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Realtor on the Rise

Posted on by Kim Hagstette

We are so proud of Inhabit’s own, Jason Connelly, for his recognition as Real Producers Magazine “Realtor on the Rise” — October 2024 edition.

See below for the transcript of the article.

Realtor on the Rise

Meet Jason Connelly, a dedicated REALTOR with Inhabit Real Estate here in Portland. Previously, Jason was a small business owner before transitioning into the real estate industry in April 2020. Jason finds immense fulfillment in building meaningful relationships with his clients and experiencing the joy of helping them find their dream homes. Here we learn more about his journey in real estate and his life outside work.

What did you do before real estate and when did you start your career as a REALTOR?

I owned a junk removal business from 2017-2020 but I was ready to start a family and wanted a career that would provide me with a lifestyle to be active in their lives. In April 2020 I made the plunge into real estate.

How did your mentors or brokerage help lead the way to establish your career?

When I first got licensed, Andee Ziegler was my mentor and she was essential to me getting started. Once I moved to Inhabit Real Estate, I gained two additional new mentors, Patrick Clark and Eric Hagstette, who helped me level up and mature my business.

Choosing my second brokerage was an important decision because I knew I wanted a more intimate and collaborative setting. I chose Inhabit because I got a little more hands-on attention with my systems and business practices. I am very grateful to be at a brokerage that offers so much support and cares about each agent as much as Inhabit does. Before coming to Inhabit, I never thought where I worked mattered, but now I see how culture and who you surround yourself with are everything.

What is your favorite and most rewarding part of being a REALTOR?

It’s the little thank you texts after getting someone or a family in a new home. I’ve received some texts after a transaction that brought me to tears knowing I played such an important role in helping someone. Also, I appreciate the relationships built with my clients. So many clients have become close friends after a transaction.

What is your biggest challenge as a REALTOR and how do you navigate through this?

Dealing with imposter syndrome. I’m very aware that I’m still very new to this and there are many realtors with much more experience than me. I have to remind myself daily that despite the short time I’ve been a broker I have a decent amount of experience.

What do you do for fun?

I’m the typical Portland native. When not selling real estate, I enjoy an active lifestyle: working out in the gym, hiking, spending time at the mountain, exploring waterfalls and swimming holes, and playing with my son at our neighborhood parks in Northeast Portland. My wife and I also enjoy cooking and trying all the food the city has to offer.

Are there any charities or organizations that you support?

I’m part of my neighborhood business association’s events planning committee, Montavilla East Tabor Business Association (METBA). I also regularly volunteer with Los Niños Cuentan which is a non-profit geared toward outreach for Latino families who are victims of domestic violence.

Do you have anything you want to add?

I’m honored to have so many people in my life support me on this journey by trusting me to represent them (and their closest friends) with their biggest financial decisions.

To reach Jason Connelly call 971-930-0990 or email jason@inhabitRE.com

Game Changing Announcement

Posted on by Kim Hagstette


Thinking Bigger When the Industry is Dismantling

Posted on by Eric Hagstette

Listen here

Recently, I had the privilege of being a guest on the Think Bigger Real Estate Show, hosted by the amazing Justin Stoddart. It was an insightful and thought-provoking conversation, and I’m thrilled to highlight a few key takeaways from our discussion.

In our talk, we explored various chapters, each offering valuable insights into the real estate industry and beyond:

  • “Unlocking Success Beyond Real Estate”: We discussed the importance of thinking outside the box and solving bigger problems to stay relevant in a changing market. It’s all about expanding horizons.
  • “Adapting and Thriving in Changing Times”: We dove into the need for real estate professionals to adapt to new environments and find alternative paths, uncovering opportunities ahead of the competition.
  • “Innovative Strategies to Expand Your Real Estate Business”: Discover how finding your niche and thinking big can transform your approach to the industry. It’s about looking at the broader picture of housing, beyond just closing deals.
  • “Solving Bigger Problems and Networking for Success”: We explored the significance of tackling significant housing issues, such as affordability and homelessness, while networking with influential individuals who can guide opportunities your way.
  • “How Real Estate Professionals Can Drive Change and Attract Opportunities”: We discussed the power of industry participation, believing in oneself, and providing value to the public, not just buyers and sellers.
  • “Simplicity, Openness, and Giving: The Keys to Expanding Your Real Estate Horizons”: Find out how simplicity, sharing even the most basic information, and giving back can lead to growth and success.

I’m genuinely excited to share these insights with you, and I hope you’ll find them inspiring. You can listen to the full episode right here.

Thank you for being a part of this journey. I look forward to sharing more thought-provoking conversations and insights with you in the future.

Warm regards,

Eric

What in the World is Really Happening in the Real Estate Market?

Posted on by Eric Hagstette

Watch the video here or read the transcription below (with some edits for clarity)

What’s up everybody and thanks for joining me for this week’s market minute. Now, somehow we found ourselves in 2023 and how we got here I have no idea, but the market is just cruising right along. I’m here to bring clarification to the number one question we’ve been getting from our buyers, our sellers, and those sitting on the sidelines — what in the world is going on in the market out there? We’re getting tons of varying market information ranging from multiple offers, bidding wars, hot market activity, and conversely, price reductions and no market activity. So I can totally imagine how this conflicting information would be confusing to the layperson who’s trying to make sense of the market.

