All markets in the US are hyper-local right now. The news feels inaccurate with stats of real estate numbers dipping with interest rates rising. Here in Portland no big drop in prices is looming, if anything we are noticing a spring market that is heating up. The key thing we are really seeing in Portland is starter homes have been the most impacted by rising interest rates. “Fixers” that used to get snatched up are sitting on the market longer with folks being less interested in taking on large projects with a mortgage already feeling on the high side. Starter homes in Portland are typically homes that cost between $399-499,000, obviously varying income levels will dictate that starting price, but in our experience this range is where we see our first time home buyers looking. In an ironic twist, interest rates went down this week with the news of the two failing banks…
The overall lack of inventory is creating a lot of competition. There are still a lot of buyers out there and a lot of them are buying with cash in the $550- 1million + price range. Cash buyers often have the perception that they can scoop up homes at lower prices since they don’t have a loan. We would say this is not entirely true. Good homes, priced correctly, are getting anywhere from 3-12 offers on average, driving prices up, albeit not as much as we all saw in 2021, but homes are also starting out priced higher than in 2021. One of the huge differences from 2021, is a lot of seller’s currently are not picking the highest offer, but the offer from the buyer that is most invested in the property. Sellers can figure this out from a communicative buyers agent who helps their client court the property from the first day or two the home was listed, to a heartfelt personal letter from the buyer. Buyer letters are back, for better or worse.
The biggest trend we are seeing right now is the fickle buyer; a buyer who changes their mind for no apparent reason. Sellers want to avoid these folks at all costs and sometimes they are hard to spot. A good sellers agent can assist with this. I’m not trying to hype Realtors here, but buyer and seller representation are really important in this market. This is the time to avoid discounted agents on either side (I’m speaking to Redfin, Zillow, etc). Always look for solid representation, ask around for a recommendation from a friend or colleague, or do your research and really read reviews and ask for references. If you’re considering hiring us here’s the link to our review page.
February Portland Metro report put out by RMLS
This is the part where I hype our team, and you can skip this paragraph if you’re not into it… One of our primary missions is to support community and local business, as they are the backbone to vibrant neighborhoods. Anyone who refers us this year will receive a $100 gift card to the local business of their choice, so tell your home-buying and selling friends! Make sure they tell us who referred them!
Taking Care of Your Home
In the spring we hear about folks experiencing the highest amount of flooding. Why? In the fall we all know to clear our gutters and basement window wells, but in the spring we forget and our gutters clog, creating a cascading effect over the top of the gutters, allowing a mass amount of water to pool around your foundation and ultimately flooding your basement. Don’t let this happen to you! We have contacts if you don’t want to get on your roof yourself, please get in touch and we’ll suggest the right person to get on your roof and have a look, or if you feel comfortable, get up there yourself.
What’s up With Home Trends
Bright whites are “out” and cream, light brown and mochas are “in.” Yep, that’s right, the trends from the early 2000’s are making a comeback. To be honest, please don’t take the bright white away! The reflection of white in a dark climate is a mid-winter life saver, in our opinion, but we understand that we’re not making the rules here.
Local Business Spotlight—Apple and Peacock
If you love cheesecake, Apple and Peacock make the best cheesecake in Portland (at least in our experience). Apple and Peacock’s cake diva Claire, challenges all non cheesecake lovers to try her cakes, she’s convinced she’ll convert you!
