precious months. This means that more people are out shopping than before. If you have been house hunting, you have likely noticed this first hand. We have been experiencing multiple offers on almost all the homes we have been in to see. This also means that average days on market dropped. With more people out hunting, homes are not lasting as long before they go pending.

The average sales price went up in June while the median sales price did not change. The disparity in these changes comes from the fact that we have a denser pricing pool. There have been fewer very low or very high priced homes to affect the median, but home prices are climbing.

All in all, things in Portland are going well and we expect these trends to continue for at least the next couple of months.

If you are thinking of selling or buying, don’t hesitate to reach out and we can discuss how these stats will affect our strategies in the current market!

Seller Property Disclosures

What are they and are they important? Check out this quick video we did explaining everything you need to know about these disclosures! Don’t want to see the video? Jump below to read all about them.

First let’s start with what property disclosures are. The disclosures are a couple of pages with the information that the seller knows about the house. They have very basic things, like the type of heating in the home, down to common issues, like whether the roof has leaked. Typically you receive them in the first couple days after an offer has been accepted so you can get an idea of what to look for during an inspection.

While we want to trust whomever is filling the disclosures out, we still want to do our own due diligence on the property because people never know everything about their homes. You would be surprised how few people don’t realize they have a burgeoning pest or moisture problem. the disclosures should really just be thought about as additional information in your arsenal as you decide whether to move forward with your purchase or not.

Now, are they important? the short answer is , of course! You want to have as much information about the home as possible before you make the purchase. They should never replace having a full home inspection, but you will still get some valuable information out of them. If you come across something that is troubling in the disclosures we can ask for some clarifications, or we can walk away from the property without risking your earnest money.

Every home will be unique and if you have questions about a specific home, we would love to help!