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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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Buying or Selling on Mt. Hood?

Friday, June 12, 2020
by Liz Warren

         

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Is It Time to Sell your Mt. Hood Vacation Home?

Wednesday, June 3, 2020
by Liz Warren

                  Is it Time to Sell Your Vacation Home?

     Mt. Hood Vacation Cabin     Mt. Hood Vacation Home
 

The travel industry is one of the major sectors that’s been hit extremely hard by the COVID-19 pandemic. Today, it’s hard to know how long it will take for summer travelers to be back in action and for the industry to fully recover. Homeowners who rent their secondary properties on their own or through programs like Airbnb, which has over 660,000 listings in the U.S. alone, have been impacted in this challenging time. Some of these homeowners are considering selling their vacation homes, and understandably so.

A recent CNN article indicated:

“With global travel screeching to a halt during the pandemic, a number of Airbnb hosts are planning to sell their properties…These desperate moves come as hosts face the possibility of losing thousands of dollars a month in canceled bookings while bills, maintenance costs, and mortgage payments pile up.”

If you’re one of the property owners in this position, you too may be feeling the pain of decreased travel, especially as we prepare for the typical busy summer vacation season. A recent survey notes that 48% of Americans have already canceled summer travel plans due to the current health crisis. In addition, 36% indicated they don’t have vacation plans, and only 16% said they did not cancel their summer travel.

The same survey also asked, “How long will you wait before traveling again?” Not surprisingly, only 29% of respondents are planning to travel within the next 6 months. That means 71% are putting their plans on hold for at least 6 months, or are still unsure about future travel. That can continue to add to the significant income loss that many property renters felt this spring.Is it Time to Sell Your Vacation Home? | MyKCMIf you’re considering selling your rental property, know that there are two key factors indicating that selling your vacation home now may be your best move as a homeowner.

1. Inventory Shortage

The inventory of overall homes for sale is well below the demand from potential buyers, so many eyes may be searching for a home like yours. According to the National Association of Realtors (NAR), total housing inventory, meaning homes available to purchase, is down 19.7% from one year ago (see graph below):Is it Time to Sell Your Vacation Home? | MyKCMInventory across the country continues to be a challenge, with only a 4.1-month supply of listings available at the current sales pace. For a balanced market, where there are enough homes available for interested buyers to purchase, that number would need to bump up to a 6-month supply. This means we don’t have enough inventory for the number of buyers looking for homes, so selling in this scenario is ideal. Buyers are looking now, and some vacation homes make a great primary residence or second home for those eager to escape from more populated urban areas.

2. Home Prices

The lack of inventory is also keeping homes from depreciating in value. Today, prices are holding strong and experts forecast home price appreciation to continue throughout this year. Selling your home while prices are holding steady is a sound business move. You’ll likely have equity you’ve earned working for you as well. If your home has been vacant for the past few months, the forced savings you have built in your equity may help balance out possible rental income loss due to the slowdown in the travel industry.

Bottom Line

We don’t know exactly when heightened summer travel will return or what it will look like when it does. If you’re considering selling your vacation home, let’s connect today to determine your options in the current market.

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Listings and Pending Sales in Portland Metro

Saturday, May 30, 2020
by Liz Warren

Here are some stats showing COVID impact on new listings for the Portland Metro area for 2020 in RED. Prior two years are in green and blue. The second chart is for Pending sales for 2020.

Summer will be the new spring for sales this year. Listings are starting to fill in on Mt. Hood with twenty nine current properties for sale. This is the lowest inventory on the mountain ever!

Three Years of New Listings in Portland Oregon


Pending Sales for Portland Oregon in April 2020

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Buying on Mt. Hood? Take Advantage of Today's Interest Rates

Friday, May 22, 2020
by Liz Warren

Interest Rates Hover Near Historic All-Time Lows [INFOGRAPHIC]

Interest Rates Hover Near Historic All-Time Lows [INFOGRAPHIC] | MyKCM
 

Some Highlights

  • Mortgage interest rates have dropped considerably this spring and are hovering at a historically low level.
  • Locking in at a low rate today could save you thousands of dollars over the lifetime of your home loan.
  • Let’s connect to determine the best way to position yourself for a move in today’s market.
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Summer is the New Spring This Year For Real Estate on Mt. Hood

Thursday, May 21, 2020
by Liz Warren

            

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Mt. Hood Short Term Vacation Rentals

Wednesday, May 20, 2020
by Liz Warren

Here is the latest communication from Clackamas County concerning unincorporated short term vacation rentals:

Yesterday the Board of County Commissioners agreed to delay for six months (until Nov. 17, 2020) any further action on possible regulations for short-term rentals in unincorporated Clackamas County.  The action was taken because of the changed circumstances brought about by the COVID-19 pandemic, including:

  • Almost total loss of revenue for the county’s Tourism Department, which was going to help fund start-up costs for a possible short-term rental registration program
  • Dramatic drop in demand for short-term rentals

 

The status of short-term rentals in the county will continue to be as it has been, with no registration program or specific regulations except for the requirement to pay Transient Lodging Tax to the county's Finance Department (see details here:  https://www.clackamas.us/finance/transient.html) .  On November 17, the Board of Commissioners will again discuss the issue of possibly regulating short-term rentals based on the situation at that time.

