Portland Home Appreciation in 2017
If you are a home owner in Portland or looking to become one, now is a great time! Portland real estate appreciation has been on the up and up, and they look to continue to rise into 2017. Last year Portland had the highest of any metro area appreciation at 11.7%. Seattle came in right behind us at 11.4%. Being that these were the only two cities in double digit appreciation. They were substantially higher than the market meaning owners are sitting on a lot of equity in their property.
Some of this jump is the housing market bouncing back from the housing crash in 2009. Portland becoming the headquarters for Nike and Intel as well as drawing in other major companies is great for housing. We are now outgrowing our former 2007 peak by about 12%. With this growth home owners that are looking to sell have the ball in their court! Even with the major increase to equity, the amount of people selling homes in Portland is low. This means there are a lot of buyers waiting to buy homes, this lack of supply and intense demand makes it a perfect storm to sell your house at a high price.
Portland neighborhoods on the east side of the Willamette in downtown Portland saw the most appreciation as well as the northwest Holbrook and Burlington areas.
Zillow also estimates that appreciation will continue to rise by 5.5 % over the course of 2017 in the Portland metro area.
Should you look to sell your home in the coming year, what are some of the options available in the market?
Traditional methods- Both the retail buyer and retail seller of the property hire a realtor who has a fee of around % each making the property 6% more expensive in the end. Why use this method? The seller’s realtor will find a buyer for the home without the seller having to market their own home. They also have access to the MLS or multiple listing service to list the home to many potential buyers at once. The buyer’s realtor will find multiple options for the type of house they are looking for. Then they will put in offers on the house on their behalf.
Direct sale- The seller does their own marketing and finds buyers through listing the property if they have access to the MLS or on free platforms such as Craigslist, Facebook and signage. The buyers will most likely still have a realtor but the seller saves themselves the 3% they would otherwise pay.
Selling to investors- Investors look to buy in cash with no realtor on their end because they market to get the deals themselves. If a seller contacts investors directly they will evaluate the property to assess its potential profitability. After assessing any renovations or changes, they would make to the property. They would then negotiate with the seller or their agent directly. Then create an easy to manage and understandable way to close escrow on the property directly with the seller or through the seller’s agent.
Sources: Oregon live- http://www.oregonlive.com/front-porch/index.ssf/2016/10/portland_leads_again_in_home-p.html
Neighborhood scout- https://www.neighborhoodscout.com/or/portland/rates/