So here’s my rundown.  The market is changing on a week-to-week basis. It’s very important to pay close attention and rely on a professional to navigate these waters for you. The feds are manipulating interest rates, not mortgage interest rates, but the federal interest rates have a lot of the people watching the news concerned about what’s going on out there. Now, while mortgage interest rates are volatile, we’re still creating wins every week for our buyers and sellers. How? you ask.  Well number one, our buyers are showing fortitude and sometimes patience as they navigate the market and trust us to use buying tools such as rate buy downs, closing cost credits, concessions, and other negotiations that we haven’t seen others using. And for our sellers, it gets even easier because we still have a low inventory market and so we’re focusing on the basics of listing real estate based on price, condition, and access. If you give us those three or as many of those three as you can, we’re going to create great results for you in the market.

So my lesson to you today is that sidelining can actually cost you money. How? Well, if we all waited for a “hot market” we would all be stymied and frustrated with tight market conditions once again. So if you’re taking yourself off the sidelines in an opportunistic market like today, you may be narrowing your chances of homeownership or making the move that you want in a market that can afford you to move up or down. Now I realize that many of you have low-interest rates locked in. Actually, 65% of homeowners in America are locked in under 3% so we realize the bottleneck that this creates. However, once we move through that and once the market starts easing up we’re all going to be able to move around a little bit better and take advantage of these conditions. So please don’t wait until the market is good because when it’s good for someone it’s usually not good for this other person. Your unique real estate goals and needs are specific to you, not the market. In general, I promise we have a solution just for you. It’s never too early just to call and talk shop. Thanks for reading or listening and I’ll see you on the next one.

2023 Portland Real Estate Market Outlook

Posted on by Eric Hagstette

Watch the video here or read the transcription below (with some edits for clarity)

 

Happy New Year everybody! I’m Eric Hagstette with Inhabit Real Estate and I am really glad to be taking on this subject with you. We have a lot to talk about, so let’s jump right in! 2022 is in the rearview mirror; for some, it was a good year and for others a tough one. For most real estate professionals, we are likely saying “see you later 2022”, and we’re really excited to have a new year in front of us.

With all that said, there’s still a ton of noise and mixed information floating around out there, so I would like to share with you my projections and outlook as I look into the new year. I don’t have a crystal ball, but after almost 20 years in the business, I’ve been in similar markets before and I want to share with you what I believe is going on.

Let’s start with what the experts are saying. We’ve been hearing for months that this high-interest rate environment is going to stymie the market until mid to late 2023. Then interest rates will begin to stabilize which will encourage more inventory in the market and more buyers’ confidence.

What is happening now, in all reality here in Portland, is inventory is dipping down. We are now below two months of housing inventory and even further down for detached single-family homes. Remember, lower inventory means higher demand. Also, we are really excited to see interest rates coming down. Now, we’ve all heard about improving inflationary numbers which is the reason for interest rates decreasing. Buyers are coming out of the holidays really hungry; the market is active and our brokers are out there showing property. So that’s the truth about what’s happening here in the Portland market.

My concern, outlook, or projection is that we’ll continue to see a reduction of housing inventory as the buyers get out and gobble it up and we might be entering another tight year of housing inventory and pricing on the rise. I know that sounds very different than what you were expecting to hear, but
Portland’s market is pointing in a direction that is similar to a cycle we’ve seen here in the past.

So, what is my advice with all this information? Number one, listen to your local real estate expert. Call your favorite Inhabit broker and have them give you the lowdown on your neighborhood and your specific real estate. Everybody’s goals and situations are different and very specific so get it locally and ignore the national news. Number two, Portland is so hyper-local. We have an urban growth boundary that has always limited our supply and we’ve always shown a significant amount of resilience in unusual market times. When they say “keep Portland weird,” it applies to real estate as well. Finally, transitioning or moderating markets are those that bring opportunity. That’s one of the silver linings to all this. There are great buys out there for our buyers. We are negotiating on price, credits, repairs, and even rate buy-down points for our buyers, and at the same time, we are making our sellers really happy with proper pricing, presentation and a marketing plan to position their sale for best results.

So, in the end, real estate is based on you (our clients). Your timeline, your goals and your specific situation. It’s not about market conditions, seasonality, or what some brokers say. So, ignore the noise and call us for advice. It’s never too early and you know we will be here for you. Thanks for listening (or reading). I look forward to bringing you a lot more information in the new year along with some of my broker colleagues. So, tune in, ask your questions and post your comments. Thanks for being here.

How We are Handling the Second Wave of COVID-19

Posted on by Eric Hagstette

November 16, 2020 Update

As we all know, COVID-19 is on the rise in Oregon and Governor Brown has instituted a statewide freeze.  At Inhabit, we are committed to keeping the health and safety of our clients and agents at the forefront of everything we do.  Strict office policies are in place to ensure a safe work environment.  We also updated all of our client engagement protocols so the health and safety of our clients come first.  Last March, we launched our Couch Concierge service that brings the entire home buying and selling process to our clients.  Everything from virtual open houses, live video showings with our agents, to virtual contracts and closings.

Here is a recap of how we continue to tailor and improve our services during COVID-19:

Our sellers shouldn’t worry about canceled open houses.  We will create a digital marketing campaign that brings your house to potential buyers all without risking anyone’s health or safety.  Our agents will tailor a showing plan that you feel the most comfortable with.

