Morrigan and Tanabe
Real Estate Brokers, Licensed in the State of Oregon
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.
A Rare and Hidden Gem | Discover Paulson Wild River Ranch
Discover Paulson Wild River Ranch, an iconic 573-acre property cradling the Alsea River in Tidewater, Oregon and just minutes from Oregon beaches. Nestled in mature forests, this highly-coveted ranch sits on acres of pastureland, with salmon and steelhead swimming freely in the untamed waters.
Framed by awe-provoking terrain, this world-class farm and ranch property offers a magnificent natural backdrop for horse and cow rearing, aspiring riders and enthusiastic recreationalists drawn to the captivating beauty of the Oregon coast. Paulson Wild River Ranch is the epitome of outdoor excellence within a beautiful home that’s already poised to anticipate and attend to your every desire. Top-of-the-line amenities – two barns and a shop – treat your animals to the finest landscape while placing you under the proud tutelage of legendary community settlers.
Featuring a 3,070 sq. ft. riverfront home situated perfectly on the banks of the Alsea River to take advantage of the magnificent wild river and historic forests that the Pacific Northwest has to offer.
Warmth and charm can be felt throughout this spacious, grand home with extensive amenities custom designed for family function with 2 bedrooms, 2 bathrooms, wood burning fireplace, outdoor deck and patio, and master suite with walk-in closet.
With an unrivalled view of the rushing river and elk herds rummaging through forest acreage, this timeless ranch and premiere pasturelands and meadows are both striking and functional. Celebrate the spectacular beauty of this rare gem as you explore the winding trails of rich green pastures and the enchanting river waters that lead throughout the surrounding woodlands. An enticing environment for exploring all the wonders of the great outdoors just minutes from golfing, fishing, parks, and ocean beaches, this spectacular ranch is an ideal investment for those enamored with the livestock-raising lifestyle.
To schedule a private tour, visit our website.
Live the Coastal Ranch Lifestyle
Your best life begins with a property that inspires you! A home, with sweeping river views overlooking your favorite fishing hole. Forest acreage, more than one could walk in a week and harvestable too. Pasture and meadows, for raising livestock or keeping company with the local elk herd. This “Wild River Ranch” on the Oregon Coast is an experience that needs to be seen to believe. To schedule a private tour, visit our website.
Feel the Sand Between Your Toes in Neskowin, OR
Neskowin is a precious petite community located on the edge of the Pacific Ocean in Tillamook County. Visitors and residents pride their area on having the most pristine beaches with the ‘Ghost Forest’, Proposal Rock, hiking trails, miles of surf and a cute seasonal golf course too. Neskowin offers some of the finest local produce, fresh meats and seafood, and locally-sourced daily products.
Imagine strolling through the farmer’s market on Saturday or snapping selfies with the ghosts on the beach during low tide. Or sit on your oceanfront porch and soak up the sweeping views of the rugged Pacific Ocean. Sip your tea while tea while elk stroll through your front yard. Enjoy the barking chatter of sea lions and harbor seals. Can you smell the salty sea air?
A perfect opportunity has arisen for you and your family to become a resident of Neskowin. Sahhali South is a residential oceanfront development on the Oregon coast, 15 miles north of Lincoln City. It stretches over 80 pristine beachfront acres. Your opportunity has come to build the home of your dreams on a single-family lot or choose from a variety of townhome floorplans with custom finishes. It’s time for you to relax in your beachfront home, nestled in between the majestic Oregon Coast Mountain Range and over 30 acres of local wetlands filled with diverse wildlife.
Ready to dive in? Take a weekend break from the city and relax in your executive-style townhome, with expansive views of the untamed ocean. Feel your smooth hardwood floors beneath your feet as you prepare dinner in your beautiful kitchen with stainless steel appliances and granite countertops.
Relax in your master suite next to the fireplace. With four bedrooms and two and a half baths, your whole family will be comfortable in your new beach home. Can’t stay full-time? That’s okay. Rent your home out as a vacation rental during the days that your family is working in the city. Read more about this perfect beach home here.
Perhaps you have a design in mind for a custom-built home? Grab and pen and paper and start sketching because there are a variety of ocean view lots available for your blank canvas. Make sure you design each room to look out across your ocean view. Live in harmony with nature, dig your toes in the sand, enjoy scenic Proposal Rock as your quiet neighbor, live in your dream home. To learn more about purchasing this oceanfront land, click here.
Top Secret: Historic Oceanfront Cottage in Newport, Oregon
This is a rare find for any Oregon Coast explorer! This beautiful home is a little secret of ours. Built in the 1920/30s, this historic treasure has been updated with great care and attention.
Located on rare oceanfront acreage, this modern craftsman is snuggled between Yaquina Lighthouse and Otter Rock. Enjoy coastal views of the rustic Oregon coast from your spacious yard with lush lawn, stone path and firepit.
Warm your feet next to the restored, antique fireplace. Stroll across your rich, solid hardwood floors. Read a classic from your built-in bookshelves with window seats overlooking the roaring ocean.
Gather your family in the kitchen around your granite countertops, modern stainless-steel appliances, custom cabinets, and walk-in pantry.
End the day in your master suite, holding a cup of tea, while you take in the salty ocean air from your oceanfront patio.
Four bedrooms and three bathrooms accommodate any modern family into this historic home. View the full details of the listing here.
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