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Category: News & Events

How We are Handling the Second Wave of COVID-19

Posted on by Eric Hagstette

November 16, 2020 Update

As we all know, COVID-19 is on the rise in Oregon and Governor Brown has instituted a statewide freeze.  At Inhabit, we are committed to keeping the health and safety of our clients and agents at the forefront of everything we do.  Strict office policies are in place to ensure a safe work environment.  We also updated all of our client engagement protocols so the health and safety of our clients come first.  Last March, we launched our Couch Concierge service that brings the entire home buying and selling process to our clients.  Everything from virtual open houses, live video showings with our agents, to virtual contracts and closings.

Here is a recap of how we continue to tailor and improve our services during COVID-19:

Our sellers shouldn’t worry about canceled open houses.  We will create a digital marketing campaign that brings your house to potential buyers all without risking anyone’s health or safety.  Our agents will tailor a showing plan that you feel the most comfortable with.

We have a lot of active buyers right now.  To short-list property options, we offer live video tours.  Your agent will walk you through the property showing you every nook and cranny with honest feedback on quality or construction issues they see– all from the safety of your home.   

In-person tours of your “must-see” homes are still an option in most cases when necessary, but with precautions we take very seriously.  Our agents are following the recommended 6 ft of social distancing, mask-wearing, and strict hand-washing and disinfecting policies.  We will not show homes to anyone that has cold or flu symptoms or has had any exposure to COVID-19 within 2 weeks of the showing.  As your agent, we promise you the same courtesy and will pair you with another Inhabit team member to safely show you the home if we are under the weather or are concerned about personal exposure.  Your agent will provide our COVID-19 Safe Showing Policies for your review prior to visiting any property in-person so you can make the best decision for your health and safety.

As a small business, we put the care of our clients and agents first.  We are all in this together. We promise to use integrity and knowledge as our guiding force.

Here’s to peace, health, and prosperity for all of us in the coming months.

Eric 

Meet Our Founder

Posted on by Eric Hagstette

Our fearless leader, Eric Hagstette, is this month’s cover feature in Portland Real Producers Magazine.  Click the magazine image below to see the full article and learn what motivates this great guy.

 

Here’s the transcript of the article:

Eric Hagstette’s social conscience is one of his strongest driving forces. Owner and principal broker of Inhabit Real Estate, Eric is this month’s Top Producer.

Starting his career in business to business sales for a Fortune 300 New York-based company, Eric transitioned into real estate in 2005. He looks back on his time in Corporate America with gratitude and appreciation for teaching him the fundamentals of sales, marketing, and most important, follow-up. “This is where I also learned that excuses are…just that,” Eric explains.

As a longtime Portlander, Eric is passionate about our city and how it is being affected by the pandemic, wildfires and smoke, protests, riots, and the current political divide. When asked how the wild ride of 2020 has affected his business, he told us, “Big question. The big picture crises we’re facing are much bigger than our work. They are more important than selling real estate, and we’re right in the heart of all of it. ‘Home’ has never been more important and we are in the business of ‘home.’ I feel torn between all of the hardships resulting from COVID-19 and the abundance that real estate is providing as a result of these unprecedented times. Transactionally speaking, we are in the right place at the right time… there is no shortage of business. Portland has certainly seen its day in the news through all of this and the long-term effect on our business is hard to predict. One of the silver linings of all of these things, from my observation, is a galvanization of the brokerage community. From COVID-19 to wildfires (and everything in between), I’ve seen brokers work together like never before. Kudos to all of you. Thank you.”

Real estate brings with it many rewards. For Eric, one of the biggest rewards comes in the form of the various relationships he has been able to foster over the years. “Hands down it’s all about the people. Not just my clients but my colleagues, my team, my mentors, my co-op agents, my vendors, our neighbors.”

Eric also finds fulfillment in owning and managing Inhabit Real Estate. “Operationally, managing a residential real estate brokerage while simultaneously running my personal sales business allows me to wear all the hats. From coaching my agents to prospecting for business, writing copy for ads, working on budgets and business plans, and everything in between. And who doesn’t love houses, photography, interior design, architecture, marketing, continuing education, networking, and all the fun stuff? Of course, our job also comes with all the tough stuff like unpredictable market conditions, challenging clients, paying taxes, delivering bad news, the emotional roller coaster of real estate, and the woes of being self-employed.

Luckily, my attention span helps me thrive in this multi-tasking, fast-paced, up-and-down market. I honestly love all of it.”

Finding passion in all of the possibilities that real estate affords, motivates Eric on a daily basis. “I have always been passionate about the unlimited possibilities that a real estate license affords us. With hard work and a simple plan, the sky’s the limit for REALTORS®. Playing such a pivotal role in times of transition for my clients is a huge responsibility. I have always held the importance of this piece with passion and drive. As a brokerage owner, I am passionate about teaching, training, and watching my brokers achieve their goals and dreams through real estate.”