 

Regulations as currently drafted will remain on the website at www.clackamas.us/planning/str.  We will notify you when this issue is brought before the Board again or if there are other changes.  For more information, contact Senior Planner Martha Fritzie at [email protected].

 

Thank you for your interest.  Take care.

 

Ellen Rogalin, Community Relations Specialist

Clackamas County Public & Government Affairs

Transportation & Development | Business & Community Services

503-742-4274  | 150 Beavercreek Road, Oregon City, OR 97045

Office hours:  9 am – 6 pm, Monday-Friday

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Mt. Hood Real Estate Sales April 2020 stats

Wednesday, May 13, 2020
by Liz Warren

The final numbers for April 2020 sales are out from RMLS. Take a look at these recent numbers:

Mt. Hood Real Estate Sales for April 2020 from RMLS

April had 31 active listings on the market. I've never seen this little inventory on the market in the past 35 years.  Pending sales have dropped 42% for April. For 2020 the cumulative pending sales are down just a tad under 17%.  April saw a total of 8 sales. On the plus side there are currently 21 pending sales that should be closing eventually. 

I know credit is tightening so a good credit score is a must in order to buy in this market. Many lenders are cutting out home equity loans which cuts off a good source of down payments and cash for buyers. It will be interesting to see what effect this tightening of credit will do to our market. All indications are that we will continue with a strong seller's market at this time and hopefully with some opening up we will see more properties hit the market. 

 

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The Economic Impact for Buying a Home on Mt. Hood

Monday, May 11, 2020
by Liz Warren

           

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The Big Question for Mt. Hood Buyers and Sellers In Today's Market

Monday, May 11, 2020
by Liz Warren

Will Home Values Appreciate or Depreciate in 2020?

Will Home Values Appreciate or Depreciate in 2020? | MyKCM
 

With the housing market staggered to some degree by the health crisis the country is currently facing, some potential purchasers are questioning whether home values will be impacted. The price of any item is determined by supply as well as the market’s demand for that item.

Each month the National Association of Realtors (NAR) surveys “over 50,000 real estate practitioners about their expectations for home sales, prices and market conditions” for the REALTORS Confidence Index.

Their latest edition sheds some light on the relationship between seller traffic (supply) and buyer traffic (demand) during this pandemic.

Buyer Demand

The map below was created after asking the question: “How would you rate buyer traffic in your area?”Will Home Values Appreciate or Depreciate in 2020? | MyKCMThe darker the blue, the stronger the demand for homes is in that area. The survey shows that in 34 of the 50 U.S. states, buyer demand is now ‘strong’ and 16 of the 50 states have a ‘stable’ demand.

Seller Supply

The index also asks: “How would you rate seller traffic in your area?”Will Home Values Appreciate or Depreciate in 2020? | MyKCMAs the map above indicates, 46 states and Washington, D.C. reported ‘weak’ seller traffic, 3 states reported ‘stable’ seller traffic, and 1 state reported ‘strong’ seller traffic. This means there are far fewer homes on the market than what is needed to satisfy the needs of buyers looking for homes right now.

With demand still stronger than supply, home values should not depreciate.

What are the experts saying?

Here are the thoughts of three industry experts on the subject:

Ivy Zelman:

“We note that inventory as a percent of households sits at the lowest level ever, something we believe will limit the overall degree of home price pressure through the year.”

Mark Fleming, Chief Economist, First American:

“Housing supply remains at historically low levels, so house price growth is likely to slow, but it’s not likely to go negative.”

Freddie Mac:

“Two forces prevent a collapse in house prices. First, as we indicated in our earlier research report, U.S. housing markets face a large supply deficit. Second, population growth and pent up household formations provide a tailwind to housing demand.”

Bottom Line

Looking at these maps and listening to the experts, it seems that prices will remain stable throughout 2020. If you’re thinking about listing your home, let’s connect to discuss how you can capitalize on the somewhat surprising demand in the market now.

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