Portland Metro Real Estate BlogRecently posted or modified blog posts in the category - Real Estate Newshttps://www.ashleysellsportland.com/blog/Copyright AshleySellsPortland.com2024-03-06T11:31:59-07:00tag:ashleysellsportland.com,2012-09-20:11046February 2024 Market Update for Portland MetroThe Portland metro real estate market continues to display intriguing dynamics as we delve into the latest statistics for February 2024. With data reflecting new listings, pending sales, closed sales, inventory levels, and sale prices, we gain valuable insights into the current state of affairs in this vibrant real estate landscape.
New Listings
In February 2024, the Portland metro area witnessed a significant surge in new listings, totaling 2,085. This figure marks an impressive 18.2% increase from the 1,764 listings recorded in February 2023. Additionally, there was a notable 7.4% uptick from the 1,941 listings in January 2024. This influx of new listings indicates a robust level of activity within the market, providing prospective buyers with an expanded array of options to consider.
Pending Sales
Pending sales also experienced positive momentum during February 2024. With 1,742 offers accepted, there was a modest 2.3% increase from the 1,703 offers accepted in February 2023. Moreover, there was a substantial 16.8% surge from the 1,492 offers accepted in January 2024. This upward trend in pending sales suggests a healthy level of buyer interest and engagement within the market, foreshadowing potential growth in closed transactions in the coming months.
Closed Sales
While closed sales demonstrated resilience, the numbers showed a slight decline in February 2024. With 1,284 closings, there was a 10.5% decrease from the 1,434 closings recorded in February 2023. However, this figure also represents a notable 14.6% increase from the 1,120 closings in January 2024. Despite the dip in closed sales compared to the previous year, the market remains active, with fluctuations likely influenced by various factors such as seasonal trends and economic conditions.
Inventory and Time on Market
Inventory levels continued to tighten in February 2024, with a decrease to 2.8 months. This suggests a competitive market environment, characterized by limited supply relative to demand. Additionally, the total market time increased to 89 days, reflecting a balanced pace of transactions as buyers and sellers navigate the market conditions.
Year-to-Date Summary
A comprehensive overview comparing the first two months of 2024 to the same period in 2023 reveals intriguing trends. New listings surged by 8.5%, reaching 4,042, showcasing sustained market activity and growth. However, pending sales experienced a slight dip, decreasing by 6.9% to 3,161, signaling potential fluctuations in buyer demand. Similarly, closed sales saw a marginal decline, dropping by 4.1% to 2,433, highlighting the nuances of market dynamics over time.
Average and Median Sale Prices
In terms of sale prices, the Portland metro area witnessed positive trends through February 2024. The average sale price increased by 3.2%, rising from $553,300 in 2023 to $571,100 in 2024. Similarly, the median sale price saw a 3.8% increase, climbing from $500,000 to $519,000. These upward movements in sale prices reflect the enduring appeal and value of real estate within the Portland metro area, making it an attractive destination for buyers and investors alike.
In conclusion, the Portland metro real estate market remains dynamic and resilient, characterized by a healthy influx of new listings, positive trends in pending sales, and steady growth in sale prices. While fluctuations in closed sales and inventory levels underscore the ever-evolving nature of the market, the overall outlook remains optimistic. As we navigate the months ahead, continued monitoring of market indicators will be essential for stakeholders to make informed decisions and seize opportunities in this thriving real estate landscape.
Curious about buying or selling? Reach out!2024-03-06T11:15:57-07:002024-03-06T11:31:59-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:10872Investing In Real Estate - A Beginner's Guide<img src="https://assets.site-static.com/userfiles/2258/image/spacer.gif" width="1" height="1" /><br />
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In the dynamic world of investing, few opportunities match the potential and stability offered by real estate. Whether you're a seasoned investor or just dipping your toes into the market, understanding the fundamentals of real estate investing is crucial for success. In this beginner's guide, we'll unlock the secrets of real estate investing, empowering you to navigate the market with confidence and insight.
Why Invest in Real Estate?