Eric’s biggest reward in life is his family. Due to the pandemic, Eric has spent more time at home with his family than at any other time in his professional career and for him, this has been a huge blessing. “My family is the driving force behind my success. Not only do they motivate me every day but, as many of you know, to support the life of a REALTOR® requires a special family support unit. My family rides the roller coaster right by my side and they provide a safe haven to escape to. I’ve been married to my wife Kim for 21 years. I thank my lucky stars every day that our paths crossed. Not only is she my life partner, but she’s also my business partner and co-owner of Inhabit Real Estate, all the while holding down the fort at home and running her award-winning interior design business. We have two amazing teenagers who keep me in check and make sure I’m as ‘woke’ as possible for an almost-50-year- old dad. I learn a ton from my kids. I have so much hope for the younger generations who know more about equality, acceptance, and non-judgment. We can all take a note from the kids of today and appreciate their fire and passion, their resilience and brilliance, and their endurance through these unusual times. And, by way of osmosis and exposure (to me), my family knows more about oil tanks, sewer lines, multiple offers, and even the value of off-street parking.”

Along with the rewards of real estate comes the challenges. This year has been trying for everyone. The devastation from wildfires and the loss of life and business upheaval caused by the pandemic is horrific. We asked Eric what new challenges he has been facing and navigating since the pandemic hit and he told us, “Wildfires, extremely hazardous air quality, political unrest, social outcry and one of the most significant Presidential elections in history, all the while keeping pace with one of the busiest markets I have experienced in 15+ years of selling real estate. The erosion of affordable housing in Portland is accelerating at light speed and this is an indirect challenge that we cannot turn a blind eye to. The pandemic, wildfires, and the election will be in our rear-view mirror in the not-too-distant future, but not addressing the homeless crisis will likely have the greatest future impact on Portland livability and the bottom line of our business.”

Eric has a competitive side that he feeds with his love of cycling and bike racing. He has loved bikes since he was a child and has been racing for the past 10 years. “I’m a die-hard cyclist and bike racer. I love carbon, clicky pedals, training, going fast, and Lycra (yep, I said it…I love Lycra). Cycling keeps my body fit and my mind sane. It feeds my competitive spirit and, unintentionally, is a huge part of my networking sphere. My relationship with my teammates and fellow cycling friends is based on trust and trust is the foundation of our profession so these things go hand in hand.”

The Hagstette family are water enthusiasts. If there is water, you will find them nearby or right in it! “My family loves the water. We have a floating home and spend the summer paddleboarding, kayaking, floating, boating, swimming, and fishing.”

As you would expect, with his strong social conscience Eric does not just think about the changes that need to take place. He helps facilitate the change. Annually, Inhabit Real Estate picks a charitable cause that focuses on alleviating homelessness, “We have thrown hammers for Habitat for Humanity, organized holiday toy drives, and collected much-needed essentials for homeless children and families. As a family, our focus is on Transition Projects. Every month for the last few years, we have prepared and served dinner and lunches at multiple locations that are focused on men, women, and families transitioning out of homelessness.” Eric also aids the community by coaching youth swimming and sponsoring free junior bike racing at The Portland Trophy Cup Cyclocross series.

In closing, we asked Eric if he would like to communicate anything additional to the readers of Portland Real Producers magazine. Without hesitation, he responded, “As a longtime Portlander, I’ve always held a special place in my heart for this amazing city. I am sure I am not alone when I say that Portland is at a very important crossroads. ‘Home’ is our business and we’re paid to sell the ‘Portland experience.’ ‘Home’ doesn’t just apply to our qualified buyers and sellers. It applies to all people occupying the space called Portland including those with the means to buy or rent real estate and those that are sleeping outside under tarps. We must realize that even though we only serve a portion of Portland residents, they all make up the community, whether they have a house or not. It is our duty as ‘real producers’ and leaders in our industry to help Portland through these growing pains. While the country seems to grow in divide, it is very important for us to come together to put Portland back on track to be the darling of the Northwest. As we buzz through town enjoying the fruits of this market, I encourage you to think more critically about the ‘in your face’ issues that are easy to turn a blind eye to: mental illness, drug addiction, systemic racism, climate change, and environmental destruction and affordable housing. Raise your voice and vote. We must demand more from our local leadership and lean hard on them to properly address these big issues which not only affect our profession but our lives as well.

 

 

Something to Look Forward to this Summer in PDX

Posted on by Eric Hagstette

This is a blog post I have looked forward to writing!  It’s all about simple pleasures these days.  Sauvie Island, for most Portlanders, evokes a special feeling.  It’s a short 10 miles from downtown, but crossing the Sauvie Island bridge and seeing sprawling farmland crowned by the four cascade mountain view (yes, on clear days you can see the top of Mt. Rainier too)–makes you exhale immediately.  For some it’s biking, beach combing, fishing, kayaking or hiking, but the collective draw is the farms.  Picking berries, stone fruit and flowers, hayrides, summer concerts, sipping wine and beer while dining on food cart delicacies and leaving with food grown by hardworking local farmers.  Summer isn’t complete in Portland without a day on Sauvie Island.

