Suburban Homebuyer Demand Surges 42% Over Pre-Covid Levels

1299 NW McDaniel Rd, Powell Butte, OR 97753
Presented by Robin & Greg Yeakel | Offered at $2,950,000 | MLS# 220131797

From Forbes

Where buyers go shopping for a home shifted during the onset of the coronavirus pandemic given the rise of remote work as well as affordability concerns. For many Americans, the change could have lasting implications.

As employers firm up future work plans to include flexibility and give many Americans confidence in buying a home farther from the office, a new Realtor.com report shows suburban housing demand is heating up.

The number of suburban home shoppers has surged 42.1% since the onset of the pandemic and took a 24% bigger share of September Realtor.com views than listings in urban areas. While suburban housing is still relatively affordable compared to expensive urban areas, buyer demand is shrinking the home price gap down to just 7% from 10% in 2019.

Danielle Hale, Realtor.com’s chief economist, explained that the suburbs have always attracted buyers looking for more house for their money, but recent data reflects just how much suburban competition has intensified.

“With the rise in long-term remote work options and downtown rents making a rapid comeback, suburban versus urban housing dynamics are shifting,” she said, adding: “From inventory to time on market, recent data shows suburban buyer activity has accelerated at a faster pace than in urban areas.

“Notably, the price premium is shrinking between notoriously expensive urban housing and suburban for-sale homes, typically known for more bargains. Buyers can still get more bang for their buck in the suburbs, but affordability is increasingly a consideration in many markets. As the Covid recovery continues and home prices remain near record-highs, whether the suburban versus urban gap in housing costs keeps closing will be an important factor to watch.”

Hale noted that it’s crucial to remember that the right place to live is going to be different for everyone.

“Even though trends are pushing more and more home shoppers to consider the suburbs for the value, space and peace and quiet that they offer, some shoppers—accounting for 38% of recent home listing views—still prefer to live in urban areas,” she said.

Hale added, “Whether it’s a preference for being close to the office or enjoying the restaurants, nightlife and other culture that is found in urban areas, some will continue to opt for smaller space at home. For those who prefer the urban lifestyle, homes are still pricier on a per-square-foot basis, but the size of the premium is decreasing. In other words, it still costs more per square foot to live in the city, but the gap is shrinking.”

Full article on Forbes

Sales of Existing Homes Rise Slightly as More Listings Finally Hit the Market

2090 Roberts Mountain Rd, Roseburg, OR 97470
Presented by Maria Abarca Roberts | Offered at $3,500,000 | MLS# 21363285

From cnbc.com

After four straight months of declines, sales of previously owned homes rose 1.4% in June month to month to a seasonally adjust annualized rate of 5.86 million units, according to the National Association of Realtors.

These sales represent closings, so they are based on contracts signed in April and May.

Sales were 22.9% higher compared with June 2020. That annual comparison, according to the Realtors, is still slightly skewed due to Covid pandemic lockdowns in certain parts of the country that lasted into summer last year.

The inventory of homes for sale at the end of June was 1.25 million, representing a 2.6-month supply at the current sales pace. That is a slight improvement from May’s 2.5-month supply.

“We may have turned a corner on inventory,” said Lawrence Yun, NAR’s chief economist. “There is some softening in the demand.”

Low inventory continues to put pressure on prices. The median price of an existing home sold in June hit an all-time high of $363,300. That was 23.4% higher than the price in June 2020. Much of that gain, however, is skewed due to the types of homes that are selling. Sales of homes priced between $100,000 and $250,000 fell 16% annually. Sales of homes priced between $750,000 and $1 million jumped 119%.

“At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year,” Yun said. “Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.”

Price gains could start to cool. New listings spiked 9% last week, compared with the same week one year ago, according to Realtor.com. Inventory saw its 15th straight week of tapering declines.

“Although more sellers entered the market last week, homebuyers may understandably feel frustrated with the continued shortage of affordable homes for sale,” said Danielle Hale, Realtor.com’s chief economist, in a release. “The uptick in new listings offers a ray of hope for buyers trying to find a home and lock in still-low mortgage rates. With the public widely in agreement that now is a good time to sell, we may see even more new sellers in the coming weeks and the end of inventory declines before we finish out the year.”

Mortgage rates in April and May, when these contracts were signed, were slightly lower than in March. They moved within a very narrow range during the months, so they would likely not have played a role in prompting buyers to get in or pull out of the market.

Buyers are also seeing more competition from investors. They represented a 14% share of all sales, compared with just 9% one year ago. In addition, all-cash purchases, which are largely investors, rose to 23% of sales, up from 16% one year ago.

