The following analysis of the Oregon and Southwest Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.
The State of Oregon has added 30,400 new jobs over the past 12 months, representing a reasonable annual growth rate of 1.6%. It is clear, however, that job growth in Oregon has started to taper, with the annual rate dropping below 2% in the early spring of this year. This is no great cause for concern as the state has essentially reached full employment, which tends to slow employment growth.
The Southwest Washington market area added 5,580 new jobs over the past 12 months, representing an annual growth rate of 2.7%.
Oregon’s unemployment rate was 4.0% in June, marginally below the 4.1% rate seen a year ago. In Southwest Washington, the unemployment rate was measured at 5.3%, marginally lower than the year-ago rate of 5.4%.
HOME SALES ACTIVITY
- Second quarter home sales dropped by a modest 2.8% compared to the same period last year, with a total of 17,156 transactions occurring.
- Sales rose the most in Skamania County, which saw a 40% increase compared to the second quarter of 2017. There were also noticeable increases in Cowlitz, Klamath, and Linn counties. Home sales fell the most in Tillamook, Klickitat, Crook, Josephine, and Jefferson counties.
- Year-over-year sales rose in 10 counties and dropped in the other 16 counties contained in this report.
- Sales continue to be a mixed bag in the region. I am not overly concerned by the drop in sales in several counties as they are all small markets that are prone to substantial swings. Inventory remains tight and this can drag home sales lower.
- The average home price in the region rose 7.9% year-over-year to $391,725. That number is 6.6% higher than the first quarter of 2018.
- Clatsop County led the market with the strongest annual price growth. Homes there sold for 22.6% more than a year ago.
- All but four counties saw price growth relative to the second quarter of 2017, with 10 of them experiencing double-digit increases.
- The takeaway from this report is that, in aggregate, price growth has started to slow but remains above the long-term average.
DAYS ON MARKET
- The average number of days it took to sell a home in the region dropped by four days compared to the second quarter of 2017 and was down by 17 days from the first quarter of 2018.
- The average time it took to sell a home in the region last quarter was 71 days.
- Nineteen counties saw the length of time it took to sell a home drop or remain static when compared to a year ago. Seven counties saw market time rise.
- Homes again sold the fastest in Washington (20 days), Clark (26 days), and Multnomah (26 days) counties.
The speedometer reflects the state of the region’s housing market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
Housing markets throughout Oregon and Southwest Washington continue to benefit greatly from the healthy regional economy. Home sales remain solid; however, we are seeing some slowdown in prices, which I consider to be positive as affordability issues could start to taper. That said, housing inventory is still well below balanced-market levels. Sellers remain in the driver’s seat, but I am hopeful that inventory levels will start to increase, which will be a relief to home buyers. Because of this, the needle remains the same as last quarter.
Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residentialmarket analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics. He is the former Principal of Gardner Economics and has more than 30 years of professional experience both in the U.S. and U.K.
Portland, OR (Multnomah County)
Asking Price: $1,599,900
Real estate, brewery, pub and FFM&E for sale in this facility, ready-made for your brewing talents. This is a sale of the facilities only and no value has been attributed to Good Will. The location could be described as fairly high-end niche.
>> Real estate listed for sale at $1,599,900.
>> FFM&E associated with the pub for sale at $320,000
>> FFM&E associated with the brewery for sale; value yet to be determined.
For further information, inquire with broker. For fastest response text your full name, email address and this listing’s header to 503-740-6300. Seller requires a Non-Disclosure Agreement be signed by all interested parties before disclosure of any further details.
Real Estate: Owned; Not included in asking price
Building SF: 4,000
Facilities: Inquire with broker.
Support & Training: Minimal.
Portland Area Multifamily
- Thursday, May 17 4:00 pm – 6:30 pm
- Saturday, May 19 12 noon – 2:00 pm
|MLS #: 18474672||Taxes: $4,928|
|Lot Size:||Type: Multifamily|
|Year Built: 1972||Style:|
|County: Multnomah County||Community:|
- Elementary School: Grout
- Middle School: Hosford
- High School: Cleveland
- Gentle Sloping
Heating and Cooling
- Sewer: Public Sewer
- Fuel: Electricity
- Crawl Space
Listed by Holly Hummel
Licensed Broker in Oregon
|MLS #: 18390336||Taxes: $3,945|
|Year Built: 1909|
|County: Multnomah County|
- Elementary School: Boise-Eliot
- Middle School: Boise-Eliot
- High School: Grant
- Mississippi Arts
- Forced Air
- Heat Pump
- Sewer: Public
- Fuel: Gas
- Full Basement
- Roof: Composition
Listed by Holly Hummel
New tax legislation was signed into law at the end of 2017, and it included some significant changes for homeowners. These changes took effect in 2018 and do not influence your 2017 taxes. Here’s a brief overview of this year’s tax changes and how they may affect you*.
The amount of mortgage interest you can deduct has decreased.
Under the old law, taxpayers could deduct the interest they paid on a mortgage of up to $1 million. The new law reduces the mortgage interest deduction from $1 million to $750,000. These changes do not affect mortgages taken out before December 15, 2017.
The home equity loan deduction has changed.
The IRS states that, despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labeled. The Tax Cuts and Jobs Act of 2017, enacted December 22, suspends from 2018 until 2026 the deduction for interest paid on home equity loans and lines of credit, unless they are used to buy, build or substantially improve the taxpayer’s home that secures the loan.
The property tax deduction is capped at $10,000.
Previously taxpayers could deduct all the state, local and foreign real estate taxes they paid with no cap on the amount. The new law limits the deduction for all state and local taxes – including income, sales, real estate, and personal property taxes – to $10,000.
The casualty loss deduction has been repealed.
Homeowners previously could deduct unreimbursed casualty, disaster and theft losses on their property. That deduction has been repealed, with an exception for losses on property located in a federally declared disaster area.
The capital gains exclusion remains unchanged.
Homeowners can continue to exclude up to $500,000 for joint filers or $250,000 for single filers for capital gains when selling their primary residence as long as they have lived in the home for two of the past five years. An earlier proposal would have increased that requirement to five out of the last eight years and phase out the exclusion for high-income households, but it was struck down. Find out more about 2018 tax reform.
How does tax reform affect your plans for buying or selling a home?
*Please consult your tax advisor if you have any questions about how the new tax reform impacts you
Portland’s *NEW* Mobile Meter Maid
Parking Kitty is Portland’s new mobile app that makes your parking experience simple because that’s the way it should be. Park, pay, and be on your way.
Fun event for all ages! Visit the Portland Winter Lights Festival website for more details including scheduling and artisit information.
We need your help! On September 12th, at The Fields Park we are uniting with 10,000 people from around Oregon and SW Washington to walk in, and fundraise for, AIDS Walk Portland. Please help us out by either joining the Windermere Community Realty team and walking with us on September 12th or by making a donation of any size.
One donation from you can transform the life of someone living with HIV/AIDS—or help prevent someone else from contracting the virus.
The news media gives the impression that HIV/AIDS is no longer a serious threat. Despite advances in treatment, HIV carries a huge emotional and financial burden. Plus, for most HIV-positive Oregonians, HIV is only one challenge they face among many. The harsh reality is that there is still no cure, and HIV infection rates remain steady in Oregon and Southwest Washington.
You can simply register today at www.AIDSwalkPortland.org and join team Windermere Community Realty or go to http://aidswalkportland.org/teampage.asp?fundid=4454#.Ve8vKvQ_uXg and make a donation.
Thank you for your support!