Portland Real Estate Market

Best Portland Neighborhoods to Buy a House: Sellwood-Moreland

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Portland Neighborhood: Sellwood-Moreland

Boasting a walk score of 81 Southeast Portland’s Sellwood-Moreland neighborhood actually consists of three distinct neighborhood districts: Sellwood, Westmoreland, and Eastmoreland. With four beautiful public parks (Westmoreland Park, Sellwood Park, Sellwood Riverfront, and Johnson Creek Park), the Oaks Bottom Refuge hiking area, Eastmoreland public golf course, and the Springwater Corridor all within easy reach, this neighborhood is especially great for families who like outdoor activities and playing in nature, with a close commute to downtown across the Sellwood Bridge.

Other local public amenities include the Sellwood Community Center, Sellwood-Moreland Library, Sellwood outdoor public pool, and the Sellwood Community Garden.

Family-Friendly Portland Neighborhoods: Sellwood-Moreland

 

Sellwood-Moreland Neighborhood History

Historically, Sellwood began as an independent city when the original owner, a fruit farmer, sold his 320 acres to Rev. John Sellwood. In 1882, Sellwood sold half of his acreage to the Sellwood Real Estate Company who planned and developed the city of Sellwood. Five years later, the city was incorporated, and eventually became a part of Portland proper in 1893.

In 1909 Eastmoreland and Westmoreland were born of a sold and subdivided 500-acre farm. These new neighborhoods were marketed to families headed by professionals who worked in downtown Portland, only five miles to the south, usually commuting to work by the relatively new streetcar.

While these areas are well distinguished today by separate and thriving business districts, and many residents identify them as strictly individual neighborhoods, the Portland Office of Neighborhood Involvement officially combined the neighborhoods of Sellwood and Westmoreland into Sellwood-Moreland. With Westmoreland situated on the east side of the community, and Sellwood on the west side along the river.

Sellwood-Moreland Median Home Values

The median home value in Sellwood-Moreland currently lands at $425,397 – dramatically higher than the national average of $184,700, but very much in keeping with Portland’s higher-than-average home prices. Neighboring Eastmoreland, voted by Niche users as the #3 best Portland neighborhood to live in, is pricier with a median home value of $496,993.

Sellwood-Moreland Family-Friendly Destinations

Sellwood-Moreland has long been the antique shopping destination in Southeast Portland, with the Stars Antiques Mall housing 100+ vendors in 10,000 square feet and it’s annex right across the street, Stars and Splendid. These cavernous spaces full of all manner of eye candy are a fun place to wander through and while away a rainy afternoon with the kids.

Cloud Cap Games is a beautifully designed game store stocked wall to wall with fun puzzles and different types of games. They even host regularly scheduled game nights, sometimes in their outdoor gaming space. Now you know where to head for a new game to enjoy during your next family game night.

Just one street down is a craft store called Collage, filled with everything your family needs to get their creativity on. The kids will go nuts in here. Check out their craft night project schedule while you’re there.

Stop by Grand Central Bakery on the way home for fresh baked cookies, bread, and lunch fare, or visit neighborhood favorite: Piece of Cake Bakery for unique cupcakes, cakes by the slice or whole, and more.

One new neighborhood favorite that was designed with mom and dad in mind is Buttercraft, a butter and bottle shop offering wine, beer, tea, cured meats, antipasto, and house-made butter in a variety of unique flavors. Buttercraft offers locals the a walkable destination for date night.

Just as in other Portland neighborhoods, Sellwood-Moreland businesses gladly get in on the action when it comes to community celebrations, participation in the neighborhood celebration ‘Summerville’ is high.

Sellwood-Moreland Neighborhood Schools

The Sellwood-Moreland Neighborhood offers many neighborhood families and children the opportunity to walk to school, with both private and public options including: Llewellyn Elementary School (K-5, public), Sellwood Middle School (6-8, public), Cleveland High School (9-12, public), and St. Agatha Catholic School (K-8, private).

Stay tuned for more Walkable and Family-Friendly Portland, Oregon Neighborhoods.

