The Portland real estate market has always been dynamic, and 2023 is no exception. With its unique blend of urban amenities and natural beauty, Portland continues to attract a diverse range of homebuyers. Whether you're a first-time buyer, a seasoned investor, or someone looking to relocate, understanding the current market trends can help you make informed decisions. Here's what you need to know about the Portland real estate market in 2023.

A Strong Seller's Market

Like many cities across the country, Portland is currently experiencing a strong seller's market. Demand for homes is high, while inventory remains relatively low. This has led to competitive conditions, with many homes receiving multiple offers and selling above their list price. For sellers, this is an opportune time to list your property. For buyers, it's essential to be prepared to act quickly and have your financing in order.

The Rise of Remote Work and Its Impact

The shift towards remote work has had a significant impact on the Portland real estate market. With more people working from home, there's been an increased demand for properties with home offices or extra space. The balance of residential tranquility and proximity to amenities have become particularly attractive. This trend has also expanded the scope of potential homebuyers, with out-of-state professionals now considering Portland as a viable place to live and work remotely.

The Appeal of the Suburbs

While Portland's city center remains popular, there's been a noticeable uptick in interest in suburban areas. Factors such as affordability, larger living spaces, and access to outdoor recreational activities have drawn many homebuyers to suburbs like Beaverton and Lake Oswego. These areas offer a different pace of life while still being within commuting distance to the city.

Sustainability Matters

Portland is known for its commitment to sustainability, and this extends to its real estate market. Energy-efficient homes, properties with solar panels, and homes in walkable neighborhoods are highly sought after. Buyers are increasingly considering sustainability factors in their home purchase decisions, and sellers should take note of this when preparing their homes for sale.

The Importance of a Knowledgeable Real Estate Agent

In a competitive market like Portland's, having a knowledgeable real estate agent is crucial. An experienced agent can provide valuable insights into local market trends, help you navigate the buying or selling process, and advocate for your interests during negotiations.

The Portland real estate market may be dynamic, but with the right knowledge and resources, you can successfully navigate it. Whether you're looking to buy or sell, Pete Anderson Realty is here to guide you every step of the way.

Please note that the information provided in this blog post is based on general market trends and may not reflect the most current local conditions. Always consult with a real estate professional for the most accurate information.

Spring is in full swing, and with it comes the perfect opportunity to clean and refresh your home. Whether you're a seasoned homeowner or a first-time buyer, taking the time to declutter and organize can help you make the most of your living space.

Here are some tips and tricks to help you tackle your spring cleaning checklist:

Start with a plan

Before you dive into cleaning, make a list of the areas you want to focus on. This could include specific rooms, closets, or storage spaces. Having a plan will help you stay organized and focused as you work.

Declutter first

Before you start cleaning, take some time to declutter your home. Go through each room and get rid of anything you no longer need or use. Donate items that are still in good condition, and dispose of anything that's beyond repair.

Clean room by room

Once you've decluttered, it's time to start cleaning. Work on one room at a time, starting at the top and working your way down. This will help you avoid missing any spots and ensure that you're cleaning efficiently.

Tackle the tough spots

Don't forget about those hard-to-reach areas, like the tops of shelves or behind furniture. Use a step stool or ladder to reach high places, and use a vacuum or dusting cloth to clean behind furniture.

Consider updates or renovations

Spring cleaning is the perfect time to think about updates or renovations that could improve your living space. Whether it's a fresh coat of paint, new flooring, or a full kitchen remodel, the experts at Pete Anderson Realty can help you find the perfect solution for your needs and budget.

At Pete Anderson Realty, we're dedicated to helping our clients make the most of their homes. If you're looking to buy or sell a property in the Portland area, contact us today to learn more about our services and how we can help you achieve your real estate goals. Happy spring cleaning!

