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Mt. Hood Housing Recovery

Wednesday, August 19, 2020
by Liz Warren

Just How Strong Is the Housing Recovery?

Just How Strong Is the Housing Recovery? | MyKCM
 

The residential real estate market has definitely been the shining light in this country’s current economic situation. All-time low mortgage rates coupled with a new appreciation of what a home truly means has caused the housing market to push forward through this major health crisis. Let’s look at two measures that explain the resilience of the real estate market.

Purchase Mortgages

The number of buyers getting a mortgage to purchase a home is a strong indicator of the strength of a housing market. Below is a graph of the week-over-week percent change in that number, as reported by the Mortgage Bankers’ Association:Just How Strong Is the Housing Recovery? | MyKCMThe number dropped dramatically in March and mid-April when the economy was shut down in response to COVID. It increased substantially from later in April through the middle of June. The strong increase in May and June was the result of the pent-up demand from earlier in the spring along with the normal business that would have been done during that time.

Since July, the market has remained consistent on a weekly basis, but still reflects a double-digit increase from the levels one year ago. The August 12 report shows a whopping 22% increase over last year.

Pending Contracts

Like purchase mortgages, pending contracts are also a powerful indicator of the strength of the real estate market. Zillow reports each week on the percent change in the number of homes going into contract. Here’s a graph of their data:Just How Strong Is the Housing Recovery? | MyKCMThe graph mirrors the one above, showing a drop in early spring followed by a strong recovery in late spring and early summer. Then, in July, it settles into a consistent level of deals. That level, like the one for purchase mortgages, is well ahead of the level seen last year. The last report revealed that pending deals were 16.9% greater than the same time last year.

Bottom Line

Both indicators prove the housing market recovered quickly from the early setback caused by the shelter-in-home orders. They also show that Americans have realized the importance of their homes during this time and are buying more houses than they did prior to the pandemic.

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Summer Sales for Mt. Hood and the US.

Monday, August 10, 2020
by Liz Warren

             

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What Experts Are Saying About Today's Real Estate Market

Saturday, August 8, 2020
by Liz Warren

           

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Mt. Hood Sales Surge This Summer

Thursday, July 30, 2020
by Liz Warren

Wow! If there ever was a great time to sell, this is it. Buyers are moving out of the city and second home buyers are on the prowl for an easy to get to getaway! 

 

          

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New Residents Moving to Mt. Hood

Thursday, July 30, 2020
by Liz Warren

Will We See a Surge of Homebuyers Moving to the Suburbs?

Will We See a Surge of Homebuyers Moving to the Suburbs? | MyKCM
 

As remote work continues on for many businesses and Americans weigh the risks of being in densely populated areas, will more people start to move out of bigger cities? Spending extra time at home and dreaming of more indoor and outdoor space is certainly sparking some interest among homebuyers. Early data shows an initial trend in this direction of moving from urban to suburban communities, but the question is: will the trend continue?

According to recent data from Zillow, there is a current surge in urban high-end listings in some larger metro areas. The month-over-month increase in these homes going on the market indicates more urban homeowners may be ready to make a move out of the city, particularly at the upper end of the market (See graph below):Will We See a Surge of Homebuyers Moving to the Suburbs? | MyKCM

Why are people starting to move out of larger cities?

With the ongoing health crisis, it’s no surprise that many people are starting to consider this shift. A July survey from HomeLight notes the top reasons people are actually moving today:

  1. More interior space
  2. Desire to own
  3. Move from city to suburbs
  4. More outdoor space

More space, proximity to fewer people, and a desire to own at a more affordable price point are highly desirable features in this new era, so the list makes sense.

John Burns Consulting notes:

“The trend is accelerating faster than anyone could have predicted. The need for more space is driving suburban migration.”

In addition, Sheryl Palmer, CEO of Taylor Morrison, a home building company, indicates:

“Most recently, we’re really seeing a pickup in folks saying they want more rural or suburban locations. Initially, there was a lot of talk about that, but it’s really coming through our buyers today.”