Real estate investing offers a multitude of benefits that make it an attractive option for investors of all backgrounds. Unlike stocks or bonds, real estate provides tangible assets with intrinsic value. Properties can generate passive income through rental payments, while also appreciating in value over time. Additionally, real estate investments offer diversification, serving as a hedge against inflation and economic uncertainty.
Getting Started: Define Your Investment Goals
Before diving into the market, it's essential to clarify your investment objectives. Are you seeking long-term appreciation, or do you prefer steady cash flow through rental income? Understanding your goals will inform your investment strategy and guide your decision-making process.
Educate Yourself: Learn the Basics
Like any investment endeavor, knowledge is power in real estate investing. Take the time to educate yourself on the fundamental principles of the market, including property valuation, financing options, and risk management strategies. Consider enrolling in real estate courses, attending seminars, or networking with experienced investors to expand your understanding and expertise.
Identify Your Niche: Explore Different Investment Strategies
Real estate investing encompasses a diverse range of strategies, from residential rentals to commercial properties, fix-and-flip projects, and real estate investment trusts (REITs). Explore different niches within the market to find the strategy that aligns with your goals, risk tolerance, and resources. Conduct thorough research and due diligence before committing to any investment opportunity.
Build Your Network: Surround Yourself with Experts
Building a strong network of industry professionals is essential for success in real estate investing. Connect with real estate agents, property managers, lenders, contractors, and other investors who can offer valuable insights, advice, and opportunities. Collaborating with experts can help you navigate challenges, identify lucrative deals, and maximize your returns.
Secure Financing: Explore Your Funding Options
Financing plays a crucial role in real estate investing, especially for those just starting. Explore different funding options, including traditional mortgages, private lenders, crowdfunding platforms, and partnerships. Evaluate the pros and cons of each approach to determine the best fit for your investment strategy and financial situation.
Take Action: Start Investing Wisely
With a solid understanding of the market and a clear investment strategy in place, it's time to take action and start investing wisely. Begin by conducting thorough market research to identify promising opportunities that align with your goals and criteria. Perform due diligence on potential properties, analyzing their financial performance, market trends, and potential risks.
Monitor and Adapt: Stay Agile in a Dynamic Market
Real estate investing is not a passive endeavor; it requires ongoing monitoring, evaluation, and adaptation to succeed in a dynamic market. Stay informed about market trends, economic indicators, and regulatory changes that may impact your investments. Continuously assess your portfolio's performance and be prepared to adjust your strategy as needed to optimize returns and mitigate risks.
Conclusion: Embark on Your Real Estate Investment Journey
Real estate investing offers unparalleled opportunities for wealth creation, financial freedom, and long-term prosperity. By understanding the fundamentals, defining your goals, and adopting a strategic approach, you can embark on your real estate investment journey with confidence and conviction. Remember to stay informed, stay disciplined, and stay focused on your long-term objectives as you navigate the exciting world of real estate investing.2024-02-20T11:48:52-07:002024-02-20T11:59:51-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:10747January 2024 Market Update for Portland Metro<img src="https://assets.site-static.com/userfiles/2258/image/dream_kitchen_2.jpg" width="525" height="640" />
The Portland Metro Real Estate Market: A Snapshot
If you're keeping tabs on the pulse of the Portland metro real estate scene, here's the lowdown on what's been brewing in January 2024:
Residential Highlights
New Listings: The market saw a modest increase of 0.2% in new listings compared to January 2023, but the real jaw-dropper? An astounding 89.2% surge from December 2023, with 1,941 properties hitting the market.
Pending Sales: While pending sales took a 15.8% hit from January 2023, there's a silver lining as they rose by 14.0% from December 2023, reaching 1,492 offers accepted.
Closed Sales: Good news! Closed sales saw a 2.9% uptick from January 2023, though there was a 15.8% drop compared to December 2023.
Inventory and Time on Market
Inventory: The inventory bumped up to 3.2 months in January, indicating a slight shift in market dynamics.
Time on Market: Total market time also extended to 68 days, giving buyers and sellers a bit more breathing room.