Portland Neighborhoods

1. Downtown Portland:

Downtown Portland, Oregon is a bustling city center with a unique mix of businesses and attractions. Located in the heart of downtown, you'll find everything from restaurants to shopping to entertainment. It's also home to some of the most popular festivals in the area, such as the Portland Saturday Market and Waterfront Blues Festival. The energy and creativity that can be found throughout downtown make it one of the best places for people who love art and culture. Whether you're looking for a place to eat or an exciting night out on the town, Downtown Portland has something for everyone!

2. Northwest Portland:

Northwest Portland, Oregon is a vibrant and diverse neighborhood located in the heart of the city. It’s one of Portland's most popular neighborhoods, offering an array of shopping, dining and entertainment venues. The neighborhood has something for everyone; whether you're looking for hip boutiques or classic vintage stores, there's something to fit your style. The area is home to some of Portland’s best restaurants and bars. From farm-to-table eateries like Little Bird Bistro to local breweries like Hopworks Urban Brewery – there’s no shortage of places to grab a bite or a brew. There are also plenty of great coffee shops, bakeries and ice cream parlors where you can get your caffeine fix or satisfy your sweet tooth. If you’re looking for culture, Northwest Portland has plenty to offer as well – including art galleries such as Blue Sky Gallery and Disjecta Contemporary Arts Center; performing arts centers such as Newmark Theatre; movie theatres like Cinema 21; bookstores like Powell's City of Books; plus many other attractions that make this part of town so unique!

3. Pearl District:

The Pearl District is an upscale neighborhood with galleries, sidewalk cafes, and trendy shops. It's one of the hipster-friendly areas in Portland. Located just north of downtown Portland and west of the Willamette River, the Pearl District is a vibrant mix of old and new—with warehouses that have been converted into trendy restaurants and art galleries, modern apartment complexes, parks, shops, and more. The area was originally home to many industrial businesses such as canneries and railroads in the late 19th century. Today it is one of the most popular areas for young professionals looking for a unique urban lifestyle. With its easy access to public transportation (including light rail) as well as plenty of bike paths, walking trails, and green spaces to explore all around you—the Pearl District has become known as one of the most walkable neighborhoods in Portland.

4. Alberta Arts District:

This eclectic neighborhood is full of art galleries, vintage stores, and independent coffee shops. It's one of the most creative and diverse neighborhoods in Portland. The Alberta Arts District in Portland, Oregon is a vibrant neighborhood located just east of the Willamette River. It is known for its creative and eclectic vibe, with lots of independent businesses, art galleries, restaurants, and craft breweries. The area has become an increasingly popular destination for locals and visitors alike due to its wide range of activities and amenities. The Alberta Arts District was first established as part of the North East Quadrant Plan in 2000. Since then, it has grown into one of the trendiest neighborhoods in town with an abundance of murals adorning the walls along Alberta Street. The district also hosts several festivals throughout the year including Last Thursday Art Walk on Alberta Street and MusicfestNW each summer. Additionally, there are numerous shops offering unique finds such as vintage clothing stores and antiques shops. Alberta Arts District also features plenty of places to eat including vegan-friendly spots like Bye & Bye Bar or vegan food cart Kati Portland; upscale Mexican restaurants like El Nutri Taco; casual dining favorites like Screen Door; classic diners like Pine State Biscuits; a variety of ethnic cuisine options from Thai to Ethiopian; plus many more. For those looking for entertainment nearby there are many dive bars offering live music alongside some larger venues such as Mississippi Studios or Wonder Ballroom which host national acts regularly throughout the year too! Finally, you'll find local art galleries featuring contemporary works from up-and-coming artists as well as established ones – perfect for getting your culture fix while exploring this exciting neighborhood.