The National Association of Home Builders (NAHB) also shares:

“New home demand is improving in lower density markets, including small metro areas, rural markets and large metro exurbs, as people seek out larger homes and anticipate more flexibility for telework in the years ahead. Flight to the suburbs is real.” 

Will the shift pick up speed and continue on?

The question remains, will this interest in suburban and rural living continue? Some, like Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) think the possibility is there, but it is still quite early to tell for sure. Yun notes:

“Homebuyers considering a move to the suburbs is a growing possibility after a decade of urban downtown revival…Greater work-from-home options and flexibility will likely remain beyond the virus and any forthcoming vaccine.”

While much of the energy behind this trend has largely been accelerated by the current health crisis, monitoring the momentum over time is critically important. Businesses are discovering new and innovative ways to function in remote environments, so the shift has the potential to stick. Much like the economic recovery, however, the long-term impact may hinge largely on the health situation throughout this country.

Bottom Line

Early data is showing a shift from urban to suburban markets, but keeping an eye on this trend will help us understand how it will ultimately play out. It may just be a temporary swing in a new direction until Americans once again feel a sense of comfort in the cities they’ve grown to love.

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Is This A Good Time To Buy Or Sell on Mt. Hood?

Friday, July 24, 2020
by Liz Warren

                

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Is it Time to Sell Your Property on Mt. Hood?

Friday, July 24, 2020
by Liz Warren

Thinking of Selling Your House? Now May be the Right Time

Thinking of Selling Your House? Now May be the Right Time | MyKCM
 

Inventory is arguably the biggest challenge for buyers in today’s housing market. There are simply more buyers actively looking for homes to purchase than there are sellers selling them, so the scale is tipped in favor of the sellers.

According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), total housing inventory is down 18.8% from one year ago. Inventory is well below what was available last year, and the houses that do come to the market are selling very quickly.

Sam Khater, Chief Economist at Freddie Mac notes:

“Simply put, new housing supply is not keeping up with rising demand. We estimate that the housing market is undersupplied by 3.3 million units, and the shortage is rising by about 300,000 units a year. More than half of all states have a housing shortage.”

Why is inventory so low?

There are many reasons why it’s hard to find a home to buy today, stemming from an undersupply of newly constructed homes to sellers pressing pause on their moving plans due to the current health pandemic. One of the key factors making it even more challenging, however, is the amount of time current homeowners are staying in their homes. There has truly been a fundamental shift in the market that started about 10 years ago: people are staying put longer, and it’s contributing to the shortage of houses for sale.

In the 2019 Profile of Home Buyers and Sellers, NAR explained:

“In 2019, the median tenure for sellers was 10 years…After 2008, the median tenure in the home began to increase by one year each year. By 2011, the median tenure reached nine years, where it remained for three consecutive years, and jumped up again in 2014 to 10 years.”

As shown in the graph below, historical data indicates that staying in a home for 5-7 years used to be the norm, until the housing bubble burst. Since 2010, that length of time has trended upward, toward 9-10 years, largely due to homeowners aiming to recoup their equity:Thinking of Selling Your House? Now May be the Right Time | MyKCMThankfully, with the strength the market has gained over the last 10 years, today’s homeowners are in a much better equity position. Now is a fantastic time for homeowners who are ready to make a move to break the 10-year trend and sell their houses, especially while buyer demand is so high and inventory is so low. It’s a prime time to sell.

In addition, with today’s historically low interest rates, there’s an opportunity for sellers to maintain a low monthly payment while getting more house for their money. Think: move-up opportunity, more square footage, or finding the features they’re really looking for rather than doing costly renovations. With more new homes poised to enter the market this year, homeowners ready to make a move may have a golden opportunity to do so right now.

The Mt. Hood area has only 30 active listings! Take away three forest cabins on leased land and four mobile homes with monthly rents at the Mt. Hood RV Village gives us 23 deeded properties for sale today! Multiple bids are common place these days so it has never been a better time to put your property on the market!

