Portland, OR Real Estate Podcast with Stellar Realty NW

This past year was another great one for the Portland real estate market. Multiple sources have already predicted another hot year in 2017, and we’re excited to bring you some of the latest numbers and predictions that show us where we’re heading.

The National Association of Realtors predicts a 4% increase in home sales, with more than six million sales in Portland. That makes us one of the strongest markets in the nation. Freddie Mac predicts a 4.7% increase in sales, while Zillow predicts a 3.2% increase and CoreLogic predicts a 5% rise.

Our market is a national leader in growth, and the regional MLS reported that the average sale price in 2016 was over $400,000. That’s a record high for Portland, with prices expected to rise even more this year.

Along with Denver and Seattle, Portland is one of the top markets in the country for predicted growth in 2017. Zillow predicts a 7.5% increase in prices and Vero Forecast predicts an 11.1% increase.

"There is a tremendous demand for housing."

Low interest rates strengthened the market even further this past year. They hovered around 3.5% for the most part but slightly increased after the election and toward the end of 2016. The Mortgage Banker’s Association predicts that rates will rise in 2017, but not above 5%. That still puts us in the “historically low” range for interest rates.

Those are the predictions for our 2017 real estate market, but what are some of the factors that influence them?

For one, Portland is one of the top relocation markets in the country. That creates a tremendous demand for housing here. Inventory is already low and with the large influx of homebuyers, demand is at an all-time high. We will continue to remain one of the strongest real estate markets in the nation.

With rates and prices expected to rise this year, now is a good time to buy or sell while demand is high and interest rates are low. If you have any questions for us, don’t hesitate to give us a call or send us an email. We would love to hear from you.

When it comes to how long real estate transactions typically take to be completed, the answer depends on a few different factors. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation How long does it typically take to close on a home? Our average real estate transaction is financed through the bank and generally takes between 35 and 45 days to close. This includes your inspection timeline, the appraisal, and all the documents the lender will require from you. "Our average real estate transaction takes between 35 and 45 days to close." Cash transactions are far quicker and usually only need about five to 20 days. If there’s a tenant living in the home you choose to buy, it can significantly increase the time to close. I’ve seen transactions go from 90 to 180 days just because of the tenant. If you have any questions about this topic or are thinking about buying or selling a home in our market, please feel free to reach out to me so I can help. I look forward to talking to you soon!

There are five simple things you can do to your home to get it ready for sale.

Here are five ways you can prepare your home for sale:

1. Clean & declutter. Remove any excess furniture and belongings that are on the countertops or shelving to make the interior space feel more open.

2. Depersonalize. Remove any photos or personal items that are specific to your family and lifestyle so that the new buyers can picture their family in that space.

"The way the home looks from the curb

is what draws buyers inside."

3. Do minor repairs. You don’t necessarily need to retile the bathroom or remodel the kitchen, but you do want to take care of other minor things, like making sure the doors and cabinets open and close correctly, patching up holes and nicks in the walls, or repainting the walls and trimming where needed.

4. Enhance curb appeal. Make sure that the exterior of the home and yard is clean and tidy. One thing that makes a big impact is adding bright and colorful flowers and pots. Remember, it’s the way the home looks from the curb that draws buyers inside.

5. Detach emotionally. Start to think of it as a house rather than your home. You want to visualize the new buyers moving in and yourself moving on to the next stage of your life.

If you have any questions or would like more information regarding this topic, please feel free to give me a call or send me an email. I look forward to helping you in any way I can.

Should you reach out to your Realtor in order to find a local lender? Yes. Real estate agents have access to many local lenders, credit unions, and mortgage companies.

Larger institutions can’t service your financing needs as well as mortgage companies. They usually offer limited products, whereas mortgage companies usually offer 15 products or more. You’ll also face a better chance of pre-approval with a mortgage company because they offer more loan products to choose from and are more flexible with down payments and credit scores.

The advantages of working with a preferred lender are numerous. Our preferred lenders have amazing customer service, they’re great to work with, and they’re always available after hours and on the weekends.

If you have any questions about our preferred lenders or what’s going on in the real estate market, please give me a call or send me an email. I look forward to hearing from you.

Sellwood is a teardrop-shaped area that's rich in natural and recreational amenities, including four public parks. Sellwood also boasts a full range of businesses and services, like specialty retail stores, antiques, grocery stores, hardware stores, banks, and dry cleaners to name a few.

It's a very walkable neighborhood for both errands and exercise.

