The current super-low mortgage interest rates are one of the driving factors behind the demand for homes right now. Last year, rates hit record lows several times and those rates are staying low throughout 2021. As rates are significantly lower than they were just a year ago, many buyers are beginning to wonder if they should wait in case mortgage rates drop even lower. Though it is tempting to hold out for bigger savings, purchasing a home now may turn out to be more beneficial than waiting until later.

Some real estate experts are expecting rates to rise as the nation begins to get back to business as usual, especially as more and more people decide to take the COVID vaccine. These projections are not for alarming interest rate increases, but the average mortgage interest rate has risen just slightly recently to about 2.79%. Freddie Mac recently released a statement stating that anyone looking to purchase a home would be smart to go ahead and buy to take advantage of the current low rates.

Why Should Buyers Purchase Now Because of Lower Interest Rates?

As the mortgage rates begin to increase it will impact the overall cost of buying a home. The higher the interest rate the more the monthly payment on a home increases. This paired with a rise in home values makes a significant impact. The chief economist at Freddie Mac believes that mortgage rates are headed for a modest increase over 2021. Higher interest rates in the future paired with higher home prices in peak real estate season, like the spring, could make homes a little less affordable than they are right now.

What Will This Mean for Buyers?

Currently the amount of homes up for sale is very low all across the country. This has created a more challenging situation for home buyers. More buyers are expected to start looking for homes in the spring when real estate sales traditionally peak. Some expect the real estate competition to become more aggressive. Len Keifer, the Deputy Chief Economist at Freddie Mac advises buyers not to stop shopping and that if they find a home they love to go ahead and buy it now. He says it may be better to act now and buy a home instead of waiting for interest rates to decrease which may never happen and an inventory that is expected to remain fairly low.

If you are ready to purchase a home or in need of a home that better fits your needs, now is the time to act on it. For more information on available homes in Portland, and surrounding areas in the metro district including Vancouver and Southwest Washington, please contact me any time.

More Buying Tips:

Should you buy now when interest rates are low?

Single level homes are in high demand

Pros and Cons to buying vs. renting right now

Who Qualifies as a first time home buyer?

5 Things to Consider When Choosing a Neighborhood

Uncommon things to look for in an older home

On June 28th, during the big heat wave that hit Portland, a professor from the Portland State University and his son set out on an adventure with a thermal camera to measure the temperatures across Portland and find its hottest spot.

Dr. Shandas of Portland State University conducted this temperature research as more than just a mere hobby, he is a professor who studies climate change and how to address its implications and impacts.

The professor went around several areas of Portland finding that the areas in the city retaining the most heat during peak temperatures were located in East Portland along arterial highways and I-205. The hottest temperature he measured was a whopping 180 degrees at the intersection of Southeast Woodstock and 92nd Boulevard. This is the intersection located next to Planet Fitness in Lents Town Center. This is a temperature hot enough to give a barefoot a third-degree burn or to even slow cook a pot roast.

What Contributes to these higher temperatures in the East side of Portland?

These areas of Portland are surrounded by dark buildings made of metal, brick, and other dense materials that are prone to absorbing heat. There is much more traffic in the area and cars emit fumes creating more heat. Highways and parking lots also trap and absorb the sun’s rays and “bounce” it back into the air as they sit in hot temperatures throughout the day.

There is also a lack of wind/breeze/airflow in this section of East Portland. The particular section of Lents that measured the hottest temperature in Portland during the heatwave is located under a four-lane highway in the middle of and below five-story buildings clustered together that reduce airflow.

There are also significantly fewer trees in this portion of Portland which offer shade that drastically reduce the temperature as shone in other areas of the city with a much denser green canopy.

In short, urban and highly developed areas are much more likely to carry higher temperatures especially in a heatwave like the one Portland just experienced.

Luckily Portland does not often see high spikes in temperature that are concerning more than just a small portion of the year if we even see them at all.

It is important however for people living in these areas that retain more heat to take precaution measures to make sure they are staying cool when high temperatures sometimes come around. Some things you can do include wearing the proper clothing, visiting some areas with air conditioning for a small period of time, taking in plenty of fluids, opening windows, taking a cool bath, and visiting areas like the beach or a shady park.