This year I had the ultimate pleasure of helping very dear friends of mine realize their dream of owning a farm on Sauvie Island. It was a complicated and emotional transaction for all, but the end result was relieved and happy clients!  Kruger’s Farm is now owned by an amazing local Sauvie Island family and has been renamed Topaz Farm.  Kat and Jim are two of the smartest, hardworking people I know and their vision for the farm is going to blow your mind.  Think farm-to-plate brunches and dinners, sipping wine, beer, local coffee or strawberry rhubarb lemonade while shopping in the farm store that features their own produce, as well as other Sauvie Island and local products.  They have in-house chefs that create pasta, kale chips, pastries, pies, sandwiches, otter pops, etc., for the farm store using their produce.  They use organic farming practices and plan to be an educational farm.  They’ve partnered with the Sauvie Island Center to create camp and field trip opportunities for our schools.  They are creating a bee wheel garden (the first of its kind on the west coast) and have all kinds of plans for future enrichment programs.  They’ve accomplished all this just since they purchased the farm in January.  Can you imagine what the future holds?!!

Of course COVID-19 has changed a few things, but visiting a farm and getting outside isn’t one of them.  Don’t we all need a change of scenery!  There are some things that are on hold right now and Topaz Farm is following a very strict COVID-19 policy to keep their customers and employees safe.  Follow them on Instagram or Facebook to stay up-to-date on berry picking calendars, farm-to-plate dinners and possibly a creative summer concert series.

When you visit Topaz Farm you will likely meet the whole family.  Their daughters Maggie and Odessa work right alongside of their parents.  Kat’s brother, Peter is working tirelessly to build all sorts of new farm features (clever mobile farm store displays, new pens for the animals, etc).  I know they will be pleased to make your acquaintance (tell ‘em we sent ya!)

My wife and I had the pleasure of visiting the farm on opening day, May 27th.  Enjoy some of the photos from our visit.

       

 

COVID-19 Update from Inhabit’s Owner

Posted on by Eric Hagstette

March 31, 2020

The coronavirus is impacting everyone and every business in some way and the real estate industry is no exception.  In many ways we are lucky because our shift to doing things virtually isn’t as big a leap as some businesses are facing.  As a matter of fact, for many years we’ve been able to handle most of the home buying and selling transactions electronically.  During the COVID-19 pandemic, Inhabit is committed to keeping the health and safety of our clients and agents at the forefront of everything we do.  Even before Governor Brown initiated Oregon’s shelter-in-place order, Inhabit launched our Couch Concierge service that brings the entire home buying and selling process to our clients.  Everything from virtual open houses, live video showings with our agents, to virtual contracts and closings.

Our listing clients shouldn’t worry about canceled open houses.  We will create a digital marketing campaign that brings your house to potential buyers all without risking anyone’s health or safety.  Our agents will tailor a showing plan that you feel the most comfortable with.

For our buyers, we are hosting live video tours.  Our agents will walk you through the property showing you every nook and cranny with honest feedback on quality or construction issues they see.  

In-person tours are still an option in many cases when necessary, but with precautions we take very seriously.  We recommend live video tours for anyone that has cold or flu symptoms or concerned about a possible COVID-19 exposure.  This goes for clients, as well as, agents.  Our agents are following the recommended 6 ft of social distancing and strict hand-washing and disinfecting policies.  Our agents provide our COVID-19 Safe Showing policies to clients for review prior to visiting any property in-person so you can make the best decision for your health and safety.

We are a small business that puts the care of our clients and agents first.  I started this company six years ago because I knew there was a better, more innovative way to serve clients.  This is an industry that one-size definitely does not fit all.  Inhabit has always been forward-looking and our size allows us to be nimble in creating services that address changing needs and goals.  We are here to give you the best real estate advice possible, now and into the future.

Yours in health and prosperity!

Eric

How Your Home Can Provide Stability

Posted on by Eric Hagstette

For those of us invested in the stock market, we’ve all been wondering if the historic run of this bull market was ever going to end.  No one, however, could have predicted the coronavirus or imagine its global impact. The next few months are still unwritten and as we brace ourselves for how far reaching the effects will be.  It’s unsettling for everyone. The stock market volatility is reminiscent of 2008, but the cause is totally different, and it will have different effects. A recent New York Times article titled Buying a Home During a Pandemic reflected on the 2008 market by saying, “Many real estate shoppers were trying to weigh multiple moving pieces back in late 2008. That crisis was different — the S&P 500 would ultimately lose half its value from its peak, and home prices cratered, too. That’s not the case this time (so far, at least). And what has happened since 2008 should provide us some comfort right now.”

The article also reflects on the stability of the housing market versus the instability of the rental market.  There is some piece of mind knowing that you can capitalize on historically low interest rates to lock in a monthly payment that won’t change.  This is making home ownership much more attractive than renting in many cases.  

The news around COVID-19 feels surreal right now with everything seemingly in a holding pattern, but the root cause of what’s driving Portland’s housing demand will not be affected in the long run.  Portland is one of the strongest real estate markets in the country. It’s during times of crisis that people take the time to reflect on what’s really important. The certainty of having a safe place to call home tops most lists.  Also, the push to create a stay-at-home economy makes where you live more important than ever. Companies may realize that having their employees work from home has some financial benefits. This could very well make a shift to more people getting to decide where they want to live.  Lifestyle is a major driver to Portland’s growth. Are we now poised more than ever to see accelerated growth? I don’t have a crystal ball, but I would be willing to make a bet that the net effect of what’s happening right now will make people pause and consider what’s really important in life.