5. Nob Hill:

Nob Hill is home to some of the most expensive houses in Portland. It has plenty of upscale restaurants and trendy bars. The Nob Hill District in Portland, Oregon is a vibrant and diverse neighborhood located just northwest of downtown. It is one of Portland's oldest neighborhoods, featuring tree-lined streets and historical homes as well as numerous shops, restaurants and galleries. The area is known for its unique blend of traditional architecture with modern amenities. Nob Hill has a variety of activities to offer for both locals and visitors alike. Residents can enjoy the many parks in the district such as Chapman Square Park or Irving Park; or take part in community events like the annual Porchfest music festival. There are also plenty of places to shop including boutique clothing stores, eclectic gift shops and art galleries. And if you’re looking to eat out, there are plenty of options available from cozy cafes to trendy bars and bistros. For those who want some outdoor fun, Nob Hill offers easy access to Forest Park which borders the district on three sides; offering miles of trails perfect for hikers, bikers or anyone simply wanting to explore nature up close! Finally if you're feeling lucky - The Nob Hill District also houses two casinos: The Wild Goose Casino & Spirit Mountain Casino - both offering slots games plus table games like blackjack & poker too!

1. Hire a Professional Handyman: Hire a professional handyman to inspect your property for any potential damage and make necessary repairs. Talk to friends and family who have used a handyman in Portland Oregon recently and ask them for recommendations. Make sure to get contact information so you can follow up with any potential leads. Check out websites like HomeAdvisor, Angie's List, Yelp, or Google reviews to read customer ratings and feedback on different local handymen in the area. This will help you narrow down your search and find someone who has good reviews from previous customers. Once you have a few names of possible handymen, call each one and ask questions about their experience level, rates, availability, etc., so that you can make an informed decision about whom to hire for the job. Before hiring a handyman in Portland Oregon it is important to verify that they are licensed and insured by checking with your local state licensing board or insurance department if applicable (for example some states require plumbers or electricians to be licensed). You should also do some basic background checks on any potential hires before committing to working with them such as making sure they don’t have any criminal history or complaints filed against them with the Better Business Bureau (BBB). Finally make sure you get at least two references from past clients so that you can speak directly about their work ethic and quality of service provided

2. Check for Leaks: Inspect the roof and plumbing for leaks to prevent water damage.

3. Insulate Pipes: Insulate all exposed pipes in the crawlspace, basement and attic to prevent them from freezing and bursting.

4. Replace Weather Stripping: Replace any worn out weather stripping around windows and doors to prevent drafts.

5. Clean Gutters: Clean out all the debris from your gutters to prevent water from pooling and causing damage.

6. Disconnect Hoses: Disconnect all hoses from outdoor spigots to prevent them from freezing and bursting.

7. Turn Off Water: Shut off the main water supply to prevent any water damage while the property is unoccupied.

8. Trim Trees: Trim any trees that could cause damage to the property in the event of strong winds.

9. Cover Outdoor Items: Cover any outdoor furniture and equipment with tarps to protect them from the elements.

Will My House Still Sell in Today’s Market?

There’s no denying the housing market is undergoing a shift this season as buyer demand slows and the number of homes for sale grows. But that shift actually gives you some unique benefits when you sell. Here’s a look at the key opportunities you have if you list your house this fall.

Opportunity #1: You Have More Options for Your Move

One of the biggest stories today is the growing supply of homes for sale. Housing inventory has been increasing since the start of the year, primarily because higher mortgage rates helped cool off the peak frenzy of buyer demand. But what you may not realize is, that actually could benefit you.

If you’re selling your house to make a move, it means you’ll have more options for your own home search. That gives you an even better chance to find a home that checks all of your boxes. So, if you’ve put off selling because you were worried about being able to find somewhere to go, know your options have improved.

Opportunity #2: The Number of Homes on the Market Is Still Low

Just remember, while data shows the number of homes for sale has increased this year, housing supply is still firmly in sellers’ market territory. To be in a balanced market where there are enough homes available to meet the pace of buyer demand, there would need to be a six months’ supply of homes. According to the latest report from the National Association of Realtors (NAR), in July, there was only a 3.3 months’ supply.

While you’ll have more options for your own home search, inventory is still low, and that means your home will still be in demand if you price it right. That’s why the most recent data from NAR also shows the average home sold in July still saw multiple offers and sold in as little as 14 days.

