Sellers Have Incredible Leverage in Today’s Market

13439 Triflorium GM307, Black Butte Ranch, OR 97759
Presented by The Arends Realty Group | Offered at $2,200,000 | MLS# 220128829

From Keeping Current Matters

With mortgage rates climbing above 3% for the first time in months, serious buyers are more motivated than ever to find a home before the end of the year. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), puts it best, saying: “Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year.”

But the sense of urgency they feel is complicated by the lack of homes for sale in today’s market. According to the latest Existing Home Sales Report from NAR: “From one year ago, the inventory of unsold homes decreased 13%. . . .”

What Does This Mean for Sellers Today?

With buyers eager to purchase but so few homes available, sellers who list their houses this fall have a tremendous advantage – also known as leverage – when negotiating with buyers. That’s because, in today’s market, buyers want three things:

  • To be the winning bid on their dream home.
  • To buy before rates rise
  • To buy before prices go even higher.

Your Leverage Can Help You Negotiate Your Best Terms

These three buyer needs to give homeowners a leg up when selling their house. You might already realize this leverage enables you to sell at a good price, but it also means you can negotiate the best terms to suit your needs.

And since buyer demand is still high, there’s a good chance you’ll get offers from multiple buyers who are willing to compete for your house. When you do, look closely at the terms of each offer to find out which one has the best perks for you.

If you have questions about what’s best for your situation, your trusted real estate advisor can help. They have the expertise and are skilled negotiators in all stages of the sales process.

Full article on Keeping Current Matters


Should Buyers Be Scared That Mortgage Rates Are Rising?

28888 Hwy 97, Klamath Falls, OR 97621
Presented by Alan DeVries & Matthew Cook | Offered at $1,600,000 | MLS# 220120785

From REALTOR® Magazine

Mortgage rates are no longer at ultra-low rates below 3% as they were this summer, but housing analysts are reminding house hunters that borrowing costs remain relatively cheap. Freddie Mac reported that the 30-year fixed-rate mortgage averaged 3.14% this week.

“The yield on the 10-year Treasury note has been trending up due to the decline in new COVID cases, increasing consumer optimism, as well as broadening inflation and persistent shortages,” says Sam Khater, Freddie Mac’s chief economist. “Mortgage rates are also rising, but purchase demand remains firm, showing that latent purchase demand exists among consumers.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 28:

• 30-year fixed-rate mortgages: averaged 3.14%, with an average 0.7 point, rising from last week’s 3.09% average. A year ago, 30-year rates averaged 2.81%.

• 15-year fixed-rate mortgages: averaged 2.37%, with an average 0.7 point, increasing from last week’s 2.33% average. A year ago, 15-year rates averaged 2.32%.

• 5-year hybrid adjustable-rate mortgages: averaged 2.56%, with an average 0.3 point, up from last week’s 2.54% average. Last year at this time, 5-year ARMs averaged 2.88%.

Freddie Mac reports average commitment rates along with points to better reflect the total upfront cost of obtaining the mortgage.

Full article on REALTOR® Magazine


Two Top Producing Brokers Rejoin Cascade Sotheby’s International Realty

Portland broker Alicia Selliken and SW Washington broker Marci Caputo have rejoined Cascade Sotheby’s International Realty. The firm has attracted an additional 55 brokers so far this year.

Cascade Sotheby’s International Realty is a full-service brokerage that offers a high level of marketing and sales support. This model is ideal for brokers who wish to focus on serving their clients rather than spending time on administrative and marketing tasks. It is for brokers who seek more balance in their work and life.

Alicia Selliken, based out of the NE Portland office, is proud to be part of a brokerage that has a growth mindset and values community. “CSIR is hitting their stride with the expansion of their incredible agent services and marketing team. Their renewed efforts to create a stronger community both inside CSIR and beyond is refreshing.”

A woman-owned firm, Cascade Sotheby’s International Realty has seen continued growth over the years. Backed by a highly experienced and agile local leadership team, the firm provides unmatched broker support fueled by powerful marketing initiatives.

Portland’s Regional Marketing Director, Amanda Knutsen, describes the firm’s collaborative culture. “Our brokers appreciate the power of a global brand, paired with a local family feel. We help each other succeed and thoughtfully give back to the communities in which we work and live.”

Brokers at Cascade Sotheby’s International Realty are part of a global referral network that generated over $2.9B in 2020. In September of 2021, The Portland Business Journal ranked Cascade Sotheby’s International Realty the fastest-growing real estate company and the third fastest-growing company across all sectors in Portland.

