2020 PDX Real Estate Outlook from Inhabit’s Owner Eric Hagstette

Settle in as Eric Pulls Back the Curtain on 2020 Portland Real Estate

And just like that, it’s February 2020. If someone asked you when you were a kid what you thought 2020 would look like, did you picture this? I visualized space travel, robots, flying cars, lasers and futuristic stuff…not this everyday adulty life gig.

So where the heck did January go? To be honest, the reason my annual market outlook is so delayed is because this January was super busy for the Portland market. Now that I think about it, we were even selling houses right through the holidays as well. Portland may be experiencing growing pains, but the real estate market is alive and flourishing.

Last Year’s Prediction: Nailed it! 

A year ago, I was calling for our buyers and investor clients to get into the market. It was a year of opportunity for our buyer clients after many years of seller-favored, tight inventory conditions. For the first time in a long while, buyers enjoyed shopping the market without urgency & pressure, having more than one house to choose from, price drops, seller incentives, and contingent offers. How sweet it was! Instead of calling it a buyer’s market or a seller’s market, we called it a “broker’s market” as we could make both sides happy by creating win/win transactions for our clients. We could place our buyers in homes without real estate “whiplash” and our sellers were walking away from the closing table with a smile on their face excited to move on in the market. It was a unique time. Everyone was pretty happy. I hope that you or someone you know took advantage of it. 

2020 Current Conditions

The Portland market has always been nimble and this year is no exception. It changed quickly! Midway through  Q4 of 2019, Portland inventory started to dwindle down. Furthermore, most sellers don’t list during the winter and holiday months, so market inventory continued to fall. Despite the BRUTAL Portland weather this winter, the buyers came out of the holidays with a big appetite and gobbled up what was left on the market. The close in Portland neighborhoods currently sit at 1.3 months of housing inventory (in the 450k-700k range).  So the 2020 cycle begins with a fiery combination of low housing inventory, great interest rates, a seemingly healthy economy (with many new jobs coming to Portland) and a rapid erosion of affordability (this pushes buyers further from town to seek more affordable options). The market is behaving accordingly in response to high demand. Demand is being driven to Portland by a combination of reasons: jobs/economy, lifestyle, climate & natural resources, and an affordable option for many West Coast transplants. 

2020 Outlook

Welp….it’s an election year which has a tendency to slow the market. Buyers and sellers that aren’t being pushed into the market tend to sit tight through election times out of fear of the unknown. However, the upcoming election doesn’t seem to be having an impact on the market…yet.  Portland shows resilience when other markets slow. When things have slowed for us in the past, we bounce back quickly (including the recession). Thanks to our urban growth boundary and natural geographic barriers, we don’t have sprawl which has been a saving grace for our unique market. Portland offers jobs plus lifestyle and attracts a wide demographic spectrum of folks looking to call Portland home.  Pair this with a mild climate and abundant natural resources and you have a winner. Therefore, I predict 2020 will continue its low-inventory trend which favor sellers, drives prices and frustrates buyers. We have to be careful with the “drives prices” part though.  Affordability is a major concern. The chasm between the cost of Portland real estate and our median household income seems to be growing. Jobs are coming but wages haven’t caught up and the cost of living keeps climbing. This pushes buyers to outlier markets (Vancouver, Milwaukie, Beaverton, Oregon City, etc). For the urbanites that don’t want to pay for the high priced houses but want to stay in town, they’ll drive demand in the ‘attached’ market (townhouses/condos) which had a slow 2019. This will stabilize pricing in the attached market. Properly priced, well-presented, detached houses from the $200k to $1m range will continue to fly off the shelf. The $1m-$1.5m market is a ‘move up’ market for many wanting to upgrade from their existing home .  This market presents opportunities for buyers to make a great purchase; however, tapping their “trapped equity” from their existing home in order to make this purchase can present challenges (certainly not insurmountable but can be daunting to the client). In surprising fashion, Portland’s upper end market ($1.5m +) is moving at a pace you may find interesting (fast). Of course, these properties need to deliver the full package to fetch the price, but this market segment seems very confident in Portland as a place to make these big purchases. I find these big numbers surprising as I clearly remember how freaked out I was when I bought my first house in Mt. Tabor for $185k. However, like many other places, we are bursting at the seams. The numbers for incoming population growth are staggering which in real estate economics translates to demand. Portland is in high demand which has all but diminished the lower end of the market and made it feel normal to buy and sell very expensive real estate. 

Natural disaster or other non-natural market forces aside, Portland real estate has a very promising future and has always been well-insulated. With all this said, if our local government doesn’t figure out a way to better manage our addiction/mental health/homelessness crisis, Portland may lose its reputation as the “darling” of the Pacific Northwest and no matter how great this city is, many people will choose different markets to call home. Rainy weather is tolerable but corruption and greed are inexcusable especially with what it costs to live here. 

2020 Buzz Words & New Concepts 

iBuyer: Also known as institutional buyers or residential REIT (real estate investment trust): Have you heard the OpenDoor commercials on the radio? iBuyer or ‘instant offer’ is easily the biggest new disruptor in real estate and Inhabit is all over it. iBuyers have come into the market backed by billions of venture capital funds and are buying up real estate that fits in their “buy box”. Homeowners that qualify for an instant offer (and choose to take it), are typically taking a discounted price for the convenience and avoiding the traditional selling route.  As a student of change, I became very intrigued with iBuyer and became certified as an iRep Professional. Our philosophy with iBuyer is “pro-consumer choice”…what works best for our clients. iBuyers are real in today’s market and we want to share all of the options with our clients so they get the most out of their real estate assets. It works for some clients and we can show you how. 

Trapped equity: Many homeowners who have owned their real estate for 5 + years are sitting on a decent amount of equity that is trapped in their real estate. In a tight market, trapped equity can add challenges to a buyer that wants to move up or move down within the market. We’ve found that many people will simply opt out of moving around in the market simply because of the perceived risks and challenges with using the equity in your home to help achieve the daunting buy/sell or sell/buy. There are more layers, but we manage these all the time. In the end, our clients say that it’s worth the effort. 

Concierge real estate services: It is more important than ever for real estate professionals to be a trusted advisor not only throughout the sale, but on an ongoing basis after the sale. Realtors are on the front line of clients’ needs as a sale closes. Concierge real estate service continues after closing where Realtors continue to provide useful resources, information and advice on an ongoing basis. In today’s demanding and competitive market, we are reinforcing our value by continuing to support our clients on all things real estate. 

