Happy St. Paddy's Day! Spring Fever for Real Estate

by Rod Sager (modified version of post from 3/14/2014 on his blog)

That venerable March holiday that brings out the Irish in all us is just around the Corner. This is a time to start thinking about the Spring real estate bump. St. Patrick's Day is not just a green beer holiday party. it signals the early tingles of Spring. The Vernal Equinox is just a few days after the Celtic Celebration The temperature begins to warm, the rains turn to showers, and the sun decides to hang out for more than a peek-a-boo moment. People start thinking about going outside. Driving the old hot rod or walking in the park. And they start looking at homes.

Here in the Pacific Northwest; the early portion of spring can be a fickle time for weather. It is an ideal time to start your real estate adventure. Listing a home in March can be quite successful as discussed in this post from two weeks ago. For buyer getting the process started early is also a good idea. As the month ends and April begins a surge of new listings will appear on the Market. The buyers that started early have the upper hand over those that dive in late. Either they secured their dream home before the "rush" or they eliminated homes, styles, features and neighborhoods they don't like and can concentrate on what they want and like. These buyers can pull the trigger when the spot the right house.

There is more to Real Estate Spring Fever than just the weather. Spring Fever catches all of us. The home and garden shows start up, the Farmer's Market and a whole slew of spring activities that get people thinking about their own home and perhaps new homes they would like to have. This is a great time to start looking at house to buy and or list a home for sale.

Rent or Own?

Census information shows some interesting differences in housing that is available for renters vs. that which is available for sale. Overall the most interesting statistic is the median age of an owner at 54 versus the median for a renter at 39. I believe the age gap to be attributed primarily between two key factors. Younger people earn less money on average and tend to be more mobile. Mobility lends itself to rent rather than own. But if money is driving a younger person away from home ownership, this market is an ideal opportunity to own sooner rather than later. With home prices on the rise but still low and rates remaining at the historical bottom of the range, money is not the issue.

I have found that my buyers over the last two years have in fact been on average younger than ever. I would imagine that the next iteration of this bi-annual government report will show a closer gap between owners and renters as young people seem to jumping at the opportunity to buy that this market has provided.

From the Oregonian, Portland, OR:

"Rent or buy? A recent housing survey shows that the stock of Portland-area rental homes offers a very different sent of amenities and conditions than metro owner-occupied homes.

Many of the differences are likely explained by demographics. Homeowners have a median household income of $70,000, while renters' median household income is $34,164. Renters also skew younger: the median age for the head householder among renters is 39, compared with 54 for homeowners.

The American Housing Survey, conducted by the Census Bureau and the Department of Housing and Urban Development every two years, features metro-area numbers are released on a rotating basis. Portland's haven't been since 2002.

The Census Bureau surveyed 3,885 Portland-area householders, or about one in every 240 housing units. These numbers reflect data collected in 2011.

-- Elliot Njus"