If you’re ready to start the home-buying process (in Sellwood-Moreland of any other Portland, Oregon or Vancouver, Washington neighborhood) I’d love to help. Give me a call anytime, or start your home-loan prequalification now by submitting your info directly to me using this handy online form.

 

 

 

Portland Real Estate Market Recap 2017

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The Portland real estate market and mortgage industry in 2017 was interesting to watch, to say the least. Here’s my brief Portland real estate market recap for the year:

2017 Portland, Oregon Real Estate Market Recap

Early 2017: A Super-Heated Portland Market

We came into 2017 after two solid years of rapid value appreciation that left clients feeling distraught and frustrated as they tried, and failed, time and again to secure the home they wanted. Many buyers were losing out to incredibly high offers, often tens of thousands of dollars over the property asking price. While the Portland real estate market has always been competitive to a degree, the market peaked in early 2017 at an extreme.

Just one example to illustrate what had become the new normal for the PDX real estate market:

A property in Northeast Portland received no less than 22 viable offers within a period of just 72 hours. When it came down to it, the property sold for $150k over the asking price – and it was an all-cash deal. Two of my own clients were among those vying for that particular home. It was painful for everyone involved, except of course the sellers.

Spring 2017: The Market Gradually Cools

As we moved into early spring there was an almost palpable shift toward hope among buyers as the frenzy finally started to settle down. Multiple offers became less and less frequent until they were few and far between. Properties that would have seen a bidding war in months prior actually began to sit for lengthy periods. By the summer of 2017, we started to see home values settle. The massive price increases that had plagued Portland for the last two years came to a halt.

Summer 2017: Slowing Market a Relief for Buyers

Summer, which is typically a more active market and a competitive time to be buying a home in Portland, actually saw even more of a slow down from the previously super-heated market. Even so, from June into the middle of August many buyers who had been left exhausted and disappointed after losing out on so many properties earlier in the year decided to sit tight and wait it out.

We also started to see tentatively increasing buyer interest as pricing continued to slow and some homes that had been sitting on the market the previous few months actually began to drop in price. Well-priced homes in nice areas were still moving quickly, but the majority of homes were no longer seeing multiple offers. For the most part, buyers were no longer having to overpay just to get into an average house.

Late 2017: A More Stable Portland Real Estate Market

Moving into fall we saw increasing inventory as well. Portland real estate broker Richard Lockwood of Oregon Realty Co. in Clackamas wrote that “on average, buyers now have more homes to choose from than they have had for the last 2.5 years.” Lockwood went on to explain that in September 2017 Portland was “at 2.3 months of inventory of available homes for sale. To put this figure in perspective, we haven’t been above 2.1 months of inventory since February 2015.”

If you‘ve driven through familiar Portland neighborhoods consistently throughout the second half of 2017 it was impossible to miss the fact that ‘for sale’ signs were sticking around longer and longer. The previously unthinkable ‘price reduced’ notices starting to pop up as well.

Now, the Portland real estate market seems to have moved into a healthier, more balanced place. Sellers are pricing their homes more reasonably and buyers are generally able to get into the homes they want without the frenzy of competition we had seen in 2015, 2016 and early 2017. Home prices in Portland are still rising, albeit more slowly.

The Mortgage Industry in 2017

It’s been a lucky coincidence for the mortgage industry that the slowdown was not due to increasing interest rates. We have seen some fluctuation as naturally rates rose and fell with the seasons, but overall, interest rates have stayed relatively low in 2017. This has allowed home buyers to purchase homes with more affordable mortgage payments even within the rising values of the Portland market.

Looking Ahead: 2018

It’ll be interesting to see how things play out in the Portland real estate market in the new year. Were headed into 2018 in a few short weeks and Zillow is predicting a national real estate market increase of 3.2%, compared to their 2018 market prediction for Portland, Oregon of 4.4%.

If you’re thinking about purchasing a home in the Portland, Oregon or Vancouver, Washington areas and would like to discuss what your own mortgage options will be as we move into 2018 please get in touch, I’d love to help.