For more information on Portland area real estate please contact us any time.

More on Portland's Weather

Cooling Stations in Portland Oregon

Ways to Stay Cool in Portland Heat

5 Easy Ways to Make Your Home More Efficient for the Summer

The 10 Best Outdoor Upgrades to Make To Your Home

What to look for in a Portland Listing Agent

a listing agent is different than a buyer's agent and sometimes they can be one and the same which is called dual agent. But if you're looking to sell your home, you're probably starting the process of interviewing listing agents that are familiar with the market and your neighborhood. At Marcus Brown Properties, we specialize only in the Portland metro area and surrounding communities and have excellent listing agents ready to price your home, do the research necessary to get it into the right hands and market your home effectively.

Here are five things to look for in a Portland listing agent:

#1. Responsiveness and communication.

I would say one of the number one things is how responsive the agent is and how they communicate. A lot of other things matter as well such as price and how they will market, but if the price is right and the marketing is perfect yet you can never get a hold of them or get an update on the listing, all you will end up with is being frustrated.

Ask how they will stay in communication with you throughout the process. Ask about their response time, how many other agents they have that could handle your questions, is there a team or individual you'll be working with and if they communicate with you the best way for you. Email, in person, over the phone, or text might be more ideal so it's important that they communicate with you on your level and keep you updated throughout the process.

#2. Understanding your expectations and responsibilities.

A good listing agent is not a hands-off agent. They also want you to be involved in the listing and marketing process. Were not going to come in and stage, prep, and clean your home for you but we can offer tips and suggestions on how to best set your home up for selling success.

Because we also deal with Portland homebuyers, we know what people are looking for and can help you prep and plan your home in order to reach the majority of the markets. Your responsibility as a homeowner is to keep the home staged or show ready, keep it clean, and do your part as a homeowner. We don't live with you so your responsibility is within the home.

#3. Knowledge and experience.

Anyone can take the real estate exam and pass. While continuing education is prominent in this industry, nothing beats experience. Every single transaction is different and you need to know how to negotiate between buyer and seller, between agents, and how to communicate with all parties involved such as escrow, lenders, appraisers, and inspectors. The experience offers the nuance it takes to be diplomatic, professional, and yet aggressive when necessary.

This is truly something that cannot be taught. Expert negotiation skills are a talent and having an agent that is well-versed as well as extremely experienced, can work wonders to getting you the right price and the right offer on the table.

#4. How many homes do they sell in a year?

This is different than listing homes. If an agent lists 100 homes a year but only sells four of them, they're probably not the best agent. An active, full-time agent can sell anywhere from 10 to 30 properties a month so if you're dealing with an agent that only sells one or two properties a month or has more than 5200 for one agent, the inexperienced agent might not know what they're getting into and the overbooked agent may not have time to take on another listing. There's this sweet spot of balance between the right communication and attention as well as the right experience to get the home sold quickly.

#5. Do you know the market?

Not only does the agent need to have the knowledge, experience, and communication, but they need to know the current market. Markets change from week to week and season to season so understanding and keeping up with the current market will help price the home correctly the first time. The last thing you want is to leave money on the table by underpricing a home or pricing it high expecting to drop it if it doesn't sell but sitting on the market longer than you have to. That balanced price is crucial to getting a home sold quickly and effectively.

When you're ready, contact our office at any time. We love to help you find the right listing agent with our team, get your home priced and marketed accordingly, and sold quickly and successfully.

More Tips for Sellers:

• Why You Should Sell Your House Now Even If You Did Not Plan on Moving
• 4 Tips to Maximize Your Portland Home Sale
• Should You Renovate Your Portland Home Before You Sell?
• Will Adding a Garage Increase My Home's Value?
• Call Three Rivers Remodeling for any Portland renovations

According to two authors of an upcoming book about to be published titled Modernist Pizza, Portland Oregon is the best place in the United States to get a slice of pizza. Since it has come out that the authors of the book Nathan Myhrvold and Francisco Migoya deemed the best pizza city to be, Portland over what most people would think to be New York. It has created much attention and some sensitivity among New Yorkers.