Final Words

Even though we’re not living in the Jetson-like society that I envisioned as a kid, 2020 is chock full of new and exciting stuff: self-parking, electric cars, virtual reality, and an impressive (and concerning) amount of technology & connectivity. At the push of a button, you can have almost anything you want delivered to your doorstep within hours.  Heck, you can push a button and order up a random Realtor to open up a house for you (but how dare you do that!). Real estate is no exception to the expectation of today’s “now society”. As professionals, our response time must be faster, our knowledge deeper and our ability to navigate this market must be sharp and focused. One thing that technology can’t change, is the human factor that is necessary to create happy buyers and happy sellers in real estate transactions. This is our wheelhouse. We embrace today’s disruptions & technology and use them as tools to enhance our clients’ position and experience; however, we feel more strongly than ever that real estate is a people business and we are here to stay. 

Thank you for your continued support and trust. Here’s to a prosperous 2020!

Eric

Portland Neighborhoods: Peacock Lane

One of the things I loved most about Portland when I first came here in 2006 was that there were no crowds. I mean anywhere. 

You could park right in front of a movie theater five minutes before the show started and by the way, you didn’t have to feed a meter or anything. 

So I moved here. Along with, like, 47,000 other people. 

And like most of them –– and all of the people who were here before I got here –– I like to complain about how crowded it’s become. 

Which it has, but let’s be honest, it’s still nothing like LA or New York. With a few notable exceptions, one of them being Peacock Lane the week before Christmas.

So Portland.

Peacock Lane is Southeast 40th Avenue between Belmont and Stark, which makes it about four blocks long, but since there are no cross streets on SE 40th between Belmont and Stark, it’s really just a lonnnnnnnnng block. 

48 weeks out of the year, there’s nothing particularly remarkable about Peacock Lane. It’s just another street with really pretty houses, walking distance to Belmont, Hawthorne, Laurelhurst Park, Mt. Tabor, and Division. 

This house is a block away. It’s like, “Why do I even try?”

What makes this block special is that the houses on that block go all out with their Christmas decorations. And I mean all out. It’s a tradition that started back to the 1920s and there are a couple of things that make it so very Portland. 

In real estate, we deal with Covenants, which are things you’re required to do if you buy a place. And you would think, especially since Peacock Lane is on the US National Register of Historic Places, that there’d be a covenant that makes you decorate your house for Christmas if you live there. But no. People move there because they want to decorate. Nobody tells you that you have to.

Another thing that makes it totally Portland is that a lot of times, when someone buys a home there, the people selling the home will pass their decorations along to the new buyers. But like I said, one of the things that makes it so very not like Portland is holy crap, it’s crowded! At least for the second half of December. The cops block off the street to car traffic now, which I guess makes it even more Portland. If you live on Peacock Lane and you have an emergency at 5:30 on a December evening –– like you’ve run out of kombucha or something –– you’re sure as heck not getting in your car to get more. I mean, not like you have to. There’s a Walgreen’s right down at the end of the block where, yes, last time I checked they sell kombucha. There’s also a weed dispensary around the corner which used to be this place called Immortal Piano –– broke my heart when it closed because, with a name like Immortal Piano…

No longer Immortal …

If it’s a cocktail emergency, you’re staggering distance from several good spots, including the Aalto Lounge, where their happy hour is the stuff of legend. From 5:00 to 7:00 you can get a grilled cheese sandwich and a cup of tomato soup for $3! On the way there, you’ll pass a Stumptown Coffee and a Tao of Tea, so pretty much, it’s a neighborhood with everything. 

Best of all is Movie Madness, the neighborhood video store. And yes, there’s still a neighborhood with a neighborhood video store, but calling Movie Madness a video store is like calling the Louvre a building with some nice paintings inside. 

Movie Madness has a more extensive collection of arcane cinema than any of the places I used to frequent when I was working as a director in New York or LA. They break things down not just by genre and director, but also country and style. You want to binge French caper films from the 1970s? They can totally hook you up. 

So I know what you’re thinking. You’re thinking, “Well, Brian, that’s all super interesting. Do houses on Peacock Lane cost more than equivalent houses a block or so away?”

Great question. 

It’s a tough comparison to make because in the past three years, only four houses on Peacock Lane were sold. Those sales took six times as long to close, but the houses went for about 15% more per square foot than houses in the immediately surrounding area. 

What that says to me is that Peacock Lane is a neighborhood for a special kind of person. But that person is willing to pay more in order to get to live there. 

Got any other real estate (or film) questions? I’m at 310-854-2458.

 

Portland Neighborhoods: Foster/Powell

See? People are happy here.

You know me. I love pizza. So it should come as no surprise that I love Foster-Powell.

I mean, just look at it on a map. It looks like a slice of pizza!

Yeah. I know. Tenuous. But check this out! Two of the finest pizzerias in all of Portland are in the neighborhood –Char and Pizzeria Otto (which just opened its second location at SE 72nd and Foster). Char is awesome not just because the pizza is amazeballs, but also because the people are super nice and they name the pizzas on the menu after their cats. How Portland is that? And Otto is awesome because the pizzas are wood-fired deliciousness! It’s going to be fun to see these two duke it out.

(I should probably also mention Assembly Brewing, where they make a damn fine pizza in the Detroit style. The only reason I didn’t put it up there with those other two is because honestly, I’ve only had Detroit style pizza at Assembly Brewing and who knows? Maybe you people who actually know what a Detroit pizza is supposed to taste like would consider it an abomination.)

Two — maybe three —awesome pizzerias would make a neighborhood special in just about any other city that’s not in Italy. Let’s be honest, in Portland, it’s barely notable. Portland has more amazing pizza places than anywhere I’ve ever been.

So let’s forget about pizza. Let’s talk about what makes FoPo special.

Hey look! An old car!

FoPo is unusual in a Portland neighborhood way in that there’s no central village. It’s bordered on the south by SE Foster and on the north by sE Powell. You’re super smart so you probably already figured out that that’s how it got its name. The border on the east is SE 82nd, or as I like to think of it, The Crust, because let’s be honest, that’s kind what it is.

They keep trying to turn SE 82nd into something it isn’t, meaning to draw your attention away from the auto parts stores and motels and to get you to notice the …um …what? Carpet stores and fast food chains?

The most recent effort was to rebrand SE 82nd as The Jade District, which sort of makes sense. There’s a disproportionate number of Asian businesses on 82nd, places where you can get fantastic dim sum, pho, bahn mi, even groceries they don’t carry at Freddy’s or Safeway. In amongst them you’ll find a fish market, hispanic restaurants, fast food places, and other stuff. But it’s a busy street — a highway, even — so it gets no charm points like Woodstock or Gladstone.