The Best Neighborhoods to Buy a House in Portland

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The Best Neighborhoods to Buy a House in Portland

Portland’s real estate market has cooled overall, just a bit – for now. It’ll be interesting to watch the numbers as 2017 closes out and we start the new year. To help give home buyers the inside scoop on which emerging neighborhoods in our area are the most promising I talked to some of my favorite local real estate colleagues to see what they had to say about the best neighborhoods to buy a house in Portland in 2018.

For those buyers who may be feeling shut out by Portland’s overall higher price point, Maria Fitzgerald, a seasoned broker with Inhabit Real Estate explains,

“I often hear the question: ‘Where should I buy a house that is up and coming and we won’t be priced out of the market?’ You can still get a great house, and oftentimes below the average price point in Portland of $428,800. That’s not to say you won’t be doing some sweat equity but it will be worth it! Portland is growing at a rapid pace, buy with walkability to parks, transit, and neighborhood offerings like coffee and restaurants in mind. Investing in areas where transit (bike, streetcar, Max or a bus line) is near and you can enjoy the energy of Portland is key to gaining equity more quickly in my opinion.”

The Best Neighborhoods to Buy a House in Portland in 2018

The Best Neighborhoods to Buy a House In Portland: East Side

The top up-and-coming Portland neighborhoods Maria Fitzgerald recommends are:

St. Johns

St. Johns $344k median sales price.

The St. Johns Neighborhood Association touts this far north neighborhood as a ‘small town in a big city’ – the neighborhood actually was its own incorporated city between 1902 and 1915. This area boasts one of the city’s most beautiful bridges, the St. John’s Bridge, and the corresponding park, Cathedral Park, this neighborhood is also home to a vast assortment of social, shopping, and dining destinations including it’s own McMenamins Theater and Pub and the Moonstruck Chocolate Factory.

While great burgers, beer, and gourmet chocolate aren’t really reasons to buy a home, factor in the affordability, the best-of-both-worlds urban/suburban lifestyle, and the close-knit community which consistently draws young professionals and families to buy and put down roots in this neighborhood and St. John’s is an excellent place to purchase a home in Portland.

Foster-Powell

FoPo $350k median sales price.

The Foster-Powell neighborhood (Or ‘FoPo’ as it’s affectionately referred to by those in the know) is known as ‘The heart of the city’ – and to prove it, the FOPO Neighborhood Association includes a heart in its logo. This outer southeast Portland neighborhood is considered to be one to watch as more families and small businesses move to the area. With no less than eight local parks, a Foster Area Business Association-organized art walk, a neighborhood garden tour, and more, this area is heart-centered and community driven. With the development and launch two years ago of the locally-owned, entrepreneur-friendly Portland Mercado FoPo has cemented itself as one of PDX’s most welcoming and culturally diverse areas.

Also: Cully | Brentwood-Darlington | Rocky Butte

Fitzgerald also advises Portland-area home buyers looking for more house for their money to consider the Cully ($335k median sales price), Brentwood-Darlington ($319 median sales price), and Rocky Butte ($350k median sales price) neighborhoods.

The Best Neighborhoods to Buy a House In Portland: West Side

Maplewood

Sean Becker of Sean Z. Becker Real Estate states that “The area of Vermont Hills and specifically Maplewood is a great place to buy right now. Its close-in, with great homes that are still affordable, making it a great option compared to further out northeast and southeast Portland.” Sean further emphasizes the larger lot sizes available to buyers in these neighborhoods.

Maplewood, an almost exclusively residential neighborhood located in suburban southwest Portland, has its fair share of beautiful parks and greenspace, including the Crystal Springs Rhododendron Garden and Gabriel Park. A neighborhood populated with families as well as elder generations, this community is well-connected by the green spaces, hills, and creeks that exemplify an active Portland outdoor lifestyle.

Downtown Beaverton

Alpine Group’s Seann Bates sees strong purchase value near downtown Beaverton and explains, “The city of Beaverton is on a real push to reinvent itself by helping small business and trendy shop owners by revitalizing their downtown area. The homes in this part of town are smaller and more catered toward the first-time home buyer or people looking to renovate.”