The authors of the book set off on a countrywide adventure eating more than 400 different pizzas from coast to coast in America coming to the conclusion that the best pizza around exists in Portland Oregon. The three-volume book is 1700 pages long and will come out on October 5. The book is to include a recipe manual as well.

While Portland's dominance in the pizza category may be surprising to many across the country, it is not surprising to one of the authors of the book, Myhrvold. He is a former chief technology officer for Microsoft and co-author of the monumental publications in cuisine called Modernist Cuisine and Modernist Bread. He has told reporters who have interviewed him about his greatest pizza decision that he had an inkling the pizza in Portland would be good, yet he was still shocked at how good it was.

Myhrvold recognized two great pizza spots in Oregon that have been around for about 15 years in the city. These great pizzerias include Apizza Scholls and Ken’s Artisan Pizza. The authors of the book note these places as trying something different and good as opposed to taking the approach of emulating long-standing favorites of restaurants in New York.

These authors explain that the title of best pizza city is not one that means you are getting the best pizza on the planet moreover that there are multiple choices to get many great different kinds of pizzas in different styles. There are many places around the country that make great pizza according to the authors who traveled around the country tasting many different pies, but when it comes to Portland there are several different pizzerias offering many different styles including New York-style pizzas, Neapolitan style pizzas, ingredient-driven pizzas, and more all within the same city.

Other cities that the authors visited in search for the best pizza city with the most amazing collection of pizzas in one space included Los Angeles, San Francisco, Detroit, Seattle, St. Louis, Old Forge Pennsylvania, New Haven Connecticut, Jersey City New Jersey, and of course multiple boroughs of the city of New York, Chicago, quad cities located in Iowa and Illinois, Phoenix Arizona, and good old Philadelphia.

Some of the other favorite pizzerias in Portland in addition to the ones already mentioned above include Lovely’s Fifty Fifty for its fresh ingredients, Scotties Pizza Parlor for its round pepperoni, New-York style pizza, Red Sauce Pizza for its handmade ingredients and blistered crust, Handsome Pizza for its locally sourced ingredients and wood-fired techniques, Sizzle Pie for its pig destroyer and vegan pizzas, and Nostrona for its full Italian fare including some of the most delicious pizzas you have ever tasted they really loved the Neapolitan Pizza.

There are so many great things about Portland and living in Portland including the amazing pizzas. For more information on Portland area real estate please contact us anytime.

Woodmont Natural Park is Open

Portland's Hottest Neighborhoods

What Fun Places Are Now Open in Oregon?

During the 2020 pandemic, kitchens became a beehive of activity. Kitchen tables, islands and desks became ersatz home offices and classrooms where family members plunked down laptops to login to their virtual accounts.

The kitchen became more of a “command center” where all ages gathered together to figure out logistics of living in close proximity to each other “24-7.”

In the cooking areas, “chefs du jour” were busy cooking three meals a day or more while quarantined or isolated because of pandemic restrictions.

Many families discovered there was not enough freezer, cupboard or pantry space in or near the kitchen to provide storage needed for all the meals that were prepared at home.

With sanitation and hygiene uppermost in the minds of everyone, there was an emphasis on wiping down surfaces and washing hands frequently at the kitchen sink.

These changes in how kitchens were used during the pandemic are having a profound influence on kitchen remodels and new construction.

White is no longer the color du jour for kitchens. Instead, since the kitchen has become an extension of activities carried out in other areas of homes, kitchen colors are trending warmer and more natural. White is still often incorporated into kitchen design in sinks and some cabinetry but not as extensively as in the past. “Lines of demarcation” between the kitchen and other rooms are becoming more subtle as kitchen décor takes on more of the look and feel found in other rooms in the home.

Designers are using warmer colors like gray for cabinets and adding wooden accents throughout the kitchen decor. One designer is adding wood trim to a ventilator fan to make it a focal point in a modern kitchen. Wall hangings, open shelves and greenery are elements added to give a homier feel to more sterile kitchen environments. Paneled appliances complementing the overall color scheme add a sense of design and comfort to the kitchen.