Year-to-Date Summary
Comparison: When we compare the first month of 2024 to the same period in 2023, we notice a marginal increase of 0.2% in new listings, a 15.8% dip in pending sales, and a 2.9% rise in closed sales.
Average and Median Sale Prices
Price Trends: Looking at the numbers, the average sale price enjoyed a healthy 5.9% boost, climbing from $532,900 in January 2023 to $564,600 in January 2024. Meanwhile, the median sale price also saw a steady increase of 3.2%, rising from $489,500 to $505,000 during the same period.
In essence, while there have been some fluctuations, the Portland metro real estate market continues to show resilience and promise for both buyers and sellers alike. Keep your eyes peeled for further updates as we navigate through the year!2024-02-07T10:38:10-07:002024-02-07T10:56:13-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:10576December 2023 Market Update for Portland Metro <img src="https://assets.site-static.com/userfiles/2258/image/sparkler_pic.jpg" width="4136" height="3436" style="text-align: center;" />
Portland Metro Real Estate Market: A Year in Review and What to Expect
The Portland metro real estate market has been a topic of discussion for many homeowners, prospective buyers, and industry professionals alike. As we step into the new year, it's essential to reflect on the past year's trends and understand what they might mean for 2024. Let's delve into the statistics that shaped 2023 and explore the implications for the months ahead.
New Listings: A Decrease in Supply
Starting with new listings, December 2023 witnessed a 4.4% decline compared to December 2022, with 1,026 properties newly listed. However, the most significant drop is evident when we look at November 2023's numbers, marking a substantial 43.9% decrease. This decrease suggests that sellers may have been more hesitant or encountered various challenges in listing their properties towards the end of the year.
Pending and Closed Sales: Mixed Signals
While new listings saw a decline, the market saw an 8.5% increase in pending sales in December 2023 compared to the same month in 2022, amounting to 1,309 offers accepted. Despite this increase, it's essential to note that pending sales dropped by 9.2% from November 2023, where 1,441 offers were accepted.
Similarly, closed sales in December 2023 decreased by 9.2% from December 2022, with 1,330 closings. Although this might indicate a slight slowdown, it's only a 1.0% decrease from November 2023, where 1,344 closings were recorded.
Inventory and Time on Market: A Tightening Grip
One of the most critical indicators for the health of a real estate market is its inventory levels. In December 2023, the inventory tightened further, dropping to 2.7 months. This decrease suggests a seller's market, where demand continues to outpace supply. Additionally, the total market time increased to 60 days, indicating properties staying slightly longer on the market before getting sold.
Year-to-Date Summary: A Comparative Analysis
Taking a broader view, comparing the entirety of 2023 to 2022 reveals some noticeable trends. New listings for the year 2023 decreased by 18.0%, while pending sales dropped by 20.4%. Closed sales saw a decline of 25.2%. These figures collectively suggest a more reserved market in 2023, possibly influenced by a combination of economic factors, pandemic-related shifts, and buyer behavior changes.
Average and Median Sale Prices: A Shift in Dynamics
Shifting our attention to price dynamics, the average sale price in 2023 experienced a slight downturn, decreasing by 2.1% from $610,900 in 2022 to $598,000. While this may indicate a more balanced market with potentially reduced buyer competition, it's crucial to consider other factors like inventory levels and demand-supply dynamics. The median sale price comparison between 2023 and 2022 remains pending, and further analysis would be beneficial to gauge the market's true temperature.
Looking Ahead: Predictions for 2024
As we navigate the complexities of the Portland metro real estate market, several factors may influence its trajectory in 2024. With inventory levels remaining low and demand showing resilience, sellers may continue to benefit from a market that leans in their favor, albeit with realistic pricing strategies. Buyers, on the other hand, may find opportunities in a slightly less competitive landscape but should act judiciously given the market's uncertainties.
Moreover, external factors such as interest rate fluctuations, economic indicators, and broader geopolitical events could play pivotal roles in shaping buyer sentiment and market dynamics. As always, consulting with real estate professionals, staying informed about local market trends, and maintaining flexibility will be crucial for both buyers and sellers in making informed decisions.
