Month: June 2021

For generations, the process of buying and selling a home never really changed. A homeowner would try to estimate the market value of their house, then tack on a little extra to give themselves some negotiating room. That figure would become the listing price. Buyers would then try to determine how much less than the full price they could offer and still get the home. As a result, the listing price was generally the ceiling of the negotiation. The actual sales price would almost always be somewhat lower than what was listed. It was unthinkable to pay more than what the seller was asking.

Today is different.

The record-low supply of homes for sale coupled with very strong buyer demand is leading to a rise in bidding wars on many homes. Because of this, homes today often sell for more than the list price. In some cases, they sell for a lot more.

According to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR):

“For every listing there are 5.1 offers. Half of the homes are being sold above list price.”

You may need to change the way you look at the asking price of a home.

In this market, you likely can’t shop for a home with the former approach of negotiating to a lower price.

Due to the low supply of houses for sale, many homes are now being offered in an auction-like atmosphere in which the highest bidder wins the home. In an actual auction, the seller of an item agrees to take the highest bid, and many sellers set a reserve price on the item they’re selling. A reserve price is the minimum amount a seller will accept as the winning bid.

When navigating a competitive housing market, think of the list price of the house as the reserve price at an auction. It’s the minimum the seller will accept in many cases. Today, the asking price is often becoming the floor of the negotiation rather than the ceiling. Therefore, if you really love a home, know that it may ultimately sell for more than the sellers are asking. So, as you’re navigating the homebuying process, make sure you know your budget, know what you can afford, and work with a trusted advisor who can help you make all the right moves as you buy a home.

Bottom Line

Someone who’s more familiar with the housing market of the past than that of today may think it’s foolish to offer more for a home than the listing price. However, frequent and competitive bidding wars are creating an auction-like atmosphere in many real estate transactions right now. Let’s connect today so you have a trusted real estate professional on your side to provide the best advice on how to make a competitive offer on a home.

Some Highlights

• June is National Homeownership Month, and it’s a great time to consider the benefits of owning your own home.
• If you’re thinking of buying a home, it might just help you find the stability, community, and comfort you’ve been searching for over the past year.
• Let’s connect today to determine if homeownership is the right next step for you.

Are you clamoring for extra rooms or a more functional floorplan in your house? Maybe it’s time to make a move. If you’ll be able to work remotely for the long-term or your overall needs have simply changed, it’s a great time to sell your house and move up. Why? With mortgage rates in their favor and higher-priced home sales powering more moves across the country, sellers in today’s market are finding the space they need (and have always dreamed of) by purchasing a home in the upper end of the housing market.

With so few homes available for sale and high demand from today’s homebuyers, sellers are profiting in major ways this season. Bidding wars are gaining traction, driving up the sale price of more and more homes throughout the country. This means sellers are able to leverage extra cash from higher-priced sales while also taking advantage of today’s low mortgage rates when they purchase their next home. It’s the perfect scenario to move up into a true dream home. According to the April Luxury Market Report from the Institute for Luxury Home Marketing:

“The Institute’s recent analysis of sales in 2020 for homes over 5,000 square feet support the continuing preference for larger homes. The analysis determined that there was a 17% increase in the number of 5,000+ sq ft homes sold when compared to the number of sales in 2019.

Luxury home prices continue to see record highs in the majority of affluent ex-urban communities, as the influence of being able to work from home is still driving buyers away from living in high density areas. Low interest rates also remain in play, allowing buyers to realize the affordability of owning a larger property, which further reinforces this trend.”

Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), also explains:

“The market is hot pretty much everywhere and across all price points . . . The only area where there is sufficient inventory is in $1 million-plus homes . . . .”

While this price range certainly doesn’t fit every budget, if it’s in your reach this summer, you may want to make your move sooner rather than later. Today, more homes are available in this segment of the market, but as the report mentions, more buyers are investing here too, so competition may heat up sooner rather than later.

Bottom Line

If you’re planning to sell your current home to move into a larger one, let’s connect today. We’ll discuss your current situation and the opportunities in our local market.

This year, Americans are moving for a variety of reasons. The health crisis has truly reshaped our lifestyles and our needs. Spending so much more time in our current homes has driven many people to reconsider what homeownership means and what they find most valuable in their living spaces.

According to the 2020 Annual National Movers Study:

“For customers who cited COVID-19 as an influence on their move in 2020, the top reasons associated with COVID-19 were concerns for personal and family health and wellbeing (60%); desires to be closer to family (59%); 57% moved due to changes in employment status or work arrangement (including the ability to work remotely); and 53% desired a lifestyle change or improvement of quality of life.”

With a new perspective on homeownership, here are some of the reasons people are reconsidering where they live and making moves right now.

