At the MacNaughton Group, we value the relationships we have with our clients. It’s because of you that we are able to show our gratitude by giving back to our local communities. We are proud to announce th
at we are supporting the Maurice Lucas Foundation, which focuses on creating opportunities for inner city students by providing a combination of education and activity based after-school programs.
Maurice Lucas played 14 years in the NBA, many of them with our Portland Trail Blazers. While he was known as “The Enforcer” on the court, off the court is where he built his legacy. The Maurice Lucas Foundation was founded by Maurice’s son David Lucas who is carrying on his father’s legacy by working with youth to help them realize their individual potential.
Since 2012, the ML20 foundation has set a goal to provide a renewable scholarship for secondary education to every graduate of the ML20 program who meets eligibility requirements. This program resonated with all of us here at The MacNaughton Group. Investing in our youth is contributing to a better future for all of us. The first class of eligible students is set to be graduating high school in 2019 so we are thrilled to have the opportunity to impact the youth in our community. For more information on the ML 20 Foundation please visit ML20.org.
“Education is the most powerful weapon which you can use to change the world” – Nelson Mandela
BY THE NUMBERS
2017 turned out to be another winner for residential properties in the Portland Metro Area and it was better for some segments than others. The 2017 annual appreciation rate for single-family residences averaged 8.1% in Portland proper. Some market areas were below 7%, including West Portland with an appreciation rate of only 3.2%, and North Portland, 2016’s hottest segment, with just 5.9% in 2017. Another interesting fact is that that Portland condo appreciation in 2017 ended flat for condos priced under $400,000, but condos with market values above $400,000 actually declined anywhere from 1% to 9% from the peak of March 2016 depending on price and location.
Inventory remains very low, however Buyers continue to view the current listed inventory as, by and large, priced too high. It is too early in the year to predict with any certainty exactly how good 2018 will be but here are 3 factors in the Portland Metro area that will have the greatest effect on market values, assuming employment rate and wages remain stable or even improve a bit (which is what almost every expert is predicting will happen):
- Inventory: Even if the 2 other factors listed below have a negative effect on our real estate market, low inventory will continue to drive prices up, but not by much – 4% or less.
- Interest Rates: The second chart below provides you with some interest rate projections by national experts. My hunch is that, at least for this year, slightly higher interest rates will NOT dampen current market values and could actually boost purchases of properties listed at or above $1,200,000.
- The New Tax Regulations: Unlike most national experts, I think the population in our market that will reconsider purchasing a home are first time home buyers without children since the doubling of the standard tax deduction provides individuals and couples a new way to save taxes that does not require a home purchase, and also since rental rates that are above $1,700 per month will likely remain flat. However, once a person or couple is ready to create a true “household” they will then go ahead and purchase and those that already own a home may perceive this year as a good time to sell and purchase up or down.
I think 2018 will continue to be a “Sellers’ Market” and if you have been thinking of selling, I strongly suggest you sell this year. If you are a Buyer, it is a good time too for you since appreciation rates have slowed and there will be well priced homes to choose from, but I do not foresee values falling either.
Greater Portland Metro 2017 Statistics
Please click on the above image for the full RMLS December Market Action Report.
2018 National Forecast
A FEW OF OUR SUMMER SALES
4602 NE 27TH AVE
3 beds | 2.5 baths
2,156 sq. ft.
5330 SW WESTWOOD LN
3 beds | 2 full & 2 half baths
3,509 sq. ft.
We’d be so glad to talk to you or your friends about our Concierge Real Estate Services and how we can make a difference with any of your upcoming real estate needs. And, thank you again for providing us the opportunity to not only serve you but also our community.