They say a picture is worth 1,000 words. When it comes to studying the impact of COVID-19 on the housing market, the numbers say even more.
A recent survey by Sears Home Services found that 44% of us are less satisfied with our homes than at the beginning of the pandemic. That may explain why so many people are deciding to move, causing home sales to spike and inventory to drop.
Consider these statistics:
Before the wildfires took off, pending sales in the Portland metro area hit an all-time increase of 67% compared to the same period last year.
Comparing home sales activity during the three months from July 5, 2020 to October 5, 2020 to the same time period a year ago, pendings were up 14%. And 5 of the last 8 months have seen less than a two month’s inventory of homes on the market.
The mortgage rate is also helping to fuel this activity, sitting at a record low 2.90 for the average 30-year mortgage compared to 7.90 leading up to the 2000 election and 3.40 in 2012 and 3.48 in 2016.
The average sales price in the Portland metro area stands at $481,000 today which is a 241% increase over the average sales price of $198,900 back when George W. Bush and Al Gore were battling it out in the election.
When you look at where the sales are really booming, the numbers reflect what we’ve been hearing—Covid’s impact is felt differently depending where you fall on the economic spectrum.
According to the National Association of Realtors, higher end homes in the Western region are seeing the biggest increase in sales compared to a year ago. The change in sales for homes priced from 1 to $500,000 has decreased but starts to increase once you cross that threshold. Homes in the $500-$750K price range have seen a 12.9% in sales; $750-$1M a 20.2% increase and homes listed at $1 million and above are enjoying a 32.7% increase.
Circling back to that Sears Home Services survey, it seems our dissatisfaction with our homes has us dreaming of features we’d either like to add to our existing space or find in a new home. The top five things we are wishing for are: Home Gym (41%), Home Office (37%), Gaming Space (32%), Kitchen Space (31%) and Yard/Garden Space (28%).
If you find yourself in that 44% of Americans who are dissatisfied with your home and want to move to Lake Oswego, please give me a call at 503.939.9801 and/or check out my website. I’ve been helping people move in, move around and move out of Lake Oswego and the Portland metro area for over 30 years. Let me put my experience to work for you!