Foster and Powell are slightly less busy than 82nd, but they’re still busy thoroughfares, which make FoPo kind of an island in a swirling sea of commuters. And appropriate to its island-in-the-swirling-sea metaphor, it just might be the best place in Portland to buy fish and seafood. You can get better live lobster cheaper at the no-frills Asian seafood places on Powell than at the fancy-schmancy grocery stores. And unlike the fish markets where they splay dead fish on ice, how awesome is it to make eye contact with your dinner as it swims around in its tank?

On the other hand, at the very tip of the pizza slice, where Foster and Powell intersect, is a Burger King. That feels meaningful, somehow.

There’s a strip of Foster that’s starting to develop a cool vibe, between SE 60th and SE 72nd. You’ve got a tango hall (not making this up — this is Portland) the requisite tattoo parlor, a vegan burger place, a neighborhood grocery, a bagel place where they actually boil their bagels the old fashioned way, and some neat bars.

That having been said, there’s an “elegant” furniture store that I swear, I’ve driven by at least once a day for years and I’ve never seen a single person come in our out, plus no shortage of strip clubs, plumbing supply stores, pot dispensaries, places to buy granite countertops, and body shops. You can even buy gravel and mulch by the truckload and satisfy all your taxidermy needs almost right across the street from a gun shop.

So %$#*! Portland, right?

The neighborhood is unusual in another way. It’s mostly houses. You’d be hard pressed to find a fancy-schmancy condo development in Foster Powell and that gives the neighborhood (or let the neighborhood retain a cozy, family-oriented vibe.

You could probably get $1,200 a month for that tree house.

Of course, there are families and there are families. The houses in that pizza slice-shaped triangle are kind of cottage-y. They were built for the most part in the 1920’s. 1930’s, and 1940’s as housing for lower middle class workers. Compared to the classic Portland four-squares that dominate (or used to dominate), say, Clinton and Division, here you’ll find houses that are smaller and less photogenic.

Totally Mary Ann.

I happen to think that’s a good thing. Sticking with that island thing I set up way back in the 10th paragraph, the houses here are like Mary Ann to Gilligan’s Ginger, if you’re old enough to get that reference. They’re pretty, approachable, sensible homes and as a result, the families that make up the population have a tendency to feel kind of the same. Well, I don’t know about pretty. But definitely approachable and sensible. In a city famous for not showing off, foster Powell makes other neighborhoods look like they’re elbowing each other out to hop the spotlight.

What’s ironic is that FoPo has become kind of a darling of Portland real estate. The recently discovered undiscovered gem, so home prices there have gone up a lot and people are moving in because it’s the place to be a little more than because it’s the place they want to be. According to The Portland Business Journal, the median home price is not $399,000 and what’s even more impressive, the average home sold in the past year was on the market for 12 days.

As I mentioned in another post, in Portland we have 20 blocks to a mile so even if you’re out by 82nd, you’re within biking distance of downtown. And it’s a nice ride, too, through Clinton, Ladd’s Addition, and over the Hawthorne bride. You can’t even get lost. Just follow the thousands of other bike commuters making the same trip. It’s a good ride back home. Short enough to do it every day. Strenuous enough that you can justify …you know where I’m going with this …

Pizza.

 

Is There a Season to be Grateful?

This is the time of year that many of us slow down, spend more time with family and friends, reflect on our year and start setting our intentions for the New Year. The holiday season, for many, prompts a feeling of gratitude. Maybe it’s because we slow down, take time off, reflect on the year as it winds down and what it has meant. But, did you know that the act of feeling and expressing gratitude has extreme benefits for our physical health, psychological well-being and relationships with others? Scientific studies have been going on for decades trying to understand the full benefits of simply expressing gratitude. Robert Emmons Ph.D. is a leading scientific expert on gratitude. Here are just a few of his findings:

Physical
• Stronger immune systems
• Less bothered by aches and pains
• Lower blood pressure
• Exercise more and take better care of their health
• Sleep longer and feel more refreshed upon waking

Psychological
• Higher levels of positive emotions
• More alert, alive, and awake
• More joy and pleasure
• More optimism and happiness

Social
• More helpful, generous, and compassionate
• More forgiving
• More outgoing
• Feel less lonely and isolated.

Dr. Emmons explains that gratitude has two components. First, it helps us affirm goodness in this world and recognize the gifts and benefits we’ve received. Even though life isn’t perfect, gratitude helps us identify some amount of goodness in our lives. The second part of gratitude is realizing the source is outside of us. True gratitude goes against a self-serving bias. When we are grateful, we understand that it’s other people that help us achieve the goodness in our lives.

Research has shown that gratitude helps us celebrate the present and participate more in life. It helps block negative and toxic emotions like envy, resentment and regret that can destroy happiness. Grateful people are more stress resistant and have a higher sense of self-worth.

So how do we get away from the “season” of gratitude and truly live it year-round? If you want to move past just feeling occasionally grateful to becoming a more grateful person, here are some daily practices you can incorporate:

  • Keep a gratitude journal. This can be as simple as listing 3 things you are grateful for every day, or you can use something more formal like The Five-Minute Journal that has morning question prompts and evening reflection questions. It was given to me as a gift at a very pivotal time in my life and it has been invaluable to me ever since.
  • If you don’t want to write things down, pick a time (first thing in the morning or at bedtime) to simply count your blessings. If you eat dinner with your partner, children, friend, etc. get in the habit of going around the table and each listing something you are grateful for today. It was our tradition at Thanksgiving, but now we do it all the time. It’s really fun to hear the simplest things that people are grateful for.
  • If you have children and want to help instill the importance of gratitude, you can do a variety of things. Volunteer as a family at a non-profit that makes you feel good. We serve dinner together as a family every month at one of the Transition Projects shelters dedicated to helping people transition off the streets. You can also start a gratitude jar at home that you put your spare change into every day. The idea is that the act prompts you to talk about what you are grateful for. When the jar is full you can donate it to a needy person or cause.

Personally, I have so much to be grateful for:   a warm home, supportive and loving family, a reliable car, access to good food and healthcare, a thriving business, friends, clients and colleagues that infuse so much joy in my life… the list goes on and on. As we enter this season of Thanksgiving, let it be a great time to remind us the importance of practicing gratitude daily.

Happy Times / Sad Times

Let me start by saying we’re not curing cancer here. I know that. What we do is help people do something they’re going to do anyway.

That having been said, it’s tremendously rewarding (and I don’t mean financially) to help people navigate a confusing, stressful process. What’s interesting is that the times that people rely on me are generally either extremely happy or extremely sad.

The happy ones are fun. A couple is getting married and wants to settle into their first home. A professional just got a job opportunity that requires her to move to Portland. Parents decide to give their kids four acres of backyard wilderness to play in.

