You’re going to think, “typical Realtor.” Maybe you already do.
I thought about not writing this post. But this blog is about my experiences and my opinions so I’m going to share what I’m thinking and it counters most of what the headlines scream today: Homes are selling somewhat fast in Portland.
Ok, that’s a bit misleading. Not all homes, not most homes. Homes that are priced right and “close-in” – those homes.
Perhaps it’s seasonal. This is, after all, the peak buying and selling season for Portland so if it’s going to be hot, now is the time.
I showed a home to a buyer Friday. The house was brand new to the market and in SE Portland’s Clinton neighborhood, near 20th Avenue south of Division Street. Online, it seemed to be priced for its’ condition. By 4pm, there were already five other Realtor business cards on the kitchen counter; showing that the house had already received at least five visits.
The house didn’t work for my buyer, but when we were leaving we ran into another Realtor. I met this Realtor a couple of weeks ago in NE Portland in the Concordia neighborhood. Back then, he and I happened to both be showing the same home at the same time. Anyway, while this other agent was waiting for his client to show up to this new Clinton listing Friday, we talked. He told me that his client had written four offers recently and lost all four homes in multiple offer scenarios. His client’s most recent failed attempt included a situation with three offers on the table (I had seen this house too and knew it was priced well). Because the offers were all similar, the homeowner actually picked the buyer by picking his name out of hat! Geez, what a way to make a life-changing decision. When you start running into the same agents with the same clients looking for the same type of house in the same price range, that tells you something. Plus, there are the homes that have sold in days before my client could schedule time to see them.
Another Realtor in my office is working with clients who are looking for a house in Northeast Portland, close-in, and in the $500s. Over the last two weeks, his clients have lost out on six homes that they’ve liked. Other agents have told me the same thing in the last week and they all have the same thing in common: the homes were close-in, showed well, and most importantly, priced to sell.
Maybe this is all coincidence. Maybe not, but according to the RMLS, inner city homes have continually sold faster than homes in the suburbs. Homes will sell in any market- if the price is right.
By the way, I know this is a buyers’ market. That’s been well documented on this blog and other places, along with the fact that homes sales are down nearly 40% and that prices are down close to 4% from a year ago. Those are serious numbers. I’m just saying that it’s not all doom and gloom. Hope is out there for some sellers. In April, more than 2,000 properties did go under contract.
6 comments:
Houses that are priced right will sell in any market... isn't that always the case? So I have to ask, were these sellers asking for, let's say, 2004-2005 prices, in your experiences?
Bubble head folks believe prices are too high, yes, a general statement. So if these sellers are not asking crazy 2007-2008 prices and the house is in a great location (it's all about location, isn't it!) it's gonna sell. No one is predicting that houses will stop selling.
How is the financing experience going? I have seen three 'sale pending's in my Forest Heights hood go back on the market most likely due to financing since I doubt any of these newer homes would fail inspection.
Anyone care to share their experiences? Is finacing still strict?
i live in inner SE close to tabor.
our neighbor has been trying to sell for 3 months. the house is in great condition with a nice lot and close to mt tabor.
they have dropped it $30,000 , which is about 8% of the original asking price. not bites yet.
there are many more houses in and around mt tabor that have not sold after months of being on the market.
this is neither a buyer's or seller's market. unless you're foreclosure vulture or a short sale freak.
the market just started to add large amounts of inventory. give it a few more months Mr DelSid.
I have to say that in my personal circumstance, what Sid says is true My husband and I had made offers on three homes, and we lost out all three times. These homes were well priced in terms of the current market slow-down--not 2007-08 prices, but slightly lower than the homes that were not selling in this very close-in neighborhood that we were looking in. These homes were priced to sell, and they did-very quickly.
Bearlee, I wouldn’t say the prices were reflective of 2004-2005. Back then these homes definitely would have been less expensive.
Yes, financing is still a major issue. In addition to lenders being extra cautious (which they could have and should have been years ago), mortgage insurance companies are also making it harder for borrowers who don’t have a 20% down payment. I came across a listing in SW Portland’s Burlingame area recently that I had shown a while back. The house was back on the market and I was curious as to why it was BOM. When I read the private Realtor remarks, it read, “BOM due to financing debacle!”
Anonymous #1, thanks for your comment. Mt. Tabor is a great area, but even homes in super locales don’t sell. Perhaps your neighbor’s house was over-priced. It could be a number of factors. I’m just guessing. Maybe it’s just a slow market. My point isn’t that every house close-in sells fast, but that it’s an area of Portland metro where this is happening.
Technically, housing inventory over 5.0 months is a buyers’ market. So I feel safe in standing behind my statement. I will say that despite the high inventory, some Portland sellers have, in general, been resistant to acknowledge it.
We’ll see where the market takes us in a few months. The peak selling season will be over and it will be interesting to see the market conditions.
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Anonymous #2, I feel for you. Hang in there.
I agree completely with Sal's comments. Nice homes that are fairly priced and close-in sell quickly. After looking at 60+ homes over 3 months, my wife and I found that the homes that linger on the market all have at least one thing seriously wrong with them. Bad floorplans. Sloppy re-models. Nasty neighbors.
Many of these houses did seem overpriced. But we wouldn't even want to live in some of these homes for even 20% under asking price!
We finally found the right home for us. Its actually near Tabor. It was only on the market for 8 days before we made our offer!
In a sellers market, buyers have to compromise not just on price but on quality. Now, buyers like me can be picky.
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