Full article at cnbc.com

Average Home Sale Price Hits All-Time Record

1745 NW 38th Ave, Camas, WA 98607
Presented by Connor Zuvich | Offered at $1,125,000 | MLS# 21257898

From housingwire.com

The median home sale price increased 16% year-over-year to $331,590 – an all-time high, per a report this week from Redfin. But that’s not stopping buyers from snatching up homes days after they’re listed.

During a four-week period ending March 21 and covering 400 metros, 58% of homes that went under contract had an accepted offer within the first two weeks on the market. And between March 14 and March 21, 61% of homes sold in that timeframe had been on the market two weeks or less, and 48% had sold in one week or less.

And offers are coming in well-above asking price, too. Nearly 40% of homes sold above their list price – another all-time high – and 15 percentage points higher year-over-year. The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, increased to 100.2%.

This is concerning for experts, though, many of whom believe home prices will remain high even after mortgage rates, inventory, and building material costs recover to pre-pandemic levels. Rates are already above 3% – after falling into the 2% range during the majority of 2020 – but construction companies are still struggling to keep up with insane lumber prices, stifling new builds.

National Association of Home Builders Chairman Chuck Fowke recently noted that supply shortages and high demand have caused lumber prices to jump “about 200%” since April 2020, and the elevated price of lumber is adding approximately $24,000 to the price of a new home.

“When the pandemic is over, purchasing a home is going to cost much more than ever before, putting homeownership much further out of reach for many Americans,” said Daryl Fairweather, Redfin chief economist. “That means a future in which most Americans will not have the opportunity to build wealth through home equity, which will worsen inequality in our society.”

Fairweather noted that President Joseph Biden’s hopeful $3 trillion infrastructure plan includes building 1.5 million sustainable homes, but there is no guarantee the bill will be “passed with every policy proposal intact.”

“America needs an audacious goal to increase the housing supply, given the U.S. is short 2.5 million homes,” she said. “It may be expensive to build millions of homes, but ignoring the problem would only cause housing to become more unaffordable and worsen housing insecurity.”

The best chance at home prices lowering is the continued rollout of the COVID-19 vaccine, experts said, which will allow lumber mills to reopen and material prices to lower. Builders will then be spending less on new builds, which will help the backlogging of inventory.

Full article on housingwire.com

Baby Boomers Are the Richest Home Sellers

19305 Hill Top Rd, Lake Oswego, OR 97034
Presented by The McCartan Group | Offered at $1,375,000 | MLS# 20599321

From REALTOR® Magazine

Baby boomers tended to make up the majority of sellers last year—at 43%—and they also saw the highest profits, too.

Overall, home sellers of all age groups who sold their homes last year saw a median gain of $66,000 more than what they originally purchased for—a $6,000 increase compared to the previous year. But for sellers ages 66 to 74, they saw a median gain of $100,000 in equity, according to the National Association of REALTORS®’ “2021 Home Buyer and Seller Generational Trends” report.

“In a real estate market that is tipped in favor of sellers, boomers and older homeowners are really the ones holding the cards,” says Danielle Hale, realtor.com®’s chief economist.

As the housing market surges, homeowners who’ve been in their homes the longest tend to see the highest profits at resale. Younger baby boomers (those between the ages of 56 to 65) tended to live in their homes a median of 14 years whereas older segment of baby boomers (those between the ages of 66 to 74) had lived in their homes a median of 16 years, according to NAR’s report. The median tenure in a home for the overall population is 10 years.

The primary reason baby boomers cited for selling their home: To purchase a similarly sized home closer to family members and friends. The second most popular reason to sell was to downsize.

The following is a chart broken down by age group of the median equity earned on a home recently sold, according to NAR’s report.

Full article on REALTOR® Magazine

U.S. Property Prices Have Soared Since Covid-19 Struck One Year Ago

3761 NW Devoto Ln, Portland, OR 97229
Presented by Debra Sabatino | Offered at $1,850,000 | MLS# 20270152

From Mansion Global

The housing market bounced back quicker than other parts of the economy, according to realtor.com

Median home prices in the U.S. have risen 14.3% since the World Health Organization declared Covid-19 a pandemic a year ago, according to a report Thursday from realtor.com.

The push for more space and a desire for affordable homes has led to a quick recovery for the country’s property market, according to realtor.com’s chief economist Danielle Hale.

“The housing market bounced back so much faster than other sectors of the economy that many have forgotten that housing activity slowed to a crawl during the early days of the pandemic,” she said in a statement. “One year later, the demand for housing remains strong, while supply remains limited.”

Indeed, as of the week ending March 7, new listings had fallen 27% compared to the same time last year, the data showed. Total inventory dropped 51% in the same time period, and there are nearly 500,000 fewer homes on the market than there were in March 2020.

