Construction has begun on Scholls Heights, a new residential development in west Beaverton.

Scholls Heights will include 17 single-family homes in the first phase. Prices will start “in the $700,000s,” according to a news release from home builder Pacific Lifestyle Homes.

Floor plans range from 1,600 square feet to 2,400 square feet, with two to four bedrooms and two to three bathrooms.  Buyers can choose from single-level designs or two-story plans.

“We are thrilled to open Scholls Heights,” stated Mark Kesling, sales operations manager for Pacific Lifestyle Homes. “We have been anxiously awaiting the debut of several Oregon neighborhoods and we feel this will be a popular one. The location is fantastic with so many shopping and recreation and entertainment options.”

Scholls Heights is located at 12516 Strobel Road in Beaverton. The neighborhood is near Southwest Scholls Ferry Road, which provides access to Oregon Route 217. The property is within Beaverton School District, and feeds into Hazeldale Elementary School, Highland Park Middle School and Mountainside High School.

Pacific Lifestyle Homes was founded in Vancouver, Washington, in 1996 and operates in the Portland-metro area, Southwest Washington and the Puget Sound area.

The new development comes as home prices continue to rise steeply in Washington County and across the nation. The median price for homes in Beaverton-Aloha that sold in January and February was $517,000, according to RMLS. The average market time of 20 days was among the lowest in the metro area.

Washington County saw a small population increase in the most recent year ending July 1, according to the U.S. Census Bureau. Washington County gained 122 residents, while Multnomah County lost 12,494 residents.

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Sale prices of Portland-area homes continued to climb in August, reaching a median cost of $525,000.

That was up 16.9 percent compared to a year ago, according to RMLS, a real estate listing service.

Low inventory continues to define the single-family housing market, depressing sales volume. RMLS reported 3,066 active listings in August, a 23.3 percent drop compared to a year ago. As a result, pending sales declined 4.4 percent compared to a year ago, but were up 5.4 percent from the previous month.

Closed sales were slightly better, increasing 2.2 percent compared to a year ago, but dropping 6.4 percent compared to July 2021.

Inventory came in at one month, up slightly from 0.9 of a month in July. Generally, six months is considered a balanced market.

Total time on market before sale was 23 days, a slight increase from July’s 20 days.

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In Portland these days, a half million dollars might get you an average house.

The median price of a single-family home in the Portland-metro area reached $479,100 in February, up 17.7 percent from 12 months previous and 4.2 percent from January, according to RMLS, a listing service.

As the busy spring season begins, historically low inventory and attractive mortgage rates are pushing home prices to new heights. Soaring lumber prices are buttressing the trend, raising the costs of new homes.

Inventory has hovered around one month since fall 2020, sending buyers into bidding wars. About six months of inventory is considered a balanced market.

“We just listed a property on (March 11), and we had a $70,000-over offer immediately,” said Jessica Tindell, president of the Portland Metropolitan Association of Realtors and principal broker of Tindell & Co. Real Estate and Property Management. “We continue to see very aggressive offer structures.”

Some buyers are upping their offers after coming up short, Tindell said.

“These are buyers that are writing seven or eight offers and losing out, so each time they get a little bit more motivated,” she said.

Low housing inventory is a widespread problem. U.S. housing inventory during December 2020 was the lowest since the National Association of Realtors began keeping track in 1999.

There could be some relief on the way. The NAR has tracked a rise in housing permits for eight consecutive months.

“There will also be a natural seasonal upswing in inventory in spring and summer after few new listings during the winter months,” NAR Chief Economist Lawrence Yun stated in a news release. “These trends, along with an anticipated ramp-up in home construction, will provide for much-needed supply.”

High prices are leading to “a lot of really sad buyers,” said Andee Zeigler, a principal broker at Living Room Realty.

“I’ve been doing this 13 years, and this is going on the second year now where it’s really difficult for first-time homebuyers in their 30s, born and raised in Portland, who had dedicated their lives in this community and now they’re ready to buy a home – and they just can’t,” she said.

The market dynamics are also leading to some risky behaviors by prospective buyers, Zeigler said.

“People should not be waiving their inspections entirely, and people should not be waiving their appraisals entirely,” she said. “That’s just super-dangerous.”

In Portland, some homebuilders are responding to demand by providing nontraditional types. In Westmoreland, in Southeast Portland, developer Marty Kehoe is building nine attached townhomes of about 2,700 square feet each. The townhomes, expected to be completed in mid-June, will be priced $800,000 to $900,000 apiece, he said.

Asked why he opted to build townhomes, Kehoe said such a project fit within city parameters for the site.

“We try not to fight the zoning issues with the city,” he said.