We have a unique situation with interest rates at historic lows and Portland housing demand still high.  With all the stock market volatility, finding some stability with a large asset like homeownership should be a consideration.  Whatever is important to you, there are options. You can refinance to lock in a lower monthly payment. You can upgrade your home and with the low interest rates end up paying close to what you are now.  You can downsize to streamline your finances and put money away to safeguard yourself against any future volatility. If you are a renter, you can give yourself more certainty by purchasing a home, locking in a monthly payment and having piece of mind that your dollars are going towards an investment for your future.

Whatever is important to you, please know that my team at Inhabit Real Estate is here to help you navigate your decision-making process.  We pride ourselves on being advisors, not salespeople. Let us help you find a strategy that works in your best interest. We are all in this together!

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

Posted on by 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

41st Annual Duniway Holiday Home Tour

Posted on by staff

The Duniway Holiday Home Tour and Artisan Boutique is back for the 41st year as Portland’s longest-running house-hopping extravaganza.

The one-day event is Friday, December 6, starting at Duniway Elementary school, 7700 SE Reed College Place, Portland.

All proceeds from the event will benefit the students of Duniway Elementary by providing an arts program, cultural development and other academic enrichments.

The Duniway PTA and gracious members of the community offer 6 outstanding homes to explore.  All homes are special and certain to spark nostalgia, inspiration and warm holiday spirit. 

This year’s tour features a Mediterranean-style home brimming with an astounding collection of Pop Art and expertly curated Native American art.  Other homes include an eclectic vintage-inspired Colonial, and a newly remodeled estate.  The six homes offer a diverse array of architecture, landscaping and design: from classic to eclectic, and all the gorgeous styles between.

Nothing enhances a home tour like shopping! The Duniway Artisan Boutique is set to provide all your gift-giving needs. Browse dozens of local vendors in the Duniway Elementary gymnasium for locally made crafts, home goods and treats.  Purchase a unique bag or tote made from repurposed material and fill it with handcrafted jewelry, Oregon honey, handmade pasta and soap. Other vendors offer home goods such as special holiday ornaments and eco-friendly laundry products. 

From the school, participants can board the complimentary trolley to any of the gorgeous Eastmoreland homes whose residents have opened their doors to benefit Arts education.  The trolley circulates on a loop for participants to house-hop at their leisure.  A collectible brochure provides a brief description of homes on the tour, and homes can be explored in any chosen order.

The annual event offers two sessions throughout the day from 10am-3pm, and 5pm-9pm.  Live music will fill the homes during the evening session.  

Tickets are $35 at the door, or $30 in advance at www.duniwayhometour.org.  Admission to the Artisan Boutique is free, and will be open 9am-7:30pm. Single ticket purchase provides access to the Tour, Trolley and Boutique.  

Celebrating 5 Years Inhabiting our Flagship Office in SE Portland

Posted on by Kim Hagstette

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.

Why 2019 Could be a Great Year to Sell Your Home

Posted on by Eric Hagstette

With the Feds increasing interest rates already 3 times the last 12 months (and a possible 4th predicted); it’s understandable that people could be hesitant to make any real estate moves. Mortgage rates tend to mirror interest rates, but with some caveats. Mortgage rates are based on the current market, your financial status and the property you are trying to purchase. Mortgage rates hit a 7-year high in November, 2018 at just under 5% as reported by Freddy Mac, but as of February the rates have lowered to the mid to low 4% range. These rates are still incredible if you consider the historic high of 18% in 1981.

 

Housing markets and volatility will vary depending on where you live. Thankfully, Portland is still a growing and sought after destination which helps keep our market volatility more steady. So why would selling in 2019 be better than 2020 or 2021? Our housing market has a cycle of its own that is influenced by the economy. Typically the cycle is somewhere between 10-16 years. Some experts are predicting the next recession happening in 2020 or 2021. That prediction would be in line with our typical cycle length since the last housing “crash” was in 2008.

 

If you are unsure what to do, here are some compelling things to think about…

Reasons to Sell in 2019:

  1. Do you have plans to make a move in the next 3 years?
  2. Do you have considerable equity in your home? The higher your down payment on a new home, the better your interest rate.
  3. Interest rates are predicted to rise again in the next year
  4. New home buyers are entering the market. Based on a recent Trulia survey, millennials are the largest buying group with 1 out of 5 reporting they will buy a home in the next 12 months.
  5. If you are getting close to retirement and the equity in your home is a big part of your financial picture, then waiting out the next economic cycle might not be the best plan.

Reasons not to Sell in 2019:

  1. You haven’t owned your current home for long enough to build up enough equity. If you’ve owned for less than 2 years, then paying capital gains on your profit is a deterrent as well.
  2. You are happy with your home and believe it can meet your needs for the next 5 years or more, then staying put and waiting until the next cycle is probably in your best interest.

 

I created Inhabit to be a trusted resource for guiding people on how to get the most out of their largest and most important asset. Our overarching goal is to be a trusted advisor and build relationships that withstand all the market ups and downs.

If you want help assessing what you should do to get the most out of your real estate investment, I’m just a phone call away.

 

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

Posted on by 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.

Portland Quarterly Housing Market Report

Posted on by staff

Report Dates: January-March

Each quarter we pool our knowledge and experience to evaluate the latest real estate market data. We provide our thoughts here to give you an insider’s look at what’s going on in Portland.