Marci Caputo, based out of the Vancouver, WA office is happy to be back. “I have owned my own brokerage in the past which helps me truly understand the great value in all that Cascade Sotheby’s International Realty offers for support, marketing, global networking, community engagement and so much more.”

Cascade Sotheby’s International Realty has 400 brokers and 17 offices serving Oregon and SW Washington. In addition to being ranked the fastest-growing real estate firm in Portland, the firm has achieved top market share in Central Oregon. The firm is also expanding in Southern Oregon, with the grand opening of its Ashland office scheduled for November 5th, 2021.


Looking To Move? It Could Be Time To Build Your Dream Home

3807 Old Lewis River Rd, Woodland, WA 98674
Presented by Brandy Pettet | Offered at $5,750,000 | MLS# 21300616

From Keeping Current Matters

While today’s supply of homes for sale is still low, the number of newly built homes is increasing. If you’re ready to sell but have held off because you weren’t sure you’d be able to find a home to move into, newly built homes and those under construction can provide the options you’ve been waiting for.

The latest Census data shows the inventory of new homes is increasing this year (see graph below):

With more new homes coming to the market, this means you’ll have more options to choose from if you’re ready to buy. Of course, if you do consider a newly built home, you’ll want to keep timing in mind. The supply shown in the graph above includes homes at various stages of the construction process – some are near completion while others may be months away.

According to Robert Dietz, Chief Economist and Senior VP for Economics and Housing Policy for the National Association of Home Builders (NAHB), “28% of new home inventory consists of homes that have not started construction, compared to 21% a year ago.”

Buying a home near completion is great if you’re ready to move. Alternatively, a home that has yet to break ground might benefit you if you’re ready to sell and you aren’t on a strict timeline. You’ll have an even greater opportunity to design your future home to suit your needs. No matter what, your trusted real estate advisor can help you find a home that works for you.

Full article on Keeping Current Matters


There’s No Sign Of The Typical Fall Slowdown In Home Buying

2238 NW Trout Ct, Camas, WA 98607
Presented by Connor Zuvich | Offered at $1,895,000 | MLS# 21062309

From housingwire.com

One-third of homes that went under contract had an accepted offer within one week of hitting the market, a new report from Redfin found. This is up from 30% during the same period a year prior and 2.2 points from a month earlier.

The report is based on data from the four-week period ending October 10.

In addition, the number of homes that went under contract within two weeks of listing rose to 46% from 42% during the same period in 2020. While the median number of days a home is on the market rose to 22 days, which is a full week longer than the all-time low of 15 days in June and July, it is still 10 days less than a year earlier.

This increase in the share of homes selling this quickly is unexpected for this time of year when we typically see a seasonal slowdown.

“Most sellers who are on the market now are very motivated to move: landlords with vacant homes, families who already upgraded and need to sell their previous homes, couples splitting up,” David Palmer, a Redfin listing agent, said in a statement. “As home-buying demand declines into the fall, I’m only encouraging people who have urgency to sell now. Otherwise, I’m advising them to wait until the new year.”

Another sign of continued strong demand is the 4% year-over-year increase in pending home sales. This also represents a 46% increase compared to the same time period in 2019, according to Redfin.

While demand has remained high, inventory continues to drop with new listings of homes down 8% from a year prior and the total number of active listings down 21% from 2020.

As a result of this high demand and low inventory, the median home-sale price rose 13% from a year prior to $355,600. Asking prices of newly listed homes also rose, reaching a median of $362,047, marking a 12% increase from a year ago. However, this is 0.7% lower than the all-time high set during the previous four-week period ending Oct. 3. Decreases like this are typical for this time of year, according to the report.

Even with high asking prices, due to the highly competitive nature of the market, 46% of homes still sold for above list price, which is up from 34% during the same time period in 2020, but also the smallest share since April 2021. Additionally, the average sale-to-list price ratio fell to 100.7%, also the lowest level since April.

Although there are numerous indicators of a still red-hot market, one indicator of a possible seasonal cooling off is the percentage of homes for sale each week undergoing a price drop rising to 5.1%, the highest level it has been since the four-week period ending October 13, 2019.

Full article at housingwire.com


Early Autumn Weeks Remain the Best Time to Buy Despite Historically Low Inventory

5483 Herman Cape Rd, Florence, OR 97439
Presented by Amy Halligan | Offered at $2,495,000 | MLS# 21627728

From Mansion Global

September delivered a high number of homes on the market at least by this year’s standards, handing buyers a few more options

Early autumn typically signals the best time to buy a home in the U.S., and despite the frenzied conditions still encompassing the market, this year it’s still looking optimal, according to a report from Realtor.com.