To add more storage, homeowners are buying more standalone freezers, refrigerators with larger freezer compartments and expanded walk-in pantries.

With an increased emphasis on sanitation and safety, touchless faucets are becoming more and more popular.

Another post-pandemic kitchen trend that is taking shape is a focus on organization and order in the kitchen environment. Form and function are watchwords; creating zones in kitchens for prepping and clean up and another for serving is gaining increased attention.

Since kitchens are morphing into more of multi-purpose space, adding second kitchens are being touted as a way to add more functionality to kitchen design. The second kitchen may include additional sinks, appliances and storage areas so that the main kitchen area can retain a more welcoming and less utilitarian feel.

Also catching on is a trend toward adding outdoor kitchens to expand options for dining and gathering together.

In essence, today’s post-pandemic kitchen is providing more space for meal preparation and storage as well as extra space for carrying out a family’s activities of daily living.

For more information on Portland homes, browse my blog or contact me at any time.

More Tips for Homeowners:

Tripping Over Toys? Organizing Your Kids’ Toy Room

Store Clothes In Your Closet, Not Dust

New Technology Spurs "Smart Home" Advances

8 Great Kitchen Designs for 2021

Portland is probably most loved for its diversity and some of this diversity can be found in the home styles and types all around Portland. There are many great differing properties from historic ornate Victorians to smooth and sleek minimalistic modern built homes. But the one home that is sought after over all other types of single-family properties in the city of Portland is the simple single-level home. Recent sales data in the Portland area has shown that buyers seem to prefer a modest single-level home.

Of course, all Portland real estate is in higher demand than in recent years past and it is a current seller’s market with any home up for sale seeming to fly off the shelf. According to recent sales data looking at single-family homes listed under $1 million at the beginning of 2021 homes sold at a record pace all across Portland. The average number of days homes stood on the market was in the single digits for both single and multi-level homes, but homes with more than one story sat on the market longer than those with just a single level.

Single level homes in Portland are selling for more money per square foot

According to data reported as recently as June 2021 single-level homes are selling at a rate of $306 per square foot on average around Portland. This number is up from $289 per square foot this time last year and it continues to be more money than homes with more than one story. The average price per square foot of a multiple-level home was an average of $271 per square foot. Percentage-wise this means single-level homes are selling for 11.4% more than multi-level homes over the past few months at the beginning of 2021.

Why is it that buyers are seeking out single-level homes in Portland?

Single-level homes are selling 38% faster at 411.4% more than homes with multiple levels in the Portland area. Last year’s numbers have also shown that single-level homes are more sought out in the Portland area as well as for years prior to that. So why is it that single-level homes are seemingly more sought out in the Portland area? Here are a few of the theories as to why single level homes are more popular in Portland:

They make great starter homes

Most people hear the word starter home they may think of a home that is smaller, cheaper, and maybe lacking in some of the nice luxuries or amenities that most people are wanting in homes at the time. Basically, we think of a home that is something someone can get into at a lower price point just to help them get their feet wet in the real estate market.

Well yes, starter homes are typically smaller it could mean that the less square footage is because the buyer may not need a higher amount of square footage just yet. A more affordable smaller home could be the ticket for the right-first-time buyer and single-level homes often fit the bill of smaller square footage. The average square footage of a single-level home in the Portland area is around 1656 ft.² compared to the average 2326 ft.² of homes with multiple levels in the area.

Single-level homes in Portland also tend to come at a lower listing price point which fits the bill of starter home criteria. The average sale price of single-level homes for the past few months has been $468,653. The average price of multi-level homes across Portland was $614,444, not including homes priced over $1 million. The combination of modest square footage and a lower asking price makes a single-level home in the Portland area much more attainable as a starter home for many people.

Accessibility is a top perk in single-level homes

The word accessibility is becoming more and more common in the real estate realm. Accessibility in housing means the ability to get around with ease and comfort when you may have some limitations in mobility. This could be due to age, disability, or a host of several other reasons. Having an accessible space is increasingly important and a top priority for some homebuyers.