The Portland real estate market has been going strong for several years now with home values consistently trending upward. Based on the quarterly market data, the latest data that we have pulled for 2017 so far, and our observation, this will continue to be the case for the near future.

March residential sales and new listings remain almost on par with 2016’s activity, which is to say that the Portland Metro saw 3600 homes come on the market in March, then watched just over 3000 of them go pending, and about 2500 sales closed. March 2017 showed the same scant 1.3 months of available inventory as a year ago, down from 1.9 months in February (a healthy market typically has 3-6 months of inventory!). In all, the number of closed sales increased by almost 50% over the previous month. This has continued to drive the strong “seller’s market” conditions, although homes that are too aggressively priced are now resisted somewhat as the inventory in April has increased and May threatens to do the same; buyers seem hopeful that more listings are coming and feel less pressured to settle and to overpay.

Nevertheless, the average sales price in March 2017 went up nearly $25K over February’s (!) and at $428,400 is $43,300 higher than it was a year ago. That’s more than 11% overall!

It seems worth noting that many of the west side communities (notably NW and SW Portland; and also Hillsboro/Forest Grove) are enjoying pending sales up 20-30% over the March/April 2016 period. Buyers appear to be expanding their geographical parameters to meet their budgets and still check the required boxes for features and amenities.

What’s in store for summer and beyond?

There are many factors to consider when trying to anticipate what will happen to the Portland real estate market as the year continues, especially when trying to predict whether or not there will be any major changes. Two factors to keep an eye on are interest rates and the economy.

Home loan rates did see an increase toward the end of 2016 but remain very low. If the rates rise significantly in 2017, it could affect buyer activity. The economy is always a big factor when it comes to housing. New state and federal policies and policy changes may promote uncertainty. Locally, there is some fear that our strong seller’s market may not be sustainable for much longer.

These and other factors could result in more people deciding that 2017 is the year to list their home(s) for sale. Look for the possibility of 2017 being the year that inventory begins to swing upward. Keep an eye on current inventory by visiting our featured listings page.

Oregon Tenant Protection Bill

Posted on by Meagan Stein

This seems to be a subject much talked about amongst real estate agents, property managers, landlords, tenants, and homeowners (i.e. everyone). Yet, if you Google “Oregon tenant protection bill” or “Portland tenant rights bill”, all you’ll get is a few cut and dry articles from the Oregonian and other local news blogs and not much else. Most of what you’ll see will be about other legislation that has already passed.

What are we afraid to talk about? I’m a Portland area real estate agent and I eat complicated, controversial topics for breakfast. Okay, no, I usually eat eggs for breakfast. Sometimes cereal. Occasionally a snack bar…

But that’s beside the point. Let’s boldly go where few have gone before.

The original version of this article can be found here.

Boldly blogging where no one has blogged before. Boldly blogging where no one has blogged before.

The housing shortage is driving legislation.

People are passionate about this subject because Portland is in a housing shortage. We need approximately 24,000 units to meet demand (read my blog about all the people moving here). Barring economic catastrophe, a housing shortage will always cause home values to rise and rents to increase. This places undo pressure on tenants and home buyers, while current homeowners get to watch their net worth rise and landlords have the opportunity to raise rents.

The only real solution to a housing shortage is to build more housing but of course we only have so much space available. But, hey, we’re Portlanders, and if we can find a weird way to help solve this problem, by golly, we’re gonna leap down that rabbit hole.

Multnomah County and Enhabit (no relation to Inhabit) are launching a pilot project called “A Place For You”. It aims to build ADUs (accessory dwelling units or “tiny homes”) in Portland resident’s backyards. These will be used to house homeless families rent-free for 5 years in exchange for a tax abatement to the property owner. After 5 years, the homeowner gets to keep the ADU to be used as they see fit. The pilot project is starting with just 4 units but over a 1,000 homeowners have expressed interest.

It almost sounds like an episode of Portlandia.

It It’s okay if you don’t know what this is. What am I saying? No, it’s not okay. It will never be okay. Things will never be the same again!

This is an interesting idea but creativity isn’t going to get us very far in the short term (and that doesn’t get politicians re-elected). The housing shortage is enough of a hot topic that politicians such as Ted Wheeler and Tina Kotek have thrown their weight toward repealing the statewide ban on rent control (although last year Ted Wheeler said he supported this for the state but not in Portland, where he would adopt other measures first, he seems to have now changed his position). In the election last year, Chloe Eudaly upset incumbent Commissioner Steve Novick despite having no political experience. Her grassroots campaign for the Portland City Council was focused entirely on tenants rights.

Now that we’re firmly into 2017 it means that politicians are putting their legislation where their mouth is.

In Portland, new rental ordinance is already in place.

Before we talk about the infamous House Bill 2004, let’s quickly take a look at the tenant protection ordinance that took effect back in February this year. This was an emergency ordinance brought forward by Chloe Eudaly and Ted Wheeler that was passed unanimously by the Portland City Council. It requires landlords to pay moving costs for tenants that are evicted without cause or for tenants that must move because rents have been increased by more than 10 percent in a 12 month period. The one exemption is for landlords that have only one rental unit. Moving costs paid by the landlord range from $2900 to $4500 depending on number of bedrooms.

Attorneys are already dueling in court over the legality of this ordinance but for now it stands.

