Real Estate Broker, Licensed in the State of Oregon
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Spring has Arrived! So has the Buying/Selling Season.
Spring is hands-down one of the most popular times of year to buy or sell a home. With the weather warming up and people flocking outdoors, to the school year coming to an end, spring tends to be the time when the housing market rises. “Spring” in the real estate world starts in January – right after the holidays conclude – and peaks around mid-May. That doesn’t mean that there are no houses that sell during the summer, fall or winter months, but typically it does mean that more houses are on the market and more home buyers are looking to make a purchase.
Spring is one of the busiest times of year for the housing market. Does that mean it’s the best time of year for home buyers and sellers to enter the housing market? There are 4 key factors to consider when deciding to buy or sell a home in the spring.
- Home buying costs continue to rise
Between April 2016 and 2017 there was nearly a 12% increase in median house value across the state of Oregon. In comparison, the national average for this same 12-month period was 7.3%. Although house price appreciation is expected to slow slightly nationally, housing analysts expect home values in Oregon to continue to rise by 2%-3% extending through the spring of 2018. Those looking to buy a home in the next year should keep in mind that postponing their purchase may cost more money in the long run. Looking back at the first five months of 2017, the average rate for a 30-year fixed mortgage loan actually dropped from 4.2% in January 2017 to 3.95% in May 2017. Looking towards the spring of 2018, some real estate experts anticipate a gradual rise in mortgage rates (ref. 1). At Cascade Sotheby’s International Realty, our real estate experts understand that the best time to buy or sell a home is when the client feels confident in entering the housing market.
- Does weather play a role in the home buying and selling process?
After months of cold rain and snow, the sunshine and blossoms of spring are a blissful reprieve. As the weather gets warmer and drier, all key measures of housing activity spike. This includes an increase in searches, prices, starts, sales, and inventories, which tend to hit their annual lows in December (ref. 2). In January there are almost half the number of home buyers than in June (ref. 3). Starting in January, potential buyers begin their search, with search behavior peaking throughout March/April and staying high until August. In Oregon, June, July and August are the hottest months for online house hunting, based on a search traffic survey conducted from 2007-2012. In fact, 49 out of 50 states are 10% above their annual average in search traffic from March through July. Depending on where the transaction takes place, it’s important to be aware of the local market’s peak housing activity times. Home sellers may want to list during peak search times, while home buyers may prefer to search during off-peak times for a less competitive home buying experience (ref. 2).
- Gaining a competitive edge during the buying/selling process
Spring is largely regarded as the best time to enter the housing market, which also means that there is an increase in market competition during that time. With more people looking to buy, the market becomes more competitive. As a home seller, spring provides an opportunity for more interest in your property, although listing your house in late spring will also result in higher inventory levels (ref. 2). Winter home buyers will find lower home prices and less competition, although they will only see 79% of the housing inventory that home buyers see in the spring. However, a low inventory of homes may mean home buyers will spend more time shopping for the home of their dreams (ref. 3).
- Entering the housing market with a purpose
No matter the season, there are life events that require a home buying or selling experience. But for home buyers who aren’t influenced by a major life event, spring’s essence of new beginnings can inspire new transactions. “Spring” in the real estate world occurs from roughly January to July. Real estate and home building experts explain that an emphasis on the spring home buying season has its roots in practical reasons. For example, it fits nicely with the school calendar, allowing for a smooth transition when moving with kids.
As a home seller during spring, its crucial to identify less focused buyers who are just out to browse. Although the spring air may boost the attendance at an open house, the number of serious home buyers may still be limited. Whether buying or selling a home, in many cases, the best way to determine when to begin the process is to decide on the end date. On average, it takes about 30 days to close a sale. If taken into account the time it will take to find a dream home, a home buyer could easily be looking at 60-90 days going through the home buying process. If time is a factor, begin with an end-date in mind and work backwards from your date set goal (ref. 3).
Developing a solid understanding of some of the factors that play a role in the housing market will help home buyers and sellers choose the right time of year to enter the housing market. Spring may be the most common time of year for house shopping, with high levels of search activity, warmer and drier weather, and a potentially more competitive sale prices, but homes are sold year-round. Keep in mind that shopping for a home in the spring will lead to more competition with other buyers and potentially higher housing prices, while shopping during the winter months might bring you a better price on the property, but less inventory to choose from. If you have questions, don’t hesitate to contact a real estate expert at Cascade Sotheby’s International Realty.