Opportunity #3: Your Equity Has Grown by Record Amounts

The home price appreciation the market saw over the past few years has likely given your equity (and your net worth) a considerable boost. Danielle Hale, Chief Economist at realtor.com, explains:

“Home owners trying to decide if now is the time to list their home for sale are still in a good position in many markets across the country as a decade of rising home prices gives them a substantial equity cushion . . .” 

If you’ve been holding off on selling because you’re worried about how rising prices will impact your next home search, rest assured your equity can help. It may be just what you need to cover a large portion (if not all) of the down payment on your next home.

Bottom Line

If you’re thinking about selling your house this season, let’s connect so you have the expert insights you need to make the best possible move today.

7 Costly Mistakes Home Sellers Make (And How to Avoid Them)

No matter what’s going on in the housing market, the process of selling a home can be challenging. Some sellers have a hard time saying goodbye to a treasured family residence. Others want to skip ahead to the fun of decorating and settling into a new place. Almost all sellers want to make the most money possible.

Whatever your circumstances, the road to the closing table can be riddled with obstacles — from issues with showings and negotiations to inspection surprises. But many of these complications are avoidable when you have a skilled and knowledgeable real estate agent by your side.

For example, here are seven common mistakes that many home sellers make. These can cause anxiety, cost you time, and shrink your financial proceeds. Fortunately, we can help you avert these missteps and set you up for a successful and low-stress selling experience.

MISTAKE #1: Setting an Unrealistic Price

Many sellers believe that pricing their homes high and waiting for the “right buyers” to come along will net them the most money. However, overpriced homes often sit on the market with little activity, which can be the kiss of death in real estate — and result in an inevitable price drop.¹

Alternatively, if you price your home at (or sometimes slightly below) market value, it can be among the nicest that buyers see within their budgets. This can increase your likelihood of receiving multiple offers.²

To help you set a realistic price from the start, we will do a comparative market analysis, or CMA. This integral piece of research will help us determine an ideal listing price based on the amount that similar properties have recently sold for in your area.

Without this data, you risk pricing your home too high (and getting no offers) or too low (and leaving money on the table). We can help you find that sweet spot that will draw in buyers without undercutting your profits.

MISTAKE #2: Trying to Time the Market

You’ve probably heard the old saying, “Buy low and sell high.” But when it comes to real estate, that’s easier said than done.

Delaying your home sale until prices have hit their peak may sound like a great idea. But sellers should keep these factors in mind:

1. Predicting the market with certainty is nearly impossible.
2. If you wait to buy your next home, its price could increase as well. This may erode any additional proceeds from your sale.
3. If mortgage rates are rising, your pool of potential buyers could shrink — and you would have to pay more to finance your next purchase.

Instead of trying to time the market, choose your ideal sales timeline. This may be based on factors like your personal financial situation, shifting family dynamics, or the seasonal patterns in your neighborhood. We can help you figure out the best time to sell given your individual circumstances.

MISTAKE #3: Failing to Address Needed Repairs

Many sellers hope that buyers won’t notice their leaky faucet or broken shutters during home showings. But minor issues like these can leave buyers worrying about more serious — and costly — problems lurking out of sight.

Even if you do receive an offer, there’s a high likelihood that the buyer will hire a professional home inspector, who will flag any defects in their report. Neglecting to address a major issue could lead buyers to ask for costly repairs, money back, or worse yet, walk away from the purchase altogether.

To avoid these types of disruptions, it’s important to make necessary renovations before your home hits the market. We can help you decide which repairs and updates are worth your time and investment. In some cases, we may recommend a professional pre-listing inspection.

This extra time and attention can help you avoid potential surprises down the road and identify any major structural, system, or cosmetic faults that could impact a future sale.³

MISTAKE #4:  Neglecting to Stage Your Home

Staging is the act of preparing your home for potential buyers. The goal is to “set the stage” to help buyers envision themselves living in your home. Some sellers opt to skip this step, but that mistake can cost them time and money in the long run. A 2021 survey by the Real Estate Staging Association found that, on average, staged homes sold nine days faster and for $40,000 over list price.⁴

Indoors, staging could include everything from redecorating, painting, or rearranging your furniture pieces to removing personal items, decluttering, and deep cleaning. Outdoors, you might focus on power washing, planting flowers, or hanging a wreath on the front door.

