There are some experts questioning whether the current pace of residential home sales is sustainable. Are too many people buying homes like in 2004-2006? Are we headed for another housing crisis? Actually, if we look closely at the numbers, we can see that we are looking at a very healthy real estate market.
Why the concern?
Some are looking at the last three years of home sales and comparing them to the three years just prior to the housing bubble. Looking at the graph below, we can understand that thinking.
However, if we go further back in history, we can see the real picture. After taking out the “boom & bust” years, the pace of sales is growing at a quite natural pace.
And new home sales are way below historic numbers. Trulia’s Chief Economist Ralph McLaughlin explains:
“Adjusted for population, [new home sales] are at about 63% of their fifty-year average level—way better than 2011, but nowhere near heated.”
The current pace of residential home sales definitely seems sustainable.
- Interest rates have come a long way in the last 30 years.
- The interest rate you secure directly impacts your monthly payment and the amount of house that you can afford if you plan to stay within a certain budget.
- Interest rates are at their lowest in years… RIGHT NOW!
- If buying your first home, or moving up to the home of your dreams is in your future, now may be the time to act!
Current market conditions make it a great time to consider selling your home. Buyer demand is at an all-time high, resulting in multiple offers and less time on the market for sellers. Home values are expected to see continued growth throughout 2015, while interest rates are expected to increase slowly, ensuring continued demand.
Whether you’re considering selling your home or just curious about its current value, we can show you the values of other comparable homes in your area, and help you maximize the value of your home. We offer professional, full-service with competitive commission rates.
If you have any real estate related needs or questions or you’d like a free, no obligation, confidential market analysis, we welcome you to call today at 503-789-5417.
REAL ESTATE BUILDS WEALTH, APPRECIATION PROJECTED TO BE 19.1% OVER THE NEXT 5 YEARS!
A significant portion of most family’s wealth comes from the equity in the home they live in. As the value of your home (an asset) increases so does your equity.
The results from the most recent Home Price Expectation Survey (HPES) show residential home prices rising 4.3% in 2015, 3.7% in 2016, 3.4% in 2017, 3.2% in 2018 and 3.2% in 2019. These are national numbers, we anticipate the Portland real estate market will realize even higher appreciation over the next 5-years.
Based on the HPES appreciation predictions, a family that purchased a home in January of 2015 for $250,000 will increase their family wealth (based on increased equity) by $47,772 in 5-years. A $500,000 home will gain $95,543 in appreciation during this same 5-year period, and a $1,000,000 home will gain $191,086 by the end of 2019.
Is it time to move up to your dream home and take advantage of the increase in equity on a larger asset?
CASH SALES SEND THE PORTLAND REAL ESTATE MARKET SOARING!
Cash is king in the red-hot Portland real estate market, representing over one-third of single-family home sales in 2014. Portland is facing pent-up demand by buyers who opted not to make a move during the recession. This pent-up demand coupled with a limited supply of homes available for sale, an influx of new residents looking for a slice of nirvana, and private investors and private equity firms out to make money for investors thorough real estate has led to increasing prices and limited housing inventory.
Despite the inventory challenges, we’ve been successful at assisting our buyers to be one of the first to see new listings and to negotiate strong offers (many with financing terms) that are accepted by sellers. Please let us know if we can help you or someone you know to buy and/or sell a home.
LOTS OF BUYERS. TOO FEW HOMES. NOW IS THE RIGHT TIME TO LIST YOUR HOME TO SELL.
Real estate inventory in the Portland-Metro area just dropped to 1.9 months. This is the lowest level of available housing inventory since 2005! Buyers are chasing after new listings! They’re making multiple offers on desirable, well-priced homes as they hit the market, which means your house could sell for more than you think.
Do you know someone who couldn’t sell their home in the past? Please ask them to call us. With the strong appreciation the Portland-area housing market has realized in the past three years coupled with the low current inventory, we can almost guarantee success selling in today’s market.
The time to sell your home is now before interest rates go up and before the market is flooded by new listings. Please call us today to find out what your home can sell for in today’s hot housing market.
WE HAVE THE RIGHT CONNECTIONS. NEED A GREAT REALTOR OUTSIDE THE PORTAND AREA?
If you’re wanting to buy and/or sell a home outside the Portland area, we can help. Our network of Realtors take the guesswork out of finding the right agent for you.
We’ll connect you with up to three agents who we feel will do a great job for you based on your individual needs and area. This service is available to you for free and you are under no obligation to select one of the agents we refer to you.
We look forward to helping you, as well as your friends, family and business associates, buy and/or sell a home in the United States or anywhere in the world. Please call us today at 503-789-5417, we’re here to help.
Facts and Trends
Published September 2015*
|Number of Homes For Sale vs. Sold vs. Pended (Jun. 2014 – Aug. 2015)|
August 2015 is a Seller’s market**
Home For Sale in August 2015 is 1602 units. It is up 5.1% compared to the last month and down 33.6% compared to the last year.
**Buyer’s market: more than 6 months of inventory based on closed sales. Seller’s market: less than 3 months of inventory based on closed sales. Neutral market: 3 – 6 months of inventory based on closed sales.