Conclusion
In conclusion, the Portland metro real estate market experienced a year of mixed trends in 2023, characterized by a decrease in new listings, fluctuating pending and closed sales, tightening inventory levels, and moderate price adjustments. As we embark on 2024, staying attuned to evolving market dynamics, leveraging expert insights, and adopting a strategic approach will be essential for navigating this dynamic landscape successfully.
Whether you're a homeowner, buyer, or industry professional, understanding these trends and preparing for potential shifts will be instrumental in achieving your real estate goals in the Portland metro area. Here's to a year of opportunity, resilience, and informed decision-making in 2024!2024-01-10T12:46:52-07:002024-01-10T13:06:53-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:10300October Market Update for Portland Metro<img src="https://assets.site-static.com/userfiles/2258/image/newsletter_cover.png" width="665" height="532" />
If you've been keeping an eye on the Portland metro real estate scene, you might have noticed a shift in the market dynamics. Here is a break down of the latest statistics to understand what's been happening.
New Listings Take a Dip: New listings saw a noticeable decrease of 12.2%, down to 2,207 from October 2022. September 2023 experienced an even steeper decline, with an 18.7% drop from the previous month, totaling 2,713 new listings.
Pending Sales and Closed Sales Show Similar Patterns: Pending sales reflected a downward trend as well, falling 11.4% from October 2022 and 10.2% from September 2023. Closed sales followed suit, experiencing a 14.6% drop from October 2022 and a 2.7% decline from September 2023.
Inventory and Time on Market: October's inventory maintained stability at 2.9 months, but the total market time increased to 45 days, indicating a slightly slower pace.
Year-to-Date Summary: Comparing the first ten months of 2023 to 2022, the real estate landscape has witnessed a substantial slowdown. New listings decreased by 19.9%, pending sales dropped by 22.5%, and closed sales decreased by 26.8%.
Average and Median Sale Prices Experience a Dip: In terms of pricing, the average sale price saw a modest decrease of 2.6%, dropping from $615,000 to $599,100 when comparing 2023 to 2022 through October. Similarly, the median sale price experienced a 2.9% decrease, going from $550,000 to $534,100.
These statistics suggest a nuanced picture of the Portland metro real estate market. While there's a decline in new listings and sales, the stability in inventory might provide some reassurance. The slight dip in sale prices could offer opportunities for buyers, making this a market to watch for those looking to make a move. As always, it's crucial to keep a close eye on these trends to make informed decisions in the ever-evolving real estate landscape.
Interest Rates Flucuate: Interest rates flucuated between 7.6% and 8% for a fixed 30 year conventional loan. Lenders that offer programs for a 'free refinance' within 5 years have gained popularity recently. We are still seeing buyers negotiate credits for rate buy-downs to help with the higher interest rates. Reach out with any questions!
Ashley2023-11-15T10:23:16-07:002023-11-15T10:31:36-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:9939August Market Update For Portland Metro<img src="https://assets.site-static.com/userfiles/2258/image/Blog_article_pic.png" width="525" height="350" />
Exploring the Portland Metro Real Estate Market - August 2023
Welcome to our latest update on the Portland Metro real estate market. In this report, we'll dive into the numbers and trends from August 2023 to provide you with insights into the state of the market. Whether you're a prospective buyer or seller, understanding these statistics can help you make informed decisions in this dynamic environment.
Residential Trends
Sale Price Trends
Let's start by examining the sale prices in the Portland Metro area. Over the last year, we've observed a slight dip in prices. The average sale price decreased by 1.2%, settling at $595,800 compared to $603,200 in the previous year. Similarly, the median sale price also saw a decrease of 0.9%, with the new median price at $532,900, down from $537,800.
However, it's not all doom and gloom. When we look at the monthly trends in 2023, we see some positive signs. From January to August, both the average and median sale prices have been steadily climbing. In August 2023, the average sale price increased by 2.2% compared to the same month in 2022, and the median sale price increased by 2.4%. This suggests that while there have been fluctuations over the past year, there are signs of recovery.