But it’s the sad ones that make you feel the best about what you do.

Last year I sold a house for a neighbor and friend who was (and is) experiencing early onset dementia. Another listing I had was for the family of another neighbor who had passed away. A third was for a friend of a friend who, already confined to a wheelchair, had been diagnosed with terminal cancer.

Trying times. The pain that comes with these transitions is only amplified by fickle buyers, home values that don’t jibe with the optimistic projections of Zillow and Redfin, repairs that need to be made, and the myriad documents that need to be understood and signed.

It’s not enough to protect my clients. I need to make sure my clients feel protected.

I used to work for multinational corporations, creating marketing and advertising on a global scale. I did some really good work. I solved complex problems in (if I say so myself) some extraordinary ways.

After one particularly difficult project that resulted in a huge victory for a global financial services company, I had a realization: Corporations can’t be happy. They can only be profitable.

People, though. People can be happy.

That’s what got me into real estate. I like making people happy.

My client in the wheelchair repeatedly called me a lifesaver. I wasn’t. She passed away anyway, much too early. And my friend and neighbor with dementia, when I call her now to check in, often can’t remember who I am.

I’m at peace with that. Like I said, what we do is help people do something they’re going to do anyway. And that other thing they’re going to do anyway? Well, it’s a lot bigger than just buying or selling a house.

 

Portland Neighborhoods: Clinton

Remember Manhattan back in the 40’s and 50’s, when you could walk a block and go from one neighborhood to another one that was totally distinct?

Me neither.

But I’ve heard stories. And when I used to live there, you could still find vestiges – little reminders that the German neighborhood you were in butted right up against the Italian neighborhood a couple of streets over.

Who needs a gallery? Put your art on a fence ….
….on a telephone pole ….
….even on your house.

Portland has a lot of that. More subtle than in New York, but places where there’s a real difference in the personalities between two areas. Colonial Heights is different from Ladd’s Addition. NW 21st is different from NW 23rd. Hawthorne is different from Belmont, which is different from Stark, which is different from Burnside. And Clinton is different from Division.

“The Rocky Horror Picture Show” plays every Saturday night. Not making this up.

I’ve already gone on about Division (click here to reread my extremely informative and even vaguely accurate post), but to recap: 1) Freeway, 2) no freeway, 3) hippies, 4) fancy restaurants, 5) hipsters.

Clinton is a block away, but where Division was originally kind of an industrial cut through, Clinton began life totally residential. So even though the same hippies bought houses in both Clinton and Division for pennies on the dollar when the government abandoned its plan to build a freeway into downtown, neighborhood stuff got (and gets) emphasized on Clinton a lot more. To the point that today, cars get to drive on division; bikes own Clinton.

Clinton is what the city calls a Designated Bike Boulevard, which is defined as “low-volume and low-speed streets that have been optimized for bicycle travel through treatments such as traffic calming and traffic reduction, signage and pavement markings, and intersection crossing treatment.” Clinton has speed bumps, signs, DUI catchers (little roundabouts in intersections), even special street signs with cute little bikes on top – all that and more. In fact, just try to drive a car down the street. You can’t. There are spot where cars are actually forced to turn off.

When old homes are torn down in Clinton, they’re usually replaced by new homes. On Division – and did I mention that Division is seriously only a block away? – when old homes get torn down they’re usually replaced by multi unit housing.

I haven’t actually been to this place yet. We should go.

Like most of the neighborhoods in Portland, Clinton is its own little village. In and just off of the stretch between SE 20th and SE 26th you’ve got your pizza place (Hammy’s), a breakfast place (Off the Waffle), a diner (Dots, which is surprisingly good), an artsy brasserie (La Moule), another artsy brasserie (Jacqueline), and a kajillion other places to eat and drink and watch the parade of bike commuters on their way to and from work. There’s a fancy grocery store (New Seasons, which is really on Division, but like I said, a block away, and actually more connected to Clinton), and a food co-op (People’s Food Co-Op on SE 21st and Tibbetts).

You also have two optometrists, a boutique that sells kid stuff …even two real estate offices.

Which you really don’t need to bother with. I mean, you have me, right?

For a complete Portland bike map, click here.

 

 

 

 

The Importance of Being Extraordinary

In today’s fast-paced world, we can all be looking for ways to stand out and be extraordinary for our clients no matter what field we are in. “Extraordinary” comes from the Latin Extra Ordinem, meaning “outside of the ordinary.”

These four simple words “outside of the ordinary”, turns a switch in the brain. It’s freeing, kind of like coloring outside the lines. It’s an opportunity to explore the options of what’s possible and not feel hemmed in by preconceived limits or expectations. I remember my second-grade teacher telling me to color inside the lines; she had no idea what she was saying. Having the courage to be creative and go beyond what’s expected is the goal. How am I going to be unique or extraordinary today? What can I accomplish in my life and career if I actively seek what is outside of the ordinary?

Let’s face it, in today’s technology driven world, connecting immediately with someone new is easy. But how can we stand out? How can we be markedly distinctive in our career and relationships?

In the world of real estate, brokers have the opportunity to think outside the ordinary daily. Helping people buy and sell real estate is not cut and dry by any stretch. No two deals or clients are alike so having the ability to think outside the box is paramount in providing true value. Personally, I have found the best way to do this is to have an exceptionally organized plan, be proactive, have steadfast balance in your life, an immaculate and positive attitude, the ability to look for solutions when faced with obstacles and last, but not least, a client-centered approach.

If you are looking for an extraordinary advocate to help you navigate the world of real estate, please reach out. I will take the reins and guide you to your dream home!

 

How to Create a “Show Ready” Home

The spring market is in full swing!  With a strong market and some uncertainty about how long the Portland real estate values will stay as robust, there are a lot of homeowners considering selling.  Seller’s often feel overwhelmed with long to-do lists and don’t know quite where to begin.  Hopefully, the following advice will help you stay focused, motivated and guide you in getting your home “show ready”.

Remember, not everyone will love your home’s décor, but don’t take it personally because it’s almost certain that you wouldn’t like theirs either. Think of your home as a product in a marketing campaign.  Staging is about creating a “show ready” home that has wide appeal.

Here are a few tips that will get you started:

  1. First Impression

  • Curb appeal – The initial perception of your home sets the mental tone of the viewers. If they drive up to your home and the landscaping is nicely manicured, the walkway is clean, there are welcoming potted plants at the front door, the door itself is inviting, the windows are clean, the exterior paint is in great condition, perhaps there are even a couple of nice chairs or a porch swing (if applicable), it will create a positive first impression. Remember you are just trying to set the stage that tells the potential buyer this is a quality home and a lot of care has gone into it.