1. Working from Home

Remote work became the new norm, and for some, it’s persisting longer than initially expected. Many in the workforce today are discovering they don’t need to live so close to the office anymore and they can get more for their money if they move a little further outside the city limits. Apartment List notes:

“The COVID pandemic has sparked a rebound in residential migration: survey data suggest that 16 percent of American workers moved between April 2020 and April 2021, up from 14 percent in 2019 and the first increase in migration in over a decade… One of the major drivers in this trend is remote work, which expanded greatly in response to COVID and will remain prevalent even after the pandemic wanes. No longer tethered to a physical job site, remote workers were 53 percent more likely to move this past year than on-site workers.”

If you’ve tried to convert your guest room or your dining room into a home office with minimal success, it may be time to find a larger home. The reality is, your current house may not be optimally designed for this kind of space, making remote work very challenging.

2. Room for Fitness & Activities

Staying healthy and active is a top priority for many Americans, and dreams of having space for a home gym are growing stronger. A recent survey of 4,538 active adults from 122 countries noted the three fastest-growing fitness trends amongst active adults:

• At-home fitness equipment (up 50%)
• Personal trainers/nutritionists (up 48%)
• Online fitness courses, classes, and subscriptions (up 17%)

Having room to maintain a healthy lifestyle at home – physically and mentally – may prompt you to consider a new place to live that includes space for at-home workouts, hobbies, and activities for your household.

3. Outdoor Space

Better Homes & Gardens recently released the outdoor living trends for this year, and three of them are:

• Outdoor Kitchens: 60% of homeowners are looking to add outdoor kitchens.
• Edible Garden: Millions of people began gardening during the pandemic . . . to supplement pantries with homegrown fruits, vegetables, and herbs.
• Secluded Spaces: As outdoor activity increases, so does the need for privacy.

You may not, however, currently have the space you need for these designated areas – inside or out.

Bottom Line

If you’re clamoring for more room to accommodate your changing needs, making a move may be your best bet, especially while you can take advantage of today’s low mortgage rates. It’s a great time to get more home for your money, just when you need it most.

Life is messy. But it’s easier than you think to clean up.

Use the sun to bleach your whites
Did you know that the sun can remove some stains? That’s right. The sun naturally bleaches.

Diapers
Wash the diapers and let them dry in direct sunlight for a few hours. Stains will be noticeably lighter or gone.

Grass Stains
Let your grass-stained white dry in the sun to naturally become whiter.

Tomato Stains on Plastic Containers
Set your containers out in the sun and the stains will bleach out.

Remove Ink Stains with Hairspray
Your favorite shirt now has a huge spot where a marker bled on it. Fear not. Find some alcohol-based hairspray. Yes, this works! Spray that tough ink stain with hairspray. Let it dry. Spray it again and wash as usual. The stain will be gone.

Remove Paint Splatter on Clothing with Hand Sanitizer
Get rid of paint stains—even brushes. 

Lay the article of clothing flat. Put some hand sanitizer on an old toothbrush and scrub in a circular motion. The paint will loosen and come out. For tougher stains, add a little running alcohol.

Clean Your Drains with Vinegar and Baking Soda
Slow drains? You can help clear them with ingredients you already have in your pantry. Pour a pot of boiling water down your drain. Then put ½ cup of baking soda in the drain. 

Pour a mixture of 1 cup vinegar and 1 cup of very hot water down the drain. Let it sit for 5 to 10 minutes and follow with another pot of boiling water.

Is wallpaper considered to be old-fashioned?

Luxury properties across the country embrace the colors and textures that wallpaper provides to expansive and creative spaces. When your clients are ready to transform their custom-house into the home of their dreams, introducing them to de Gournay will provide them with a new perspective of wallpaper.

What are the benefits of wallpaper?

– Elevate a space while also covering cracks and stains in plaster or drywall. 

– Cover up uneven floors or ceilings as homes age and begin to settle.

– Create personality and reflect personal style with unique and custom prints.

Is wallpaper just a fad?

As experienced real estate agents, you have seen custom paint colors, wallpaper, faux wood panels, and much more – come and go! For generations, people were covering up their parent’s wallpaper with their own personal wallpaper selections. 

Wallpaper provides clients with a way to reuse spaces for new purposes without the cost of labor and materials of rebuilding. This is especially true for your clients who are purchasing historic or older homes and wanting to bring back the feeling of years gone by. Wallpaper provides them with the opportunity to infuse walls with deep, rich colors and textures that match the era of their home.

Are professionals required to install Wallpaper?

Your more crafty clients may be able to watch a Youtube video and begin installing their wallpaper selections on their own. Your clients with less time on their hands may want to consult with a local company that specializes in wallpaper for the type of wall surface they have and the average temperatures in their area.

Quiet, Top Floor, End Unit Condo in a Historic Gem in a Historic Neighborhood.

2015 NW Flanders St
$187,500
426 sqft

Light-filled end unit! Pretty little loft in the 1925 historic Embassy Apartments with period features and vintage finishes, hardwood and terrazzo floors. The Embassy features bike parking, a large interior courtyard, gym, 2 elevators and deeded storage. Right in the heart of the Northwest/Nob Hill neighborhood. Mere blocks to coffee, restaurants, shopping, lounges, bus lines, the Street Car, light-rail, Trader Joes and more. Walk/Bike scores of 99/94. Residents should be able to acquire an annual parking permit from the city for on-street parking. This place is adorable, especially for the minimalist, eco-friendly Portlander! Contact me before it’s gone!