Inventory in Months
Another crucial aspect of the Portland Metro real estate market is the available inventory of homes. In August 2023, we saw a slight increase in inventory, with the average sale price dropping by 2.0% and the median sale price decreasing by 2.5%. The total market time increased by 0.4%, indicating that homes are staying on the market slightly longer than in the previous month.
However, when we compare August 2023 to the same month in 2022, we see a more significant change. Inventory decreased to 2.2 months in August 2023, down from the previous year's 2.4 months. This suggests that, despite the recent slowdown in new listings, the market remains competitive compared to 2022.
Residential Highlights
New Listings
New listings in August 2023 decreased by 8.9% compared to August 2022 but increased by 0.8% compared to July 2023. This mixed picture indicates that sellers may have been somewhat cautious about listing their properties in August, possibly due to market uncertainty.
Pending Sales
Pending sales experienced a significant drop in August 2023, with an 18.9% decrease compared to the same month in 2022 and a 4.3% decrease compared to July 2023. This decline in pending sales may be reflective of buyer caution, potentially influenced by changes in interest rates.
Closed Sales
Despite the decline in new listings and pending sales, closed sales in August 2023 increased by 12.7% compared to July 2023. This suggests that there is still demand in the market, and buyers are actively closing deals.
Inventory and Time on Market
As mentioned earlier, the inventory of available homes decreased slightly in August 2023 compared to July. However, the total market time increased by 0.4%, indicating that homes are taking a bit longer to sell. The total market time now stands at 37 days.
Year-to-Date Summary
When we look at the year-to-date summary, we gain a broader perspective on the Portland Metro real estate market's performance in 2023. New listings for the first eight months of the year decreased by 21.4% compared to the same period in 2022. Pending sales dropped by 24.2%, and closed sales decreased by 28.5%. These numbers suggest that the market has faced challenges throughout the year, including a reduced supply of homes and potential changes in buyer sentiment.
Average and Median Sale Prices
In the year-to-date comparison between 2023 and 2022, both the average and median sale prices have seen a decrease. The average sale price dropped by 3.0%, from $619,200 to $600,500. The median sale price also experienced a decline.
Conclusion
In conclusion, the Portland Metro real estate market in August 2023 displays a delicate balance between supply and demand. While there are signs of recovery in sale prices, the year-to-date data shows a market that has faced challenges due to a lack of inventory and shifting buyer sentiment. Sellers may need to adjust their expectations, while buyers might find opportunities in a market that has seen some price corrections.
As we progress through the year, it will be essential to keep an eye on economic conditions, interest rates, and housing inventory to gain a clearer picture of where the Portland Metro real estate market is heading. Real estate remains a dynamic sector, and these statistics offer a snapshot of its current state, which can guide your decisions in this ever-evolving market.2023-09-06T15:21:44-07:002023-09-13T13:15:52-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:9723July Market Update For Portland Metro<img src="https://assets.site-static.com/userfiles/2258/image/Sunset_pic_for_blog.png" width="525" height="350" />
Hey folks! Let's take a deep dive into what's happening in the Portland metro real estate market. The numbers are in, and they've got some interesting stories to tell. Let's get started!
New listings in June 2023 dropped by a whopping 23.2% compared to the same month last year. We're talking about 3,298 new properties hitting the market, which is a considerable decrease from last year's 4,295 listings. However, it's not all doom and gloom because compared to May 2023, we did see a little uptick of 1.8% in new listings.
Now, let's talk about pending sales. In June 2023, we saw 2,272 pending sales, which is 11.4% lower than what we had last year in June. And compared to May 2023, we're down by 4.5% in pending sales with 2,379 offers accepted.
Closed sales had their roller-coaster ride too! In June 2023, we had 2,085 closed sales, and that's 27.9% less than what we saw in June 2022. However, the good news is that compared to May 2023, we saw a 3.8% increase in closed sales with 2,008 homes changing hands.
Now, inventory – it's the number of homes available for sale. In June 2023, we saw a slight increase, taking the inventory to 2.0 months. This means if no new listings come up, it would take about two months to sell all the homes currently on the market. Not bad, right?
