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Breaking Down the November 2020 Market Action for PDX Metro

 

The recently released November 2020 Market Action Report for the Portland Metro area held few surprises for those currently looking to purchase a home in Portland or one of its surrounding suburbs. In fact, it reinforced what we already know: inventory is extremely low, while the average and median sale prices of homes are continuing to slightly rise based on the amount of competition out there.

It doesn’t help that the amount of new listings took a drastic dip of 36.3% from October, though they were up 5.7% from November 2019. One might speculate that perhaps this was impacted by the election and COVID, or maybe simply a traditional holiday slow down, but I don’t think this is necessarily the case.

To get a better grasp, let’s look at some of the other metrics in play. Similar to  active listings, the amount of pending listings also dropped in November, down 20.1 percent from October, and even the amount of closed listings decreased 13%, though closed sales were up 25.3% from November of 2019.

What also saw an increase? The year to date average sale price, which has risen from $459,300 up to $492,000. Similarly, the average median home price has increased from $410,000 up to $438,000.

November 2020 logged the lowest amount of inventory recorded in RMLS history: 1 month. This means that if all the homes that were currently on the market were to be gobbled up by everyone looking to buy a home out in the PDX Metro Area, it would take one month for all of the homes to be gone. This is severe, especially considering that in November 2019 there was 2.4 months worth of inventory, and 2.8 in November 2018. That is an additional 1.4 months worth of inventory gone.

So why are we seeing the numbers that we are? Though the initial pause we had in real estate at the beginning of the pandemic contributed to creating a pent up demand for housing, the demand has yet to abate. In fact, with many remaining at home to work or oversee distance learning, there has been an increase in buyers looking for homes with more room. Low mortgage rates have also given an extra push to those on the fence, edging them into the buying pool. Add these factors to the low inventory we normally see at this time of year plus the fear from potential sellers of not finding a place to move to once their home goes pending, and you have an anemic market.

It will be interesting to see what January brings, whether the amount of homes to come to the market will significantly rise or not. I believe that while we will see more sellers come to the market, there will still be a noticeable deficit between what is available and the amount of Buyers still looking.

Looking for advice on how to make your offer irresistible to Sellers and stand out from the crowd? Or are you considering selling your home but are uncertain about the best way to do so in this competitive market? Check out the About page on Beckspacnw.com for ways to contact me to schedule a consultation today!Market Action (3)

 

 

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Are People in the Pac NW More Depressed?

When contemplating a move to the Pac NW, the benefits everyone envisions include being in the midst of the technological “Silicon Forest” while having easy access to verdant trails, a serene coastline, and the thrilling adventures that await in the mountains. So why would anyone hesitate moving here,?
Perhaps it is due in part to Oregon having the highest percentage of depression out of all 50 states (according to one 2019 study) even while it is also the second most popular state that people move to (according to the 2019 United Van Lines Survey). It’s no secret that in the fall and winter the percentage of rain increases, as does the fog or darkness. Residents don’t hide the fact that they mourn having to transition to activities that are primarily indoors (shout out to the ones who keep hiking, skiing, and more) or contemplate the purchase of a light therapy lamp (see @Beckspacnw on Instagram for the December 2nd post on light therapy lamps). Taking all of this into account, it wasn’t the largest shock to see Oregon’s ranking, though I will admit, it was a little bit of a shock to me. I have lived in the Pac NW my entire life, and people generally seem pretty happy. How was I missing this being prevalent in my state? Also, who wants to move to a state that has high rates of depression? Would it eventually cause their own mental health to deteriorate?
At this point you may be thinking, Beck, why would you write a blog that could completely put people off wanting to relocate to a state where you are trying to help them buy homes in? I can’t fault you for that thinking. From a business perspective it makes little sense, but please, hear me out.
 After the initial mini-shock of seeing my home state in the number one position, I looked at where the rest of the Pacific Northwest ranked as well as what other states made the top 10. Washington and Idaho, the two other states that form the Pacific Northwest, ranked #10 and #27 in this same study. Which means that 8 other states fell into the top 10, having the highest percentages of depression (From #2-#9: West Virginia, Maine, Arkansas, Kentucky, Oklahoma, Alabama, Vermont, and Tennessee). Do you know what I realized as I looked at this list? Not one of the 50 states had a percentage of zero. Not one. In fact, no state fell under 11 percent. I also realized that most of the states in the top 10 are located in the eastern states, one in the mid-west. It changed the way I started looking at this study.
Here at NextHome, we consistently tell you that we are #humansoverhouses. This means that we value you, your goals, and providing you impactful service over whether you actually buy a house from us or not. When you first look at this study, it is easy to focus on the numbers. To calculate the benefits for ourselves. How will this impact me? When you take a step back, a bigger picture emerges. You see, depression is not confined to one location. It is not confined to one group of people. Seasonal or not, depression has affected you or someone you know at some point, whether it be a temporary sadness or a lingering melancholy. This study is not something you should use to determine where you should move. It is a study that should bring a greater sense of awareness to what is going on inside of you and in those around you. It is a study that should create an opportunity for you to contemplate how you can seek out or provide resources for those in need. Here are a few national resources for depression to keep handy or to share: