For the last 10 years, the Oregon real estate market has been one of the most active markets in the country, many people coming from other states have decided to make Oregon their home. Property prices have risen by 47 % between 2015 and 2019.
Today Oregon continues being an attractive market, the physical-geographic conditions of the state produce a spectacular climate and an ideal environment for new families, as well as a haven of peace for senior citizens.
Despite the damage that is causing COVID-19 it has been seen that real estate markets such as Portland, Gresham, Beaverton, Oregon City, Tigard, and Salem, among others, have not suffered a sharp decline like other markets in the United States. Contrary to Oregon, due to the Federal Reserve low-interest rates effect, the house average sale price increased a 1.4% compared to the previous month (June 2020)
Where the coronavirus is affecting the most is in properties available for sale. June of this year recorded a decline of 47% on the home for sale listing compared to the same period of 2019, and 17.6% less compared to the previous month.
At Better Off Home Buyers we consider as normal all these changes in the real estate market if we have on account the 2020 turmoils. It will not be a surprise that unemployment, small businesses closing, the global economy, and people’s fear unchain a drastic recession in our country.
It is easy to predict that for August, September, and October this year we will see the indicators pointing down showing fewer houses available for sale, and a property sales average time exceeding 110 days.
If science and the health authorities do not find how to control and eventually eradicate the Coronavirus epidemic quickly, the real estate market will suffer paralysis as we have never seen before.
Job losses and unemployment numbers especially in the service industry have broken records. The latest report from the United States Department of Labor, dated July 02, 2020, shows the new applicants for unemployment aid shot up, rising from less than 4% in March, too close to 20% in late May, only presenting a favorable rebound of just 1.6% in June.
What Impact Can Unemployment Have On The Real Estate Market?
During this period of time, we have surveyed some rental management companies, in areas where the household average monthly income is $ 6,000 or more.
Below the answers given to us.
- Question: How is the epidemic affecting the new rental apartment applications?
Answer: “Normally March, April and the first half of May is a period when we have few requests to rent apartments. From the second half of May to the beginning of August is when we have a pick of new tenants requesting to rent apartments, compared to Summer and the end of each year.
Because of COVID-19, like all industries we have had to make adjustments to comply with the state regulations, now, we are having virtual tours and remote processes using Zoom, facetime or Skype to serve our future tenants.
Between March and May, we had a 60% decrease in new tenant rental applications. In June and July, the numbers have escalated up to 76%.
25% of the actual tenants have not renewed their lease agreements and have left. Which means that we are having more unoccupied rental units than usual.”
- Question: What do you think about HB 4213 about rent grace time and evictions?
Answer: “We believe this is a fair measure that seeks to protect the citizens of Oregon especially at this time when many are losing their ability to generate income. But at the same time, this law concerns us because no landlord can file an eviction lawsuit when a tenant has stopped making monthly rent payments, so landlords can’t regain control over their properties.
According to the law, all tenants economically affected by the pandemic can defer their rental payments from April 1 to September 31, 2020. Having the obligation to pay those months from October 1, 2020, to March 31, 2021.
On the other hand, we continue having the same administration, unit maintenance, and common areas maintenance costs in the apartment complexes, but we are having a shortage on our income, unbalancing our operating budget. ”
- Question: What is your projection for the last quarter of 2020?
Answer: “We believe that with the measures taken by the health authorities plus the citizens of Oregon cooperation, it will be possible to keep the virus at bay and reduce the cases of new infections. We hope that with conditions returning to normal, by November and December 2020 we will have a considerable increase in the number of rental applications.
It is possible that homeowners who have failed on their mortgage payments will be forced to abandon their properties, so they will become apartment seekers. We believe that this will be a repeated situation throughout 2021.
- Question: Will 2021 be a Bonanza for the rental Apartments Industry?
Answer: “Yes, the year 2021 will be a year when we will see more people requesting apartments to rent. Many people will lose or sell their properties and will have to find a place to live. We believe that many will relocate to other parts of the city or the state, but the truth is that for the third quarter of 2021 we will have a high demand for apartments to rent.
What Should I Do, If Due To The Crisis I Can’t Pay My Mortgage?
Federal law established two protections for homeowners with government-backed mortgages or the government-sponsored business (GSE) (FHA, VA, USDA, Fannie Mae, Freddie Mac). Click on the links to learn more about these options and whether they are appropriate for your situation.
If you don’t have a federal government or GSE-backed mortgage, you may still have relief options through your lenders or Oregon and local housing authorities.
Find out who owns or service your mortgage. The federal government’s CARES Act gave homeowners who have experienced financial difficulties due to the COVID-19 crisis the right to apply for leniency on a federally-backed loan for up to 180 days. That federal legislation also imposed a 60-day moratorium, starting on March 18, on foreclosure cases where loans have federal backing.
What Better Off Home Buyers recommends is to contact your bank right away, find out if your mortgage loan is backed by a federal entity, and request to take advantage of the term grant program.
If you still find yourself in the same income shortage after deferring your mortgage payments, don’t let your property go to foreclosure. Take action, find other resources. The credit penalty for loss a property stays in the user’s history for a period of 7 years.
With a low credit score, it is difficult to get a good interest rate on credit cards, car loans, education, or housing, as well as renting an apartment.
Selling My House In Oregon.
In this publication we want to present the scenario that we are currently experiencing.
The measures taken by the different government and health agencies are aimed at minimizing the Coronavirus effects on health, life, and the Oregonian Economy. It is certain that for the next months of 2020 as well as the whole of 2021, there will be a process of adjustment and recovery in all aspects of our life.
Many people will be able to sell their houses through the traditional real estate market, but they will have to adjust to the new systems such as virtual tours, remote conferences, and transactions. The waiting selling time for a house is already longer than normal, It will be extended even further in the future.
For homeowners who are going through an economic crisis due to job loss from the coronavirus epidemic, stress doesn’t let them think calmly.
If you have stopped making your home mortgage payments already. If after spending the protection time that the government has granted to regain control of your finances, you continue experiencing a hard situation, Better Off Home Buyers offers you to buy your house in a fast time process, 7 days most of the time.
With our home buying program, you will receive a fair offer for your property. The entire transaction will be done at the time you decide.
With our purchase offer, you will have the opportunity to get back on your feet, you will not suffer the negative effects of a low credit report. You will keep intact the possibility of receiving a mortgage loan again and retake the dream that you had suspended by COVID-19.
Our Better Off Home Buyers company is based in Portland. We serve the entire state of Oregon, as well as the other states of our Country.
Our mission is to provide a quality service to our community. Our purpose is not only to acquire your property. By purchasing our clients’ houses, we are serving people who need to get out of problems, right before they get too big.
With our work we are preventing major financial setbacks, facing foreclosure, taxes and legal fees, even personal, and family inconveniences to our clients.
For more information contact us by filling out the form on this page or dial directly at (503) 212-9641. Thank you