We have a lot of active buyers right now.  To short-list property options, we offer live video tours.  Your agent will walk you through the property showing you every nook and cranny with honest feedback on quality or construction issues they see– all from the safety of your home.   

In-person tours of your “must-see” homes are still an option in most cases when necessary, but with precautions we take very seriously.  Our agents are following the recommended 6 ft of social distancing, mask-wearing, and strict hand-washing and disinfecting policies.  We will not show homes to anyone that has cold or flu symptoms or has had any exposure to COVID-19 within 2 weeks of the showing.  As your agent, we promise you the same courtesy and will pair you with another Inhabit team member to safely show you the home if we are under the weather or are concerned about personal exposure.  Your agent will provide our COVID-19 Safe Showing Policies for your review prior to visiting any property in-person so you can make the best decision for your health and safety.

As a small business, we put the care of our clients and agents first.  We are all in this together. We promise to use integrity and knowledge as our guiding force.

Here’s to peace, health, and prosperity for all of us in the coming months.

Eric 

Meet Our Founder

Posted on by Eric Hagstette

Our fearless leader, Eric Hagstette, is this month’s cover feature in Portland Real Producers Magazine.  Click the magazine image below to see the full article and learn what motivates this great guy.

 

Here’s the transcript of the article:

Eric Hagstette’s social conscience is one of his strongest driving forces. Owner and principal broker of Inhabit Real Estate, Eric is this month’s Top Producer.

Starting his career in business to business sales for a Fortune 300 New York-based company, Eric transitioned into real estate in 2005. He looks back on his time in Corporate America with gratitude and appreciation for teaching him the fundamentals of sales, marketing, and most important, follow-up. “This is where I also learned that excuses are…just that,” Eric explains.

As a longtime Portlander, Eric is passionate about our city and how it is being affected by the pandemic, wildfires and smoke, protests, riots, and the current political divide. When asked how the wild ride of 2020 has affected his business, he told us, “Big question. The big picture crises we’re facing are much bigger than our work. They are more important than selling real estate, and we’re right in the heart of all of it. ‘Home’ has never been more important and we are in the business of ‘home.’ I feel torn between all of the hardships resulting from COVID-19 and the abundance that real estate is providing as a result of these unprecedented times. Transactionally speaking, we are in the right place at the right time… there is no shortage of business. Portland has certainly seen its day in the news through all of this and the long-term effect on our business is hard to predict. One of the silver linings of all of these things, from my observation, is a galvanization of the brokerage community. From COVID-19 to wildfires (and everything in between), I’ve seen brokers work together like never before. Kudos to all of you. Thank you.”

Real estate brings with it many rewards. For Eric, one of the biggest rewards comes in the form of the various relationships he has been able to foster over the years. “Hands down it’s all about the people. Not just my clients but my colleagues, my team, my mentors, my co-op agents, my vendors, our neighbors.”

Eric also finds fulfillment in owning and managing Inhabit Real Estate. “Operationally, managing a residential real estate brokerage while simultaneously running my personal sales business allows me to wear all the hats. From coaching my agents to prospecting for business, writing copy for ads, working on budgets and business plans, and everything in between. And who doesn’t love houses, photography, interior design, architecture, marketing, continuing education, networking, and all the fun stuff? Of course, our job also comes with all the tough stuff like unpredictable market conditions, challenging clients, paying taxes, delivering bad news, the emotional roller coaster of real estate, and the woes of being self-employed.

Luckily, my attention span helps me thrive in this multi-tasking, fast-paced, up-and-down market. I honestly love all of it.”

Finding passion in all of the possibilities that real estate affords, motivates Eric on a daily basis. “I have always been passionate about the unlimited possibilities that a real estate license affords us. With hard work and a simple plan, the sky’s the limit for REALTORS®. Playing such a pivotal role in times of transition for my clients is a huge responsibility. I have always held the importance of this piece with passion and drive. As a brokerage owner, I am passionate about teaching, training, and watching my brokers achieve their goals and dreams through real estate.”

Eric’s biggest reward in life is his family. Due to the pandemic, Eric has spent more time at home with his family than at any other time in his professional career and for him, this has been a huge blessing. “My family is the driving force behind my success. Not only do they motivate me every day but, as many of you know, to support the life of a REALTOR® requires a special family support unit. My family rides the roller coaster right by my side and they provide a safe haven to escape to. I’ve been married to my wife Kim for 21 years. I thank my lucky stars every day that our paths crossed. Not only is she my life partner, but she’s also my business partner and co-owner of Inhabit Real Estate, all the while holding down the fort at home and running her award-winning interior design business. We have two amazing teenagers who keep me in check and make sure I’m as ‘woke’ as possible for an almost-50-year- old dad. I learn a ton from my kids. I have so much hope for the younger generations who know more about equality, acceptance, and non-judgment. We can all take a note from the kids of today and appreciate their fire and passion, their resilience and brilliance, and their endurance through these unusual times. And, by way of osmosis and exposure (to me), my family knows more about oil tanks, sewer lines, multiple offers, and even the value of off-street parking.”

