Wednesday, April 22, 2015

Portland Ranks 7th Best Market for Seller's to Negotiate

Zillow published an article yesterday on it's blog about the Top 10 markets for selling your home and Top 10 markets for buying a home.  The purpose of this article is to show where a seller has the most negotiating power in a specific market and where a buyer has the most negotiating power.  Here is the list of Top 10 Seller Markets:
  1. San Jose, CA
  2. San Francisco, CA
  3. Denver, CO
  4. Seattle, WA
  5. Dallas-Fort Worth, TX
  6. Los Angeles, CA
  7. Portland, OR
  8. Sacramento, CA
  9. Nashville, TN
  10. Boston, MA
Finishing 7th on the list was Portland which has low inventory of homes for sale.  Strong demand for well-priced homes leads to competing offers which gives the seller’s more power over negotiations.  

This is great news if you are looking to sell your home this spring or summer.  If you are looking to buy a house and want to stand out from the competition, ask us about our 21 Day Closing Guarantee which will help boost your chances at getting an accepted offer.

Friday, April 17, 2015

Is Now the Time to Sell Your Home?

The KCM Crew released an article about why now may be the perfect time to sell your home.  Here are three of the main points:

1. Demand is Strong

Foot traffic refers to the number of people out actually physically looking at homes right now. The latest foot traffic numbers show that there are more prospective purchasers currently looking at homes than at any other time in the last 12 months which includes last spring’s buyers’ market. These buyers are ready, willing and able to purchase… and are in the market right now!

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing supply just dropped to 4.6 months, which is under the 6 months’ supply that is needed for a normal housing market. This means, in many areas, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory is about to come to market.

There is a pent-up desire for many homeowners to move as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market in the near future.

Also, new construction of single-family homes is again beginning to increase. A study by Harris Poll revealed that 41% of buyers would prefer to buy a new home while only 21% prefer an existing home (38% had no preference).

The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19.3% from now to 2019. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30-year housing expense with an interest rate under 4% right now. Rates are projected to increase by about three quarters of a percent by the end of 2015.

When looking at point #2 from a local standpoint, the Portland-metro area is below the national average with a housing supply of 3 months.  This creates even higher demand which drives up home prices with competing offers.  As seen in the below graph, a seller’s market (under six months of inventory) leads to appreciating home values.  This is great news if you are looking to sell your home this spring or summer season. 

Thursday, April 9, 2015

The Math Behind Buy Versus Rent

Zillow’s breakeven horizon shows that it is a great time to buy real estate in Oregon, especially if you are currently renting.  Each area reported in Oregon shows that homeowners would come out ahead instead of renting in less than 3.5 years.  In certain areas, that breakeven point is less than two years, such as the Portland-metro area!  Here is a quote from a recent Zillow report about buying versus renting:

“If the buy versus rent decision were about simple math, we’d likely have millions more homebuyers in the market, because the equation is tilted heavily in favor of buying,” said Zillow Chief Economist Stan Humphries. “But no matter what the numbers say, buying a home is a huge commitment. Every day, Americans make decisions to buy or rent based on any number of personal dynamics, including preference, flexibility needs, family factors and, yes, financial considerations. There is no right or wrong choice, and it’s important that America’s housing market maintains a number of affordable options for renters and buyers, no matter their preferences.”

Below is a snapshot of the Portland-metro area in Zillow’s breakeven horizon.  They are expecting strong appreciation in this market with a high (but lower than recent years) increase in rents.  Over the past couple years, Oregon has witnessed higher appreciation and higher rent inflation than they are forecasting.  However, this is good news as the market stabilizes.

You can view the Zillow’s breakeven horizon here: