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Buyers in the Portland Market Are Looking Now. Are You Ready to List Your Home?

Inventory on the market today is low, especially among existing homes in the entry and middle-level tiers of the market. It is hovering well below the 6-month supply typically found in a more normal market, as shown in the graph below:With inventory being one of the biggest housing market challenges today, finding a starter home right now isn’t easy. According to the Q3 Housing Trends Report from the National Association of Homebuilders (NAHB), 68% of those searching for a home think their search will get harder or stay about the same over the next 12 months.

The same study reveals,

“In Qtr3’19, buyers actively engaged in the process of buying a home are more likely to have spent at least 3 months searching (58%) than a year earlier (55%).”

 This is certainly no surprise, given the current inventory status. So, what’s the good news? The NAHB continues to say,

“If still unable to find a home in the next few months, the next step for most long-time searchers is to continue looking for the ‘right’ home in the same preferred location (52%). The next step for 35% is to expand their search area and for 16% is to accept a smaller/older home. Only 15% will give up looking.”

What does this mean for homeowners?

 If you’re thinking of selling your home, buyer demand is high – and those looking in your neighborhood aren’t planning on giving up anytime soon. The majority of potential buyers who are still searching for their dream home are eager, willing, and ready to buy, so maybe it’s time to list your house and make your move.

Bottom Line

With buyer demand as high as it is today, and inventory in the entry and middle-tier markets remaining low, it’s never been a better time to move up. Let’s get together to determine if now is your time to sell.

October 2019 Real Estate Market Statistics

(For the past few years, I've used my photographs for the headline photos on the monthly market updates, using local area scenes in 2017 and roof tops of homes sold in 2018.  This year I'm featuring public art that can be found in our local communities.)

The following is the latest Real Estate Market Statistics for October 2019.
Click here for the full report

• Sales:   2,588 in October 2019 vs 2,440 last October:  6.1 %

• Pending Sales:   2,575 in October 2019 vs 2,484 last October:  3.7%

• New Listings:   3,064 in October 2019 vs 3,100 last October:  -1.2%

• Average Sales Price:   $459,000 in October 2019 vs $453,600 last October:  1.2%

• Total Market Time: 54 days in October 2019 vs 53 days last October:  2.1%

• Inventory in Months: 2.4 months in October 2019 vs 2.7 months last October

Inventory by Area:

• NW Washington County   2.31 months
• Beaverton/Aloha               1.72months
• Hillsboro/Forest Grove     2.24 months

The #1 Reason to List Your House in the Winter

Many sellers believe spring is the best time to put their homes on the market because buyer demand traditionally increases at that time of year. What they don’t realize is if every homeowner believes the same thing, then that’s when they’ll have the most competition.

So, what’s the #1 reason to list your house in the winter? Less competition.

Housing supply traditionally shrinks at this time of year, so the choices buyers have will be limited. The chart below was created using the months supply of listings from the National Association of Realtors.As you can see, the ‘sweet spot’ to list your house for the most exposure naturally occurs in the late fall and winter months (November – January). 

Temperatures aren’t the only thing that heats up in the spring – so do listings!In 2018, listings increased from December to May. Don’t wait for these listings and the competition that comes with them to come to the market before you decide to list your house.

Added Bonus: Serious Buyers Are Out in the Winter

At this time of year, purchasers who are serious about buying a home will be in the marketplace. You and your family will not be bothered and inconvenienced by mere ‘lookers.’ The lookers are at the mall or online doing their holiday shopping.

 Bottom Line

If you’ve been debating whether or not to sell your house and are curious about market conditions in your area, let’s get together to determine the best time to list your house.

How Comps Affect Your Home's Value

The comparable houses (comps) in your area can have a significant impact on your home’s value. Whenever someone sells a home in your area, the listing agent pulls a list of comps and puts them into a document known as a CMA (Comparative Market Analysis) for the seller. A CMA is a list of homes sold in the area over the past 3-6 months. It is used to figure out the current value of your home based on comparable homes. A home may be considered similar based on size, number of beds and baths, quality, location, condition, etc.

When home prices are on the rise or investors renovate other homes in your area, increasing that home’s value, your home’s value will likely rise as a result. However, if the market is in decline, sellers do short sells, or banks start foreclosing in your area, it can have a negative impact on your home’s value.

If you’re interested in finding out how the comps in your area are impacting your home’s value, I can help! Not all the houses in your area are the same and it takes a trained real estate agent like myself to find properties that are a reliable representation of homes like yours. Once I’ve done that, I can create a CMA showing you how much your home could be worth. You may be surprised at how much homes like yours are selling for!

November 2019 Homework Series

If you need help finding professionals who can assist you with this checklist, I can provide you with a list of preferred contractors and vendors!  Just give me a call at 503-956-3505.