Along with the rewards of real estate comes the challenges. This year has been trying for everyone. The devastation from wildfires and the loss of life and business upheaval caused by the pandemic is horrific. We asked Eric what new challenges he has been facing and navigating since the pandemic hit and he told us, “Wildfires, extremely hazardous air quality, political unrest, social outcry and one of the most significant Presidential elections in history, all the while keeping pace with one of the busiest markets I have experienced in 15+ years of selling real estate. The erosion of affordable housing in Portland is accelerating at light speed and this is an indirect challenge that we cannot turn a blind eye to. The pandemic, wildfires, and the election will be in our rear-view mirror in the not-too-distant future, but not addressing the homeless crisis will likely have the greatest future impact on Portland livability and the bottom line of our business.”

Eric has a competitive side that he feeds with his love of cycling and bike racing. He has loved bikes since he was a child and has been racing for the past 10 years. “I’m a die-hard cyclist and bike racer. I love carbon, clicky pedals, training, going fast, and Lycra (yep, I said it…I love Lycra). Cycling keeps my body fit and my mind sane. It feeds my competitive spirit and, unintentionally, is a huge part of my networking sphere. My relationship with my teammates and fellow cycling friends is based on trust and trust is the foundation of our profession so these things go hand in hand.”

The Hagstette family are water enthusiasts. If there is water, you will find them nearby or right in it! “My family loves the water. We have a floating home and spend the summer paddleboarding, kayaking, floating, boating, swimming, and fishing.”

As you would expect, with his strong social conscience Eric does not just think about the changes that need to take place. He helps facilitate the change. Annually, Inhabit Real Estate picks a charitable cause that focuses on alleviating homelessness, “We have thrown hammers for Habitat for Humanity, organized holiday toy drives, and collected much-needed essentials for homeless children and families. As a family, our focus is on Transition Projects. Every month for the last few years, we have prepared and served dinner and lunches at multiple locations that are focused on men, women, and families transitioning out of homelessness.” Eric also aids the community by coaching youth swimming and sponsoring free junior bike racing at The Portland Trophy Cup Cyclocross series.

In closing, we asked Eric if he would like to communicate anything additional to the readers of Portland Real Producers magazine. Without hesitation, he responded, “As a longtime Portlander, I’ve always held a special place in my heart for this amazing city. I am sure I am not alone when I say that Portland is at a very important crossroads. ‘Home’ is our business and we’re paid to sell the ‘Portland experience.’ ‘Home’ doesn’t just apply to our qualified buyers and sellers. It applies to all people occupying the space called Portland including those with the means to buy or rent real estate and those that are sleeping outside under tarps. We must realize that even though we only serve a portion of Portland residents, they all make up the community, whether they have a house or not. It is our duty as ‘real producers’ and leaders in our industry to help Portland through these growing pains. While the country seems to grow in divide, it is very important for us to come together to put Portland back on track to be the darling of the Northwest. As we buzz through town enjoying the fruits of this market, I encourage you to think more critically about the ‘in your face’ issues that are easy to turn a blind eye to: mental illness, drug addiction, systemic racism, climate change, and environmental destruction and affordable housing. Raise your voice and vote. We must demand more from our local leadership and lean hard on them to properly address these big issues which not only affect our profession but our lives as well.

 

 

Something to Look Forward to this Summer in PDX

Posted on by Eric Hagstette

This is a blog post I have looked forward to writing!  It’s all about simple pleasures these days.  Sauvie Island, for most Portlanders, evokes a special feeling.  It’s a short 10 miles from downtown, but crossing the Sauvie Island bridge and seeing sprawling farmland crowned by the four cascade mountain view (yes, on clear days you can see the top of Mt. Rainier too)–makes you exhale immediately.  For some it’s biking, beach combing, fishing, kayaking or hiking, but the collective draw is the farms.  Picking berries, stone fruit and flowers, hayrides, summer concerts, sipping wine and beer while dining on food cart delicacies and leaving with food grown by hardworking local farmers.  Summer isn’t complete in Portland without a day on Sauvie Island.

This year I had the ultimate pleasure of helping very dear friends of mine realize their dream of owning a farm on Sauvie Island. It was a complicated and emotional transaction for all, but the end result was relieved and happy clients!  Kruger’s Farm is now owned by an amazing local Sauvie Island family and has been renamed Topaz Farm.  Kat and Jim are two of the smartest, hardworking people I know and their vision for the farm is going to blow your mind.  Think farm-to-plate brunches and dinners, sipping wine, beer, local coffee or strawberry rhubarb lemonade while shopping in the farm store that features their own produce, as well as other Sauvie Island and local products.  They have in-house chefs that create pasta, kale chips, pastries, pies, sandwiches, otter pops, etc., for the farm store using their produce.  They use organic farming practices and plan to be an educational farm.  They’ve partnered with the Sauvie Island Center to create camp and field trip opportunities for our schools.  They are creating a bee wheel garden (the first of its kind on the west coast) and have all kinds of plans for future enrichment programs.  They’ve accomplished all this just since they purchased the farm in January.  Can you imagine what the future holds?!!

Of course COVID-19 has changed a few things, but visiting a farm and getting outside isn’t one of them.  Don’t we all need a change of scenery!  There are some things that are on hold right now and Topaz Farm is following a very strict COVID-19 policy to keep their customers and employees safe.  Follow them on Instagram or Facebook to stay up-to-date on berry picking calendars, farm-to-plate dinners and possibly a creative summer concert series.