 

  • Interior – The main entry room, whether it’s a foyer, living room or something else, is equally important for building on that first impression. Take extra care to make this space as warm and inviting as possible. Also, notice the scent of your home when you enter the front door (this is especially important if you have a pet). A nice scent helps create an inviting atmosphere that works on a subconscious level with the prospective buyer. Nothing will dissuade a buyer faster than “house-a-tosis”. It’s important to correct the odor instead of covering it up if it’s due to mold or carpet damage caused by pets, etc. Stay away from heavy perfume scents or anything overbearing. Freshly cut flowers in the entry and throughout the house can provide some natural scent and add extra beauty and warmth to your home.

 

  1. The Nitty-Gritty

  • Clutter – Remember that “less is more” in preparing your home for sale. You may love your collection of widgets, but a prospective buyer might be distracted by all of the clutter. You want the buyer to look carefully at your home, not your possessions. A good rule-of-thumb is if it’s smaller than a grapefruit, pack it up. Remove any countertop appliances that are not built-in.  Your furniture and accessories should help them get a sense of the space in the room and allow them to envision moving their own things in. Consider removing your personal photographs and memorabilia. You want buyers to envision creating their own memories in your home, not distracted by yours. Closets, basements, attics and garages should be clean, well-lit and organized. Ample storage is a common buyer request so make yours appear as spacious as possible. Do not make the mistake of moving the clutter from the living spaces to these areas. A temporary storage unit might be well worth the investment while your home is on the market. Plus you are moving, so consider the packing process underway!
  • RepairGo through each room with a very critical eye and see what might catch prospective buyers’ attention. Look at every surface: floors, walls, doors, windows, ceilings, built-in furniture, etc. Also make sure that all of your home’s systems are in good working condition (electrical, mechanical & plumbing).

 

 

 

  • Improve – Remember you are trying to appeal to the masses so if your home is decorated in a way that only a select few can appreciate, change it. Don’t remodel – it’s amazing what a fresh coat of neutral paint and simplifying and rearranging your current possessions will do. A few new accessories like fluffy new bath towels, accent pillows and fresh flowers might just add the finishing touches. Also, if your house is on the dark side then purchasing some extra lamps or using LED bulbs will be money well spent.
  • Clean – Hire a professional cleaning company to do a thorough cleaning after you have completed all the clutter removal, repairs, and improvements. This is money well spent and will put the final polish on your “show ready” home. And don’t forget the windows!

 

 

 

 

  1. It’s Show Time!

  • Pets – Make sure there is no trace of your pet (leash, dish, litter box, bed, etc.) It’s a safe bet that your home will appeal to more people when it’s pet free than not.

 

  • Children – Ideally, you and the children should not be home during a showing. It’s also important to make sure that toys aren’t strewn throughout the house, for two reasons: one is to avoid the clutter factor, and two is being responsible for a buyer tripping on a roller-skate.

 

  • Daily preparation – You can’t be sure when the phone will ring and a realtor will say “we’re right around the corner!” It’s important to keep the house in “show ready” condition at all times so you simply do minor touches before you head out the door.

 

The following check-list will make sure your home is “show ready”.

Showing Check-List:

Kitchen:

__ Floors swept and mopped

__ Appliances cleaned

__ Counters clean and free of clutter

__ Fresh flowers or scent (vanilla or cinnamon)

Bathrooms:

__ Mirrors and glass cleaned

__ Bathrooms cleaned and smell fresh

__ Tubs and sinks cleaned

__ Fixtures cleaned and polished

__ Toilet seat down

__ Fresh towels neatly arranged

Bedrooms:

__ Beds made with pillows arranged neatly

__ Clothing and clutter put away

Living Areas:

__ Sofa and chair cushions fluffed

__ Pillows arranged neatly

__ Rooms tidy and uncluttered

Laundry Room:

__ Clean and tidy

__ Clothes picked up

__ Cleaning products put away

Overall Interior:

__ Floors mopped and vacuumed

__ Surfaces dusted

__ Windows cleaned

__ All lights on

__ No odors (nice scent at entrance)

__ Interior doors open

__ Curtains open

__ Soft music playing

__ Fresh cut flowers

__ House at comfortable temperature

__ For extra safety, secure all valuables & medications

Garage:

__ Garage swept

__ Workbenches cleaned and uncluttered

__ Garage door closed

__ No cars in garage, driveway or curb (if possible)

Exterior:

__ Front entry cleaned and uncluttered

__ Yard and exterior cleaned and uncluttered

__ Animal droppings in yard picked up

__ Leaves etc. in yard picked

Numbers Don’t Lie, April is the Best Time to List Your Home in Portland

 When is the best time to put my home on the market? It’s a question we Realtors get from clients all the time. Now, thanks to recent data gathered and evaluated by Realtor.com, we can give a definitive answer for the Portland metro area: The week of April 14.

Why? Buyers have started looking and they’re eager to buy before the summer market heats up, but in early April, most sellers aren’t on the market yet. It’s a classic example of the law of supply and demand. In fact, there are 23.9% fewer listings on the market that week than on average throughout the year. Only the Seattle and Denver areas had larger inventory swings than Portland. And anecdotally it makes sense, as many buyers want to enjoy summer in their new homes rather than move during our short-but-beautiful summer window. As a result, sellers are able to list their homes 5.5% higher than at the slow start of the year.

You may have seen the recent article in the New York Times that examines this further. They point out that in most major markets nationwide, April is ideal for sellers. Portland is no exception. Because of the aforementioned demand, sellers who list in our area in mid-April enjoy 24% more views of their homes online and 23% fewer days on the market than the market average.

Spring of 2019 promises more of the same. Interest rates are currently below 5% (30-year fixed) and inventory of mid-level single-family homes remains below demand. Factor in the giddy exhilaration Pacific Northwesterners feel when the spring sun finally gives them a good dose of vitamin D, and you’ve got excited April and May buyers.

We at Inhabit also understand that there are a lot of factors, often out of your control, that can affect the timing of putting a home on the market. Family and work demands, completing long overdue projects around the house, or even waiting for a neighbor down the street to sell before you put your sign up can all come into play.  If that’s the case, talk with us. We know the market and can help you with great service and market knowledge at any time of the year.

