How Zoning and Regulatory Costs Impact Housing Affordability

Posted on August 16, 2018 at 4:43 pm
Windermere Community Realty | Category: Finance, Market Trends, The Gardner Report | Tagged

Oregon and Southwest Washington Real Estate Market Update

Posted in Oregon and Southwest Washington Real Estate Market Update byMatthew Gardner, Chief Economist, Windermere Real Estate 

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.

ECONOMIC OVERVIEW

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.

 

HOME PRICES

  • 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.

 

CONCLUSIONS

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.

Posted on August 10, 2018 at 10:30 am
Windermere Community Realty | Category: City of Portland, Finance, Market Trends, The Gardner Report

How Will the Real Estate Market Respond to Rising Interest Rates?

How Will the Real Estate Market Respond to Rising Interest Rates?

Posted on July 18, 2018 at 4:51 pm
Windermere Community Realty | Category: Finance, Market Trends, The Gardner Report

When Buying a Short Sale Home is the Right Fit

When Buying a Short Sale Home is the Right Fit

Posted in Short Sales by Richard Eastern 

 

Purchasing a home can feel overwhelming at times, but a short sale home offers a unique opportunity for a prospective buyer. A short sale occurs when a homeowner owes a lender more than their home is worth, and the lender agrees to let the owner sell the home and accept less than what is owed. Lenders may agree to a short sale because they believe it will net them more money than going forward with a lengthy and costly foreclosure process.

Short sales do differ in a number of ways from conventional home sales. Here are a few things to consider if you’re thinking about buying a short sale property.

    • Short sale homes sell for less, but not significantly less than market value.

    Buyers hoping to snap up a home for half the market value will be disappointed. The selling price for short sales averages about 10 percent less than for non-distressed properties. The bank is looking to recover as much of the value of the home as possible, so they will not accept offers that are significantly under market value. That said, with savings that can equal tens of thousands of dollars, a short sale is a great way to get more house for your money.

      • Short sale properties are sold “as is”.

      The lender will not be making repairs to the home. Any improvements that need to be made are most likely going to be the responsibility of the buyer. A savvy buyer’s agent/broker will get contractor bids for any necessary repairs and use those to help negotiate a lower sales price with the bank.

        • A short sale will take longer than a conventional home sale.

        Once you and the seller have mutual acceptance on an offer, you need to allow 60 to 90 days for the lender approval process. There are often long stretches when the offer is slowly winding its way through the bank’s system, so buyers need to be patient.

          • If you have to sell your home first, a short sale is probably not the best fit.

          Lenders generally will not take contingent offers on a short sale.

            • A short sale is one real estate transaction that you shouldn’t attempt on your own. 

            Short sales are complicated transactions that involve a different process and significantly more paperwork than a standard real estate sale. An agent/broker that is unfamiliar with short sales can write an offer in such a way that they inadvertently cause their buyers to lose the deal. An experienced short sale agent/broker will protect your interest and help the process move forward smoothly.

             

            The bottom line: As long as you can be patient, and are working with an agent/broker who understands the process, buying a short sale is a great way to purchase the house you want at a price you’ll love.

            Posted on July 17, 2018 at 4:44 pm
            Windermere Community Realty | Category: Finance, Moving Tips

            How to Get Started in Real Estate Investing

            How to Get Started in Real Estate Investing

            Posted in Buying by John Trupin 

            Investing in real estate is one of the world’s most venerable pathways to building wealth. When properly managed, income from renting or real estate investment trusts can provide you with the financial security to plan out the rest of your life. The conclusion is easy to envision, but knowing where to begin can be overwhelming, particularly for anyone who has never previously owned a home.

            At Windermere our goal is always to improve and support our communities, so we’ve put together a few key things to keep in mind as you enter the world of real estate investment.

            Know the right type of investment for you

            Investing in real estate needn’t commit you to being a landlord. A Real Estate Investment Trust (REIT) is a low-maintenance way to get involved in real estate with next to none of the day-to-day monitoring required of direct property management. REITs are trusts that typically own multiple properties, and investors may purchase shares within the REIT. Typically, as the value of the property rises, so too do the values of your shares. If you’d like to dip a toe into real estate investing before diving in fully, a REIT is a great place to start.