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Maximize Curb Appeal
Getting them through the front door starts at the curb. Manicure the lawn, trim the trees and shrubs. Pull weeds and plant some colorful flowers. Clear the walkways. Fix peeling paint and wind up that hose. Paint the address number on the curb.

Make Repairs to Visible Blemishes
Is there something that’s an eyesore, but an easy fix? If looking at it bothers you, it could bother a potential buyer and reduce the appeal of your home. Replace burnt out light bulbs, fix that loose door handle, make needed paint touch-ups.

Make a Buyer’s Entrance Inviting
Freshly paint the front door with a color that contrasts the house. Add a new welcome mat. Hang a fresh wreath on the door.

Let the Light Shine In
Removing heavy window coverings to let in the natural light we all crave. Add lamps to brighten up darker areas to add more cheer.

Remove the Clutter
This serves two purposes. First, you want your home to have an open and inviting appearance. Removing clutter will make rooms appear larger and more appealing. Second, it helps YOU prepare to move. Going through the clutter and getting rid of what you don’t need will make your move much easier.

Remove Personal Items
It will be much easier for a potential buyer to imagine your home as theirs when they can envision their own items in it.

Highlight Special Features
Use accents and color to draw eyes to special features that you want potential buyers to notice—throw pillows, plants or other eye-catching accessories.

Add Mirrors
Use mirrors to make rooms look larger and lighter. Position opposite windows for best effect.

Clean Out Cabinets and Closets
Buyers are nosy and they WILL open the cabinets. Make sure your contents are orderly and organized.

Eliminate Odors
Clean to remove any odors and do not cook any meals with heavy, lasting smells before a showing.

Add Aromas
You can easily add appeal by quartering an orange and adding it to a pot of water with a cinnamon stick. Simmer on low for an inviting aroma. Or bake a fresh batch of cookies (and leave a plate of them on the counter for visitors).

Our homes are so much more than the houses we live in. For many, they’ve also become our workplaces, schools for our children, and safe harbors in which we’ve weathered the toughest moments of a global pandemic. Today, 65.6% of Americans call their homes their own, a rate that has risen to its highest point in 8 years.

As National Homeownership Month kicks off this June, homeowners have every reason to celebrate. A survey by Gallup just ranked real estate as the best investment you can make for the eighth year in a row. However, unlike other investment options, the benefits of owning a home aren’t purely financial. Here are the top ways Americans are winning by owning a home.

Non-Financial Benefits:

1. Civic Participation: Owning a home is owning a part of your neighborhood. Homeowners have a stronger connection to their neighborhoods and are more committed to volunteer work and other ways to get involved.

2. Pride of Ownership: Owning a home is having a space that is uniquely yours. You can customize it to your personal liking and make it reflect your personality and values.

3. A Safe Space: Owning a home gives you a sense of security and privacy – two things that have become even more valuable as we’ve tackled the challenges of the recent health crisis.

Financial Benefits:

1. Forced Savings: Owning a home builds equity. Your equity grows with each payment you make toward your mortgage. This form of forced savings can be used down the road to help you accomplish your biggest financial goals.

2. Appreciation: Owning a home is making an investment that steadily gains value, and experts project home values will continue to rise in the years to come.

3. Stability: Owning a home means having better control over your future housing payments. Over the years, a mortgage stays relatively steady, but rent costs continue to rise.

Bottom Line

If you own your home, take time this June to celebrate the ways homeownership has added value to your life. If you hope to become a homeowner this year, let’s connect today to take the first steps toward achieving your goal.

June 1st
Portland Metro Area (OR and WA)
Market Activity for the Week of May 24^th through May 30^th

Homes Sold: 896 vs previous weeks: 792; 807; 749; 848; 684; 733; 687; 687; and 581. During the same week last year, this number was 678.

Active Listings: 2568 vs previous weeks: 2593; 2476; 2289; 2265; 2173; 2275 2252; 2163; 2135; and 1998.

Total number of Pending Deals: 6587 vs previous weeks: 6640; 6561; 6501; 6388; 6393; 6216; 6049; 5894; 5835 and 5779.

New Pending Deals: 1084 vs previous weeks: 1117; 1079; 998; 1037; 1088; 952; and 894.

Average Days on Market 15 (33 last year) – Median Days on Market 5 (14 last year).

Average Sale price – $582,724 vs $456,254 during the same week last year.

Total Sales Volume – $522,120,704 vs $309,340,212 during the same week last year.

Average List Price vs Sale Price
Average Sale Price as a Percentage of the Asking Price  – 104.27%Median Sale Price as a Percentage of the Asking Price – 106.77%
Average Sale Price as a Percentage of the Original Asking Price – 104.1%