Author: Alison Derse

And just like that, we’re mid-July, already half a year gone by. Not sure if it’s my old age, a pandemic haze or simply busy days that has swept the time away, but I’m left reeling from the fact that life keeps moving by. In stepping aside and observing the constant flow, I’m reminded how much we can learn, build and grow each day and how much that can accumulate over time. Planting seeds, nourishing roots and tending to stems along the way can result in untold bounties.

I hope this finds you healthy, hopeful and thriving!

Impressions of Home: Oklahoma to California

When I was a junior in high school (circa 1987), my parents decided it was an opportune time for a move. The oil-dependent economy in Tulsa was suffering and the opportunity to get closer to family in southern California came-a-callin’. So, just like the Joad family in John Steinbeck’s The Grapes of Wrath, we pulled up our bootstraps (err leg-warmers), loaded up the mini-van with plants and animals, and embarked upon an uncertain yet wildly adventurous drive westward.

After kicks and laughs along Route 66, we settled in Rancho Peñasquitos, a suburban community in northeast San Diego. Like any wise and discerning parent, my mom sought out the best school district in the area. My father, who had moved out ahead of us, found a rental home to better acquaint us with the new city. Turns out that no matter how good a school is, an unrealistic work commute or a job change will often outshine any academic standards, and we ended up moving yet again just seven months later. Landing this time in the bustling beach town of Encinitas in North County San Diego, I was able to finish out high school in surfing bliss.

While family moves can be incredibly daunting and disruptive, especially for young children, I like to think our parents were resolute in their decision to build a better life for me and my siblings. As challenging as it was to leave our childhood home (of ten years) and dear friends behind, the opportunity to experience new places and nurture new friendships has helped instill an adaptability and openness that I carry with me to this day. If anything, I look upon our family moves as a widening of our greater circle(s). We still keep in touch with many of those we’ve met along the way and have impressionable memories of every dwelling. All of which helps to inform the people we have become.

Woulda, shoulda, coulda. Had my parents purchased either of these first two homes back in the late 1980’s, they would have made a killing. Estimated cost to purchase in 1990: $125-150,000.00

 

 

If you’re looking to avoid a case of the woulda, shoulda, coulda’s and start investing in your future now, I’m ready and willing to walk the walk with you.

Market Update: July 2021

Historically, summer real estate tends to mellow out as people take off for vacations and all-around downtime. 2021 is anything but a typical summer. As we emerge from our pandemic cocoons and the economy begins to churn in full, the real estate market continues to stir. Buyers remain persistent to finally stake ground, and sellers still have sway.

But there are promising signs of some leveling-off from the prolonged imbalance. While inventory is still considerably lower than previous summers, from the graph below we can see a distinct rebound. More homes on the market equates to more options for buyers and more competition for sellers. Experts agree that interest rates will increase in the coming months, which will influence purchasing power. All of which means there may not be a better time to sell than right now. Sellers can be assured that a well-positioned, accurately priced home will sell quickly, on average within 17 days (nationally); there will be qualified buyers willing to compete for your home, an average of five offers (nationally); and new found equity allows for larger or more adequately fitting purchases.

 

 

The above graph represents the average and median sale price for all homes sold in the Portland, Oregon metropolitan area (courtesy of the RMLS). Clearly prices are still on the rise. Any murmurs of a potential bubble have been curbed, and the desire for a home continues to drive prices upwards.

All said, there simply isn’t enough inventory of available homes to meet the demand of today’s buyers. This has been the case for many years and is likely to continue for the foreseeable future.

Do you agree? Disagree? Reach out to discuss or if you would like to see custom reports that affect your real estate goals.

In surfing, a “hold-down” is a term for when you’re caught in a succession of breaking waves. Three, four, sometimes more waves breaking over you with little room to outmaneuver, much less take a breath. While the glistening surf may be tempting, the cost of admission can sometimes be heavy. Yet the rewards for braving the elements can be life changing.

The relentless real estate market is having a similar effect on many. Rising home prices, low interest rates and the yearning for home have created a whirlpool of anxious buyers. Nominal inventory is being met with multiple offers, cut-throat offer strategies, and over-asking sales prices, making the waters challenging to navigate. Buyers are being led to expect the multiple wave – or in this case – the multiple offer hold-down.

Yet the current swell can’t last forever. As the economy continues to improve, so too will consumer confidence. With pent-up savings and record amounts of equity, the temptation to list current homes in order to purchase larger or more attractive homes increases. It is hoped this will release new inventory, and perhaps even to catch a breath.

 

Market Update: March 2021

If you are itching to test the proverbial waters and need some feedback and guidance, I’ve got the surf mobile gassed-up and ready! Average sales prices, total market time and shortage of inventory continue to amaze. In comparing 2021 to 2020 through the month of March, the average sale price in the Portland metro area increased 16.6%, from $461,600 to $538,200. Inventory in months (active listings at the end of the month divided by the number of closed sales for that month) decreased to 0.8 months. And total market time (active days on market) decreased from 61 days to 37. In other words, the limited inventory is being swallowed up in less time and for ever-increasing amounts.