Beaverton, with a median home price of $365,300, is a suburb of Portland, Oregon and the 5th largest city in Oregon. The development of the MAX light rail transportation system into Beaverton in the 1990s made this once far-reaching area immediately more accessible and it’s been growing ever since. With the Beaverton Farmer’s Market, a wide range of authentic and diverse food choices, and countless locally-owned shops and small businesses, as well as a beautiful city park and fountain and a public library, downtown Beaverton and the surrounding area offers home buyers a vibrant community.

As Seann mentioned, the city of Beaverton has focused efforts on downtown growth. The Beaverton Main Street Program “works to foster vibrant commercial districts that draw people, businesses, and investment to key areas of the city” and has successfully revitalized the area, bringing more small businesses to the economy and more growing families to the housing market. Downtown Beaverton is located seven miles west of Portland, making it accessible to the city.

Ready to Buy a House in Portland?

If you’re ready to buy a house in one of these up-and-coming Portland, Oregon neighborhoods, or any other Portland or Vancouver-area home please get in touch with me to learn more about the mortgage lending process and how much house you can afford.

Should You Continue to Rent or Is It Time Buy a Home in Portland?

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Renting a home or apartment can certainly have advantages over homeownership. If you have a good property with a great landlord and a rent you can afford it might seem pointless to purchase a new home in the Portland area, especially with home prices spiking in certain neighborhoods. Renting (usually) means someone else must plan for, execute, and pay for repairs, upgrades, and upkeep. When you rent, you’re off the hook for the big-ticket issues that can crop up with home ownership. On the flip side, you’re subject to regular rent increases, little control over your environment, and no real guarantee the apartment or house you’ve been calling home will continue to be the place you make your coffee each morning once your lease comes to an end.

According to Zillow at the time of this post, the median price of homes currently listed in Portland, Oregon is $429,900 while the median rent price in Portland is $1,935.

For renters who are considering buying their first home, a $430K mortgage might feel daunting and even impossible at first glance, especially when compared with the average $1900 a month for rent. But it’s not that simple, and the only way to sort out whether or not purchasing a new home makes financial sense for you is to do the math.

Should you rent or buy a home in Portland Oregon

Rent or Buy?

Here are two calculators to help you crunch the numbers: Zillow’s Rent vs Buy Calculator; Discover has another calculator with a unique format that’s kind of fun to play with.

Play the Numbers Game

Of course, the amount of cash you bring to the transaction for a down payment will impact the overall cost of your loan, so use the most accurate numbers possible with these calculators, but do play around with them to see what would change in this equation if you managed to put down just $5k or $10k more.

Also important to remember, your credit score, and the credit score(s) of anyone on the loan with you, will impact what size loan you qualify for as well as how much interest you pay over the life of your mortgage – and that’s something these calculators can’t take into account in real time.

Check Your Credit Score

Check your credit score now so you have an idea of where you stand and what you’re working with. If you have an ‘excellent’ score, coming in at 800 or above, you’ll qualify for the best mortgage rates. A score of 700 or higher is considered ‘pretty good’ and will still qualify for decent rates. Scores below 700 can present more of a challenge to the transaction and you’ll pay for it in higher interest rates on your mortgage loan. This handy calculator at MyFico will help you understand exactly how your FICO® score can impact the interest you’ll pay on your loan.

While you’re doing the homework and preparation toward the purchase of your new home, why not start working toward a better credit score as well? Even a small jump in your credit score may help with saving a bit on the principal of your mortgage.

According to The Motley Fool: “On a $250,000 mortgage, the difference between a 620 credit score and an “excellent” 760 adds up to more than $86,000 in interest savings over the life of a 30-year loan.”

If you knew that a little bit of work on your credit score over the next few months could save you $86,000 over the life of your mortgage loan, would you do it? Well, now you know.

Ultimately, the only way to determine if purchasing a home is a better financial option for you than renting is to sit down and go over the numbers with a local mortgage professional.

Talk to a Mortgage Professional

If you feel you’re ready to move forward with the process of buying a new home, get in touch. Together, we’ll take a closer look at how each of the different factors like credit score, down payment, and current expenditures and debt will come into play when it comes to the size and cost of your new mortgage. I may even be able to give you the insight you need on raising your credit score before you take out the loan, in order to help you get a better overall value on your new mortgage.