You may not need to do all these tasks, but almost every home can benefit from some form of staging. Before your home hits the market, we can refer you to a professional stager or offer our insights and suggestions if you prefer the do-it-yourself route.

MISTAKE #5: Evaluating Offers on Price Alone

When reviewing offers, most sellers focus on one thing: the offer price. While dollar value is certainly important, a high-priced offer is worthless if the deal never reaches the closing table. That’s why it’s important to consider other factors in addition to the offer price, such as:

●     Financing and buyer qualifications

●     Deposit size

●     Contract contingencies

●     Closing date

●     Leaseback options

Depending on your circumstances, some of these factors may or may not be important to you. For example, if you’re still shopping for your next home, you might place a high premium on an offer that allows for a flexible closing date or leaseback option.

Buyers and their agents are focused on crafting deals that work well for them. We can help you assess your needs and goals to select an offer that works best for you.

MISTAKE #6: Acting on Emotion Instead of Reason

It’s only natural to grow emotionally attached to your home. That’s why so many sellers end up feeling hurt or offended at some point during the selling process. Low offers can feel like insults. Repair requests can feel like judgments. And whatever you do — don’t listen in on showings through your security monitoring system. Chances are, some buyers won’t like your decor choices, either!

However, it’s a huge mistake to ruin a great selling opportunity because you refuse to counter a low offer or negotiate minor repairs. Instead, try to keep a cool head and be willing to adjust reasonably to make the sale. We can help you weigh your decisions and provide rational advice with your best interests in mind.

MISTAKE #7: Not Hiring an Agent

There’s a good reason 90% of homeowners choose to sell with the help of a real estate agent. Homes listed by agents sold for 22% more than the average for-sale-by-owner home, according to a recent study by the National Association of Realtors.⁵

Selling a home on your own may seem like an easy way to save money. But in reality, there is a steep learning curve. And a listing agent can:

●     Skip past time-consuming problems

●     Use market knowledge to get the best price

●     Access contacts and networks to speed up the selling process

If you choose to work with a listing agent, you’ll save significant time and effort while minimizing your personal risk and liability. And the increased profits realized through a more effective marketing and negotiation strategy could more than make up for the cost of your agent’s commission.

We can navigate the ins and outs of the housing market for you and make your selling process as stress-free as possible. You may even end up with an offer for your home that’s better than you expected.

BYPASS THE PITFALLS WITH A KNOWLEDGEABLE GUIDE

Your home selling journey doesn’t have to be hard. When you hire us as your listing agent, we’ll develop a customized sales plan to help you get top dollar for your home without any undue risk, stress, or aggravation. If you’re thinking of buying or selling a home, reach out today to schedule a free consultation and home value assessment.

Sources:

1.     The Washington Post -
https://www.washingtonpost.com/business/2019/07/22/just-because-its-sellers-market-doesnt-mean-you-should-overprice-your-home/

2.     Realtor.com -
https://www.realtor.com/advice/sell/spark-a-bidding-war-for-your-home/

3.     American Society of Home Inspectors - https://www.homeinspector.org/Newsroom/Articles/Before-You-Sell-6-Reasons-to-Get-a-Pre-Listing-Inspection/15766/Article

4.     Real Estate Staging Association -
https://www.realestatestagingassociation.com/content.aspx?page_id=22&club_id=304550&module_id=164548

5.     National Association of Realtors -
https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics

These are can’t-miss, seriously don’t do these mistakes that you can easily avoid when selling your home. 12 Mistakes to Avoid When Selling Your Home Selling your home doesn’t have to be full of missteps and mistakes. Learn from these common mistakes and avoid problems from the moment you put up that For Sale sign! Let’s start with four DON’Ts. Here are four things NOT do when you put your home up for sale:

1. DON’T Get Emotional. Maybe you’ve lived in your house for 25 years and raised your kids there. Maybe you’re moving for a reason that’s inherently emotional or difficult. Maybe you just feel the heightened stress of selling a home and let your emotions into the mix. Do your best to put your emotions on the shelf and be as pragmatic as possible about selling your home.