Time on market is pretty important too. In June 2023, the total market time decreased to 33 days. That's good news for sellers – homes are selling faster!
Let's zoom out and look at the bigger picture. When we compare the first six months of 2023 to the same period in 2022, we see some interesting trends. New listings are down by 23.3%, pending sales are down by 26.4%, and closed sales are down by a substantial 32.7%. That's quite a slowdown compared to last year.
Now, let's talk dollars. When we compare the sale prices from 2023 to 2022 through June, we see a dip. The average sale price went down by 3.7%, from $618,500 to $595,700. The median sale price didn't escape the decline either, dropping by 3.6% from $550,000 to $530,000.
So, what does all this mean for you? Well, if you're in the market to buy, there might be some good opportunities with more affordable prices compared to last year. But don't wait too long, homes are still selling fast, and inventory isn't overflowing.
On the flip side, if you're thinking of selling, keep in mind that the market has slowed down a bit, and you might need to adjust your expectations on pricing and spend some extra time really getting your home ready for the market to make the best first impression.
As with any market, things can change quickly, so it's essential to stay informed and work with a knowledgeable real estate professional who can help you navigate these waters successfully.
That's a wrap on the Portland metro real estate market update. Keep your eyes peeled for further updates!2023-07-19T20:10:32-07:002023-09-13T12:33:53-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:9523June Market UpdateThe Portland Metro Real Estate Market: The One with the Fluctuations and Possibilities
Okay, listen up, folks! We're about to dive into the crazy world of the Portland metro real estate market. It's like a rollercoaster ride, filled with twists, turns, and surprises at every corner. So grab your Central Perk coffee and let's talk about new listings, pending sales, closed sales, and all those fancy price tags.
Picture this: in May 2023, we had a total of 3,240 new listings. Not bad, right? But, oh my goodness, it's a 15.9% decrease compared to May 2022 when we had 3,853 listings. But hey, hold your horses! April 2023 was like, "Hey, I got you covered!" with a whopping 22.1% increase, bringing the number of listings to 2,653. Phew, the market loves to keep us on our toes!
Now, let's talk about the heart-pounding pending sales. In May 2023, 2,379 offers were accepted. That's a bit of a dip, a 23.8% decrease from the crazy frenzy of May 2022 when we had 3,122 offers flying in. But wait for it! April 2023 stepped up its game with a 9.9% increase, accepting 2,164 offers. Love is still in the air, my friends, and buyers are ready to make their move.
But hold on, we're not done with the drama yet! Closed sales take the stage, and boy, do they know how to make an entrance. In May 2023, we had a total of 2,008 closings. It's a 31.1% decrease compared to the jaw-dropping performance of May 2022 with 2,916 closings. But guess what? April 2023 came in like a whirlwind, showing off a 17.6% increase with 1,707 closings. Talk about a comeback!
Now, let's talk about what's hot and what's not in the inventory and market time department. The inventory held steady, my friends, at 1.9 months in May. That means sellers have the upper hand, making buyers work for their dream homes. And when it comes to market time, it decreased to 40 days. Blink, and you might miss out on that perfect pad.
But here's the big picture, people. When we compare the first five months of 2023 to the same period in 2022, we see some numbers taking a nosedive. New listings went down by 23.5%, with 12,398 properties strutting their stuff this year compared to the fancy 16,218 in 2022. Pending sales? Well, they followed suit with a 29.0% decrease, accepting 9,649 offers in 2023, down from the romantic whirlwind of 13,615 the previous year. And closed sales? They hit us hard with a 34.0% decrease, going from 12,404 closings in 2022 to 8,177 in 2023. The market's got its own storyline, my friends, and we're just living in it.
Now, let's talk money, honey. Brace yourselves because the prices are in the spotlight. When we compare 2023 to 2022 through May, the average sale price took a small hit, a 4.5% decrease from $615,600 to $588,200. And the median sale price? It followed suit, dropping by 4.4% from $549,000 to $525,000. It's not the end of the world, people, but it's definitely something to keep an eye on.