Across the U.S., 32 of its 50 markets have surpassed realtor.com’s recovery benchmark in the week ending March 6. The greatest recovery has been registered in the cities of Austin, Denver, Riverside, Portland and Phoenix.

Limited supply, low mortgage rates and the continued demand to get out of cities has also meant homes are selling an average of six days faster than they did last year, the report found.

“In an environment where the number of homes listed for sale is limited and affordability is becoming more of a concern for many, the competition to find the home of your dreams is greater than ever,” said realtor.com CEO David Doctorow in a statement.

However, that could change soon.

“The housing market’s lopsided momentum could ease in the coming months,” Ms. Hale predicted in the report. “We expect the vaccine’s rollout to alleviate some sellers’ anxieties, which could help the supply crunch. At the same time, although interest rates remain low, they’ve begun to increase, which could test buyer demand in the coming months.”

The report did not break down the market by price point.

Full article on Mansion Global

WalletHub names Bend 2nd fastest growing city in the US

61794 Tam McArthur Loop Bend, OR 97702
Presented by Tebbs & Little Group | Offered at $3,899,000 | MLS# 220102501

From Central Oregon Daily

According to WalletHub’s recent report on 2020’s Fastest Growing Cities in America, Bend ranked second next to Fort Myers, FL.

WalletHub is a personal finance website that compares 515 US cities across 17 key metrics to determine where the most rapid local economic growth occurred over a period of seven years.

The factors considered in the release of this report ranges from population growth to college-educated population growth to the unemployment rate decrease.

Furthermore, WalletHub produced a separate ranking by city size.

Bend topped the report’s rankings for “mid-sized” cities, ahead of Meridian, Idaho, Enterprise, Nev. and Frisco, Texas.

Economic Growth in Bend (1=Fastest-Growing; 258=Avg.):

  • 11th – Population Growth
  • 43rd – Median Household Income Growth
  • 1st – Job Growth
  • 263rd – Poverty Rate Decrease         
  • 10th – Regional GDP Growth
  • 163rd – Unemployment Rate Decrease
  • 1st – Growth in Number of Businesses
  • 11th – Working-Age Population Growth
  • 87th – Median House Price Growth

Full article on Central Oregon Daily

Cascade Sotheby’s International Realty Tops Market Share in Cannon Beach

CANNON BEACH, OR. (August 13, 2020) — Two recent oceanfront sales in Cannon Beach increased Cascade Sotheby’s International Realty market share to 26%, ranking as top firm in Cannon Beach by sales volume from January through July.

Within the first month of joining the firm, broker Jenny Rapp brought the buyer for 158 N Larch Street, a captivating oceanfront home listed by real estate veteran Sally Conrad. The home sold for $2,195,000 on July 31st.

“I attended a special open house hosted by Sally Conrad. She made sure we met the builder who explained the unique aspects of the construction. Having this detailed knowledge of the home was key as I described it to a customer who walked into our Gearhart office.” Jenny Rapp explained. “Having the stories to share about the history of the home helped my client feel connected to the property right away.”

On June 30th, another oceanfront home listed by Sally Conrad, 288 W Gulcana Ave, sold for $1,895,000. Located on the north end of quiet Tolovana Park, this exceptional home has both ocean and mountain views.

Cascade Sotheby’s International Realty boasts dedicated divisions serving Farm, Ranch and Vineyard and new development properties. The firm continues its innovative approach and continues to build upon these statistics:

  • 350 brokers;
  • 15 offices serving The Pacific Northwest;
  • $1.7 billion sales volume in 2019 – a company record.
  • 2X amount of sales volume generated versus the nearest competitor in Central Oregon
  • 51% market share growth in Portland Metro in 2019 over 2018;

•     49 brokers increased their business by at least 50% in 2019.

The firm’s affiliation with Sotheby’s International Realty offers a global referral network with over 23,000 sales associates in 1,000 offices, located in 70 countries. In 2019, $114B in sales was generated worldwide. The Sotheby’s International Realty network and effective advertising programs allow properties in Oregon and SW Washington to be thoughtfully marketed into key buyer feeder markets that include cities in California, Washington, and Arizona.

Unique Open House | Breakaway Lodge

Nestled in the heart of historic Gearhart, just blocks from the beach. Rare opportunity to own a charming and spacious property in a choice location. Operated as a lodge/retreat center the past fifty years, this unique, well-maintained facility on a prime lot is ready for your vision. Potential uses include nonprofit or corporate camps/retreats, school, daycare or private residence. Eleven sleeping rooms can be left alone or reconfigured to make a spacious master suite and guest rooms. Two private bathrooms accompany two communal ones, which have the possibility for spa-like features. Use the commercial-style kitchen as is or turn it into a culinary playground. A large dining hall features one of the two gas fireplaces. Garage has a carpeted room above for added use options.

