How Buyer Agents Get Paid

December 12, 2023Posted inReal Estate
In the event that headline news isn't really your thing, I'll fill you in on the potentially seismic developments in the world of real estate commissions. Recently, jurors heard a class action case filed against the National Association of Realtors (the trade group to which anyone who calls themselves a capital-R Realtor belongs) and several large brokerages. They came to the conclusion, essentially, that the NAR practice of requiring sellers to offer compensation to buyer agents (those who bring a buyer…
How to Sell Your House 3-6 Months From Now

How to Sell Your House 3-6 Months From Now

October 12, 2023Posted inReal Estate
Last month's topic of the day month was about the best time to sell a house. The tl; dr conclusion from that effort was that you will face more competition in the spring and summer, but it generally is still worth it. More people are shopping, more people are selling, and homes tend to get higher prices. So for today's class, let's talk about how you can use the upcoming winter of our discontent to get ready for the glory of…
Is There a “Best” Time of Year to Sell Your House?

Is There a “Best” Time of Year to Sell Your House?

September 15, 2023Posted inReal Estate
"Selling season" is a term you may be acquainted with when it comes to real estate. The conventional wisdom is that spring and summer are the best times to buy and sell, as that's when families are making plans with the next school year in mind and there are no major holiday distractions. Also, it's warmer. The newness of spring, the thaw, the rebirth- all that jazz. Far more houses do sell during these seasons, that's a fact. But are sellers…

List Price is Merely a Suggestion

August 11, 2023Posted inReal Estate
"I can't believe this market, every house is going for $100k over asking!" Whether in conversation or online forums, that- or something similar- has been commonly heard over the past couple of years. The impression is that everything goes for over asking. The reality is more nuanced. This past July, the percent of homes that sold above their asking price was 40%. About the same number sold under asking, and 20% sold at their current list price (which may not be…
What Makes Home Prices “Sticky?”

What Makes Home Prices “Sticky?”

July 12, 2023Posted inReal Estate
The more things change, the more they stay the same. The median sale price of a home on Portland's west side this June was $625,000, up .8% over last June. For the first half of the year combined, the median was 2.6% lower than it was for 2022's first half. In other words, despite a year of rapid change to the world of mortgage lending- changes that essentially doubled the cost of financing- the price of the home itself has stuck…
Are People Actually Fleeing Portland?

Are People Actually Fleeing Portland?

June 12, 2023Posted inReal Estate
Whenever I feel like I'm hearing the same anecdotes over and over, I tend to do two things. First I roll my eyes, which is my natural tendency when confronted with anecdotal evidence (which is an oxymoron). Second, I see if there's a way to use actual data to either confirm or refute the anecdotal evidence. I've heard enough times that Portland and Multnomah County, via their real and perceived ills, are causing people to leave. High income and property taxes?…
Unclutch Those Pearls: LLPA’s Explained

Unclutch Those Pearls: LLPA’s Explained

May 5, 2023Posted inReal Estate
A few weeks ago, some news about mortgage pricing that was originally announced in January finally got noticed by some in the media who, doing what media often does, framed it in a way that is designed to outrage rather than inform. In this case, the narrative became one of Biden screwing over hard-working Americans in favor of those who have been less "responsible" financially. The reality, as always, needs context. If you don't know what the hell I'm talking about…
Reports of the Housing Market’s Demise Have Been Greatly Exaggerated

Reports of the Housing Market’s Demise Have Been Greatly Exaggerated

April 3, 2023Posted inReal Estate
"Hey Eli, why would I sell my house when the market is dead?" What's that you say, straw man asking me a fake question? The market is "dead"? Since when? I've got news for everyone that's been doomscrolling housing and economic news. The Portland housing market is far from dead. Yes, inventory is down, as are sales. For the west side of Portland in the past month, new listings were down 30% from last year. Sales were down 38%. Prices, however,…

Why Mortgage Rates are Spiking. Again.

March 3, 2023Posted inReal Estate
Well, that was a fun time in January when interest rates dropped for about a minute. The holidays were behind us, it was a bright new year, and the leading economic brains were bullish on the Fed's war on inflation, so mortgage rates took a nice dip. Until they didn't. February's data changed the outlook somewhat. Mortgage rates, in the most general sense, are influenced by speculation in the bond market. Those speculators (think of guys yelling "buy buy buy! No,…

Have Home Prices Bottomed Out?

February 7, 2023Posted inReal Estate
Let's consider for a moment the possibility that the home price correction, which started in earnest last summer, is over. Prices in our part of the world have taken quite a dip since then. The seasonal drop in price and activity is normal, but still- the median sale price in January was about 18% lower than it was in July, and 5.5% lower than it was last January. So it's been a more sustained drop than in previous years, driven by…