So there you have it, the Portland metro real estate market in a nutshell. It's a wild ride, filled with ups, downs, and surprises at every turn. But hey, isn't that what makes life interesting? Just like a good episode of Friends, you never know what's gonna happen next. Happy house hunting, my fabulous friends!
If you made it this far, tell me which sitcom actress interpetted this data and I'll send you a surprise. =)2023-06-14T14:44:10-07:002023-09-13T12:35:34-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:9302Homeowner Wealth Is 40 Times Higher Than RentersMost owners have earned more than $100,000 in equity over the last decade, but discrepancies among racial groups persists, according to new NAR data. Property appreciation has surged along with home prices in the last decade, giving most homeowners more than $100,000 in equity over that time period and lending further evidence that homeownership is an important avenue to build household wealth.
Middle-income homeowners have seen their properties appreciate by 68% since 2012, accumulating $122,100 in wealth, according to a new report from the National Association of REALTORS® released during the 2023 REALTOR® Broker Summit. Low-income homeowners who earn less than 80% of their area’s median income saw $98,900 in equity gains in the same time period, while upper-income households who earn more than 200% of their area’s median income accrued $150,800 in equity, according to NAR’s report, “Wealth Gains by Income and Racial/Ethnic Group.”
“This analysis shows how homeownership is a catalyst for building wealth for people from all walks of life,” says NAR Chief Economist Lawrence Yun. “A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.” Read more <a href="https://www.nar.realtor/magazine/real-estate-news/study-homeowner-wealth-is-40-times-higher-than-renters" target="_blank">here.</a>2023-04-25T09:58:33-07:002023-09-13T12:39:50-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:8677Record Number of U.S. Home Sellers Gave Concessions to Buyers in Late 2022According to national property broker Redfin, home sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter of 2022 --the highest share of any three-month period in Redfin's records.
That's up from just over 30% in both the previous quarter and the fourth quarter of 2021, and outpaces the prior 40.8% high from the three months ending July 2020, when the housing market nearly ground to a halt due to the onset of the coronavirus pandemic. Redfin's concessions records date back to July 2020 and are based on data submitted by Redfin buyers' agents.
Concessions have made a comeback as rising mortgage rates, inflation and economic uncertainty have dampened homebuying demand, giving the buyers who remain in the market increased negotiating power.
That's a stark shift from the pandemic home buying frenzy of late 2020 and 2021, when record-low mortgage rates fueled fierce competition, forcing most buyers to bid over the asking price and waive every contingency just to have their offers taken seriously.
"Buyers are asking sellers for things that were unheard of during the past few years," said Van Welborn, a Redfin real estate agent in Phoenix. "They're feeling empowered, partly because their offer is often the only one, and partly because they know sellers have built up so much equity during the pandemic that they can afford to dole out sizable concessions."
Welborn continued: "I recently helped one of my buyers negotiate a $10,000 credit for a new roof and a handful of other repairs. We originally asked for $15,000, but were happy with $10,000 because the homeowner also agreed to sell for less than their asking price."
Homeowners are increasingly selling for below their desired price as the housing market slows. A record 22% of home sales recorded by Redfin buyers' agents in the fourth quarter included both a concession and a final sale price below the listing price, while a record 19% included both a concession and a listing-price cut that occurred while the home was on the market. A record 11% included all three.
Phoenix Saw the Biggest Jump in Concessions | In Phoenix, sellers gave concessions to buyers in 62.9% of home sales in the fourth quarter, up from 33.2% a year earlier. That 29.7-percentage-point increase is the largest among the 25 U.S. metropolitan areas for which data was available. Next came Seattle (25.6 ppts), Las Vegas (22.2 ppts), San Diego (20.7 ppts) and Detroit (20.4 ppts).
Phoenix and Las Vegas are among the fastest cooling markets after they soared in popularity during the pandemic as scores of remote workers moved in, searching for relative affordability and warm weather.