Not that kind of duel. Although court cases might be more interesting this way.  Not that kind of duel. Although court cases might be more interesting this way.

This brings us to the Tenant Protection Bill (HB 2004) that was recently passed (31 in favor – 27 opposed) by the Oregon House of Representatives and has now moved along to the state Senate for review. There are a lot of nuances to this bill and several compromises were made to get it this far. Remember, this is NOT law yet.

Here’s a few salient points of the pending bill.

  1. After 6 months, no-cause eviction of tenants renting month-to-month are banned (before 6 months no-cause eviction of tenants renting month-to-month are allowed with 30 days written notice).
  2. After 6 months, evictions are allowed for month-to-month (30 days after the effective date of this legislation) and fixed term tenants (immediately after the effective date) with 90 days written notice for specified reasons, such as renovations, repairs, when the property is scheduled to be demolished, or for the sale of the property. Landlords must pay one months rent to cover relocation expenses in this case. (However, if the reason is repairs/renovations, the landlord must offer a new rental agreement back to the evicted tenant before other potential tenants.)
  3. After 6 months, evictions are allowed for month-to-month and fixed term tenants with 30 days written notice for cause. (Examples of cause: non-payment of rent, violation of drug or alcohol program, pet violation, substantial damage, etc. There are additional provisions that govern “cause” and timelines that a landlord should be fully aware of.)
  4. If the landlord terminates the tenancy in violation of the provisions, the landlord would be required to pay 3 months of rent to the tenant in addition to potential damages. This applies to both month-to-month (30 days after the effective date) and fixed tenancies (immediately after the effective date).
  5. Exceptions to the above exist for landlords that own four or fewer rental units or for landlords that live on the property and own two or fewer rental units.
  6. The bill also allows cities and counties to adopt their own rent control program which effectively abolishes the statewide ban on rent control.
  7. An exemption to rent control is provided for any new residential development for a period of 5 years from the date of issuance of the first certificate of occupancy.
  8. If a city or county passes a rent “stabilization” program, it must provide landlords with a fair rate of return and a process for the the landlord to petition for permission to increase rent in excess of the amount allowed in the program when needed to achieve a fair rate of return.

The rubics cube of government. Nuff said. The rubics cube of government. Nuff said.

A few of the compromises that allowed this bill to pass include the exemption for landlords that own 4 or fewer units, reducing mandatory relocation assistance down to one month (originally the bill called for three months even when the eviction is for an allowed reason), and the 5 year exemption for new residential developments.

What does this mean?

So, does this bill seem sensible? Why would anyone object to it? Why was it passed on such a slim margin and why is the battle for it in the senate expected to be difficult?

I think the biggest concern is with point 6 – 8. Rent control is only fiercely debated when you don’t talk to economists. Meaning, economists largely have a consensus of opinion that rent control results in a reduced supply of property to the market (which of course drives rents and home prices even higher).

Wait a second, reduces the supply? Didn’t I just say earlier that this problem is a result of a housing shortage?

Based on historical data, most economists viewpoints, and studies that have been conducted on rent control, enacting rent control (or “stabilization”) causes housing shortages to become worse than if no controlling measures were put into place. I don’t like it when legislatures pass bills with provisions that aren’t supported by the data. (Read this article and this one and this one to gain some perspective on what economists think about rent control)

I don’t think the 5 year exemption for new construction or vague “fair rate of return” language is enough to curb the negative side effects of rent control but politicians only have so many tools in their belt when in comes to housing. Those tools tend to be very blunt instruments. Even though a screwdriver might be needed, we’re instead getting a hammer. Or maybe a mallet. Or maybe even a sledgehammer. Except I don’t think Peter Gabriel is the solution here.

This analogy is too good for a caption. This analogy is too good for a caption.

The merits of points 1 through 5 above really come down to your point of view. I won’t delve into those here other than to say that I see both the positive and negative ramifications to being this restrictive about evictions but I’m open minded about the ideas.

HB 2004 hasn’t passed the senate yet (it was just referred to the Human Services committee). I’ll be following along to see if it passes and is signed by the governor, or if it dies, or if it becomes reborn as something more palatable. This is an interesting time for anyone that is a landlord or tenant!

Do you own a rental property? If so, what are your plans? If this bill passes, much of the legislation will go into effect either immediately or within 30 days. I’m a Portland area realtor and can assist you in deciding what course of action makes sense for your investment. Contact me if you have questions.

– Brandi Whitaker

Online Real Estate Scams

Posted on by Meagan Stein

Hold onto your money, folks, and verify, verify, verify.

Online scams nowadays often have more to do with social engineering than serious hacking. But protecting your data is very important, too. Online scams nowadays often have more to do with social engineering than serious hacking. But protecting your data is very important, too.

So this is a super exciting topic, right? I’ve attended enough classes on information security to know how quickly people tune out (about 47.8 seconds). We’re all vulnerable, though, so let’s keep on top of this crazy world.

THE WIRE FRAUD SCAM

How it works
This one has been around for a couple of years and there are several different variations. However, the end result to a client during a real estate transaction is virtually the same. You receive an email from what looks to be your title company or realtor (it may have come from a hacked email address or be a “spoofed” email address). It includes wire instructions related to the house that you are purchasing. You go ahead and wire the amount to the account details shown because why wouldn’t you? Unfortunately, that account you just sent your money to was actually an account that the scammer had access to.

