North Coast real estate trends

Country Media recently had the opportunity to talk with two north coast real estate brokers about current real estate trends in our area. Michael Henderson, Managing Principal Broker and owner of Duane Johnson Real Estate in Cannon Beach, and Pam Zielinski, Principal Broker for Berkshire Hathaway Home Services in Netarts, both agreed that home prices have remained relatively flat and stable since the early fall of 2022, following the rapid appreciation in prices in 2020, 2021 and the first nine months of 2022.

Henderson and Zielinski both predicted an increase in home sales once interest rates begin to decline; adding that they noticed the normal seasonal increase in new listings earlier this spring.

The number of new listings tends to decrease during the summer, before increasing again at the end of summer and early fall. Besides high mortgage interest rates, the NAR settlement agreement (a federal class-action antitrust lawsuit affecting real estate commissions) which takes effect in mid-August, has introduced an element of uncertainty into the real estate market.

After the strong “sellers market” during and after the Covid pandemic, Henderson and Zielinski said that the current real estate market is much more of a “balanced market” between buyers and sellers; with some buyers now offering less than the listed price. Buyers are asking for more concessions from sellers; such as interest rate “buy-downs” or asking sellers to pay all closing costs. The days of multiple offers and bidding wars between buyers, with buyers offering more than the asking price, are behind us; with the occasional exception of unique and desirable properties.

The market determines the value of a home, and any properties that are reasonably priced will usually sell very quickly, sometimes within days, or even hours of coming onto the market; while some homes, if priced above the market, might take much longer to sell.

Henderson explained that the housing supply is not keeping up with demand, both on a local and regional level. Henderson believes that unless additional vacant land is annexed into the city of Cannon Beach from areas east of Highway 101, but still within the urban growth boundary, that homes in the Cannon Beach area will become increasingly unaffordable for most buyers.

Henderson said that he has noticed a trend of fewer buyers able to afford the high prices in Cannon Beach; where very few homes are listed for less than $1 million. A home in the Chapman Point area sold this spring for $4.6 million within nine days of coming onto the market, which was a new record sales price for a home in Cannon Beach; while two homes on Pacific Street, just north of the Oswald West house, are currently listed for $4.95 million and $6.5 million. Henderson added that he is seeing more offers contingent on the sale of other property, which is a new trend beginning last fall. Buyers now have more room to negotiate with sellers, with the relatively “balanced market” tilting toward buyers.

Zielinski said that the new regulations restricting short-term rentals (STRs) in the unincorporated areas of Tillamook County, which went into effect in January 2024, seems to have affected the real estate market in her area. Zielinski has noticed less inquiries from potential Portland metro-area buyers aware of the new STR regulations, while receiving more inquiries from out-of-state buyers unaware of the new restrictions. The City of Rockaway Beach also recently enacted caps on STRs within city limits. Zielinski has seen a continuing interest from buyers purchasing vacant lots, with the Tillamook County Multiple Listing Service (MLS) showing nearly 20% of the inventory of lots were either sold or pending within the past few months. Some buy vacant land with an intent to build later; while others gravitate towards purchasing a house after realizing the costs of new construction.

According to the latest RMLS “Market Action Report” for the north Oregon coast, which includes data for all 2024 home sales through June 30th, Cannon Beach had the highest median sale price at $1,191,400, followed by Manzanita at $896,000, Arch Cape/Falcon Cove at $802,000, Oceanside at $799,500 and Gearhart West at $717,500. At the end of June, there were 208 active real estate listings in Clatsop County, with 221 active listings in Tillamook County. Thirty-year mortgage interest rates were near 6.75% in late July; a full percentage point lower than the peak in late October 2023

Pam Zielinski at Berkshire Hathaway in Netarts had this advice for both buyers and sellers: “There is no time like the present, because today we are dealing with known circumstances. The future is an unknown. So waiting to buy or sell is a risky proposition. Make prudent real estate decisions based on current market conditions and over time, you’ll be glad you didn’t wait.”

Michael Henderson at Duane Johnson Real Estate in Cannon Beach said that in spite of high interest rates, if you’re a buyer looking for a home in the Cannon Beach area, now is a good time to buy. The old axiom of “date the rate, marry the house” means that a buyer can always refinance a high-interest mortgage when rates drop. Henderson’s advice for sellers is that “anytime is a good time to sell, especially if you have a unique property, but a price that accurately reflects the market is important if you want your property to sell quickly.” Henderson added that it’s important to hire an experienced real estate broker who can assist you in pricing your home.

Questions for Pam Zielinski at Berkshire Hathaway Home Services in Netarts can be directed to: pzielinski@bhhsnw.com

Questions for Michael Henderson at Duane Johnson Real Estate in Cannon Beach can be directed to: michael@duanejohnson.com.