2. DON’T Set an Unrealistic Price. Pricing your home is one of the first, and most important, decisions you’ll make when listing your home for sale. If you get too caught up in the “what-ifs,” you may set your sights too high and set an unrealistic price. This will mean your home sits on the market longer and can cost more money in the long-run.

3. DON’T Hide Major Problems. A good home inspector will find out all of the issues with your home anyway. Not being forthcoming about known issues will slow the whole process down. You don’t want to have an offer on the table that doesn’t work out because you’ve failed to disclose something or because inspection uncovered something huge.

4. DON’T Wait Until the Last Minute. There are numerous documents you’ll need to have in hand before you can list and sell your home. Don’t wait until the last minute to get your ducks in a row. Everything will go faster and smoother if you have everything you need. Here are some DOs. Not doing these are huge mistakes that home sellers make all of the time. 

5. DO Film Video Walk-Throughs. Especially as virtual home buying becomes increasingly popular, your home will get more views and interaction if you have video walk-throughs. Video tours can usually be filmed by someone who works with your real estate agent. These are compelling and add value to your listing.

6. DO Make Minor Repairs. If you’ve lived in your home a long time (or even if you haven’t), you may have learned to live with squeaky hinges or broken railing. Homebuyers will be turned off by these things, and it’s a lot cheaper to fix them yourself than to have negotiations about the deal.

Want a more tips in a printable guide? Download the pdf here.

The increase in the federal interest rate is the topic du jour. But what does this mean in real terms for the average home buyer and the home market in general?

The US Federal Reserve or ‘the Fed’ is the central bank which loans money to banks and sets the interest rate based on the state of the national economy. Increasing the interest rate discourages spending and keeps the costs of goods and services lower by decreasing demand. An increase in interest rates encourages borrowing and spending which generally stimulates growth.

Interest rates have fluctuated between near zero and highs of over 20 in the last 60 years. Check out the graph below for the context of current federal interest rates.

Federal interest rates directly influence mortgage lender rates. When federal interest rates go up, mortgage lenders increase the rates for their products. Some home loan packages are less impacted by the federal interest rates because they are directly subsidized by the federal government. For instance veteran home loans or first time home-buyer loans have lower rates than conventional loans. 

Compare the above chart with the chart below of average mortgage rates since the 1970’s.

As you can see, mortgage rates and Federal Interest rates are siblings but not twins. This is because mortgage lenders have flexibility to adjust their rates based on the Federal Interest rates, their customer base, and the market.

Mortgage lenders also have an interest in keeping their rates less volatile than Federal Interest rates to prevent shock. 

Let’s look at the difference between a 3% and a 5% interest rate for a conventional 30 year loan with 5% down on a $250,000 home. As you can see from the charts below the monthly payment difference between a 3% and 5% loan is over $200 per month, which almost doubles when looking at a 6% rate. For a homeowner to afford the monthly payment, they will need to have a better income to debt ratio as well as more for down payment.

This could potentially be a great thing for middle income buyers. Even though the interest rates are higher which increases the cost of the loan, there are fewer buyers which means fewer bidding wars. In Beaverton for instance this could knock off an additional $50,000 from the final price of the home!

Let's say you're looking at a $450,000 home at 3.5% with 10% down, you have a loan balance of $405,000. At the 3.5% rate, your monthly payments would be $1819. At 5.75%, today's rates, the same payment would now be $2363, an increase of $545 monthly of $6,538 annually. Here's the advantage, up until the end of May 2022, buyers were bidding anywhere from $20,000 to $80,000 more than asking. By not having to bid $20,000-$50,000 over you'll make up the difference in 4-8 years.