Tag Archives: portland oregon

Nearly One Quarter of 2017 Home Sales Were Above the Asking Price

The typical price increase for homes that sold above the listed price was 3.1 percent

By Jeff Sorg, OnlineEd Blog

(January 12, 2018)

canstockphoto24925640 price value(SEATTLE, Jan. 11, 2018 /PRNewswire/) — Buyers paid more than the asking price in nearly one quarter (24 percent) of U.S. home sales in 2017, netting sellers an additional $7,000 each. Five years ago, 17.8 percent of final sale prices were higher than the asking price, according to a new Zillow® analysis.

Over the past year the American housing market has been struck by the combination of strong demand and limited supply. Young adult renters are increasingly feeling confident enough to buy, but they are entering a market with very few homes for sale, as inventory has been steadily declining for almost three years. Low-interest rates have buoyed buyers’ budgets, raising the limits on what they can afford – and may be willing – to pay.

Homes sell quickly in such a competitive market, with the typical U.S. home selling in 80 days, including the time it takes to close on the sale. In San Jose, San Francisco and Seattle, the average home sells in less than 50 days. Fierce competition means buyers may not win a home on their first offer. The typical buyer spends more than four months home shopping and has to make multiple offers before an offer is accepted, according to the 2017 Zillow Group Consumer Housing Trends Report.

“Low-interest rates and strong labor markets with high-paying jobs have allowed home buyers in some of the country’s priciest housing markets to bid well over asking price,” said Zillow Senior Economist Aaron Terrazas. “In the booming tech capitals of the California Bay Area and Pacific Northwest, paying above list price is now the norm. In the face of historically tight inventory, buyers have had to be more aggressive in their offers. We don’t expect this inventory crunch to ease meaningfully in 2018, meaning buyers will be facing many of the same struggles this year.”

In San Jose, Calif., San Francisco, Salt Lake City and Seattle, more than half of all homes sold last year went for above the list price. The average home sold above list in San Jose netted sellers an additional $62,000, the largest difference between list and sale price of the metros analyzed.

Over the past five years, Seattle saw the greatest increase in the share of sales that were above the asking price, from 20 percent of home sales in 2012 to 52 percent of sales in 2017. The amount over asking price grew as well, from 2.5 percent to 5.3 percent above the listed price.

Miami homes were least likely to sell for more than the listed price last year, followed by Virginia Beach and New Orleans.

Metropolitan Area Share of Sales
Above List
Price – 2012
Share Of Sales
Above List
Price – 2017
Median Amount
Paid Over List
Price – 2017 (%)
Median Amount
Paid Over List
Price – 2017 ($)
United States 17.8% 24.1% 3.1% $7,000
New York / Northern
New Jersey
6.8% 20.2% 3.3% $12,000
Los Angeles, CA 27.0% 37.5% 2.6% $14,100
Chicago, IL 13.1% 18.5% 2.6% $5,100
Dallas, TX 35.0% 38.9% 5.7% $12,023
Philadelphia, PA 6.1% 16.8% 2.4% $5,100
Houston, TX 27.2% 32.6% 5.0% $9,796
Washington, DC 18.8% 25.4% 1.9% $6,100
Miami, FL 19.0% 11.8% 4.2% $9,100
Atlanta, GA 19.3% 19.6% 2.4% $5,000
Boston, MA 13.4% 40.6% 3.7% $15,001
San Francisco, CA 43.0% 64.5% 6.0% $41,000
Detroit, MI 22.6% 24.0% 2.8% $5,000
Riverside, CA 32.8% 28.8% 1.8% $5,100
Phoenix, AZ 29.0% 16.0% 1.8% $3,600
Seattle, WA 20.3% 52.4% 5.3% $20,100
Minneapolis, MN 16.3% 35.3% 3.0% $6,100
San Diego, CA 24.4% 32.1% 2.1% $10,100
Saint Louis, MO 13.5% 26.2% 4.3% $6,748
Tampa, FL 13.5% 15.6% 2.7% $5,000
Baltimore, MD 10.0% 19.5% 2.2% $5,100
Denver, CO 17.9% 39.5% 2.9% $10,000
Pittsburgh, PA 7.6% 13.7% 2.7% $4,100
Portland, OR 19.6% 41.0% 3.1% $10,100
Charlotte, NC 9.4% 27.0% 2.7% $5,000
Sacramento, CA 34.6% 41.2% 2.5% $9,000
San Antonio, TX 38.9% 42.2% 5.8% $10,913
Orlando, FL 22.3% 16.9% 2.6% $5,000
Cincinnati, OH 9.3% 16.4% 2.3% $3,500
Cleveland, OH 8.6% 18.8% 3.2% $4,300
Kansas City, MO 31.5% 37.8% 4.4% $7,500
Las Vegas, NV 31.4% 25.4% 2.2% $5,000
Columbus, OH 10.1% 32.9% 3.0% $5,100
Indianapolis, IN 34.5% 24.4% 4.1% $5,846
San Jose, CA 49.1% 68.5% 6.8% $62,000
Austin, TX 36.3% 32.7% 6.3% $15,311

Zillow is a registered trademark of Zillow, Inc.

SOURCE Zillow

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Home Values Rise for 48th Straight Month – Portland, OR Tops List at 14.7%

 Portland, OR reported the highest year-over-year home value appreciation

By Jeff Sorg, OnlineEd Blog

rising housing prices 1(August 18, 2016) –  National home values appreciated for the 48th straight month this July to a Zillow Home Value Index (ZHVI) of $187,300, according to the Zillow® Real Estate Market Reports.

Home values are up 5 percent over the past year and have been consistently climbing since August 2012, but remain 4.7 percent below peak, which was hit in April 2007 when the median home value was $196,600.

Portland, Dallas, and Denver reported the highest year-over-year home value appreciation among the 35 largest metros across the country. In Portland, home values rose almost 15 percent to a median value of $334,900. Home values in Dallas and Denver appreciated 11.9 and 11.3 percent, respectively.

In notoriously expensive San Francisco, home values have been slowing since the beginning of the year. In January, home values were up almost 12 percent year-over-year and are now appreciating at about half that pace, up 6.6 percent over the past year.

“The consistent rise in home values that we’ve been seeing for the past four years masks a number of region-specific trends that have taken place over the past few months,” said Zillow Chief Economist Dr. Svenja Gudell. “In most areas, the market is being driven mainly by a strong labor market and tight supply, especially among entry-level homes that first-time buyers are after. But some markets – especially the red-hot Pacific Northwest – are adding more jobs and attracting more residents, putting the pressure on home values and rents. The Bay Area and Southern California are still growing at a faster pace than the nation as a whole, but growth rates have come back to earth a bit after several years of rapid growth. And markets in other regions, like the Northeast, keep steadily chugging along. All housing is local, and as the local economies in individual metros ebb and flow, housing will follow suit. More than at any time since the boom and bust, we’re seeing a housing market that is driven by local fundamentals, and not by national trends.”

Rents across the country rose 2 percent over the past year, to a Zillow Rent Index(ZRI) of $1,408 — this is the 47th straight month rents have appreciated.

Of the 35 largest U.S. metros, Seattle, Portland and San Francisco reported the highest year-over-year rent appreciation. In Seattle, rents rose almost 10 percent, to a median rent price of $2,052 per month, while rents in Portland rose just over 8 percent.

In San Francisco, the median rent price rose to $3,407 per month, the second highest of all U.S. metros, right after San Jose, CA. Rents in San Francisco appreciated 6 percent over the past year.

Metropolitan Area Zillow Home Value Index (ZHVI) Year-Over-Year ZHVI Change  Peak ZHVI Change from Peak Zillow Rent Index (ZRI) Year-Over-Year ZRI Change
United States $           187,300 5.1% $      196,600 -4.7% $         1,408 2.2%
New York/Northern New Jersey $           387,800 3.4% $      445,200 -12.9% $         2,411 3.2%
Los Angeles-Long Beach-Anaheim, CA $           572,400 5.3% $      604,000 -5.2% $         2,585 4.7%
Chicago, IL $           199,800 4.0% $      247,000 -19.1% $         1,645 0.3%
Dallas-Fort Worth, TX $           191,500 11.9% $      191,500 0.0% $         1,543 4.0%
Philadelphia, PA $           209,200 3.0% $      230,600 -9.3% $         1,582 2.0%
Houston, TX $           173,500 7.6% $      173,500 0.0% $         1,581 1.5%
Washington, DC $           368,600 1.7% $      427,600 -13.8% $         2,123 0.7%
Miami-Fort Lauderdale, FL $           237,300 9.3% $      305,100 -22.2% $         1,887 4.8%
Atlanta, GA $           167,300 7.5% $      174,500 -4.1% $         1,311 3.9%
Boston, MA $           396,300 5.8% $      396,300 0.0% $         2,308 4.5%
San Francisco, CA $           807,800 6.6% $      807,800 0.0% $         3,407 6.2%
Detroit, MI $           128,300 6.2% $      157,100 -18.3% $         1,175 2.8%
Riverside, CA $           311,700 7.1% $      403,900 -22.8% $         1,738 4.0%
Phoenix, AZ $           221,900 8.0% $      273,600 -18.9% $         1,298 4.8%
Seattle, WA $           394,600 11.3% $      394,600 0.0% $         2,052 9.9%
Minneapolis-St Paul, MN $           228,400 6.2% $      240,500 -5.0% $         1,541 3.0%
San Diego, CA $           513,600 5.4% $      543,700 -5.5% $         2,424 5.0%
St. Louis, MO $           143,100 5.0% $      158,900 -9.9% $         1,135 1.5%
Tampa, FL $           168,800 9.4% $      214,200 -21.2% $         1,332 3.7%
Baltimore, MD $           253,000 2.8% $      289,100 -12.5% $         1,735 1.0%
Denver, CO $           339,600 11.3% $      339,600 0.0% $         2,013 5.1%
Pittsburgh, PA $           131,000 4.7% $      131,000 0.0% $         1,113 1.8%