            Start with your own home

            Owning the roof over your head is a basic step towards investing success. Even better, when you plan to live in the home you’re buying (rather than renting it out), you will likely benefit from lower mortgage rates and a cheaper down payment. The reasoning is straightforward – lenders see a loan to people purchasing the home they live in as an investment in people highly committed to the property.

            Once you’ve owned your own house for a few years, you can look to purchase a new home to move into. By purchasing the new home with the intent to move in, you’ll be eligible to receive more favorable financing once again. After you’ve secured your new home, your first home is primed to be transformed into a rental property, and you can continue to see a return on your investment. If you’re seeking further support with buying a first, second, or third home, our website and our agents are full of information.

            Cast a wide net

            The best investment opportunity isn’t always going to be right underneath your nose. While there are logistical benefits to focusing locally with your investment, you may miss more profitable opportunities in another burgeoning market. Real estate is a long game, and patience tends to be rewarded. There’s no cause to rush a decision of this magnitude, so investigating other states and regions to find the property that best fits your situation is a process worth considering.

            Posted on May 21, 2018 at 5:00 pm
            Windermere Community Realty | Category: Finance, Market Trends

            Oregon & Southwest Washington Real Estate Update

            Oregon & Southwest Washington Real Estate Update

            Posted in Oregon and Southwest Washington Real Estate Market Update byMatthew Gardner, Chief Economist, Windermere Real Estate 

            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 me.

             

            ECONOMIC OVERVIEW

            The State of Oregon has added 43,700 new jobs over the past 12 months, representing a robust annual growth rate of 2.3%. Job growth picked up in the first quarter of 2018, with significant annual gains in Education & Health Services (+26,000), Leisure & Hospitality (+9,700), and Construction (+7,400). Oregon’s unemployment rate was 4.1%, matching the number seen a year ago and remaining in record low territory.

             

            HOME SALES ACTIVITY

            • First quarter home sales dropped by a modest 0.8% compared to the same period last year, with a total of 12,775 sales.
            • Sales rose the most in Tillamook County, which saw a 33% increase compared to the first quarter of 2017. There were also noticeable increases in Wasco, Hood River, Jefferson, and Crook Counties. Home sales fell the most in Columbia, Klickitat, Marion, and Yamhill Counties.
            • Year-over-year sales rose in 14 counties and dropped in the other 12 counties contained in this report.
            • Sales were a bit of a mixed bag in the first quarter, but I still believe that lower sales velocities are due to extremely low levels of inventory in the region and not a decline in demand.

             

            HOME PRICES

            • The average home price in the region rose 9.9% year-over-year to $367,316. That number is 1.2% higher than the fourth quarter of 2017. 
            • Tillamook County again led the market with the strongest annual price growth. Homes there sold for 54.2% more than a year ago. That said, it’s worth noting that it is a very small market, making it prone to substantial swings in average sale prices.
            • All counties other than Hood River saw price growth over the first quarter of 2017. Half experienced significant, double-digit increases.
            • The takeaway from this report is that, in aggregate, price growth continues to trend well above historic averages.

             

             

            DAYS ON MARKET

            • The average number of days it took to sell a home in the region dropped by 12 days when compared to the first quarter of 2017, but was up 9 days from the fourth quarter of 2017.
            • The average time it took to sell a home in the region last quarter was 88 days.
            • Twenty-one counties saw the length of time it took to sell a home drop when compared to a year ago. One remained the same while four saw market time rise.
            • Homes sold the fastest in Washington (36 days), Clark (41 days), and Multnomah (42 days) Counties.

             

            CONCLUSIONS

            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 very strong and, given that inventory levels are unlikely to increase substantially in the near term, sellers remain firmly in the driver’s seat. Even with rising interest rates, demand continues to outstrip supply, so I have moved the needle a little more in favor of sellers.

             

             

             

            Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market 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.

            Posted on May 2, 2018 at 1:11 pm
            Windermere Community Realty | Category: Finance, Market Trends, The Gardner Report

            How Tax Reform Affects Homeowners

             

            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?

            The changes in real estate related taxes may change your strategy. Contact your Windermere agent to learn more. If you need help finding an agent, we’re happy to help.