This is the perfect family compound for generations to come. Consider shared ownership as well. Endless possibilities…just bring your ideas!

History:

 The Breakaway Lodge has been owned and operated by Young Life as a camp/retreat for the past 50 years. The Lodge was purchased in 1969 from the Episcopal Church of Oregon. The church had used the building as an educational retreat for young people. Originally known as The Convent of St. Margaret’s by the Sea, it was built in 1924 by the Society of Sisters of Holy Names. Each summer, the sisters traveled by train from Portland to Gearhart to stay at the retreat for a period of about ten days throughout the summer. The convent closed down each winter.

Located on the North Coast of Oregon, the lodge sits on a half-acre total acreage for this property, as the sale includes two tax lots is actually .92 acres, so just shy of an acre not a 1/2 acre in the middle of the small beach community of Gearhart. Access to the rugged and beautiful Oregon Coast and its sandy beaches is just a short walk away. The beach communities of Seaside and Cannon Beach are in close proximity and are used extensively by groups and for program activities. Accented by large decks and terraced gardens, the lodge has developed into a highly desirable retreat center. There is an outdoor, sand volleyball court, an outside basketball court, and an outdoor octoball courts – so 3, outdoor courts.  

For more information and details about The Breakaway Lodge or to set up a private showing, please contact Nicki Whittle or Sally Conrad or visit www.cascadesothebysrealty.com

Bend Office Updates

A Fun Place To Work 

This week’s sales meeting for our Bend brokers kicked off with a hotly contested costume competition. The costumes encompassed a vast variety of genres and styles. We saw everything from a surprisingly accurate depiction of a Mesozoic era dinosaur to a domesticated take on Stephen King’s beloved and feared character, Pennywise. The competition was not at all half-hearted but turned rather fervid as brokers were clamoring for the top spots. The vote came down to the wire, but ultimately, Dinosaur Skeleton ‘she’s shorter in person’ Stephanie Ruiz walked away with the coveted victory. 2nd place went to Michelle Anderson and Jaquie Sebulsky with the Huffman & Loughlin ‘too soon?!’ costume followed closely by Brandi Wanker’s Mime, ‘use your words!’ outfit.

Agents of Change

The Scotch Award

After the costume contest, Northwestern Home Loan’s Matthew Bassitt presented Caleb and Ellie Anderson with the “Keeper of the Scotch Coin Award” for the month of November. The inscription on the award reads as follows: “The Keeper of the Scotch Coin represents a commitment made to saving a solider’s life. For the month it hangs on this wall, a warrior suffering from post-traumatic stress will have the opportunity to participate in the Save a Warrior Program because of this business’s generous donation of $2,500. This pledge takes place each month of the year, and started September of 2016 at The Scotch Golf Tournament”. For information about how to get involved or to learn more about The Scotch Award, please visit https://warriorimpact.org/.

Keeping Our Brokers Well Informed

COAR Guest Speaker

Tyler Neese, the Government Affairs Director at COAR, was the featured guest speaker. Tyler updated the group on new policies being implemented throughout Oregon. He talked about the ‘Road to 3000’, which is a new Bend City Council goal of adding 3,000 new housing units by June 2021. Tyler also educated the group on the new Bend Climate Action Plan and Mandatory Energy Audits, which is just a reflection of the same Portland policies that were adopted 2 years ago. For more information about the new policies, please visit COAR’s Government Affairs page.

New Office Now Open in NorthEast Portland

On Thursday, October 24th, we celebrated the opening of our 15th office in Oregon and SW Washington. Collaboration with our brokers has been the essential ingredient for our growth to 325 brokers. We are the 11th largest Sotheby’s affiliate in the world in 2018 as well as being ranked the number 1 brokerage firm in Oregon by the number of transactions. We provide exceptional service to buyers and sellers in all price ranges. Please contact one of our market-savvy brokers to help you achieve your real estate objectives.

Cascade Sotheby’s International Realty continues its innovative approach to uniting extraordinary lives with extraordinary homes building on these statistics:

  • 325 brokers
  • 15 offices in Oregon and SW Washington
  • 2X market share in Central Oregon than nearest competitor
  • $1.5 billion company-wide sales volume in 2018

Cascade Sotheby’s affiliation with Sotheby’s International Realty offers a distinctive advantage to reach an affluent global audience. With over 20,000 sales associates in approximately 960 offices and 72 countries and territories, and 108 billion in sales, the Sotheby’s network provides a profound international reach to market properties in Oregon and SW Washington.

www.CascadeSothebysRealty.com