"It took a while, but seller expectations are coming back down to earth. Concessions were common before the pandemic, and we may be returning to that norm," Welborn said. "Sellers realize they're not going to get $80,000 over the asking price like their neighbor did last year."
Welborn said he has recently seen sellers offer credits of as much as $25,000 to cover repairs and closing costs, and that they're also offering to pay for 2-1 mortgage-rate buydowns and warranties on household appliances.
There were four metros in which concessions were less common compared with a year ago. In Austin, TX, sellers gave concessions to buyers in 33.3% of home sales, down from 38.1% a year earlier (-4.8 ppts). Next came Philadelphia (-2.7 ppts), New York (-2.4 ppts) and Chicago (-1.6 ppts).
Concessions Are Most Common in San Diego | In San Diego, sellers gave concessions to buyers in 73% of home sales in the fourth quarter--the highest share among the metros Redfin analyzed (San Diego also had the highest share a year ago). Next came Phoenix (62.9%), Portland, OR (61.6%), Las Vegas (61.3%) and Denver (58.4%).
In New York, sellers gave concessions to buyers in 13.4% of home sales--the lowest share among the metros Redfin analyzed. It was followed by San Jose, CA (14.4%), Boston (17.5%), Philadelphia (22%) and Austin (33.3%).
<img src="https://assets.site-static.com/userfiles/2258/image/2_in_5_Home_Sellers_Are_Offering_Concessions_to_Buyers-thumb-1024x708-33300.jpg" width="1024" height="708" />
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Source: <a href="https://www.worldpropertyjournal.com/real-estate-news/united-states/san-diego-real-estate-news/real-estate-news-home-buyer-concessions-report-for-2022-redfin-2022-housing-data-home-price-concessions-data-for-2022-13489.php" title="World Property Journal" target="_blank">World Property Journal</a> | published January 17, 2023 2023-01-17T17:38:43-07:002023-09-13T12:44:31-07:00Ashley Malpasstag:ashleysellsportland.com,2012-09-20:8675Economist: Mortgage Rates Will Dip Below 6% SoonAfter doubling from a year ago, rates likely will experience less volatility in 2023, says NAR Director of Forecasting Nadia Evangelou.
Mortgage rates likely will settle below 6% and experience less volatility this year, predicts Nadia Evangelou, senior economist and director of forecasting at the National Association of REALTORS®. But we’re not there yet: The 30-year fixed-rate mortgage averaged 6.48% this week, according to Freddie Mac. “Although rates remain more than double a year ago, they will likely stabilize as inflation will continue to slow down in the coming months,” Evangelou says.
Mortgage rates have been pulling back ever since surging to a 7.08% average in November. But the housing market may still be adjusting to higher rates; a year ago, the 30-year rate averaged 3.22%. “Mortgage application activity sunk to a quarter-century low this week as high mortgage rates continue to weaken the housing market,” says Sam Khater, Freddie Mac’s chief economist. “While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”
Until then, home buyers may be in wait-and-see mode. Affordability has been hammered by higher rates in recent months. Evangelou says the qualifying income for homeownership is now near the $100,000 threshold, which means only 32% of all households and 15% of all renters can afford to buy a median-priced home. The majority of these households are Gen Xers, whose median age is 51, she adds.
But many aspiring buyers from younger generations are still waiting to jump in. “Home buyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of millennial renters will provide support to the purchase market,” says Khater. “Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates.”
Freddie Mac reported the following national averages with mortgage rates for the week ending Jan. 5:
30-year fixed-rate mortgages: averaged 6.48%, up from last week’s 6.42% average. A year ago, 30-year rates averaged 3.22%.<br />15-year fixed-rate mortgages: averaged 5.73%, also up from last week when they averaged 5.68%. A year ago at this time, 15-year rates averaged 2.43%.
Source: <a href="https://www.nar.realtor/magazine/real-estate-news/economist-mortgage-rates-will-dip-below-6-soon" title="Realtor Magazine" target="_blank">Realtor Magazine</a> | January 5, 2023 publishing2023-01-17T16:32:48-07:002023-09-13T12:47:21-07:00Ashley Malpass