The sinking economy and coronavirus pandemic aren’t predictable, but residential real estate might be, says Todd Prendergast, co-owner and president of Windermere Realty Trust.
The main force: Too few homes for sale.
Sellers at almost all levels continue to profit from the low number of residential properties for sale in Oregon, the state with the largest housing shortage in the nation.
Inventory has been dropping in the Portland area since January 2019, and even then, with a 3.3 month supply, it was a sellers’ market.
In April 2020, there was a 2.4 month supply of homes for sale, which was an increase from March 2020’s 1.8 month supply. But a hoped-for May surge hasn’t yet materialized.
“There continues to be pent-up demand, generally speaking, for properties priced below $700,000,” says Prendergast. “The lower- to mid-price range, in many cases, is still experiencing multiple offers” if priced right.
Many property owners are being cautious about entering the market, especially if they live in the home, he says. Close to 60% of new listings since March 1 have been vacant properties, which is unusual, he adds.
Summer, which is historically a slow time for home shopping as people take vacations, might see a bump in activity.
“We are beginning to see sellers getting more comfortable with exploring the possibility of listing their homes,” says Prendergast.
The number of homes for sale above $1 million is increasing, but sales are not keeping at the same pace as they were prior to the pandemic, he says.
Condominium sales, which had been lagging before stay-at-home orders and the stock market fall, continue to take more time to sell compared to a single family residence.
Post Pandemic Home Features Predictions
Home design experts are weighing in on post-pandemic desires. In any size home, people are placing even more value on storage space, in the garage or a pantry, to keep surplus food and water.
The popular open floor plan, with no walls dividing the entrance, living room, dining space and kitchen, might be reconsidered since it doesn’t allow for privacy while multiple-purpose spaces can become a home office for a Zoom meeting or retreat for a meditation session.
There is also a growing interest to shelter extended family members, especially older adults, in private living quarters or ADUs (accessory dwelling units) on the property.
Balconies, decks, front porches and other outdoor entertaining and living spaces are even more desirable. Shoppers might be on the lookout for a home on a larger lot or at least one promising privacy and security.
“Now, more than ever, homes need to serve multiple purposes, from the office and school room to the gym, resort and club,” says Prendergast.
Self-sufficiency in case of a full shutdown has inspired more people to have a vegetable garden.
Others are looking for alternative heat sources such as a fireplace, generator or solar panels. And everyone benefits from improved water and air filtration systems.
Could a built-in hygiene station be the next trend, asks Prendergast. Some people have already set up a cleaning room to wipe down store-bought items and deliveries. Antiseptic dispensers and a UV lamp to zap harmful organisms, viruses and bacteria can be added.
— Janet Eastman | 503-294-4072
jeastman@oregonian.com | @janeteastman
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