1. Shane, Michael. Sammamish Mortgage. “Outlook: Oregon Home-Buying Costs Expected to Rise Into 2018.” 31 May 2017. Web. 20 April 2018
2. Kolko, Jed. Citylab. “The Best Time to Look for a House, By State.” 30 Jan 2013. Web. 20 April 2018
3. Umberger, Mary. NewHomeSource. “When is the Best Time to Buy a New Home?” Web. 20 April 2018
Five Predictions for the Real Estate Market for the Remainder of 2018
Home ownership, once a staple of the “American Dream” has hit a resurgence the past several years. Favorable market conditions, such as low interest rates, increased housing starts and a generally strong economy have spurred robust interest in the real estate market. As we continue into 2018, forecasters point to several factors which may negatively impact decision-making. Most recently, fluctuations in the stock market, signs of higher interest rates, along with a change to the allowable mortgage interest deduction, could all play a significant role.
The market throughout the Pacific Northwest, specifically the Portland, Oregon region, has been extremely active in the last few years. Unfortunately, that growth is expected to slow in 2018, down 3-5%. Much will be dependent on affordability of a neighborhood and some are showing lower appreciation growth than in previous years. Factors predicted to affect Portland home buyers and sellers are low inventory, slow economic growth and rising mortgage rates. In other areas, such as the resort town of Bend, located in Central Oregon, brokerage firms such as Cascade Sotheby’s International Realty, have experienced record growth. In fact, as part of their expansion strategy, the firm has concentrated efforts throughout Portland, the Oregon Coast and SW Washington.
Take a look at several possible scenarios that could have consequence on the market.
1) Affordability pressure plagues slower market growth. Available inventory of homes, actually considered affordable on a median income, has been in steady decline. Experts predict that inventory will recover slightly, up 1.7% year over year, after falling about 3.4% in 2016. Predictions also suggest that median home sale prices will increase 5.3% year over year while existing home sales are forecast to increase 2.8% in 2018.
2) The average number of days a home spends on the market will be the lowest on record. In 2016, the average home spent only 52 days on the market, the shortest since 2009. Due to low home inventory over the last several years, in particular, with entry level homes in certain markets, homes have had offers within only 6 days of being listed. In addition, transactions have become less time consuming and drastically more efficient due to new technologies, resulting in making the home buying process easier.
3) Anticipate a minimal increase in mortgage rates. Industry experts predict that 30-year-fixed mortgage rates will rise to 4.3% next year. The 30-year-fixed mortgage rate has already increased from 3.5% at the end of 2017 to just above 4%. Wall Street’s optimism is said to be in response to the economic proposals from the White House and the Federal Reserve’s interest rate hike earlier this year.
4) Everyone can get a home loan – for now. A positive credit score will go a long way in this market. Some financial institutions have introduced mortgage down payments of as little as 1-3% of the home’s purchase price. However, an immaculate credit history is often necessary to be eligible. Last year, government-sponsored Fannie Mae and Freddie Mac awarded considerable larger mortgages for the first time since the 2006 financial crisis. In fact, loan limits saw an increase from $417,000 to $424,1000 in many regions.
5) There’s still an ongoing housing shortage in many regions. It’s no secret that in 2018 there is a serious shortage of affordable housing across the entire country. It’s a combination of construction slow-downs, mortgage rate increases, and so much more. Little is predicted to change in the near future. Population growth has dramatically outpaced new construction and the industry is having difficulty in keeping up with demand. Ironic, considering new home building remains has encountered a slowdown.
What does this all equate to when influencing our decision-making regarding the market? Mortgage rates should remain for the immediate future and continue to promote confidence in the home buying sector. The advice of most industry professionals, though, is to act now, to capitalize on advantageous conditions before inevitable changes in the market climate begins to take effect.
Have You Heard of a Backyard Kitchen Garden?
A backyard kitchen garden involves raised beds where you can grow your own produce.
Personally, I have five raised garden beds and grow all types of lettuce, tomatoes, summer squash and zucchini, strawberries, green onions, nasturtium (the flowers are edible and look incredible on platters of salad!), radishes, and much more.
Spring is right around the corner. I spent last weekend at the garden center to purchase high-quality soil for my raised beds. That way, I’m ready the minute seeds are ready to go into the ground.