When you visit Topaz Farm you will likely meet the whole family.  Their daughters Maggie and Odessa work right alongside of their parents.  Kat’s brother, Peter is working tirelessly to build all sorts of new farm features (clever mobile farm store displays, new pens for the animals, etc).  I know they will be pleased to make your acquaintance (tell ‘em we sent ya!)

My wife and I had the pleasure of visiting the farm on opening day, May 27th.  Enjoy some of the photos from our visit.

       

 

COVID-19 Update from Inhabit’s Owner

Posted on by Eric Hagstette

March 31, 2020

The coronavirus is impacting everyone and every business in some way and the real estate industry is no exception.  In many ways we are lucky because our shift to doing things virtually isn’t as big a leap as some businesses are facing.  As a matter of fact, for many years we’ve been able to handle most of the home buying and selling transactions electronically.  During the COVID-19 pandemic, Inhabit is committed to keeping the health and safety of our clients and agents at the forefront of everything we do.  Even before Governor Brown initiated Oregon’s shelter-in-place order, Inhabit launched our Couch Concierge service that brings the entire home buying and selling process to our clients.  Everything from virtual open houses, live video showings with our agents, to virtual contracts and closings.

Our listing clients shouldn’t worry about canceled open houses.  We will create a digital marketing campaign that brings your house to potential buyers all without risking anyone’s health or safety.  Our agents will tailor a showing plan that you feel the most comfortable with.

For our buyers, we are hosting live video tours.  Our agents will walk you through the property showing you every nook and cranny with honest feedback on quality or construction issues they see.  

In-person tours are still an option in many cases when necessary, but with precautions we take very seriously.  We recommend live video tours for anyone that has cold or flu symptoms or concerned about a possible COVID-19 exposure.  This goes for clients, as well as, agents.  Our agents are following the recommended 6 ft of social distancing and strict hand-washing and disinfecting policies.  Our agents provide our COVID-19 Safe Showing policies to clients for review prior to visiting any property in-person so you can make the best decision for your health and safety.

We are a small business that puts the care of our clients and agents first.  I started this company six years ago because I knew there was a better, more innovative way to serve clients.  This is an industry that one-size definitely does not fit all.  Inhabit has always been forward-looking and our size allows us to be nimble in creating services that address changing needs and goals.  We are here to give you the best real estate advice possible, now and into the future.

Yours in health and prosperity!

Eric

2020 PDX Real Estate Outlook from Inhabit’s Owner Eric Hagstette

Posted on by Eric Hagstette

Settle in as Eric Pulls Back the Curtain on 2020 Portland Real Estate

And just like that, it’s February 2020. If someone asked you when you were a kid what you thought 2020 would look like, did you picture this? I visualized space travel, robots, flying cars, lasers and futuristic stuff…not this everyday adulty life gig.

So where the heck did January go? To be honest, the reason my annual market outlook is so delayed is because this January was super busy for the Portland market. Now that I think about it, we were even selling houses right through the holidays as well. Portland may be experiencing growing pains, but the real estate market is alive and flourishing.

Last Year’s Prediction: Nailed it! 

A year ago, I was calling for our buyers and investor clients to get into the market. It was a year of opportunity for our buyer clients after many years of seller-favored, tight inventory conditions. For the first time in a long while, buyers enjoyed shopping the market without urgency & pressure, having more than one house to choose from, price drops, seller incentives, and contingent offers. How sweet it was! Instead of calling it a buyer’s market or a seller’s market, we called it a “broker’s market” as we could make both sides happy by creating win/win transactions for our clients. We could place our buyers in homes without real estate “whiplash” and our sellers were walking away from the closing table with a smile on their face excited to move on in the market. It was a unique time. Everyone was pretty happy. I hope that you or someone you know took advantage of it. 

2020 Current Conditions

The Portland market has always been nimble and this year is no exception. It changed quickly! Midway through  Q4 of 2019, Portland inventory started to dwindle down. Furthermore, most sellers don’t list during the winter and holiday months, so market inventory continued to fall. Despite the BRUTAL Portland weather this winter, the buyers came out of the holidays with a big appetite and gobbled up what was left on the market. The close in Portland neighborhoods currently sit at 1.3 months of housing inventory (in the 450k-700k range).  So the 2020 cycle begins with a fiery combination of low housing inventory, great interest rates, a seemingly healthy economy (with many new jobs coming to Portland) and a rapid erosion of affordability (this pushes buyers further from town to seek more affordable options). The market is behaving accordingly in response to high demand. Demand is being driven to Portland by a combination of reasons: jobs/economy, lifestyle, climate & natural resources, and an affordable option for many West Coast transplants. 