Right now an increasing number of home buyers are looking for homes in which they can age in place. The term age in place is used to describe the idea of being able to stay in your home as you become an elderly adult with more specialized needs for your living situation. Johns Hopkins conducted a study and published the results in 2019 and the results found that people living in single-level homes are more likely to use their home to age in place. It allows them to have a bedroom, bathroom, and kitchen all on one level with no stairs. Having to use stairs to get from one important spot or heavily utilized area in a home to another greatly increases the chances of accidental injuries among the elderly. In addition to not having stairs, ranch-style homes are known for their easy-open layouts which also increase and create a much more accessible and easy to live in home.

There are many great homes all across Portland including several wonderful single-level homes. For more information on Portland area real estate please contact us anytime.

Here are more tips for Portland home buyers:

What is the Difference Between Pending and Contingent?

Do I Really Need a Final Walk-Through

Home Ownership in Portland is Full of Financial Benefits

Simple Ways to Find a Neighborhood You Love

How to Financially Prepare to Buy a House in Today’s Market

Avoid Hidden Costs When Buying Land to Build

What does a Property Manager Do?

How Your Credit Score Can Affect Your Mortgage Rate and Monthly Payment -  Your credit score and credit history directly influence your mortgage rate and your monthly payment deals. You might be wondering how it does. Here is a breakdown of how credit score impacts your mortgage and monthly payment.

Lenders use the credit score to measure your viability for credit - credit score reflects your past credit usage. It speaks volumes of your responsibility in credit matters. A credit score will give lenders an idea of what to expect in the repayment period. A high credit score will mean lower interest rates and a lower monthly payment, while low scores will mean higher interest rates. The rule is, the better the credit score, the lower the annual percentage rate (APR), and the lower the monthly payment.

A credit score is calculated with the FICO scoring model, which uses information derived from your credit card report compiled by credit reporting companies.

What credit score do you need for a better mortgage rate?

A credit score of 700 plus will land a potential home buyer on friendly mortgage rates. However, creditors will set their standards on the acceptable score for a particular industry.

● 740 or higher is considered an excellent score.

● 700 – 739 is a good credit.

● 630 -699 is fair credit.

● 629 and below is poor credit.

A drop in a credit score will mean increased mortgage rates. The effect of the increase may not seem to be higher, but if you took a fixed-rate loan over 30 years, the rate increase could accrue a lot of additional fees.

What affects the credit score?

● Time of loan payments - accounts that show up on the credit reports, such as student loans or personal loans, should be paid in time to have a better credit score, which means a lower monthly payment rate.

● Credit limits - for a better credit score, you have to keep your credit usage to less than 30% for all of your credit cards.

● Credit history - the longer the history, the better your credit score will be. Making your credit card active for a long time means a better credit score, attracting a lower monthly payment.

● Credit report errors - when there are errors in the credit card report, you might be denied the loan in the worst case.

Final thought

Credit score matters so much as far as the mortgage rate is concerned. Better credit reputation attracts low mortgage rates and lower monthly payments.

Need a lender in the Portland real estate market? Talk to me now!

(503) 957-1179

marcus@marcusbrown.com

Yesterday was one of the hottest we've ever had on record and three Portland cooling centers are still set up in response to the unprecedented heat wave that has hit us this week. They will remain open through 9 AM on Wednesday morning. The centers did not actually reach capacity over the weekend and the centers are open 24 hours to provide food, water, and a place to sleep. These three locations are as follows:

Oregon Convention Center – 777 NE. Martin Luther King Jr. Boulevard

Arbor Lodge – 1952 N. Lombard St.

Sunrise Center – 18901 E. Burnside St.

These three centers are set up and prepared to add additional cooling centers at the Convention Center if necessary. During the winter, the shelters are solely focus on people experiencing homelessness and while the cooling centers are a bigger Countrywide effort, and anyone who needs relief, regardless of housing status, is welcome to use them. Yesterday morning (Monday) 370 people were at the three cooling centers. There's also been an increase in heat related illnesses over the weekend so don't wait to get to one of these cooling centers when necessary.

Libraries, senior centers, and some churches have also opened their doors to cooling centers but be sure to call ahead of time as there may be certain time limits or restrictions.

Stay cool out there folks! This summer is shaping up to be a hot one.