COVID-19 and the Portland Real Estate Market
The last four months have changed daily life here in Portland, Oregon. The COVID-19 pandemic spurred Governor Kate Brown to issue a “Stay Home, Save Lives” order on March 23, 2020. The real estate market in Portland has undoubtedly seen the effects of the pandemic, but multiple current events are affecting Portland’s real estate. If you’re looking to buy or sell your home this year, keep in mind the following.
Portland’s Real Estate Market: Quick to Rebound
Portland’s real estate market saw a 60% drop in buyer traffic in March when people started losing their jobs. However, by the end of April, the buyer traffic in the Portland area increased 40% over the activity in March. June saw as much as 80% of regular buyer traffic, and the real estate market has rebounded to almost normal buyer traffic levels as of this writing.
Why Didn’t COVID-19 Impact the Portland Real Estate Market More?
There are quite a few reasons why COVID-19 didn’t impact the Portland real estate market as much as some had feared in March. Initially, despite its proximity to Washington State in the early stages of the crisis, Oregon wasn’t very hard hit by the virus. Additionally, the Portland real estate market was stronger than expected in early 2020. Plenty of buyers and sellers needed to relocate despite outside circumstances, especially those in “essential” industries. Additionally, the Portland economy was strong at the beginning of the COVID-19 crisis, and Oregon has added back 1 out of every 12 lost jobs since the beginning of the crisis.
Which Homes Are Selling the Fastest in Portland Right Now?
The homes selling the fastest right now in the Portland real estate market are homes with large yards and private office spaces. Many Portlanders have transitioned from the office to a work-at-home environment. With both schools and businesses closed, and those activities resuming online, homes with more space are selling quickly. In fact, some of these homes are selling for tens of thousands of dollars over their listing price. Why? Historically low mortgage rates. Israel Hill, the office leader of John L. Scott Real Estate’s Portland Northeast office, told The Oregonian that “[p]eople are willing to overpay for what they want because of lending rates.”
Before the COVID-19 pandemic, ranch-style homes with open floor plans were the quickest-selling houses (and for the most money) in Portland. However, with more people working from home and attempting to keep their children on track with online schooling at the same time, buyers have shifted their preferences to households with more outdoor space and with private indoor spaces for Zoom meetings and business phone calls. Additionally, other amenities have become more popular lately, such as large windows or central air conditioning.
Will I Be Able to Sell My Portland Home in 2020?
It’s normal to feel anxious about selling your home, especially now, considering the ongoing national crises related to protests and COVID-19. However, it’s likely that sellers in Portland will be able to sell their homes since both buyer and seller activity is expected to decrease. Sellers will have less inventory to compete with if they decide to list their home.
The most common reasons for selling a home are death, divorce, and relocation. While relocation for jobs may not be powering selling or buying activity in the Portland real estate market right now, other reasons for sale won’t be affected by the COVID-19 pandemic. Additionally, it is cheaper to pay a mortgage in Portland than to pay rent, so buyers are still motivated by low-interest rates and lower monthly payments.
How Can Paris Group Realty Help You?
If you’re looking to sell your Portland home, look no further than the real estate professionals at Paris Group Realty. Selling a home can be both an exciting and stressful time; we do our best to smooth things out and provide the most comfortable experience. When buying a home, the realtors at Paris Group Realty, LLC, know your home must reflect your taste and lifestyle, and we are experts at helping you find just the right one. Our agents have the knowledge and experience to handle any buying or selling process. We want to make you feel as comfortable and relaxed through this process as possible. At Paris Group Realty, we have a team of expertly trained and educated agents who understand every detail of the process and are well prepared to help guide you along the way. Let Paris Group Realty help you reach your housing goal and call today!