2020 Outlook

Welp….it’s an election year which has a tendency to slow the market. Buyers and sellers that aren’t being pushed into the market tend to sit tight through election times out of fear of the unknown. However, the upcoming election doesn’t seem to be having an impact on the market…yet.  Portland shows resilience when other markets slow. When things have slowed for us in the past, we bounce back quickly (including the recession). Thanks to our urban growth boundary and natural geographic barriers, we don’t have sprawl which has been a saving grace for our unique market. Portland offers jobs plus lifestyle and attracts a wide demographic spectrum of folks looking to call Portland home.  Pair this with a mild climate and abundant natural resources and you have a winner. Therefore, I predict 2020 will continue its low-inventory trend which favor sellers, drives prices and frustrates buyers. We have to be careful with the “drives prices” part though.  Affordability is a major concern. The chasm between the cost of Portland real estate and our median household income seems to be growing. Jobs are coming but wages haven’t caught up and the cost of living keeps climbing. This pushes buyers to outlier markets (Vancouver, Milwaukie, Beaverton, Oregon City, etc). For the urbanites that don’t want to pay for the high priced houses but want to stay in town, they’ll drive demand in the ‘attached’ market (townhouses/condos) which had a slow 2019. This will stabilize pricing in the attached market. Properly priced, well-presented, detached houses from the $200k to $1m range will continue to fly off the shelf. The $1m-$1.5m market is a ‘move up’ market for many wanting to upgrade from their existing home .  This market presents opportunities for buyers to make a great purchase; however, tapping their “trapped equity” from their existing home in order to make this purchase can present challenges (certainly not insurmountable but can be daunting to the client). In surprising fashion, Portland’s upper end market ($1.5m +) is moving at a pace you may find interesting (fast). Of course, these properties need to deliver the full package to fetch the price, but this market segment seems very confident in Portland as a place to make these big purchases. I find these big numbers surprising as I clearly remember how freaked out I was when I bought my first house in Mt. Tabor for $185k. However, like many other places, we are bursting at the seams. The numbers for incoming population growth are staggering which in real estate economics translates to demand. Portland is in high demand which has all but diminished the lower end of the market and made it feel normal to buy and sell very expensive real estate. 

Natural disaster or other non-natural market forces aside, Portland real estate has a very promising future and has always been well-insulated. With all this said, if our local government doesn’t figure out a way to better manage our addiction/mental health/homelessness crisis, Portland may lose its reputation as the “darling” of the Pacific Northwest and no matter how great this city is, many people will choose different markets to call home. Rainy weather is tolerable but corruption and greed are inexcusable especially with what it costs to live here. 

2020 Buzz Words & New Concepts 

iBuyer: Also known as institutional buyers or residential REIT (real estate investment trust): Have you heard the OpenDoor commercials on the radio? iBuyer or ‘instant offer’ is easily the biggest new disruptor in real estate and Inhabit is all over it. iBuyers have come into the market backed by billions of venture capital funds and are buying up real estate that fits in their “buy box”. Homeowners that qualify for an instant offer (and choose to take it), are typically taking a discounted price for the convenience and avoiding the traditional selling route.  As a student of change, I became very intrigued with iBuyer and became certified as an iRep Professional. Our philosophy with iBuyer is “pro-consumer choice”…what works best for our clients. iBuyers are real in today’s market and we want to share all of the options with our clients so they get the most out of their real estate assets. It works for some clients and we can show you how. 

Trapped equity: Many homeowners who have owned their real estate for 5 + years are sitting on a decent amount of equity that is trapped in their real estate. In a tight market, trapped equity can add challenges to a buyer that wants to move up or move down within the market. We’ve found that many people will simply opt out of moving around in the market simply because of the perceived risks and challenges with using the equity in your home to help achieve the daunting buy/sell or sell/buy. There are more layers, but we manage these all the time. In the end, our clients say that it’s worth the effort. 

Concierge real estate services: It is more important than ever for real estate professionals to be a trusted advisor not only throughout the sale, but on an ongoing basis after the sale. Realtors are on the front line of clients’ needs as a sale closes. Concierge real estate service continues after closing where Realtors continue to provide useful resources, information and advice on an ongoing basis. In today’s demanding and competitive market, we are reinforcing our value by continuing to support our clients on all things real estate. 

Final Words

Even though we’re not living in the Jetson-like society that I envisioned as a kid, 2020 is chock full of new and exciting stuff: self-parking, electric cars, virtual reality, and an impressive (and concerning) amount of technology & connectivity. At the push of a button, you can have almost anything you want delivered to your doorstep within hours.  Heck, you can push a button and order up a random Realtor to open up a house for you (but how dare you do that!). Real estate is no exception to the expectation of today’s “now society”. As professionals, our response time must be faster, our knowledge deeper and our ability to navigate this market must be sharp and focused. One thing that technology can’t change, is the human factor that is necessary to create happy buyers and happy sellers in real estate transactions. This is our wheelhouse. We embrace today’s disruptions & technology and use them as tools to enhance our clients’ position and experience; however, we feel more strongly than ever that real estate is a people business and we are here to stay. 

Thank you for your continued support and trust. Here’s to a prosperous 2020!

Eric

41st Annual Duniway Holiday Home Tour

Posted on by staff

The Duniway Holiday Home Tour and Artisan Boutique is back for the 41st year as Portland’s longest-running house-hopping extravaganza.

The one-day event is Friday, December 6, starting at Duniway Elementary school, 7700 SE Reed College Place, Portland.

All proceeds from the event will benefit the students of Duniway Elementary by providing an arts program, cultural development and other academic enrichments.

The Duniway PTA and gracious members of the community offer 6 outstanding homes to explore.  All homes are special and certain to spark nostalgia, inspiration and warm holiday spirit. 

This year’s tour features a Mediterranean-style home brimming with an astounding collection of Pop Art and expertly curated Native American art.  Other homes include an eclectic vintage-inspired Colonial, and a newly remodeled estate.  The six homes offer a diverse array of architecture, landscaping and design: from classic to eclectic, and all the gorgeous styles between.