             

            *Please consult your tax advisor if you have any questions about how the new tax reform impacts you

            Posted on March 30, 2018 at 11:59 am
            Windermere Community Realty | Category: City of Portland, Finance, Home Improvement, Market Trends

            A Home Addition: What to Consider Before Starting to Build

            A Home Addition: What to Consider Before Starting to Build

            Posted in SellingLiving, and Architecture by Kenady Swan 

             

             

            Adding on to your current home may be your best bet if you’re short on space, but you don’t want to move or can’t find another house in the area with all the qualities you’re seeking. It’s also an attractive option if the house you have is lacking just one significant element (a family room, another bedroom, a larger kitchen, a separate apartment, etc.).

            On the other hand, even a modest addition can turn into a major construction project, with architects and contractors to manage, construction workers traipsing through your home, hammers pounding, and sawdust everywhere. And although new additions can be a very good investment, the cost per-square-foot is typically more than building a new home, and much more than buying a larger existing home.

             

            Define your needs

            To determine if an addition makes sense for your particular situation, start by defining exactly what it is you want and need. By focusing on core needs, you won’t get carried away with a wish list that can push the project out of reach financially.

            If it’s a matter of needing more space, be specific. For example, instead of just jotting down “more kitchen space,” figure out just how much more space is going to make the difference, e.g., “150 square feet of floor space and six additional feet of counter space.”

            If the addition will be for aging parents, consult with their doctors or an age-in-place expert to define exactly what they’ll require for living conditions, both now and over the next five to ten years.

             

            Types of additions

            Bump-out addition—“Bumping out” one of more walls to make a first floor room slightly larger is something most homeowners think about at one time or another. However, when you consider the work required, and the limited amount of space created, it often figures to be one of your most expensive approaches.

            First floor addition—Adding a whole new room (or rooms) to the first floor of your home is one of the most common ways to add a family room, apartment or sunroom. But this approach can also take away yard space.

            Dormer addition—For homes with steep rooflines, adding an upper floor dormer may be all that’s needed to transform an awkward space with limited headroom. The cost is affordable and, when done well, a dormer can also improve the curb-appeal of your house.

            Second-story addition—For homes without an upper floor, adding a second story can double the size of the house without reducing surrounding yard space.

            Garage addition—Building above the garage is ideal for a space that requires more privacy, such as a rentable apartment, a teen’s bedroom, guest bedroom, guest quarters, or a family bonus room.

             

            Permits required

            You’ll need a building permit to construct an addition—which will require professional blueprints. Your local building department will not only want to make sure that the addition adheres to the latest building codes, but also ensure it isn’t too tall for the neighborhood or positioned too close to the property line. Some building departments will also want to ask your neighbors for their input before giving you the go-ahead.

             

            Requirements for a legal apartment

            While the idea of having a renter that provides an additional stream of revenue may be enticing, the realities of building and renting a legal add-on apartment can be sobering. Among the things you’ll need to consider:

            • Special permitting—Some communities don’t like the idea of “mother-in-law” units and therefore have regulations against it, or zone-approval requirements.
            • Separate utilities—In many cities, you can’t charge a tenant for heat, electricity, and water unless utilities are separated from the rest of the house (and separately controlled by the tenant).
            • ADU Requirements—When building an “accessory dwelling unit” (the formal name for a second dwelling located on a property where a primary residence already exists), building codes often contain special requirements regarding emergency exists, windows, ceiling height, off-street parking spaces, the location of main entrances, the number of bedrooms, and more.

            In addition, renters have special rights while landlords have added responsibilities. You’ll need to learn those rights and responsibilities and be prepared to adhere to them.

             

            Average costs

            The cost to construct an addition depends on a wide variety of factors, such as the quality of materials used, the laborers doing the work, the type of addition and its size, the age of your house and its current condition. For ballpark purposes, however, you can figure on spending about $200 per square food if your home is located in a more expensive real estate area, or about $100 per food in a lower-priced market.

            You might be wondering how much of that money might the project return if you were to sell the home a couple years later? The answer to that question depends on the aforementioned details; but the average “recoup” rate for a family-room addition is typically more than 80 percent.

             

            The bottom line

            While you should certainly research the existing-home marketplace before hiring an architect to map out the plans, building an addition onto your current home can be a great way to expand your living quarters, customize your home, and remain in the same neighborhood.

