Investors Should Consider Quality of Schools

In Portland Real Estate News by KenCook

Because renters with children are often driven by the desire to place their children in good quality schools, even foregoing purchasing in order to be in a desirable school district that may be beyond their price range to purchase, investors are wise to consider the quality of the local schools in the neighborhood in which they invest.
These are my favorite sources for school information in Oregon and Washington:
school-pencils

  • Great Schools gives a numeric rating for schools on a scale of 1 – 10. The rating is based on school test results which are public records. Parents may post one review for each school their children have attended, and students can submit reviews which are approved by a moderator and posted if they meet the site’s guidelines.
  • School Tree They offer listings for over 140,000 public schools, charter schools, magnet schools, private schools, and school districts. To get started, go to the homepage and click any state you wish to search from there, click on a county, then a city, then a school. This site has basic information about all the schools in Oregon. It provides data on class size, Title I, etc.
  • >PSK12 This site is the provider of school performance information for K-12 public schools. It takes the public information (i.e. Oregon Department of Education) and presents it an easy to understand way using charts and graphs. It’s worth your time to explore the site.
  • Private School Review You can obtain free, detailed profiles of private schools and their surrounding communities. This is a commercial site with numerous paid links.

For even more detailed information, try these sources:

Oregon Public Schools

Washington Public Schools

Higher Education in NW Oregon and SW Washington:

school-stapler

2014 – A Year In Review

In Market Statistics, Portland Real Estate News by KenCook

The Portland-Vancouver Metro area enjoyed higher numbers in all categories at the end of 2014 compared to last year. The number of homes that were put on the market for sale this past year were up 5% to a total of 37,654. We saw 28,220 annual pending sales which was increase of 4.3%. Actual sold homes increased 3.6% for a total of 27,752 homes sold in the Portland Metro market.

Perhaps the best news for home owners is that both average and median sale prices were up again in 2014. The average price in 2014 was up 7.2% or $22,400 to $333,000 compared to the 2013 average of $310,600. The median was up by an even greater percentage, 7.7%, from $265,000 in 2013 to $285,500 this year.

Full details from the RMLS Market Action report:

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What 2014 Portland, Oregon Apartment and Housing Trends Tell Real Estate Investors

In Market Statistics by KenCook

At the end of 2014, Portland, Oregon remains an excellent rental market for entry-level as well as experienced real estate investors. Whether an investor is interested in renting out a single family home in one of Portland’s hottest neighborhoods or increasing investment holdings with a triplex or apartment building, strong rental and occupancy rates continue to make Portland an attractive place to be a landlord.

The median single family home value in Portland is $283,200. Home appreciation is up 12.10% over the last year compared to a 4.9% appreciation rate in the United States. Assuming no significant increases in interest rates and no major dips in the overall economy, Portland real estate should see the trend continue with 8-12% appreciation in 2015.

Renters make up 43.17% of Portland’s population. Our average monthly rents are competitive, making Portland one of the most affordable West Coast rental markets:

  • Studio: $664
  • 1 Bedroom: $773
  • 2 Bedroom: $920
  • 3 Bedroom: $1356
  • 4 Bedroom: $1630

Portland continues to enjoy an occupancy rate that hovers around 97%, a 20-year high, and we expect around 6000 additional rental units to be completed in 2015 which will provide more than enough upper and upper middle income units, but there will continue to be high demand and excellent opportunities for landlords of lower and middle income units.

Investors are finding creative ways to add rental units to existing properties by adding ultra-small houses as auxiliary dwelling units or ADU’s and by converting under-utilized spaces like basements, attics, garages, and out buildings to provide more housing units

Portland continues to rank as one of the nation’s top apartment markets, and that trend appears to be continuing. The local economy featuring expansion of Nike and Intel’s workforce continues to add jobs at a steady rate, The unemployment rate in Portland is 6.00%, with job growth of 1.59%. Future job growth is the exciting news: over the next ten years job growth here is predicted to be 37.20%!

According to data from commercial real estate hub Loopnet, the Portland market shows a decrease of just less than 1% in the median asking price per unit for multifamily properties compared to the third quarter, with a sharp increase of 28.9% compared to last year’s prices. Asking prices for Multifamily properties in the Portland Metro area are $130,091 per unit compared to actual sale prices of $96,544 per unit.

Most noteworthy is the sharply decreasing number of multifamily properties available for sale. There is a 42% decrease in multifamily properties available for sale year over year compared to 2013.