“This week marks the best week to buy a home nationwide,” wrote Danielle Hale, Realtor.com’s chief economist, in Thursday’s report. “In September, inventory hit a record high (for 2021), and while this week’s data shows a continued slowdown in new listings, the fall season still holds promise for potential home buyers.”

Though September delivered a relatively high number of homes on the market for this year, inventory remains scarce by historic standards.

In the week ending Oct. 2, the number of new listings was down 8% from the same time last year, and new listing totals have declined in four of the last five weeks after increasing more often than not in the previous five months, the report said.

Overall inventory is down, too, slumping 22% from the same time in 2020.

Though the dearth of home supply persists, price gains have yet to pick up pace, according to Ms. Hale.

“We are continuing to see a gradual seasonal slowing of both indicators,” she said.

The median listing price rose 8.6% last week when compared to the same time last year, with the high “single-digit territory” showing “sticking power,” the report said.

Though homes typically sold eight days faster last week than they did at this time in 2020, a slowdown appears to be on the horizon, leaving home buyers with more time to act now than they did earlier this year.

Full article on Mansion Global


Inventory Hits 2021 High, Competition Remains Fierce

10720 S Moapa Ave, Portland, OR 97219
Presented by Matt Tercek | Offered at $1,599,000 | MLS# 21114701

From REALTOR® Magazine

Home buyers are finding more housing selections this fall, but they’re still up against some serious competition. Nearly one-third of the 50 largest metros saw increases in the number of newly listed homes compared to last year, according to a new report from realtor.com®.

“This September, buyers had more options than they’ve had all year and while that’s typical of early fall, that’s not what happened in 2020,” says Danielle Hale, realtor.com®’s chief economist. “Still, it’s important to remember that while buyers may have an easier time this fall than they did in the spring, the market remains more competitive than it has been historically at this time of year.”

“This September, buyers had more options than they’ve had all year and while that’s typical of early fall, that’s not what happened in 2020,” says Danielle Hale, realtor.com®’s chief economist. “Still, it’s important to remember that while buyers may have an easier time this fall than they did in the spring, the market remains more competitive than it has been historically at this time of year.”

The U.S. median home price continued to hold at August’s near record-high of $380,000. List prices are up 20.6% compared to pre-pandemic levels in 2019, realtor.com® notes. The top five markets with the highest price growth rate are in Austin, Texas (+33.6%); Las Vegas (+24.6%); Tampa, Fla. (+20.8%); Orlando (+16.9%); and Riverside, Calif. (+15.4%).

Some areas of the country are seeing more new listings added to the market than others. New listings have grown the most in competitive markets like Austin, Texas; Portland, Ore.; Jacksonville, Fla.; and Washington, D.C.—all with inventories up more than 10% year-over-year.

Meanwhile, the areas with some of the largest drops in newly listed homes in September tend to be in places that were affected by Hurricane Ida, including the Northeast (down 5.4%) and South (down 3.2%). New listings declined the most in the hard-hit area of like New Orleans, down 51.2%, according to realtor.com®.

Full article on REALTOR® Magazine


New Home Sales Rise for Second Consecutive Month

14949 SW Hat Rock Loop, Powell Butte, OR 97753
Presented by Carmen Cook | Offered at $1,850,000 | MLS# 220129823

From housingwire.com

Market supply reaches at a 6.1 month level.

Sales of new single-family homes in August increased 1.5% from the prior month, at a seasonally adjusted annual rate of 740,000, according to a report from the U.S. Commerce Department released on Friday. That’s the second straight month of rising sales for homebuilders, though there’s good reason to think the height of the frenzy is behind us.

Sales of new homes were down 24.3% from a year prior, and the median sales price of new single-family homes in August 2021 reached $390,900, 20.1% higher than August 2020.

“The housing market over the summer of 2021 appears to have settled at a level lower than the surge in the second half of 2020 into early 2021,” Ben Ayers, a senior economist at Nationwide, said in a statement. “Still, new home sales remain high relative to levels since the housing market crash and show continued strong demand from buyers.”

The number of new houses for sale in August 2021 (378,000) represents a 6.1 month supply of new houses at the current sales rate, according to the report. This is a 74.3% increase over August 2020 levels, and reflects the 17.4% increase in housing starts compared to a year ago.

Industry experts feel that this is a reflection of the steadying confidence among homebuilders, which remains high, despite a recent decline.