Don Don’t let go of your control! (haha, see what I did there)

Scammer = $, You = 🙁

How to avoid the scam
Always, and I mean always, verify wire instructions via a phone call to someone you trust (the title company if you are familiar with the agent, your realtor, or your loan officer). Don’t use any contact information contained in the email with the wire instructions.

Fictitious Property Scam

This one mostly impacts people that live out of state looking to purchase or rent a property but there are local variations, too. It is especially prevalent in hot markets. I could see this really starting to impact Portland. Take a look at my blog about all the people moving here.

How it works
Scam artists copy photos of previously listed homes and create a fake property profile. They post to websites that allow for basic, unverified user accounts such as FSBO (for sale by owner) websites. Prospective buyers/renters call the information listed and, depending on the variation of the scam, may go so far as to make an offer to purchase/rent the home.

In the case of properties for sale, the interested buyer moves forward in wiring funds or mailing a cashier’s check for earnest money (an amount often sent with an offer to purchase to prove how “earnest” the buyer is in their desire to buy the home). After funds are sent, the online property profile vanishes. In the case of rentals, the scam artist asks for an upfront “application fee” which promptly disappears along with the online listing. This scam can also happen on popular websites like Zillow, Trulia, or Craigslist. These sites aggressively crack down on scam accounts but there will always be some that slip through.

For sale online in southeast Portland for 0,000. Just take my money, already. For sale online in southeast Portland for $450,000. Just take my money, already.

How to avoid the scam
For home buyers, always work with a buyers agent. Attempting to buy a home without representation, especially when you live out of state, can lead to a whole host of problems (we’ll save that for a future blog). Of course, I’m completely biased in this opinion because I’m a realtor but when it comes to the buyer side of things, there’s very little to lose by having someone represent you.

Other things you can do if you’re a renter or you just don’t want to hang out with your friendly neighborhood realtor:

  1. Check the tax records. Most places have some type of online public access to check this (locally that would be PortlandMaps) but if not, lookup the local Tax Assessor’s office and give them a call. If the name on the tax record doesn’t match the property profile, slowly back away before turning around and running. Figuratively speaking, of course. Don’t, like, leave your computer behind in a public place.
  2. Ask for the property address then look it up on your favorite maps program then check the street view. Does it match the picture? No? Methinks I smell a rat.
  3. Contact a local realtor and ask them about it. I am sure that any who respond will be happy to help you find information about the house even though they don’t represent you. Who knows why. I guess realtors are just super friendly that way. Then, if they seem like smart people that you could hang wallpaper with for an hour or two, maybe consider interviewing them…?
  4. Check for odd grammatical and spelling errors along with weird turns of phrase. Evildoers are getting better at this but are rarely perfect. Also, if the listing details clearly don’t match what the pictures of the place look like or the price is entirely too good to be true, it is very likely a scam.

You knew this post had to include a picture of the ubiquitous hoodie-wearing hacker, right? You knew this post had to include a picture of the ubiquitous hoodie-wearing hacker, right?

So there you are. These scams will now be successfully avoided by everyone I know. But, I feel like there’s more to say about protecting yourself online that goes beyond real estate. Since this post has been relatively short for me, why not keep going? Just a disclaimer: no matter what you do, there is never a way to be completely protected.

Having made that cheery statement, here’s just a few pieces of advice for greatly reducing your online vulnerability that I find myself frequently dispensing and are just as frequently ignored:

  1. Keep ALL of your devices up to date which means update everything as soon as a new release comes out. That means Apple users, too (the days of thinking that Apple products aren’t vulnerable are over). No, do not wait a week or two to see if you like the feel of the update. Vulnerability patches are entirely too important to wait.
  2. Use a random password generator for everything. Store them in a password keeper (check out LastPass and Dashlane). Make sure that the password you use to access the password keeper is really good (like a passphrase). Yes, there are some downsides to using a password keeper and there’s always debate about the safety of keeping all your passwords in one place. However, the alternative most people use is having one, maybe two, passwords for EVERYTHING. To me this is a lot riskier than relying on a very successful company to maintain sophisticated software that protects your data.
  3. If you do not want to use a password keeper then make sure not to use the same password for everything. Please use a different password for all of your financial accounts. At least in this manner, if one of your non-financial passwords gets cracked, they can’t use it to drain your accounts. Make your financial passwords as difficult as possible (which means more complex than a word followed by a digit or two.) If you find yourself copying your passwords onto Notepad or Word then it’s time for a password keeper.
  4. Do not click links in emails unless they are from a trusted source, no matter how interesting they look. Also, be careful of “attachments”. A recent scam involves taking a screen capture of a PDF or other attached document and inserting it into the email. This way it looks like a legitimate document to download but is actually a link to a site that will install malware on your computer.

– Brandi Whitaker

Portland Zoning Changes

Posted on by Meagan Stein

WHAT YOU NEED TO KNOW (AND PROBABLY A BIT MORE)

The joy of understanding zoning. The joy of understanding zoning.