Not the right time for you purchase a new home? If you played with the Rent or Buy calculators linked above and it’s just not coming out in your favor, if your credit score is low, or you feel you don’t have the overall budget to make the jump from renting to buying right now, I’d encourage you to get in touch with me anyway. I’ll give you the information and tools you need so that you can start working your way toward achieving your goal of home ownership.

How Much House Can I Afford in Portland, Oregon?

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As a mortgage broker with over ten years experience in the Portland, Oregon real estate lending industry I’ve watched first-time home buyers face an increasingly tough market. These days, with fewer homes within affordable range coming up for sale buyers are finding themselves in competition with developers, house flippers, and investors. The average home value in Portland is $416,700 while the current median household income is $63,850. According to Zillow, this puts only about 60% of the current real estate inventory in the metro area within reach for the ‘average’ home buyer.

The question I get asked most frequently by people and families looking to purchase a home is ‘How much house can I afford?’ My number one goal (after getting you into the mortgage that fits your home-ownership goals, future plans, and current circumstances) is to educate my clients so that they come to the table armed with as much information as possible. Knowledge is power in any real estate transaction; this is especially true for those new to the experience of shopping for and purchasing a home.

How Much Mortgage Can I Afford in Portland, Oregon?

How Much Mortgage Can You Afford?

One of the single-most important pieces of information you can have when approaching the purchase of a new home is knowing how much home you can comfortably afford.

Your Income and Debt

To avoid overextending your finances and take on a mortgage you can afford, start by looking at what you can comfortably afford to pay per month. A good rule of thumb is to look for a home that costs between two and four times what you earn in income (after taxes) in a single year.

When calculating your finances, it’s important to take into account everything from your salary to your current debt and other monthly expenses like student loans, credit cards, and utility bills.

Your Credit Score and History

Your current credit score, as well as your credit history, also go into calculating your mortgage package. Just like it pays to manage your debt prior to locking in an interest rate on your home loan, improving your overall credit score ahead of time is a way to mitigate the amount of interest you’re going to pay on your home purchase.

Credit card debt is one of the top issues that buyers find they must address before they’re able to make their first home purchase, especially because lenders always give better interest rates to buyers with low debt. Don’t wait to look into your credit score until you’re ready to shop for a new home – do your homework. Spending a few months cleaning up your debt-to-credit ratio and paying cards off whenever possible can save you thousands of dollars over the life of your home loan.

Your Down Payment

Remember, that your down payment (the amount of money you pay toward the purchase of a home) not only impacts the amount you can safely afford overall, but it also influences the interest rate attached to your home loan. Having more cash to put down will save you interest over the life of your home loan, keeps your monthly mortgage payments lower, and could even make your offer more competitive against potential buyers who bring less cash to the transaction.

A good mortgage broker can help you determine the right amount to put toward a home in the form of a down payment.

Most traditional real estate transactions operate on a 20% down payment model, although with so many different loan options available today, a good broker can help you maximize a smaller down payment in some cases. Still, 20% down offers a good balance because it mitigates your interest rate and makes monthly payments more affordable.

Get Mortgage Information From a Professional

Buying a new house should be exciting and fun, but it is also a major life decision and definitely offers a learning curve for first-time home buyers. For the purpose of helping you begin to calculate what size mortgage you can afford, this blog post aims to cover the very basics. If you have a home price in mind and just want to do some basic math to estimate how much the monthly mortgage payment could be, feel free to use. this quick and easy mortgage calculator. If you’re ready to start the mortgage application process, get pre-approved by filling out this online home loan application and I’ll get in touch directly.

I specialize in guiding new home buyers through the mortgage and home-buying process and would love the opportunity to sit down with you to discuss your home-ownership goals, answer your current questions, and help you determine exactly how much home you can afford. Feel free to drop by my office at 1238 NW Glisan Suite A in Portland’s Pearl District, shoot me an email, or give me a call at (971) 404-9844.