 

 

Celebrating 5 Years Inhabiting our Flagship Office in SE Portland

Celebrating 5 Years Inhabiting our Flagship Office in SE Portland

5 years ago, Inhabit Real Estate decided to put down stakes on SE Division Street at the epicenter of it all.  It was during a time that the neighborhood was experiencing tremendous growth and the landscape of the street was transforming a little too rapidly for some.  A sea of mixed-use, 4-story apartment buildings sprung up between existing shops and restaurants.  The renewed energy brought in some anchor tenants that literally transformed the entire neighborhood vibe.  Today, it’s an area that literally buzzes with energy.  The street is lined with noteworthy eateries and was dubbed one of the “10 Best Foodie Streets in America” by Food and Wine Magazine.  The restaurants, unique shopping, and local vibe make it a worthy destination in Portland.  We happily claim our spot nestled between the Whiskey Soda Lounge and Bula Kava House at 31st and Division.

As a small, Portland-based company, our goal was to celebrate everything local in our design.  We partnered with Maven Interiors, an award-winning local design company and Christopher McDonald (our good friend and amazing carpenter/ contractor) to do the build-out. We challenged the design team to create something that was unique, sustainable and had a hand-crafted feel.  We wanted our storefront to add to the streetscape and our presence embraced by the community.

Here’s a brief tour of some of the “local” aspects of our office…

One of the first things you will notice as soon as you walk in the office is a huge mural of an abstract Portland map that we commissioned local artist Jerry Inscoe to create for us.  The red peg indicates “you are here”.

We looked for opportunities to infuse art in unexpected ways.  Our interior doors, for example, became blank canvases. We asked Jerry Inscoe to collaborate with local artist Jennifer Mercede to bring our doors to life in an otherwise uninspired corridor.  Jerry airbrushed abstract backgrounds and Jennifer painted things reminiscent of Portland (Doug firs, bubbler fountains, bicycles, etc) in a whimsical doodle fashion on top.  The contrasting styles of the artists resulted in one-of-a-kind creations.

We turned to Portland’s own Schoolhouse Electric for all of our office pendants lights and Pratt and Larson Tile for our handmade kitchen backsplash.

The bathroom wallpaper is the work of local designers at MAKELIKE, a graphic design collective in SE Portland.  We loved continuing the unexpected whimsy in the loo.

All of our office partitions and workstations were custom designed by Maven Interiors and hand built by Chris McDonald.  The materials used are untraditional, just like us.  We are different by design.

The next time you find yourself on SE Division Street, please stop by for a tour and a cup of coffee.  We would be happy to make your acquaintance.

What to Expect When You’re Inspecting

Your Guide to the Home Inspection Process

 

There’s often a feeling of uncertainty when deciding if you want to “pull the trigger” and make an offer on a home. So many unknowns!

“What’s the deal with the foundation?” “Is that crack in the ceiling a bad sign?”  “Is the electrical in this room up to code?”

A good Realtor can help with many of these questions, but you won’t know everything about the house until you have it professionally inspected.  This step only happens once you make an offer and it’s accepted by the seller.

A certified home inspector really takes a close look at the house and, for many home purchasers; it’s often the most stressful time in the home buying process. – But it doesn’t have to be!

If you have clear expectations, you can get through it easily and be on your way to moving day.

 

The first thing you need to know about your home inspection:

You’ll feel a myriad of emotions.

First there’s excitement. The inspection could be the longest time you’ve been in the house, after the showings.
Then there’s anxiety. What if the inspector finds something wrong? So wrong you can’t buy the house?
Finally, there’s impatience. Seriously, is this whole home-buying process over yet?

Not yet. But you’re close!

You will typically have up to ten business days to complete inspections and present the seller with any requested repairs. In the Portland area, it’s common to have a general home inspection, as well as, a sewer scope, radon test, and underground oil tank search.

 

Let’s review all 4 inspection types:

General Home Inspection

  • Typically takes 2-3 hours depending on home size. The cost varies, but plan to budget between $400-$500 for it. (Yes, you have to pay for ALL inspections yourself…congrats; it’s your first homeowner expense!)
  • Once finished, the inspector will share initial results with you, highlighting any areas of concern. There will be a formal report later that you and your Realtor can review in more detail to determine the next steps.
  • Keep in mind that the report will highlight only the negatives of the home. At first glance, it can feel like there’s so much wrong (and maybe there is!), but it’s important to remember there’s plenty right with it, it’s just not in the report.
  • When sifting through the report details, don’t sweat the small stuff and focus on “The Big 3”:
    • Structural (siding, foundation, roof, chimney, etc.) 
    • Safety/Health (loose/missing railings or stairs, bad wiring, pests)
    • Systems (furnace, water heater, plumbing)
  • Remember, items large and small that are not completely perfect will be in the report.  It will cover everything from serious stuff to a loose handle on a drawer. While everyone wants to move in with as little to fix as possible, stay focused on the “big ticket” items such as a new roof, sewer line, or foundation work.  Save the inexpensive stuff for later.
  • Your Inspector Won’t Check Everything – Generally, inspectors only examine houses for problems that can be seen with the naked eye. They won’t be tearing down walls or using magical X-ray vision to find hidden faults. Also, your general inspection does not include:
    • fireplaces
    • garages, shops or out-buildings
    • pools


Sewer Scope

This inspection takes an hour or less in most cases and costs about $150. This involves a small camera attached to a pipe that snakes its way into the sewer line. The inspector is looking to see if there is a clean line from your house to the street and if there is any damage along the way. The most common issue that can be found here is root intrusion (like it sounds; tree roots have started growing into the line), and a party sewer (not as fun as it sounds; your line meets with the neighbors’ line before it goes to the street). If either of these is found, your Realtor will likely recommend asking the seller to repair them.

Sewer issues are more common in older homes, but you never know! 

 


Radon Testing

Testing radon may be unfamiliar to some, but it’s serious stuff! In a nutshell, radon is an odorless, naturally occurring radioactive gas found in granite rich soil and is common here in our lovely Portland rain forest. Radon is in the air all around us. There’s nothing to fear if it’s not in an enclosed space, but exposure to elevated levels in a confined area has been shown to cause lung cancer over time. You can learn more here

Testing costs about $100 and involves simply placing a small monitoring device in the lowest livable area of the home.  Results are measured after 3 days. The EPA suggests a reading over 4pCi/L should be corrected. Typically the seller will fix the issue by installing a ventilation fan (often in the basement) that vents out along the side of the home keeping levels low and steady.


Underground Oil Tank Search

This is not always necessary, but if you or your Realtor sees that there may have been oil heat in the past and you don’t find a record of decommissioning, you should get it done! Most old homes around Portland were heated with oil back in the day (many still are), and while oil heat can be just fine, an old neglected tank is not! Old tanks can corrode over time, leaking oil and sludge into the soil that can seriously mess up your gardening plans. 

The search costs about $100. If a tank is found, a Soil Test is recommended to determine if there has been any contamination. As with radon, the seller generally expects to pay for decommissioning. 