Bottom Line

There are simply not enough houses for sale today. If you’re ready to leverage your equity and sell your house, let’s connect today. It’s a great time to move while demand for homes to buy is extremely high.

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Still Creek Cabin in the Mt. Hood National Forest

Friday, July 17, 2020
by Liz Warren

        Still Creek Cabin in the Mt. Hood National Forest

Here's a great gem in a secluded location in the Mt. Hood National Forest near Rhododendron Oregon. Open floor plan with everything you need in your getaway. Two bedrooms upstairs and one is a bunk room! The master has its own deck that looks out over the woods. Modern kitchen with a dishwasher too. Laminate flooring. Comfortable covered porch in case there's a sprinkle or two plus a big spacious deck with benches on the back side. Steps to two premium swimming holes on kid and dog friendly Still Creek. Shared gated driveway to the cabin. Mountain bikers will enjoy the trek up to Trillium Lake. Only about 30 minutes to Mt. Hood for the only summer skiing in Oregon!   $235,000

Still Creek Cabin Living Room           Open floor plan in a Still Creek Cabin

Still Creek in the Mt. Hood National Forest with a great swimming hole

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Time to Sell Your Mt. Hood Property?

Thursday, July 9, 2020
by Liz Warren

Best Time to Sell? When Competition Is at an All-Time Low

Best Time to Sell? When Competition Is at an All-Time Low | MyKCM
 

In a recent survey of home sellers by Qualtrics, 87% of respondents said they were concerned their home won’t sell because of the pandemic and resulting economic recession. Of the respondents, 51% said they are “seriously worried.” That concern seems reasonable considering the current condition of the economy. The data, however, is showing that home purchasers are still very active despite the disruptions American families have experienced this year.

The latest Existing Home Sales Report published by the National Association of Realtors (NAR) revealed that 340,000 single-family homes sold in this country last month. NAR’s most recent Pending Sales Report (homes going into contract) surpassed last month’s number by over 44%, which far exceeded analysts’ projections of 15%. ShowingTime reported that appointments to see homes (both virtually and in-person) have increased in every region of the country and are up 21.4% nationwide over the same time last year.

While buyer activity is surging, the number of listings has fallen to an all-time low. Zelman Associates, in their latest residential real estate report, revealed that housing inventory as a percentage of households has fallen to 1.2%, which is half of the long-term average and lower than any other time in our history.

Bidding Wars Heating Up Again

With buyer demand growing and the supply of available homes shrinking, purchasers are again finding themselves needing to outbid other buyers. NAR, in a recent blog post, revealed:

“On average, there were about three offers on a home that closed in May, up from just about two in April 2020 and in May 2019 (2.3 offers).”

Bidding wars guarantee houses sell quickly at a price near or even slightly over the listing price.

The Mt. Hood Market has only twenty seven properties for sale as of today! There are only fifteen homes on the market under $400,000! In thirty five years I have never seen such a low inventory. 

Bottom Line

If you’re thinking of selling, don’t be concerned about putting your house on the market right now. There’s no better time to sell an item than when demand for it is high and supply is low. It is exactly at that time when you will negotiate your best possible deal.

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Craftsman 1920's Mt. Hood home on nearly Half Acre

Sunday, June 28, 2020
by Liz Warren

You will love this refurbished 1920's craftsman style cabin on nearly a half acre of land near Brightwood.  Vaulted ceilings and wood beams in the great room complete with stone fireplace. Wood floors and updated windows makes for a cozy getaway or for full time living. Master bedroom has it's own sitting porch! Second bedroom is spacious with barn doors and tons of light. 

The kitchen has everything you would need. The bathroom is huge with walk in shower and laundry area too. 

Completely landscaped with two new patios and fire pit. Seller added an outbuild too. Kids will love the yard and there's plenty of parking too. 

Just down the road is the Mt. Hood National Forest and Sandy Ridge Mountain Biking Park. $420,000.

Mt. Hood Craftsman Style Two bedroom cabinMt. Hood Craftsman style living room                Bedroom in 1920's cabin


 

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Displaying blog entries 491-500 of 1876

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