In Sellwood, two homes were completed recently along a narrow residential street, across from a New Seasons grocery store. The project involved renovating the existing early 20th-century homes and adding accessory dwelling units. The homes are on the market for $1.295 million each, an eyebrow-raising sum for the neighborhood.

Some buyers are going into transactions with little knowledge of Portland’s property taxes, which can vary greatly for neighboring lots based on homes’ ages, Zeigler said.

“Property taxes on new construction are kind of off the charts,” she said. For a buyer of a new home, “they’re looking at property taxes that are double their neighbor’s 1920s bungalow.”

Mortgage rates have begun to inch up, while remaining low by historical standards. The average rate for a 30-year fixed mortgage reached 2.81 percent in February, up from a trough of 2.68 percent in December 2020.

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Residential real estate inventory fell to just one month in the Portland-metro area in November, according to listing service RMLS. The record low figure indicates a dearth of homes on the market.

The measure means that for the first time, active residential listings at the end of the month were equal to sales for the month. Typically, about six months of inventory is regarded as a balanced market.

“It’s just painful for buyers right now, being in a lot of multiple-offer situations,” said Brandi Whitaker, a real estate agent with Wildwood Realty in Northwest Portland.

Downtown condos may be suffering, but detached single-family homes are seeing “some pretty heavy price spikes” in some cases, she said.

The median price of sold homes in the Portland-metro area slipped 0.7 percent to $457,000. That was still more than 10.1 percent higher than a year earlier, in November 2019. Homes spent an average of 41 days on market, an increase from October’s 38 days on average, but far below the 60 days of November 2019.

Residential inventory was already tight before the arrival of COVID-19, Whitaker said.

“We were already going into a year when inventory was going to be an issue, but COVID exacerbated it,” she said.

So what’s selling?

“A bit of a yard – it doesn’t take much,” Whitaker said.

RMLS’ monthly data for the Portland-metro area encompasses Multnomah, Washington and Clackamas counties, and Clark County, Washington.

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Pending home sales surged in May as the real estate market recovered from the trough of the early COVID-19 pandemic in the U.S.

Pending sales jumped 52.5 percent from April in the Portland-metro area, according to RMLS, a regional listing service. However, the amount was still 5.5 percent below May 2019.

The strong activity came as a relief to real-estate agents after pending sales dropped off a cliff in April as homeowners pulled back listings and potential buyers stayed home.

In April, pending sales were off 34.2 percent compared to April 2019, and 13 percent compared to March 2020.

The real estate market is seeing a rush of pent-up demand, said Greg Lawler, a Realtor with NextHome Realty Connection in Cedar Mill.

“The home just became that much more important,” he said.

Home prices rebounded. The median sale price in May grew to $425,000, a 1.2 percent increase compared to a year ago, and a 0.2 percent increase compared to April.

Inventory was at 2.3 months. Homes spent 38 days on the market on average, down from 44 in April.

“Buyers were still out there,” Lawler said.

Homes priced below $600,000 are selling briskly, while those priced closer to $1 million are moving more slowly. That’s not unusual, Lawler said.

“We’re seeing multiple offers, houses selling in three or four days,” he said.

Lawler predicted a busy summer as the buyers who stayed home in early spring jump back in.

“It’s getting delayed,” he said.

Lawler said he expects more buyers to look for larger homes in the suburbs as many office workers continue to work from home during the pandemic.

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April saw a marked downturn in residential real estate activity, with pending sales and listings down more than 30 percent from 12 months previous, as the coronavirus pandemic took its toll.

Closed sales fared somewhat better, but were still 16.4 percent lower than a year ago. The data came from RMLS, a regional listing service.

Leading indicators were worst off as activity declined amid Oregon Gov. Kate Brown’s stay-at-home executive order. Transactions appeared to dry up as many buyers and sellers decided to wait out the coronavirus crisis. Pending sales dropped 34.2 percent compared to April 2019, and 13 percent compared to a month ago.

New listings also dropped precipitously as many homeowners pulled back. New listings fell 32.4 percent compared to April 2019, and 17.9 percent from March 2020.

Real estate agents are preparing for a delay to the usually busy spring season of March and April.

“The unfortunate part is those are two peak months of sales, but it feels like that’s going to pop back really fast,” said Eric Hagstette, principal broker and owner of Inhabit Real Estate in Portland.

Sale prices slipped by 0.2 percent from March, suggesting the upward climb in home values might be on pause. The median sale price dropped to $424,000, from $425,000. Prices remained 4.7 percent above levels from 12 months previous.

Inventory grew to 2.4 months, up from 1.8 months in March.

Lake Oswego-West Linn remained the priciest area, with homes there selling for a median price of $652,500.

