The nation’s 2020 housing market’s continued strength during a job-punishing pandemic surprised many. Not all regions or cities fared equally, however. To better understand the housing market in our own city and specifically the Beaumont-Wilshire neighborhood, we looked for insight from two local real estate professionals who are also valued advertisers in this newsletter: Jim Arnal, principal broker with Living Room Realty and Jamie Van Hoorn, real estate broker with Windermere Real Estate Trust (see article on page 14). Their perspectives are shared below.
How does Portland’s housing market compare to the nation’s housing market in 2020?
Jim: The national median home price rose 5.1 percent (National Association of Realtors), while Portland’s median home value rose 7.6 percent (RMLS) over the same period (December 2019-December 2020). Most notable is Portland’s available housing inventory, which dropped to 0.8 months in December, the lowest on RMLS record.
Jamie: In 2020, home sales nationally were up nearly 22.8 percent over 2019, while Portland’s home sales grew just 7.8-percent year-over-year. However, the average sales price across the country was $299,900 in 2020, and Portland’s was much higher at $492,000. Portland continues to be a competitive real estate market. Currently high demand, low inventory, solid gains in equity each year (about 8 percent in 2020) for homeowners, and low interest rates for buyers are all reasons Portland is a great place to invest in real estate.
How does B-W fare versus the Portland-Metro area in terms of the 2020 housing market?
Jim: Beaumont has been among the best performing neighborhoods in Portland for years, and last year was no exception. In 2020, 90 homes sold in the Beaumont-Wilshire neighborhood. Last year the median price here was $670,500. In 2019, 121 homes sold in the neighborhood, and the median home value was $635,000. Between 2019 and 2020, Portland as a whole saw the median home value grow by $30,000—from $410,000 to $440,000.
Jamie: The average sold price for a home in our neighborhood, which rose 8.7 percent over last year, is currently $850,000, which is over $300,000 more than the average home in Portland—in no small part due to B-W’s tight inventory. (Hypothetically, if no new homes come on the market in our neighborhood, it would take only two weeks to sell what is currently listed!)
What do you think are the major contributors to B-W’s housing market status versus other Portland-Metro areas?
Jim: Beaumont has the perfect trifecta—strong schools, great walkability, and diversity of home sizes and architecture. The most telling component of Beaumont-Wilshire’s sales statistics, versus the remainder of the metro, was the fact fewer people chose to sell their homes. Twenty-five percent fewer homes sold here last year than the previous year, which was a greater drop in inventory than what the metro saw.
Jamie: Beaumont-Wilshire is a highly sought after, close-in Northeast neighborhood, with much of it located within the boundaries of the highly desirable Alameda Elementary School. B-W’s central location, walkability, and accessibility to public transportation and the airport, as well as proximity to some of Northeast’s favorite business districts on Alberta, 42nd, Killingsworth, Fremont, and Broadway make it a great place to live!
Do you see a continued demand for Portland real estate?
Jim: Absolutely. Portland has shown that during this pandemic, the market is resilient. Even with some people choosing to move to the suburbs, other areas of Oregon and out-of-state, the sales statistics show growth in values and a clear reduction in the number of people who chose to sell their homes last year.
Jamie: Portland continues to be a hot spot for Californians and others to move here. The East Side and more affluent neighborhoods are thriving in a hot real estate market. Homes on larger lots or in suburbs are also thriving as people stuck at home during the pandemic want more outdoor space and dedicated home offices, or more space for their family to spread out with at-home learning.
What advice do you have for those considering selling or buying in B-W this year?
For Sellers
Jim: If you are considering selling, this is an absolutely amazing time. Inventory is at a record low and buyer demand for Beaumont-Wilshire is amazing.
Jamie: Take the time to properly prepare your home for market. Take care of deferred maintenance projects if you can, tidy up, and pack up personal items to de-clutter your home. Staging is also going a long way right now with buyers. Make sure your real estate agent provides you with quality photography and marketing. Although it’s a very competitive market for buyers right now, they are also being very selective. Homes that are well prepared are the ones selling quickly for top dollar!
For Buyers
Jim: If you are attempting to buy into the neighborhood, my advice is to be patient and flexible. Those buyers who consider homes they can make work for them later through remodeling—versus searching for only turn-key homes or those with the exact amenities they want now—allow themselves more options in a market where there are few options to begin with.
Jamie: Get pre-approved for your loan right away! It is nearly impossible to make an offer on a home in our area without proof of funds or a pre-approval letter. Also, work with your real estate agent to learn about the buying process in this tough market and how to structure your offer to be as competitive as possible.
Fun Stats to Know and Tell
Jim Arnal provided these 2019-2020 real estate-related statistics specific to Beaumont-Wilshire:
- Average sales price: $742,359
- Average days on market: 23
- Median sales price: $670,500
- Average square feet: 2,557
- Average list price per square foot: $290