Nothing enhances a home tour like shopping! The Duniway Artisan Boutique is set to provide all your gift-giving needs. Browse dozens of local vendors in the Duniway Elementary gymnasium for locally made crafts, home goods and treats.  Purchase a unique bag or tote made from repurposed material and fill it with handcrafted jewelry, Oregon honey, handmade pasta and soap. Other vendors offer home goods such as special holiday ornaments and eco-friendly laundry products. 

From the school, participants can board the complimentary trolley to any of the gorgeous Eastmoreland homes whose residents have opened their doors to benefit Arts education.  The trolley circulates on a loop for participants to house-hop at their leisure.  A collectible brochure provides a brief description of homes on the tour, and homes can be explored in any chosen order.

The annual event offers two sessions throughout the day from 10am-3pm, and 5pm-9pm.  Live music will fill the homes during the evening session.  

Tickets are $35 at the door, or $30 in advance at www.duniwayhometour.org.  Admission to the Artisan Boutique is free, and will be open 9am-7:30pm. Single ticket purchase provides access to the Tour, Trolley and Boutique.  

Celebrating 5 Years Inhabiting our Flagship Office in SE Portland

Posted on by Kim Hagstette

Celebrating 5 Years Inhabiting our Flagship Office in SE Portland

5 years ago, Inhabit Real Estate decided to put down stakes on SE Division Street at the epicenter of it all.  It was during a time that the neighborhood was experiencing tremendous growth and the landscape of the street was transforming a little too rapidly for some.  A sea of mixed-use, 4-story apartment buildings sprung up between existing shops and restaurants.  The renewed energy brought in some anchor tenants that literally transformed the entire neighborhood vibe.  Today, it’s an area that literally buzzes with energy.  The street is lined with noteworthy eateries and was dubbed one of the “10 Best Foodie Streets in America” by Food and Wine Magazine.  The restaurants, unique shopping, and local vibe make it a worthy destination in Portland.  We happily claim our spot nestled between the Whiskey Soda Lounge and Bula Kava House at 31st and Division.

As a small, Portland-based company, our goal was to celebrate everything local in our design.  We partnered with Maven Interiors, an award-winning local design company and Christopher McDonald (our good friend and amazing carpenter/ contractor) to do the build-out. We challenged the design team to create something that was unique, sustainable and had a hand-crafted feel.  We wanted our storefront to add to the streetscape and our presence embraced by the community.

Here’s a brief tour of some of the “local” aspects of our office…

One of the first things you will notice as soon as you walk in the office is a huge mural of an abstract Portland map that we commissioned local artist Jerry Inscoe to create for us.  The red peg indicates “you are here”.

We looked for opportunities to infuse art in unexpected ways.  Our interior doors, for example, became blank canvases. We asked Jerry Inscoe to collaborate with local artist Jennifer Mercede to bring our doors to life in an otherwise uninspired corridor.  Jerry airbrushed abstract backgrounds and Jennifer painted things reminiscent of Portland (Doug firs, bubbler fountains, bicycles, etc) in a whimsical doodle fashion on top.  The contrasting styles of the artists resulted in one-of-a-kind creations.

We turned to Portland’s own Schoolhouse Electric for all of our office pendants lights and Pratt and Larson Tile for our handmade kitchen backsplash.

The bathroom wallpaper is the work of local designers at MAKELIKE, a graphic design collective in SE Portland.  We loved continuing the unexpected whimsy in the loo.

All of our office partitions and workstations were custom designed by Maven Interiors and hand built by Chris McDonald.  The materials used are untraditional, just like us.  We are different by design.

The next time you find yourself on SE Division Street, please stop by for a tour and a cup of coffee.  We would be happy to make your acquaintance.

Why 2019 Could be a Great Year to Sell Your Home

Posted on by Eric Hagstette

With the Feds increasing interest rates already 3 times the last 12 months (and a possible 4th predicted); it’s understandable that people could be hesitant to make any real estate moves. Mortgage rates tend to mirror interest rates, but with some caveats. Mortgage rates are based on the current market, your financial status and the property you are trying to purchase. Mortgage rates hit a 7-year high in November, 2018 at just under 5% as reported by Freddy Mac, but as of February the rates have lowered to the mid to low 4% range. These rates are still incredible if you consider the historic high of 18% in 1981.

 

Housing markets and volatility will vary depending on where you live. Thankfully, Portland is still a growing and sought after destination which helps keep our market volatility more steady. So why would selling in 2019 be better than 2020 or 2021? Our housing market has a cycle of its own that is influenced by the economy. Typically the cycle is somewhere between 10-16 years. Some experts are predicting the next recession happening in 2020 or 2021. That prediction would be in line with our typical cycle length since the last housing “crash” was in 2008.

 

If you are unsure what to do, here are some compelling things to think about…

Reasons to Sell in 2019:

  1. Do you have plans to make a move in the next 3 years?
  2. Do you have considerable equity in your home? The higher your down payment on a new home, the better your interest rate.
  3. Interest rates are predicted to rise again in the next year
  4. New home buyers are entering the market. Based on a recent Trulia survey, millennials are the largest buying group with 1 out of 5 reporting they will buy a home in the next 12 months.
  5. If you are getting close to retirement and the equity in your home is a big part of your financial picture, then waiting out the next economic cycle might not be the best plan.