            Posted on March 21, 2018 at 1:40 pm
            Windermere Community Realty | Category: Finance, Home Improvement, Moving Tips

            Homeowners Insurance: Protecting Your Home

            Homeowners Insurance: Protecting Your Home

            Posted in Buying by Kenady Swan 

             

            In addition to providing shelter and comfort, our home is often our single greatest asset. And it’s important that we protect that precious investment. Most homeowners realize the importance of homeowners insurance in safeguarding the value of a home. However, what they may not know is that about two-thirds of all homeowners are under-insured. According to a national survey, the average homeowner has enough insurance to rebuild only about 80% of his or her house.

             

            What a standard homeowners policy covers

            A standard homeowner’s insurance policy typically covers your home, your belongings, injury or property damage to others, and living expenses if you are unable to live in your home temporarily because of an insured disaster.

            The policy likely pays to repair or rebuild your home if it is damaged or destroyed by disasters, such as fire or lighting. Your belongings, such as furniture and clothing, are also insured against these types of disasters, as well as theft. Some risks, such as flooding or acts of war, are routinely excluded from homeowner policies.

            Other coverage in a standard homeowner’s policy typically includes the legal costs for injury or property damage that you or family members, including your pets, cause to other people. For example, if someone is injured on your property and decides to sue, the insurance would cover the cost of defending you in court and any damages you may have to pay. Policies also provide medical coverage in the event someone other than your family is injured in your home.

            If your home is seriously damaged and needs to be rebuilt, a standard policy will usually cover hotel bills, restaurant meals and other living expenses incurred while you are temporarily relocated.

             

            How much insurance do you need?

            Homeowners should review their policy each year to make sure they have sufficient coverage for their home. The three questions to ask yourself are:

            ·      Do I have enough insurance to protect my assets?

            ·      Do I have enough insurance to rebuild my home?

            ·      Do I have enough insurance to replace all my possessions?

            Here’s some more information that will help you determine how much insurance is enough to meet your needs and ensure that your home will be sufficiently protected.

             

            Protect your assets

            Make sure you have enough liability insurance to protect your assets in case of a lawsuit due to injury or property damage. Most homeowner’s insurance policies provide a minimum of $100,000 worth of liability coverage. With the increasingly higher costs of litigation and monetary compensation, many homeowners now purchase $300,000 or more in liability protection. If that sounds like a lot, consider that the average dog bite claim is about $20,000. Talk with your insurance agent about the best coverage for your situation.

             

            Rebuild your home

            You need enough insurance to finance the cost of rebuilding your home at current construction costs, which vary by area. Don’t confuse the amount of coverage you need with the market value of your home. You’re not insuring the land your home is built on, which makes up a significant portion of the overall value of your property. In pricey markets such as San Francisco, land costs account for over 75 percent of a home’s value.

            The average policy is designed to cover the cost of rebuilding your home using today’s standard building materials and techniques. If you have an unusual, historical or custom-built home, you may want to contact a specialty insurer to ensure that you have sufficient coverage to replicate any special architectural elements. Those with older homes should consider additions to the policy that pay the cost of rebuilding their home to meet new building codes.

            Finally, if you’ve done any recent remodeling, make sure your insurance reflects the increased value of your home.

            Remember that a standard policy does not pay for damage caused by a flood or earthquake. Special coverage is needed to protect against these incidents. Your insurance company can let you know if your area is flood or earthquake prone. The cost of coverage depends on your home’s location and corresponding risk.

             

            Replacing your valuables

            If something happens to your home, chances are the things inside will be damaged or destroyed as well. Your coverage depends on the type of policy you have. A cost value policy pays the cost to replace your belongings minus depreciation. A replacement cost policy reimburses you for the cost to replace the item.

            There are limits on the losses that can be claimed for expensive items, such as artwork, jewelry, and collectables. You can get additional coverage for these types of items by purchasing supplemental premiums.

            To determine if you have enough insurance, you need to have a good handle on the value of your personal items. Create a detailed home inventory file that keeps track of the items in your home and the cost to replace them.

