- Conventional and ‘jumbo’ mortgage rates blur, curbing rare perk for middle class
- 60% of Portland-area homeowners unlikely to sell, contributing to low for-sale inventory
- Few stale real estate listings in Portland area, report says
- How tight is the housing market? One North Portland ZIP code has zero houses for sale
- Portland-area housing market cools in March but remains competitive
Six in 10 Portland-area homes are unlikely to be put up for sale, a recent analysis shows, contributing to the slim inventory that has frustrated buyers.
The Seattle-based brokerage Redfin sifted through housing data to determine which are likely held off the market for financial reasons. It found that half of homes nationwide won’t be listing anytime soon, and the rate is even higher in Portland.
The biggest reason is that homeowners don’t have enough equity in their home — they are either under water on their mortgage, or they wouldn’t reap enough in the sale to make a down payment on their next home.
Another 21.1 percent are enjoying a low mortgage rate below 4.25 percent, likely having bought or refinanced in 2011 or 2013. Another 15.4 bought or refinanced within the last 7 years and are likely to stay put for now.
Finally, 2 percent are owned by a company or investor who is likely to hold on to the home.
The share of homes unlikely to trade in Portland is relatively high, though it trails many hot California markets and bubble-era boomtowns, which still struggle with low equity.
As a result, only 0.78 percent of Portland homes are currently for sale. The slim pickings are likely to continue through 2014, Redfin says, then slowly improve over the next five years