Reasons not to Sell in 2019:

  1. You haven’t owned your current home for long enough to build up enough equity. If you’ve owned for less than 2 years, then paying capital gains on your profit is a deterrent as well.
  2. You are happy with your home and believe it can meet your needs for the next 5 years or more, then staying put and waiting until the next cycle is probably in your best interest.

 

I created Inhabit to be a trusted resource for guiding people on how to get the most out of their largest and most important asset. Our overarching goal is to be a trusted advisor and build relationships that withstand all the market ups and downs.

If you want help assessing what you should do to get the most out of your real estate investment, I’m just a phone call away.

 

2019 PDX Real Estate Outlook From Inhabit’s Owner Eric Hagstette

Posted on by Eric Hagstette

It’s 2019! I hope you had a restful holiday season and are as excited about the new year as I am. I find this time of year refreshing as I look ahead. The following is my market outlook for 2019. I was excited to look back on my 2018 predictions and am happy to report that I pretty much nailed it! Our Portland real estate market is very healthy….different, but healthy. We’ve been enjoying solid appreciation since 2012 and our market continues to strengthen the fundamental components required to keep a market healthy and resilient (ie., job growth, buyer qualifications, lending guidelines, availability of financing, desirability, popularity, and so forth). With this being said, the Portland market has changed and we think it is chock-full of opportunity for both our buyer and seller clients.

Inventory

Real estate buzz word #1. This simply means “supply” of housing for sale. Inventory levels determine who has the upper hand (or level hand) in the real estate market. Portland’s historically low inventory has always favored our seller clients; however, as of late 2018, inventory levels rose to a point (approximately 3 months) that has given our buyer clients hope of achieving their dreams of owning real estate. We are excited for our buyer clients and investors and doing our best to encourage them to take advantage of this “correction” or “softening” or “shift”. Call it what you will, we think this is a great time to get into the market or move around within the market.

Interest Rates

Real estate buzz word #2. We’ve been warned for years that rates would be going up and it finally happened. As we all knew, 3-4% long-term interest rates were unsustainable. These low rates were simply a tool (“quantitative easing”) used for economic recovery and stimulation as a result of the “great recession”. We’ve begun the march back to more sustainable rates for real estate financing. While these rates are still at historic lows, we understand the impacts (and discomfort) that rising rates have on real estate prices (they both can’t go up at the same time). Our sources say that we will likely have a couple more rate hikes in 2019 so, again, we’re encouraging our buyer clients to jump in the market before rates creep up more. Interestingly enough, as I write this, rates are at an 8 month low which is stirring up activity for us. On a positive note, there is still ample liquidity and loan programs for real estate financing and qualified buyers. Great lenders paired with skilled real estate negotiators (me) can introduce ways to buy rates down for our buyer clients and lower the barrier into the market.

Price, Value, Affordability

Buzz word(s) #3. Inventory, rates and real estate prices are all tied together. As mentioned, rates and prices don’t normally go up at the same time. It’s no secret that Portland (and many other metro markets) have a huge “affordability” issue. Rising rates and inventory have joined forces to encourage (or force) our seller clients to price their real estate realistically based on these new inventory levels. It is important to look at this from a positive perspective. 2019 sellers have not “missed the market”. Most of our sellers have enjoyed huge gains in appreciation of their holdings since 2012 (or longer). In my humble opinion, if we simply adjust those appreciation averages to account for today’s market conditions, most people would still be more than happy with their rate of return when spread across the years.

Luxury Homes & High-End Market

This market is all over the board. We’re seeing examples of high-end listings sitting on the market. We’re also seeing examples of high-end listings flying off the shelf. Every property has a price and there are still buyers that can and will appreciate high-end luxury homes. Keep in mind, Portland has always been insulated by the famous migration of buyers moving from California, Seattle, New York, and other “jumbo” markets. To these buyers, our “high-end” listings may seem like a bargain. With this said, regardless of the market segment, it is imperative to price real estate competitively.

Condominiums/Attached Townhomes

While these types of properties continue to grow in popularity in Portland, so does the buying power for condos and townhouses. The recent over-saturation new rental apartments in Portland has softened prices for condos and townhouses. With Portland’s limited land for development (and sprawl) and encouraged density, these properties will remain a player in the market and will “weather” this shift as our population continues to grow and buyers prioritize simplicity and efficiency. In the meantime, this is an outstanding market segment to take advantage of for our buyer and investor clients.

There you have it….my two cents on the local market for 2019

I strongly believe that these “in between” markets present the greatest opportunities for our clients. Unfortunately, we usually don’t realize these opportunities until they’re gone. While we’re experiencing a market correction, we’re still very bullish in the Portland market. We’ve built the fundamentals of a solid market while our job base and popularity continue to thrive. As “the darling” of the Pacific Northwest, Portland may experience blips like this one; however, the combination of current/future population growth with our Urban Growth Boundary and natural land barriers (to development), we feel we have a recipe for strong upward appreciation over the next 10-year cycle. The long and short of it….we do not think buyers should wait to take advantage of this market. At the same time, we feel like sellers who properly price and present their real estate will have a satisfying outcome. It’s a solid market for both sides! The key component is accepting the change and adapting to it. As usual, if you know of anyone considering buying, selling or investing in real estate, we would be honored to receive your referrals and serve your friends and family with outstanding service.