How the Pandemic and Economy has Shifted the Real Estate Market
For years, the advice that I gave clients was pretty consistent, whether it was for selling or buying a home. Recently, that advice has shifted. Here are some of my thoughts on real estate shifts in the greater Portland, Oregon area.
The ideal home has been redefined
Because of the pandemic, we all have been spending more time at home with our immediate family; for meals, work, entertainment and exercise. So, many of us have paid more attention to our house, and with that, we have become more aware of any needed improvements and upgrades. We have worked on the garden, created an outdoor space, overhauled a room, painted, emptied the garage for an exercise room, or cleaned out closets.
With increased time at home, we value new things;
Spacious home More of my clients want a larger home that includes a place for exercising, an outdoor space for socializing, or a bonus room for downtime. Open layouts are still of interest, but there’s more demand for separate spaces.
The office A quiet home office has become very important. You are probably aware that telecommuting is working. I expect more people will opt to work from home more often as a long-term work preference.
From Tiffanie Danley Group listing, SE Portland, 2020
Suburbs Suburban home demand is on the rise, where lots are bigger, a larger home is more affordable, and the school districts have strong appeal. I think this demand will continue well past the pandemic. In the Sexton Mountain 97007 area where I live, forest walking trails, a beautiful lake, parks, restaurants, schools, and safe neighborhoods are many of the reasons why people choose this specific area. Also, people are attracted to the larger homes and yards at a more affordable price than in the city.
Multi-generational home Property demand with an ADU (Auxiliary Dwelling Unit) is on the rise. The recently passed Oregon House Bill 2001 allows for more housing types on traditional single-housing lots. Options to build an ADU, duplex, or a fourplex create more options for homeowners to build wealth or to provide living arrangements for family members.
Lifestyle home Many are wanting more from their home, whether it includes things like a gym, pool, outdoor fireplace, entertainment room, or easy access to nature and the outdoors. Currently, I have one client who is looking to sell their Beaverton home and move to the coast. The husband plans on making the 1.5-hour drive to his Portland office twice a week.
2021 Portland Realtor Advice: If you are considering home upgrades to increase your home’s sales value, I would be happy to offer you a realtor’s perspective. Some investments are worth it, others may not be.
A second home is possible for more buyers
More of my clients are interested in buying a second home. I’ve never seen such interest! I think the pandemic has influenced how we look at our vacation time and made us rethink our general lifestyle. People want a safe getaway destination that is in close proximity. Also, banks are approving clients with a down payment of 10% for a second home and offering low interest rates. These flexible financial options create more opportunity for a dream home to become a reality.
2021 Portland Realtor Advice: If you want to know if you qualify for a second home, it is fairly easy to find out. Through my trusted network of mortgage professionals, I can help.
It's a very competitive market for buyers
In the last few months, most of my buyer clients have been competing with five to ten competing offers, and I’ve seen similar numbers with my listings. That can be stressful, especially for buyers.
Many factors are causing a stronger seller’s market; incredibly low interest rates, limited housing because of our urban growth boundary, and the increased focus on the home due to the pandemic.
Low interest rates and multiple bids are driving home prices to increase. Mortgage rates are expected to be in the high 2’s into the 3s for 2021. Even if the rates increase into the 3’s, that’s still an amazing rate, and these rates will keep housing demand high.
2021 Portland Realtor Advice: If you are thinking of buying a home, especially one with “lifestyle appeal”, expect many bids. You need a real estate agent who stays on top of every new listing for you, and knows solid strategies to win a bid. It’s not all about the best price; there’s more to it than that.
What has not changed
Certain things have not changed. If you are thinking of selling your house, it is still advisable to do some prepping to make your home easier to sell and to increase its value. You probably know that a home that is freshly painted, decluttered, and up-to-date on repairs is always recommended. Professional photos are a must. Staging may also be a good idea. I can provide more details in person as it pertains to you and your home.
Many people have questions and concerns about the real estate market, even if they have bought a home before. I am currently offering my complimentary real estate class in late February, and then again in the spring. For more information, or to sign up, please click this link: http://bit.ly/HBclass2021
How has your vision of your best home changed?
I am truly interested in hearing what has recently changed for you, whether you are thinking of moving soon, or years from now. I am just a phone call, text, or email away. Let's chat!
About TD Realty and Tiffanie Danley
Using all my skills developed over 10 successful years in real estate, I make sure my clients get the best outcomes for them. You will be my top priority: I want your next home to be exactly right for you, or, if I sell your home, I will do everything I can to give you the best satisfaction as you move on to the next home. If you have questions about my approach, or if you want me to be a sounding board for your ideas, let me know.