Portland, OR

$           334,900

14.7%

$      334,900

0.0%

$         1,772

8.2%

Charlotte, NC $           163,400 6.8% $      163,400 0.0% $         1,240 2.3%
Sacramento, CA $           343,000 7.0% $      420,800 -18.5% $         1,675 5.6%
San Antonio, TX $           152,900 6.6% $      152,900 0.0% $         1,318 1.5%
Orlando, FL $           187,500 7.8% $      256,200 -26.8% $         1,370 3.2%
Cincinnati, OH $           144,700 4.9% $      144,700 0.0% $         1,241 0.4%
Cleveland, OH $           128,800 3.5% $      145,400 -11.4% $         1,148 1.6%
Kansas City, MO $           150,000 5.2% $      159,500 -6.0% $         1,240 2.7%
Las Vegas, NV $           204,700 7.2% $      304,700 -32.8% $         1,238 2.6%
Columbus, OH $           156,900 3.6% $      156,900 0.0%

(Article source: Zillow®)

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Zillow® is a registered trademark of Zillow, Inc.

For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

OnlineEd® is a registered Trademark

Oregon Law Prohibits Rent Control

“The imposition of rent control on housing in the State of Oregon is a matter of statewide concern.”

By Jeff Sorg, OnlineEd Blog

for rent(February 12, 2016) – There has been a lot of talk about rent control in Portland, Ore.  However, the Oregon legislature has found that the imposition of general restrictions on housing rents will disrupt an orderly housing market, increase deferred maintenance of existing housing stock, lead to abandonment of existing rental units and create a property tax shift from rental-owned to owner-occupied housing and has made it illegal for rent control within the state.  And on the Portland Housing Bureau web site, the City posts, “The City of Portland doesn’t have any legal authority to regulate private market rents. Rent Control, a tool used in other cities to cap how much private owners can increase rents, is prohibited by Oregon state law.”

It’s a complicated issue and one that’s not going to be easily solved. While we surely haven’t heard the end of this argument, here’s current Oregon law:

ORS 91.225
Local rent control prohibited
• exclusions
• exceptions

(1) The Legislative Assembly finds that there is a social and economic need to insure an adequate supply of affordable housing for Oregonians. The Legislative Assembly also finds that the imposition of general restrictions on housing rents will disrupt an orderly housing market, increase deferred maintenance of existing housing stock, lead to abandonment of existing rental units and create a property tax shift from rental-owned to owner-occupied housing. Therefore, the Legislative Assembly declares that the imposition of rent control on housing in the State of Oregon is a matter of statewide concern.
(2) Except as provided in subsections (3) to (5) of this section, a city or county shall not enact any ordinance or resolution which controls the rent that may be charged for the rental of any dwelling unit.
(3) This section does not impair the right of any state agency, city, county or urban renewal agency as defined by ORS 457.035 (Urban renewal agencies) to reserve to itself the right to approve rent increases, establish base rents or establish limitations on rents on any residential property for which it has entered into a contract under which certain benefits are applied to the property for the expressed purpose of providing reduced rents for low income tenants. Such benefits include, but are not limited to, property tax exemptions, long-term financing, rent subsidies, code enforcement procedures and zoning density bonuses.
(4) Cities and counties are not prohibited from including in condominium conversion ordinances a requirement that, during the notification period specified in ORS 100.305 (Conversion condominium), the owner or developer may not raise the rents of any affected tenant except by an amount established by ordinance that does not exceed the limit imposed by ORS 90.493 (Prohibited acts following notice of conversion to condominium).
(5) Cities, counties and state agencies may impose temporary rent controls when a natural or man-made disaster that materially eliminates a significant portion of the rental housing supply occurs, but must remove the controls when the rental housing supply is restored to substantially normal levels.
(6) As used in this section, dwelling unit and rent have the meaning given those terms in ORS 90.100 (Definitions).
(7) This section is applicable throughout this state and in all cities and counties therein. The electors or the governing body of a city or county shall not enact, and the governing body shall not enforce, any ordinance, resolution or other regulation that is inconsistent with this section. [1985 c.335 §2; 2007 c.705 §3]

 

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

 All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.