Trulia Portl…, Home Buyer in Portland, OR

Would you describe Portland currently as a Buyer's Market, Seller's Market or a Balanced Market?

Asked by Trulia Portland, Portland, OR Mon Apr 1, 2013

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10
Definitely a seller's market! I had a listing two weeks ago that had 6 offers and went sale pending immediately for over asking price. I took a listing last week and had a full price offer the second day. The buyer only allowed a 3 hours seller response time, knowing if it didn't get under contract right away another offer would come in.

As an agent, I have changed the way I do business. When meeting with a buyer for an initial consultation, I let them know up front that there is low inventory so they may very well end up in a multiple offer situation and even have to pay more than asking price to get the home they want.

I advise sellers that we are listing at a price that is fair market value but that we may get multiple offers right away. That doesn't mean that we have listed too low. If we list it over fair market value, it may not appraise out because the appraiser is going to be looking at the same comparable homes that we are.

Hopefully with spring here, we will be taking more listings so our buyers don't have to deal with the stress of a multiple offer situation.

With 18 years in the industry, this is definitely one of the more interesting markets I have seen!
1 vote Thank Flag Link Mon Apr 1, 2013
Tamara couldn't have said it any better. Lets have admin close up the thread now o_0
Flag Mon Apr 1, 2013
Portland is definitely a sellers market. The reason being is that the inventory simply can't hold up to the amount of buyers there are out there. Buyers do have an advantage personally due to low interest rates and overall market return. Though, the sellers still win due to multiple offers and bidding wars. Prices for homes in Portland are holding strong and slowly rising. It's a great city to be in and is in the top ten cities in the nation to live a green life in. Inventory will continue to be a struggle to keep up because more people want in than out.
0 votes Thank Flag Link Sun Apr 21, 2013
Inventory just hit June 2006. Prep up the market of 06 with the understanding that buyers won't be reckless as learned during the crash of 07-08.
0 votes Thank Flag Link Fri Apr 12, 2013
Sellers. My last listing received 10 offers in 2 days. How can that not be a seller's market? Prices are still not at 2006 levels, but they are fast approaching.
0 votes Thank Flag Link Fri Apr 12, 2013
Seller's. With low inventory, buyer's who have to, are paying list price. That being said, they aren't going nuts and paying anything for a home since we have been down that road before. Appreciation, as we learned in 2005-2006, is not guaranteed forever.
0 votes Thank Flag Link Thu Apr 11, 2013
Sorry, forgot to add something that will not make me popular. The market is NOT healthy by any stretch of the imagination but to be fair---we should define healthy. The current market is certainly 'different' and troubling. Shoot me for that.
0 votes Thank Flag Link Mon Apr 1, 2013
Its all three. I evaluate homes for lenders who are considering working with defaulted owners, actually foreclosing, or have taken homes back and are marketing them. I do this all day long seven days a week and could be a blind taxi driver from all of it. The media in most states would have the sheep---I mean people believe that the market is up up up and we are coming up out of our problems. Pure hogwash. Initiallly increasing sales and in some cases equity started when cheaper, small homes and greatly increasing rents crossed on the graph to be profitable rentals. Investors came out of the woodwork and number of sales and then some equity increased.

Most real estate people do not know that now huge money concerns are making offers to the banks holding all the bad loans and already owned foreclosures, (Called REO or Real Estate Owned) to BUY THEM ALL. Huge money wants to own hundredsd of thousands of homes. Why? To keep as rentals!! They can but for cents on the dollar and rents are increasing by the minute. Why are rents increasing? Millions of EX home owners who now have to rent. Its a perfect storm for big, cash players. Heavyu returns from the rent income out perform other methods of investing plus all real estate 'MAY' go up later. Look at some other countries where most people rent instead of own. Values are not up crazily like they did here during the fake mortgage period.

I used to say "As long as they keep making babies but dont expand the earth" meaning values would have to always increase in the long run but its no longer true.