             

            Create a home inventory file

            It takes time to inventory your possessions, but it’s time well spent. The little bit of extra preparation can also keep your mind at ease.  The best method for creating a home inventory list is to go through each room of your home and individually record the items of significant value. Simple inventory lists are available online. You can also sweep through each room with a video or digital camera and document each of your belongings. Your home inventory file should include the following items:

            ·      Item description and quantity

            ·      Manufacturer or brand name

            ·      Serial number or model number

            ·      Where the item was purchased

            ·      Receipt or other proof of purchase \Photocopies of any appraisals, along with the name and address of the appraiser

            ·      Date of purchase (or age)

            ·      Current value

            ·      Replacement cost

            Pay special attention to highly valuable items such as electronics, artwork, jewelry, and collectibles.

             

            Storing your home inventory list

            Make sure your inventory list and images will be safe incase your home is damaged or destroyed. Store them in a safe deposit box, at the home of a friend or relative, or on an online Web storage site. Some insurance companies provide online storage for digital files. (Storing them on your home computer does you no good if your computer is stolen or damaged). Once you have an inventory file set up, be sure to update it as you make new purchases.

            We invest a lot in our homes, so it’s important we take the necessary measures to safeguard it against financial and emotional loss in the wake of a disaster.

            Posted on March 19, 2018 at 4:31 pm
            Windermere Community Realty | Category: Finance, Home Improvement

            Oregon and Southwest Washington Real Estate Market Update

             

             

            ECONOMIC OVERVIEW

            The State of Oregon added 30,600 new jobs over the past 12 months, representing an annual growth rate of 1.7%. Although job growth continues to slow, solid gains were still seen in the Construction (+7,400), Education & Health Services (+6,400), and Leisure & Hospitality (+5,200) sectors.

            Oregon’s unemployment rate was in record low territory for all of 2017, diving to 3.6% in May of 2017, before drifting up to 4.2% by November. It is clear that the annual average unemployment rate for the whole of 2017 will be the lowest on record.

            HOME SALES ACTIVITY

            • Fourth quarter home sales dropped by a very modest 1.5% compared to the same period last year, with a total of 15,314 homes sold.
            • Sales rose the fastest in Tillamook County, which saw a 76.2% increase over the fourth quarter of 2016. There were also noticeable sales increases in Cowlitz, Lincoln, Coos, Clatsop, and Crook Counties. Home sales fell the most in Jefferson, Hood River, Skamania, and Yamhill Counties.
            • Year-over-year sales rose in 12 counties, remained static in one, and dropped in the other 13.
            • Although sales were a mixed bag, I still contend that any drop in sales was due to low levels of available inventory rather than declining demand.

            HOME PRICES

            • The average home price in the region rose 7% year-over-year to $363,110. This is down 1.4% from the third quarter of 2017.
            • Tillamook County led the market with the strongest annual price growth. Homes there sold for 22.5% more than a year ago.
            • All counties other than Klickitat, Clatsop, and Lincoln experienced rising prices when compared to the fourth quarter of 2016. The majority of counties saw significant,  double-digit increases.
            • This slowdown in price growth is likely due to buyers feeling priced out of the market.

            DAYS ON MARKET

            • The average number of days it took to sell a home in the region dropped by 7 days from  the fourth quarter of 2016, but was up 13 days from the third quarter of this year.
            • The average time it took to sell a home in the region last quarter was 80 days.
            • Eight counties saw the length of time it took to sell a home rise compared to a year ago, but I still do not see this as troublesome. Listings are scarce during the winter months, and it’s not unusual for buyers to wait until spring in anticipation of more choices in the market.
            • Once again, homes sold the fastest in Washington and Multnomah Counties,  where it took an average of 33 and 34 days, respectively, for homes to sell.

            CONCLUSIONS

            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 continue to benefit greatly from the healthy regional economy.

            The Oregon/Southwest Washington housing market remains fairly strong and, given that inventory levels are unlikely to increase as we head toward the traditionally busier spring market, sellers remain firmly in the driver’s seat. That said, price growth and home sales have slowed, so I am leaving the needle in the same position as last quarter.

            Matthew Gardner is the Chief Economist for Windermere Real Estate, specializing in residential market 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.

            Posted on February 6, 2018 at 12:10 pm
            Windermere Community Realty | Category: Finance, Market Trends, The Gardner Report