“Builder sentiment remains strong and housing demand is being supported by ongoing low mortgage interest rates and a shortage of existing home inventory,” Chuck Fowke, chairman of the National Association of Home Builders, said in a statement

Despite rising housing starts and steadying confidence levels among builders, the industry still faces some challenges including continued material and labor shortages. Because of the labor and material issues, many homebuilders have delayed putting up the number of new homes up for sale.

“The solid improvement in August sales does not mean that builders are in the clear — building material supply chain issues and labor shortages are still very real challenges that buyers and builders alike are eager to see resolved,” Zillow economist Matthew Speakman said in a statement. “It’s critical that builders continue to find ways to get around these existing challenges and bring new homes to the market in higher numbers, giving even marginal relief to would-be buyers exasperated by intense competition and limited housing supply.”

Nearly 80% of homes sold in August were either under construction or yet to be built.

“This report continues to highlight the ongoing difficulties that homebuilders are facing as they attempt to work through their current construction backlog, due to a shortage of labor and elevated material costs and outright shortages,” added Mark Palim, deputy chief economist at Fannie Mae.

Regionally, on a year-to-date basis, new home sales fell 1.0% in the Northeast and 2.3% in the West, but rose 4.4% in the Midwest and 4.5% in the South.

Full article at housingwire.com


Mortgage Demand From Homebuyers Jumps to Highest Level Since April, After New Listings Rise All Summer

2185 Christina St NW, Salem, OR 97304
Presented by Hamid Karimi | Offered at $1,500,000 | MLS# 21147454

From cnbc.com

Fall is usually the start of the slower season for the housing market, but nothing is usual in today’s pandemic-driven housing market. Potential homebuyers are seeing a slight rise in inventory and consequently rushing back into the fray.

Mortgage applications to purchase a home jumped 7% last week from the previous week, seasonally adjusted, according to the Mortgage Bankers Association. An additional adjustment was made to account for the Labor Day holiday. That is the highest level since April of this year. These applications were still 11% lower than the same week one year ago, but that was the smallest annual decline in 14 weeks.

Buyers have been hamstrung by the meager supply of homes for sale, but that supply has been rising lately, albeit slowly. The number of new listings rose for nine straight weeks during the summer, but finally fell again last week, according to a Realtor.com report.

“Even with the recent new listings slip, the gap with pre-COVID levels has shrunk significantly as more new sellers have entered the market so far in 2021 than last year,” according to the report.

Home prices continue to gain at a record pace, and that was also reflected in the purchase mortgage applications.

“Both conventional and government purchase applications increased, and the average loan size for a purchase application rose to $396,800. The very competitive purchase market continues to put upward pressure on sales prices,” said Joel Kan, an MBA economist.

Applications to refinance a home loan fell 3% for the week and were also 3% lower than the same week one year ago. Borrowers have not had a lot of incentive to refinance, as mortgage rates have barely budged in the last month, and rates are now higher than they were at the start of the year.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) remained unchanged at 3.03%, with points decreasing to 0.32 from 0.33 (including the origination fee) for loans with a 20% down payment.

The refinance share of mortgage activity decreased to 64.9% of total applications from 66.8% the previous week.

Full article at cnbc.com


Mortgage Rates Stuck at 2.88% Amid Rise in COVID Cases

15007 Ponderosa Loop, La Pine, OR 97739
Presented by Kelly and Corey Charon | Offered at $1,900,000 | MLS# 220122149

From housingwire.com

The average 30-year fixed-rate mortgage was stagnant at 2.88% for the week ending Sept. 9, according to mortgage rates data released Thursday by Freddie Mac‘s PMMS.

The week prior, mortgage rates also held steady at 2.87%. This week’s near constant mortgage rates tracked with the 10-year Treasury yield, which rose slightly and then tapered off in the past week. The 10-year Treasury yield for Sept. 8 was 1.35.

According to Sam Khater, chief economist at Freddie Mac, the recent rise in COVID cases has hindered progress in the economy overall.

“While the economy continues to grow, it has lost momentum over the last two months due to the current wave of new COVID cases that has led to weaker employment, lower spending and declining consumer confidence,” said Khater. “Consequently, mortgage rates dropped early this summer and have stayed steady despite increases in inflation caused by supply and demand imbalances.”

“The net result for housing is that these low and stable rates allow consumers more time to find the homes they are looking to purchase,” Khater said.

A year ago at this time, the 30-year fixed-rate mortgage averaged 2.86%. The 15-year fixed-rate mortgage rose only slightly from the week prior, again, at 2.19%.

Full article at housingwire.com