The Portland Metro has never had so few homes for sale as seen in November, giving sellers even more power and forcing buyers to face bidding wars or wait for more homeowners list their residential property for sale, forcing them to trust that they can find another one. place to live.
The dead end has long been familiar to home buyers competing in the Portland area market. Stocks in the basement have been driving prices up for years.
But in November, inventories fell again, to the lowest in the Regional Multiple Listing Service’s (RMLS) 30-year history, and the average selling price hit $ 521,200, an increase of 12. 7% compared to November 2019.
The 2,238 Portland metro homes put on the market last month were down 36.3% from the 3,515 listed in October, according to RMLS.
If sales continue at the same rate, it would only take a month to sell all the homes on the market, according to RMLS.
Six months of inventory is an indicator of a balanced market for both the buyer and the seller.
Inventory is calculated by dividing active residential listings at the end of the month by the number of closed sales and homes proposed and under construction.
“We never had more than a month of inventory,” says Dustin Miller of Windermere Realty Trust in Lake Oswego, in response to the RMLS report. “We are still in shock. Fortunately, the median selling price [$457,000] went down a bit from October [$460,000], which is in part due to the number of high-end ads.
The median selling price is the midpoint where half of the properties sell for a higher price and the other half for a lower price.
Compared to the previous 12 months, the median cost of buying a home on the Portland subway jumped 6.5% to $ 435,000, according to RMLS.
“We advise clients to list while stocks are still low, rather than risk that after a [coronavirus] the vaccine was made widely available that people could come back to market at normal rates, ”says Melissa Dorman of Living Room Reality, which is licensed in Oregon and Washington.
“A higher inventory could reduce the heavy bidding wars that we are seeing right now,” she said, adding, “in no way do I see the Portland market going down anytime soon.”
In November, 109 homes and condos sold for over $ 1 million and 15 of them sold for over $ 2 million, Miller says.
“It can really skew the average sale price a bit, but if it holds up I would see it as a real trend, at least for the foreseeable future,” he says.
Two ads for over $ 2 million sold quickly and for real money. “Money is king,” Miller says.
Beth benner from Living Room Realty predicts that it will take at least a large part of 2021 for supply to catch up with demand. “Buyers come to Oregon from bigger, more expensive cities,” she says, “because they can work from anywhere and Portland always seems ‘affordable.’
In November, 2,745 residential properties in the Portland subway changed hands, down 13% from 3,155 October 2020 closings, but a 25.3% jump from 2,191 November closures 2019, according to RMLS.
Benner also says that early home buyers found they needed more space than a studio, and the lowest mortgage interest rates in history can make a lower payment than rent, though. the buyer has a deposit.
A fixed 30-year interest rate is in the 2.7% range as of December 10, according to the Federal Home Loan Mortgage Corporation, known as Freddie Mac.
Some buyers, not wanting to miss a low rate opportunity in a market with little inventory, offer the full asking price or more. To do this, they expect most repairs found during an inspection to be paid for by the seller, estate agents say.
If the buyer isn’t happy with the repair negotiations, there could be a “sell failure,” in which the buyer pulls out and the property bounces back into the market, Miller says.
Ball of Ilysee, lead broker for I Realty’s team, RE / MAX Equity Group, noticed buyers flinch when asked to absorb the full cost of repairs.
“Buyers are less willing to take on updates and repairs. They leave if they feel a house needs work, ”she said in May. “With the rise in prices over the past few years, people have become more and more picky, and with the conditions of staying at home, it can be intimidating for buyers to think of workers in their homes. “
In the Portland subway, the 2,557 homes with an accepted offer, known as pending sales, fell 20.1% in November from the 3,199 offers accepted in October 2020, but represented a 12.4% jump from compared to the 2,274 offers accepted in November 2019, according to RMLS.
The average time to sell Portland Metro residential properties last month before receiving an acceptable offer was 41 days.
Aggravating shortages of homes for sale are a growing population, with homeowners unwilling to sell during the coronavirus pandemic and the September wildfires that destroyed over 4,000 Oregon homes.
The main driver of no-sale, according to the analysis of the National Real Estate Database, is worry about not finding another home.
Many home buyers have broadened their search and are leaving metropolitan areas.
Interest in suburban living, with homes on larger lots, has been increasing in recent years, real estate professionals say, but the coronavirus has amplified the desire for more square footage as well as a backyard. – relaxing course to replace weekend getaways.
“The suburbs have clearly benefited this year from urban thefts and the general implications of the pandemic related to work-from-home opportunities,” says Jim arnal of Living Room Realty.
– Janet Eastman | 503-294-4072
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