Depending on whether or not you’ve received snail mail concerning zoning changes, and depending on whether or not you read the fine print, your Portland home may undergo a change of zoning next year. This leads to a lot of questions and one very important piece of advice:

  1. Why is the zoning changing?
  2. When does the new zoning take effect and who does it impact?
  3. Where can I go for more information?
  4. Can I stop the change or change my current zoning?
  5. How does zoning work?
  6. What does this mean for home buyers and sellers?
  7. Most Important Advice Ever

1. Why is the zoning changing?
For the past ~8 years the Bureau of Planning and Sustainability (BPS) has been working on a new Comprehensive Plan for the City of Portland. This is a long range (20 year) planning tool that sets the framework for physical development in the city. Most of the legislative work is done but there are always additional projects in the works that you can comment on and provide testimony for (such as Central City 2035).

2. When does the new zoning take effect and who does it impact?
Approximately 24,000 homes will be affected by the zoning changes (including yours truly!). These changes are going to be effective on January 1st, 2018. However, there is the possibility that it could go into effect later than this date depending on the state acknowledgement process.

3. Where can I go for more information?
To find out whether or not any particular home will undergo a zoning change, you can visit this website. To find out what your current zoning is, visit this website and enter your address. Feel free to contact me for help and any questions you might have.

4. Can I stop the change or change my current zoning?
There’s no way that I know of to stop the zoning change if you are part of this particular update because it was adopted by the City Council in December of 2016. However, zoning changes all the time and there are a lot of factors to consider if you think your property should be zoned differently.

While your current zoning may not allow for the development that you want, your property may be part of future zoning changes (comp plan). If so, you may be able to go through a quasi-judicial process to apply for a zoning change which will have a good chance of success. Otherwise, you can apply for a change of zoning but there is absolutely no guarantee of success. Either of these processes carries a high cost and should be carefully considered. Input from professionals is crucial.

5. How does zoning work? (high level overview)
Your base zone may be something like R2.5 or R5. R means residential and the number corresponds to the number of units that can exist per thousand square feet (2.5 = 1 unit per 2500 square feet). Except when it doesn’t… don’t ask. It can be more complicated than this based on other rules, such as location (for instance a corner lot may allow for more density) and overlay zones (such as design overlay zones that require certain design elements). Specific overlay zones, plan districts, and other regulations will all impact the development potential for your property.

Zoning is (unnecessarily?) complicated so don’t expect to understand everything just from knowing what the code is for your zone. You can consult your realtor for help to better understand your situation.

This is a zone map of a little piece of Portland. You definitely do not need to understand what all this means. This is a zone map of a little piece of Portland. You definitely do not need to understand what all this means.

6. What does this mean for home buyers and sellers?
For buyers and sellers, zone changes can certainly impact the highest and best use for your property. A change from R1 to R5, R10 to R20, etc. may mean that a property no longer has the development potential it once had. Or the property may be changing to allow for higher density development. For a seller, knowing and understanding the current and planned zoning is crucial.

For buyers, understanding the zoning of both the home that you are interested in, as well as all the neighbors, can make a huge difference in whether or not it makes sense to buy the property. For instance, the home you are wanting to buy might be zoned for lower density residential but the corner lot next to it may be zoned for higher density development. Even if that corner lot only has a single level house on it now, it could be developed into a 3-story complex in the future!

Most Important Advice Ever (well, maybe not ever but it’s still good advice)
There’s a lot more to selling and buying homes than listing on the MLS or placing an offer. Find a real estate agent with the knowledge, smarts, and time that will do the work for you to maximize your dollars! (Along those lines, feel free to contact me anytime.)

– Brandi Whitaker

PORTLAND QUARTERLY HOUSING MARKET REPORT

Posted on by staff

Each quarter we pool our knowledge and experience to evaluate the latest real estate market data. We provide our thoughts here to give you an insider’s look at what’s going on in Portland.

The Portland real estate market has been going strong for several years now with home values consistently trending upward. Based on the quarterly market data, the latest data that we have pulled for 2017 so far, and our observation, this will continue to be the case for the near future.

You can see on the “Inventory in Months” chart below that inventory in the Portland area remains low (3-6 months of inventory is considered normal). This, combined with the higher than usual buyer activity so far this year, has put added pressure on the Portland market heading into spring. Because of the low inventory, sellers that list their homes prior to ~ May 1st are the most likely to experience the shortest number of days on the market in 2017.

There has been a consistent trend the past 3 years that you can see on the “Active Residential Listings” graph below. Historically, January and February have some of the lowest inventory available but a decent increase is expected in spring and summer. This same pattern will likely occur in 2017.

The current data is for the quarterly period ending December 31st, 2016.

The current data is for the quarterly period ending December 31st, 2016.

What’s in store for 2017 and beyond?

There are many factors to consider when trying to anticipate what will happen to the Portland real estate market in 2017 and beyond, especially when trying to predict whether or not there will be any major changes. Two factors to keep an eye on are interest rates and the economy.

Home loan rates did see an increase toward the end of 2016 but remain very low. If the rates rise significantly in 2017, it could affect buyer activity. The economy is always a big factor when it comes to housing. New state and federal policies and policy changes may promote uncertainty. Locally, there is some fear that our strong seller’s market may not be sustainable for much longer.

These and other factors could result in more people deciding that 2017 is the year to list their home(s) for sale. Look for the possibility of 2017 being the year that inventory begins to swing upward. Keep an eye on current inventory by visiting our featured listings page.