Not only is keeping a kitchen garden healthy, but it’s relaxing and fun too! When I need vegetables for the evening meal, I simply walk out my backdoor.
It’s low maintenance and light work. Once the seeds are planted, you simply wait for them to grow. At the end of the season, into late fall, you clean up your garden and put it to bed until next spring.
I would love to help you find a house where you can grow your own vegetable garden and have your own chicken coop. Please take a look at the below pictures of my very own kitchen garden! Call me at 541.639.5551!
Fresh Backyard Eggs are in Season in Sisters, Oregon
Spring in Central Oregon is right around the corner! Did you know that in many neighborhoods in Sisters, Oregon, you can raise your own backyard chickens? I personally have 4 chickens – Scarlett, Begonia, Dixie and Chick! I love my chickens! And they give me 4 eggs a day! I could sell my eggs but I give my extra eggs to all my friends and family – there is nothing like the look on the faces of your friends and family when you give them fresh-from-your-backyard beautifully-colorful eggs!
This spring, I’m going to get a couple of chicks – the true sign that spring has arrived in Central Oregon! When I first got chickens, I thought it was going to be challenging, but quite the opposite. It’s fun and highly rewarding! It’s a genuine gift to visit the chicken coop each morning to find warm, fresh-laid eggs.
Have you ever eaten warm eggs from your very own backyard chick coop? If you haven’t, you’re missing out. No store-bought eggs compare.
I can help you find a neighborhood in Sisters, or for that matter in Central Oregon, that you too can raise your own beautiful chickens! Please take a look at the below pictures of my very own chickens! Call me at 541.639.5551!
LIVE HERITAGE IN WHYCHUS CREEK
Your best life begins with a home that inspires you, like one with spectacular views of Whychus Creek. Beautiful Whychus Creek (which looks and feels like a river) runs right through the lovely town of Sisters, Oregon – and there are still a few parcels of land available on which to build your home! A creekside home will be perfect for your cozy country lifestyle. View the land options available below. To schedule a private tour, contact Kimberly Gorayeb.
380 SOUTH TIMBER CREEK DRIVE
390 SOUTH TIMBER CREEK DRIVE
400 SOUTH TIMBER CREEK DRIVE
1036 EAST CREEKSIDE COURT
Live a Golfer’s Paradise – Aspen Lakes
If you’re idea of paradise is to tee up on the weekends, then we’ve found your dream home. Hit the green anytime when you live on one of Oregon’s favorite golf courses: Aspen Lakes Golf Course.
This beautiful home is located just outside Sisters, Oregon. Cook a warm dinner for your family in the gourmet kitchen, complete with stainless steel appliances.
Relax in one of the four large bedrooms, or in your office or great room next to the wood burning fireplace. Share a drink with your friends after the green in the wet bar.
Aspen Lakes offers many amenities, including a 28,000 square foot club house featuring a full-service pro shop, bar and restaurant, Brand 33. Swim a few laps in the pool then relax at the pool house. Or, get some exercise at the tennis courts, basketball courts, or one of the best golf courses you can play.
Aspen Lakes Golf Course features bi-leveled grass tees and all-weather tees, including six target greens and their famous red sand traps. Enjoy 11,000 square feet of putting greens to perfect your craft.
Aspen Lakes Golf Course has been called “a hidden gem” and the “best course you can play.” Located in Sisters, Oregon, this property is close to hiking, biking, art galleries, shopping, music, craft beer, and plenty of natural beauty while also remaining private and quiet.
Hidden Secret of Central Oregon: Sisters
Kim has lived in the beautiful region of Sisters, Oregon in Central Oregon for 12 years. There she has raised two out of four of her children. The Sisters school system gave them a positive and rewarding experience, shaping them into adventurous and talented individuals.
For the last six years, Kim worked in a local, boutique real estate office in Sisters where she enjoyed every minute! She loves meeting new people and clients; friends and family achieve their real estate goals.
The boutique real estate company she worked for was acquired in 2018 by Cascade Sotheby’s International Realty, a notable brand throughout the world. Kim believes the acquisition will expose the beautiful town of Sisters, Oregon to people around the globe.
Sisters is a wonderful place to live. There are two ski resorts within 35 minutes, rivers for fly fishing, lakes for boating, and fresh air and open land to explore. Winters are mild, falls are fabulous, springs are special, and summers are spectacular. Come visit Sisters in Central Oregon and experience the beauty the area has to offer.
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