Your Next Steps

At this point, if you have concerns over any of the inspection results, you have 3 options:

  1. Ask the seller to repair specific items at their expense
    • You don’t want to send them a laundry list of a million things, but anything from “The Big 3” should be considered.
  2. Request a credit to pay for those repairs
    • I’m a big fan of requesting credits. That way you can determine for yourself who will do the work, plus those credits will go towards paying off your closing costs.
  3. Walk away and find another house
    • Every situation is unique and while most homes are in good enough shape so that a credit or a few fixes make both the seller and buyer happy, sometimes it’s best to cut your losses and move on.


That’s It!

There’s more to it, but that’s the basics. If you or someone you know is considering buying a home, let’s chat about the specifics and make a plan together.

Keeping Portland Weird

If you’ve spent any time driving in Portland, you’ve seen it; that ubiquitous bumper sticker saying Keep Portland Weird.

It’s a slogan originally promoted by the owner of Music Millennium to promote the support of small business, but was quickly embraced by the city’s residents as a motto to live by.  What is it that makes Portland so unique and… well, weird? Many think it’s the creativity of those who live here, and you can find it expressed in our hobbies and events happening all year long.  

Want to experience Portland’s weird vibe? Here are 10 of the strangest events we could find around town. Everyone knows about the Rose Festival, beer fests, and Voodoo Doughnut, but add these to your 2019 calendar and you’ll know what makes our town so Portlandesque.

 

10 Minute Play Festival – Coming up quickly, March 7th through 10th, Clinton Street Theater hosts a plethora of plays at the 10-minute play festival. As you might guess by the name, the 10MPF stages a series of short plays each night. It’s a great way for local playwrights to produce shows and audiences to enjoy works from local artists. More info here.

B-Movie Bingo – The Hollywood Theater is a beautifully restored movie venue which hosts both culturally significant and culturally insignificant events throughout the year. It’s worth a visit to their website to check out their calendar. Or, you could plan regular visits on the first Tuesday evening of every month to play B-Movie Bingo, where bad movie clichés can earn you prizes and talk during the show is expected. The March 2019 show is a screening of 1994’s Guardian Angel, which easily slots this in the culturally insignificant (but fun!) category. More info here.

Rose City Rollers (RCR) – If you’ve never watched roller derby, you’re missing one of the most entertaining sports around. Strong, competitive women battle to victory – sometimes backward – on skates. The RCR All-Stars are good, too, having brought home the World Flat Track Derby Association (WFTDA) Championship in 2018. They skate at Oaks Park, and the season runs from March through June. More info here.

Doll heads at Crafty Wonderland by Tim Brock

Crafty Wonderland – This is the event that puts Portland-makers on display. You’ll find specialty food, clothing, handcrafted jewelry, and even upcycled doll heads. Their main event is in December, but the smaller spring market is happening May 4th at the Convention Center. Stock up on unusual birthday gifts here. More info here

Filmed by Bike – We don’t mean to put too much focus on Hollywood Theater, but I did say they host some great events. One not to miss is the 17th annual Filmed by Bike festival. The event draws filmmakers from far and wide, and is an opportunity to see some unique cinematography that gives a new meaning to “rolling.” Festivities run May 17-19. More info here

Muppet Movie Singalong Bike Ride – The Muppet Movie, arguably the best kids’ movie of all time, was released 40 years ago on June 22nd. What did those adorable characters love nearly as much as chasing their Hollywood dreams? Singing and riding bikes. You can make like Kermit and ride your Schwinn starting at Irving park while the songs from the movie play along. More info here

Weird Homes Tour – This one is right up our alley. We’re all about homes, and Portland is all about weird, so why not join the two? On June 29th, 8-10 unusual Portland homes will be on tour to ticket holders, and home addresses will be released just before the self-guided event. More info here

Portlandia Mermaid Parade – Who doesn’t like mermaids? I mean, as long as they aren’t the traditional kind that lures sailors to their deaths. These are the ones that sparkle and shine on parade along the Portland Waterfront. Dress up and join the fun or be a spectator and watch the red hair flow on Saturday, July 27th. More info here

Adult Soap Box Derby – If your boy scout pinewood derby car came to life, you’d race it here. Grown adults build gravity-powered racers and send them down the swooping turns on Mt. Tabor. Builders either go for speed or creativity, but rarely both. The races, plus the lovely setting with views of downtown and food carts providing refreshments, make this a favorite summer tradition. August 17th at Mt. Tabor Park. More info here

Vaux Swifts at Chapman School – This phenomenon is not organized by humans, but is still a marvel of organization and coordination. Every September, a colony of Vaux Swifts has nested in the chimney of Chapman school in NW Portland. About an hour before sunset every evening, the birds gather, swoop and swirl in captivating patterns before diving into the chimney for the night. Bring a picnic dinner and sit on the school grounds for the display.

Of course, these are just a few of the hundreds of events around town. If you’re thinking of moving here and want to learn more, contact me and I’ll be happy to help you find the events, neighborhood and house that makes you feel at home in wonderful Portland.

In Which I Call B.S. on a Recent HousingWire Story

Did you see the headline from last week? “It costs more to own a home than to rent one in every U.S. state.” For a link to the article, click here.

The story talks about how using US Census Bureau data, CNBC was able to compare the median cost of renting a home to the median cost of owning a home.

Remember what a median is? A median is “the value or quantity lying at the midpoint of a frequency distribution of observed values or quantities.” In other words, if you have 1,001 houses, exactly 500 will cost more and 500 will cost less.

And this is where the methodology is screwed up. RentCafe took the same data that CNBC used and figured out that in the US, there are 73% more apartments rented than houses. And the Terner Center at Berkley took that same data and determined that “Today, single-family detached homes make up more than 62 percent of the housing stock in the United States…” .

So the median rental is way more likely to be an apartment, while the median home that’s owned is way more likely to be a house.

Here’s another way to think of it. Jennifer Lopez has a $28 million home. So she and all the other millionaires who own mansions skew the median cost of home ownership up. But unless
there are a lot of millionaires out there renting apartments for like $2 million a month, it’s a pretty safe bet that median rental doesn’t skew as far north.

If all those numbers make your eyes glaze over, let me frame it one more way. The common
sense way.

The CNBC story implies that in every single state, people who rent out their homes are, on
average, losing money. In other words, we have a country full of generous landlords.

Sorry, that just doesn’t fly.

As a realtor®, it’s important to stay informed. But it’s way more important to think.

Dreaming of a Vacation Property?