SO. Parts of Portland are up. Parts are neutral./ Parts are not only still depressed but they are going to drop more. Why? Hours of story short here is an example. You want to buy a house listed at $100,000. It has a loan on it of $120,000 and was purchased in 2004 for $180,000. Why is it listed at $100,000 now? Because after things dropped year after year, thatrs what its now worth according to recently sold homes around it. Those finally came down enough for Joe and Jane American to afford now that people actually have to qualify for a loan! Ok, you offer $92,000 and the lender takes it. Why the loss? Because the owner can possibly start a suit to stop normal foreclosure due to MERS or other factors, and give the lender no choice but a judicial (or court trial type) foreclosure. That costs MONEY! It can cost 30,000 or more to the lender who can sue you but wont get squat if you declare bankruptcy. What just happened? The entire neighborhood just dropped $8,000 in value. Now another short sale or reo comes up and its listed lower due to that sale, and the same thing happens. In some areas its reversed as the rents went up and we see over bids. And in some very small spotty areas, expensive properties are on the increase but very FEW. If an area had been one million bucks a house but dropped to 400,000 then sat around 60% depressed, eventually those with money who have to buy no matter what the economy is doing will realize they can get a 1,000,000 place for 400K or so and may get into a bidding war with a few other buyers. Nowthen---the big numbers about which the press spins? If we had been selling 1,000 houses a month in a certain area, than dropped to ONE house a month for a year, but last month sold TWO houses---isnt that a 100% increase?! HA HA So its not the percentage but the actual numbers that one must consider.

Most real estate people I know have many buyers and not enough properties to sell. That has to be analyzed. Yes, they are having some bidding wars. Most of these buyers are uninformed and think that buyiung a short sale means STEALING a property. Nope, nope nope. They are buying a property at is TRUE CURRENT value, just not what its value used to be. And, there are not zillions of short sales in the market. As I said, lenders are holding onto them and would rather get them back with full foreclosure or deed in lieu, etc. No lenders really want to do loan modifications and help owners stay put. NONE OF THEM---loan mods are a pathetic scam and the lenders and government officials in on it should be put away, but thats another story. I gave the short sale decreasing value example above to show what HAD been happening. The lenders are now nasty and make it very hard for buyers and agents. I am seeing values go up in some areas but in TINY amounts, Even as low as fifty bucks over asking. Buyers do that to beat out the many house hunting investors who still try to beat the prices down with lowball offers.

Getting a good deal now is a science. What the future of any property will be is part of that science. It may be a good deal now but terrible later or the opposite. Its sure a totally new game with new rules. Take any media coverage with a grain of salt. When rents reach their maximum and Joe and Jane can no longer afford it, rental profit will stop at certain house values. That will be the top of the market, PERIOD
0 votes Thank Flag Link Mon Apr 1, 2013
No problem Goneolives. It gets me in trouble all the time, lol
Flag Fri Apr 12, 2013
Thanks for your honesty, Marvin.
Flag Sun Apr 7, 2013
In general the market has tipped to the sellers side and in the most desired areas and lower price points the market hugely favors sellers with multiple offers and over asking prices. But there are still some price points and areas that are pretty balanced and a few that have low demand favoring buyers. I am facing this question more and more with sellers who have heard the market is skyrocketing and they are looking to list at a premium price - it is just not across the board.

Buyers and sellers need to look at their local market and price point and then evaluate what is happening with an experienced agent who can get them through all the noise. The market is healthy and by all accounts will continue positive strides in the near future.

As a seller set your price based on sales, your unique home and location and the trending patterns in your community. Buyers be prepared to bring your "A" game to the buying process to stay focused and ahead of the competition to achieve your goals. For all - Look Forward to your unique needs:)

A really good agent is a valuable asset in any market, but critical today to get you into the deal (buyers & sellers) and keep you there. Personally, I am delighted to be busier than ever.
0 votes Thank Flag Link Mon Apr 1, 2013
From my experience I would say it is currently a seller's market. However, sellers are still concerned about comparing their original purchase price with today's market price. The few that are selling will likely receive multiple offers on their home if priced reasonably.
0 votes Thank Flag Link Mon Apr 1, 2013
According to housing inventory stats, a balanced market is 6 months of inventory. Average inventory levels in the Portland Metro area are much lower, which puts the market as a seller's market. However, it is still a great time for buyers since prices are still very low and interest rates are also low at the same time!

Mandy Lewis
http://www.PDXRockstars.com
503-522-5803
0 votes Thank Flag Link Mon Apr 1, 2013
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