One of the great parks is Sellwood Riverfront Park, which stretches 7.6 acres along the river in Southeast Portland. The park has a boat dock, canoe launch, an off-leash dog area, paths, and riverfront views. It's a popular area for celebrating the Fourth of July thanks to the great views of the downtown fireworks. The park is just south of the famous Oaks Amusement Park and Roller Rink.

Sellwood has a New Seasons Market nestled right in the middle. New Seasons is a locally-owned chain of grocery stores that supplies many locally-sourced items and sells home goods and wellness products as well.

In the video above, you can see a good example of a Sellwood house. This bungalow was built in 1904 and is 1,899 square feet with three bedrooms and one bathroom. This home sold for $500,000 in November 2015.

I hope you enjoyed this look at Sellwood! If you're interested in buying or selling a home in Portland, give me a call or send me an email. I'd love to work with you!

Why is housing inventory an important statistic to track on the market?

Housing inventory is measured in months of inventory. This is basically how many months it would take for all of the available homes to sell if no new homes were listed on the market.

A good housing inventory would be about four to five months of houses on the market. If that number is smaller than four, it means that the home buyers are dominating the market and that there are relatively few sellers. In that market, home sellers have the advantage. A number over five would mean that buyers have the advantage in the market.

How does housing inventory affect your home’s value? While your home’s value is affected by size, location, and condition, a tight real estate market—or one with a lower inventory—will always drive prices up. It’s the law of scarcity.

If you’d like to know the current housing inventory in your area or have any other questions related to real estate, please give me a call or send me an email. I’d be happy to help you!

Today I'm excited to give you a quick tour of the Woodstock neighborhood in Portland.

This area has some great restaurants, grocery stores, health care facilities, and many kinds of shops, all within walking distance. My person personal favorite is New Seasons, which has a rooftop bar.

The neighborhood has many mid-century homes and some turn of the century homes, as well as new construction. In the video above, you can see a quaint mid-century ranch with two bedrooms and two bathrooms, which sold in March 2016 for just under $400,000.

Thanks for joining me on the tour. If you have any questions about this wonderful neighborhood, give me a call or send me an email. I'd be happy to help you!

One of the most crucial aspects of buying or selling a Portland home is the appraisal of the property. Here are some of the key parts of the process:

What is an appraisal? A non-biased third party will physically come to the property and inspect the interior and exterior of the home. The appraiser will then pull comparisons from the neighborhood—typically homes that have sold or are currently pending within a close radius—gather the information, put it into a very thorough report, and come up with a value. Upon finishing the report, the appraiser will then send it to the lender, the lender will contact the buyer, and the buyer will be able to pick the report apart to find out how the value was calculated.

How do appraisals affect the home buyer? The appraisal is performed to protect the buyer from overpaying for the property.

How do appraisals affect the home seller? If the appraisal comes in below the sales price, the borrower will not be able to obtain a loan to purchase the property. If this is the case, either the seller will have to lower their sales price to accommodate the appraised value, or the buyer can come in with a larger down payment to make up the difference.

If you have any other questions about the appraisal process and what to expect during it, or you’re thinking about buying or selling Portland real estate, give me a call or send me an email. I’d be happy to help you!

Today we’re touring Mississippi Avenue, a fantastic neighborhood in north Portland that features great restaurants and an eclectic combination of home styles.

Mississippi Avenue is a north Portland neighborhood that runs just east of the I-5 between Skidmore and Freemont. This neighborhood is a cozy pocket of Portland near the PCC Cascade campus and allows easy access to the interstate and the MAX.

My favorite eatery in Mississippi Ave is Prost! Stop by Prost! for a great German meal with beer and sausage. The best thing to order for lunch is the German Pretzel Sandwich with German potato salad and a Franziskaner beer.

"Mississippi Avenue is a great, cozy pocket of Portland."

Of course, for a true taste of Portland cuisine, you should visit Homegrown Smoker Vegan BBQ. I recommend the Slowsmomofo Sandwich with Mac-No-Cheese. It’s delicious!

For a true Portland recycling experience, hop into the Rebuilding Center. You can find a variety of affordable building materials and things you didn’t even know you needed. 

The average home price on Mississippi Avenue is $450,000. This neighborhood features an eclectic combination of home styles including new homes, quaint bungalows, old Portland craftsman homes, and Victorians. In fact, a gorgeous Victorian home that was built in 1896 sold this May for $700,000. The 3,000 square foot home has four bedrooms, two bathrooms, and a carriage house that was converted into an additional dwelling. This is just one innovative way that Portland is answering the call for more housing. 

If you have any questions about this neighborhood or other areas in Portland, give us a call or send us an email. We would be happy to help you!