If I told you that you could own a peaceful vacation retreat at an affordable price within a half hour of downtown Portland would you believe me? Believe it or not, it’s true. Within minutes of downtown Portland  (and in some cases a stone’s throw), there are hundreds of FLOATING HOMES right in front of our eyes. These unique homes come in all shapes, sizes and prices and deliver a truly peaceful, fun retreat from the day-to-day grind of life.

Whether it’s on the Willamette, Columbia or Multnomah Channel, there are moorages of all different styles and flavors with a myriad of floating homes enjoying a convenient, peaceful existence right on the water.

With Portland’s explosive growth, dense housing landscape, affordability concerns and emphasis on lifestyle,  it’s surprising that these homes aren’t wildly more popular. The cat is certainly out of the bag in our “sister” cities like Seattle and San Francisco where floating homes are often just as much a consideration as land homes for primary residences or second homes.

As brokers, we hear quite often from our clients the desire to purchase a second property whether it’s at Mt. Hood, Bend or other destinations which could take hours to get to. One of the most important factors when purchasing a second home is convenient access. Taken from first-hand experience, once the honeymoon period is over after purchasing a vacation property, it’s all too easy to talk yourself out of a long drive on a Friday after work to retreat to your vacation home. However, with dozens of floating home moorages within a half hour of Portland, the much-needed escape is only a short drive away.

On top of relaxation, these properties afford fun and entertainment such as swimming, boating, fishing, wildlife observation, kayaking, and unlimited access to waterways, islands, and much more.

We realize that floating homes may not be for everyone, but we want to bring light to these special properties….especially given the abundance of them within a short drive from Portland. As our town continues to bust at the seams, we predict more buyers will begin to consider them as an option for their primary residence or as an escape from city life.

Currently, during the off-season, there are 36 floating homes for sale on the Portland area waterways ranging in price from $80k – $1.1M (with the median price of $266K).  Suprised? I was too when my family and I started looking and decided to buy one on Sauvie Island 2 ½ years ago. It was the best decision we ever made. Our summers and weekends are filled with memories that will last a lifetime.  Why wait for a vacation when you can live like you’re on one all the time!

 

 

2019 PDX Real Estate Outlook From Inhabit’s Owner Eric Hagstette

It’s 2019! I hope you had a restful holiday season and are as excited about the new year as I am. I find this time of year refreshing as I look ahead. The following is my market outlook for 2019. I was excited to look back on my 2018 predictions and am happy to report that I pretty much nailed it! Our Portland real estate market is very healthy….different, but healthy. We’ve been enjoying solid appreciation since 2012 and our market continues to strengthen the fundamental components required to keep a market healthy and resilient (ie., job growth, buyer qualifications, lending guidelines, availability of financing, desirability, popularity, and so forth). With this being said, the Portland market has changed and we think it is chock-full of opportunity for both our buyer and seller clients.

Inventory

Real estate buzz word #1. This simply means “supply” of housing for sale. Inventory levels determine who has the upper hand (or level hand) in the real estate market. Portland’s historically low inventory has always favored our seller clients; however, as of late 2018, inventory levels rose to a point (approximately 3 months) that has given our buyer clients hope of achieving their dreams of owning real estate. We are excited for our buyer clients and investors and doing our best to encourage them to take advantage of this “correction” or “softening” or “shift”. Call it what you will, we think this is a great time to get into the market or move around within the market.

Interest Rates

Real estate buzz word #2. We’ve been warned for years that rates would be going up and it finally happened. As we all knew, 3-4% long-term interest rates were unsustainable. These low rates were simply a tool (“quantitative easing”) used for economic recovery and stimulation as a result of the “great recession”. We’ve begun the march back to more sustainable rates for real estate financing. While these rates are still at historic lows, we understand the impacts (and discomfort) that rising rates have on real estate prices (they both can’t go up at the same time). Our sources say that we will likely have a couple more rate hikes in 2019 so, again, we’re encouraging our buyer clients to jump in the market before rates creep up more. Interestingly enough, as I write this, rates are at an 8 month low which is stirring up activity for us. On a positive note, there is still ample liquidity and loan programs for real estate financing and qualified buyers. Great lenders paired with skilled real estate negotiators (me) can introduce ways to buy rates down for our buyer clients and lower the barrier into the market.

Price, Value, Affordability

Buzz word(s) #3. Inventory, rates and real estate prices are all tied together. As mentioned, rates and prices don’t normally go up at the same time. It’s no secret that Portland (and many other metro markets) have a huge “affordability” issue. Rising rates and inventory have joined forces to encourage (or force) our seller clients to price their real estate realistically based on these new inventory levels. It is important to look at this from a positive perspective. 2019 sellers have not “missed the market”. Most of our sellers have enjoyed huge gains in appreciation of their holdings since 2012 (or longer). In my humble opinion, if we simply adjust those appreciation averages to account for today’s market conditions, most people would still be more than happy with their rate of return when spread across the years.

Luxury Homes & High-End Market

This market is all over the board. We’re seeing examples of high-end listings sitting on the market. We’re also seeing examples of high-end listings flying off the shelf. Every property has a price and there are still buyers that can and will appreciate high-end luxury homes. Keep in mind, Portland has always been insulated by the famous migration of buyers moving from California, Seattle, New York, and other “jumbo” markets. To these buyers, our “high-end” listings may seem like a bargain. With this said, regardless of the market segment, it is imperative to price real estate competitively.

Condominiums/Attached Townhomes

While these types of properties continue to grow in popularity in Portland, so does the buying power for condos and townhouses. The recent over-saturation new rental apartments in Portland has softened prices for condos and townhouses. With Portland’s limited land for development (and sprawl) and encouraged density, these properties will remain a player in the market and will “weather” this shift as our population continues to grow and buyers prioritize simplicity and efficiency. In the meantime, this is an outstanding market segment to take advantage of for our buyer and investor clients.

There you have it….my two cents on the local market for 2019

I strongly believe that these “in between” markets present the greatest opportunities for our clients. Unfortunately, we usually don’t realize these opportunities until they’re gone. While we’re experiencing a market correction, we’re still very bullish in the Portland market. We’ve built the fundamentals of a solid market while our job base and popularity continue to thrive. As “the darling” of the Pacific Northwest, Portland may experience blips like this one; however, the combination of current/future population growth with our Urban Growth Boundary and natural land barriers (to development), we feel we have a recipe for strong upward appreciation over the next 10-year cycle. The long and short of it….we do not think buyers should wait to take advantage of this market. At the same time, we feel like sellers who properly price and present their real estate will have a satisfying outcome. It’s a solid market for both sides! The key component is accepting the change and adapting to it. As usual, if you know of anyone considering buying, selling or investing in real estate, we would be honored to receive your referrals and serve your friends and family with outstanding service.