60% of Portland-area homeowners unlikely to sell, contributing to low for-sale inventory

home for sale.jpg
A lot for sale in Lake Oswego. A developer selling the property plans to tear down the existing house and build a new one in its place for the buyers. (Elliot Njus/The Oregonian)

Elliot Njus | enjus@oregonian.comBy Elliot Njus | enjus@oregonian.com 
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on April 25, 2014 at 7:27 AM

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

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About PortlandHouseListings.com - Tom Ramsey, local Realtor

Local Portland Realtor with 10 years experience specializing in residential sales and investment property. Tom Ramsey Oregon Real Estate Principal Broker John L Scott Real Estate Phone: 503-481-0501 tomramsey1@gmail.com www.PortlandHouseListings.com
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