Low interest rates, i.e. purchasing power, continue to drive many to the market. But as rates begin to rise, price appreciation should begin to cool, somewhat. Still, it’s good to keep in mind that relative to a year ago, mortgage rates remain at historic lows which is helping to keep housing relatively affordable.

 

Impressions of Home

When I was seven, my family moved from Santa Fe, New Mexico to Tulsa, Oklahoma. My father got a job as an art director at an advertising agency so we packed up and braved new territory. We rented a townhome for about a year while my parents purchased a vacant lot, designed and built a custom home. As kids, my sisters and I were thrilled with having our own rooms, but were clueless as to what such a process involves. My father added a typographical address mural on the garage door, hand-built the mail box and designed a moving announcement (photos below). Lots of love and creativity that went into the home.

Years later, we added an indoor swimming pool. What sold my parents on the pool project, aside from the obvious (!), was the purported offset of utilities with a south-facing passive solar “insulator” of space, meaning the room would insulate the home with warm air in the winter and cool air in the summer. I’m sure the water bills negated any savings, but it sure was awesome!

Tragically, after we sold the home in 1987, the entire house burnt to the ground due to an unattended wood-burning stove. What’s left to this day is the same empty lot that my parents started with.

Tulsa, Oklahoma • Gilcrease Hills • 4 bed 2 bath 2250 sq ft.
Empty lot and custom home bought, designed and built for $70,000 in 1978.
Lot only currently valued at $106,000.

There was a time (okay fine, until a few weeks ago) when I thought that narwhals were fictional creatures. As a busy mom, I felt like I hit the jackpot when I stumbled into a garage sale and found a basically brand new baby Halloween costume for my son. It was perfect, warm, and sized just right. Done deal. My son will be a narwhal for Halloween. 

It wasn’t until I started telling friends that he will be “ya know, one of those pretend unicorn whales,” that I realized I know nothing about narwhals and was stunned when I googled that narwhals are not only real, but apparently it’s a very common misconception that narwhals are fictional! 

You know what else is a total misconception? The idea that you must wait until spring to sell your home. Baffled? Trust me, I know how you feel and you are going to be okay…read on.

Inventory

When more homes are on the market in the springtime, it means buyers may get to be choosier. In turn, fewer homes for buyers to choose from in the winter plays in your favor.

Holidays

Decorating a house for the holidays can be an incredibly cost-effective way to improve curb appeal and home staging. It can also instigate daydreams about being settled into a new home in time to host holiday get togethers.

Buyers are also understanding that winter holidays may mean they need to be a bit flexible on when they can view your home. Not to mention that if you head out of town for the holidays, your agent can be trusted to keep showing your house in your absence.

Motivation

Winter buyers are serious. 

Portland gets chilly in the winter, so buyers who are out on the hunt are motivated about purchasing a home. 

Winter home buyers may also be motivated to capture the tax benefits of buying a home before the year-end. If you are selling your home to buy another, these tax breaks apply to you too! Think: mortgage interest, private mortgage insurance (PMI) premiums and real estate taxes. Check with your local tax expert to learn more. 

January is also known as one of the most popular months for corporate transfers. Buyers who transfer for work are on a set timeframe and motivated to find their home quickly.

Closing Thoughts

Yes, homes in the spring are on the market for fewer days and have more curb appeal. Realtor.com reports the median days on the market for houses that sold last February was 83 days, while May saw a median of just 55 days on market (both with a decrease in days compared to the same time periods in 2017).

However, if you do decide to list your home this winter, it’s important that you keep your driveway clear, keep outside porch lights on, and take care of any roofing issues or potential leaks asap (nothing freaks a buyer out more than walking up to a house with ice dams). 

Let some light in by keeping blinds and curtains open and keep it warm inside. Highlight rooms and features that make potential buyers wanna hang out. A lil’ festive wreath on the door and comfortable-looking blanket on the couch never hurt anybody either. Crank up the cozy!

And with that, I will leave you with a narwhal fact. The prominent horn is actually an ivory tooth that grows into a swordlike, spiral tusk up to 8.8 feet long. 

Consider yourself mythbusted.

With the charm of a 105-year old house, but with the all the right upgrades – roof, furnace and sewer all just a few years old – this home will impress the most discerning buyer. Sure, you can still put some finishing touches on the kitchen and the yard, but once that is done, you’ll have a house that checks all the boxes: A+ curb appeal, incredible location, full-width front porch, dental molding, original woodwork, 4 bedrooms + loft spaces, 2 bathrooms, partially finished basement, large yard, deep driveway and detached garage. And charm, did I mention the charm?

To learn more about this home, click here or call me at (503) 593-3326. I’m happy to show you this beauty!

—Calle Holmgren

As adorable as this mid-century ranch in SE Portland is, it is no wonder it became the House of the Day on Curbed.

To view more images of this tastefully updated home, listed by Inhabit’s own Calle Holmgren, click here.