Hagstette said there will be some distressed sellers in the market. He’s also watching for the expansion of institutional buyers – essentially real estate investment trusts for residential properties – to increase their presence in the Portland market.

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Pending home sales fell in the Portland-metro area in March as the coronavirus pandemic took hold, according to data from real estate listing service RMLS.

Pending sales were 9.7 percent lower than in February and 14.3 percent lower than 12 months previous. Typically, pending sales spike in early spring months and peak in May, data show.

The lower level of activity did not appear to affect prices, which rose at a healthy clip. The median price of a Portland-metro home, $425,000, was 4.4 percent higher than in February and 6.5 percent higher year-over-year.

Closed sales rose sharply, reflecting earlier activity. They were up 24.2 percent from February and 7.9 percent from 12 months previous.

New listings were up 25.7 percent from February, but down 1 percent year-over-year.

Inventory decreased slightly to 1.8 months. Average time on market fell from 68 days in March 2019 to 61 days last month.

These are trying times for real estate brokers as sales events such as open houses are put on hold. Meanwhile, some sellers have withdrawn listings, leaving prospective homebuyers waiting.

The Portland Metropolitan Association of Realtors has posted guidelines for agents. They encourage social distancing, screening visitors before showing properties, and providing face masks and hand sanitizer if available, among other measures.

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The median sale price of homes in the Portland-metro area ticked up in February, reaching $407,000.

That was a 1.8 percent increase from January, according to RMLS, a listing service that tracks residential sales.

Sales were brisk. Pending sales jumped 14.4 percent from a month earlier, and 17.7 percent from 12 months previous. Closed sales also rose by 14.1 percent from January, and 9.9 percent from a year ago.

As a result, inventory fell to 1.9 months, down from 2.2 months in January. Residential listings fell to 3,580 in February, the lowest level since February 2018.

Market time dropped to 68 days, down from 74 days in January.

With interest rates near historic lows, refinancing activity has been brisk. Rates ticked up slightly from last week’s historic low, to 3.36 percent for a 30-year fixed loan, according to Freddie Mac‘s national survey released Wednesday.

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The median sale price of homes in the Portland-metro area ticked up in October, reaching $410,500.

That was a 0.1 percent increase from September, and a 3.9 percent increase from 12 months previous, according to the RMLS listing service.

The data suggests that the home market is broadly healthy and growing.

October was a busy month for transactions, with closed sales jumping 6.1 percent compared to October 2018. For the year, however, transactions remain down, with closed sales pacing at 1.8 percent below 2018 levels.

The market has been “much more active” in recent months, said Edward Petrossian, a RE/MAX Equity Group broker and past president of the Portland Metropolitan Association of Realtors.

Inventory dropped to 2.4 months, from 2.8 months in September.

“Interest rates dropped,” Petrossian said. “When you have a change in affordability factor, then things move again. As soon as you have an adjustment in interest rate, people can afford more and they start buying.”

Nationally, the average 30-year fixed mortgage rate was 3.68 percent last week, according to the Freddie Mac Primary Mortgage Market Survey.

Vancouver, Washington, has been a hot spot in the Portland-metro area.

“Over 50 percent of Oregonians that move out of Oregon, they go to Clark County,” Petrossian said.

Vancouver’s role as an affordable living area for Portland-area workers appears to be growing. In October, homes in central Vancouver sold for a median price of $290,000, and homes in Vancouver Heights, east of downtown, sold for a median price of $325,000.

In Ridgefield/La Center, Washington, the median price was $439,000, and in Salmon Creek, the median price was $447,500, according to RMLS.

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Home sales in the Portland-metro area surged in July, with the most homes sold during the month in four years.

Closed sales jumped 7.6 percent compared to a year earlier, and 6.8 percent from June 2019. It was the busiest July for closed sales since 2015, according to RMLS, a regional real estate listing service.

Prices were healthy. The median price of a sold home rose to $411,600, up 2.5 percent in July compared to a year ago. However, that was down 2 percent from $420,000 in June.

Average time on market rose one day to 43 days, while inventory decreased slightly to 2.3 months, according to RMLS.

Pending sales were down 2.4 percent from July 2018, and 2.8 percent lower compared to June 2019.

Many homeowners are trying to sell. Active listings reached 8,439, the most since September 2018.

Average mortgage rates have continued to fall. The average 30-year commitment rate was 3.77 percent, down from 3.8 percent in June. It was the lowest rate since November 2016, according to Freddie Mac.

Nationally, existing-home sales in the West fell 5.2 percent in June, compared to a year earlier. The median price rose 2.3 percent to $410,400, compared to June 2018, according to the National Association of Realtors.

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