The rapid increase in housing prices experienced over the past two years in Cannon Beach has started to level off this year, according to Michael Henderson, managing principal broker for Duane Johnson Real Estate, but he noted that prices continue to rise in certain areas, such as the Presidential Streets and Chapman Point. Henderson said that over the past two years, sellers could sometimes receive a dozen or more offers for their property, with many offers above the asking price.
The local real estate market continues to be a sellers market, with sales activity mainly constrained by the lack of inventory, according to Lynn Brigham, managing principal broker for Windermere Realty Trust, and 2022 President of the Clatsop Association of Realtors. Brigham agreed that the rapid price increases have started to moderate, but noted that the median sales price has still seen an 8% increase so far this year in Cannon Beach. Brigham said that since many of the buyers in the market are cash buyers, rising interest rates have not had a significant impact, but at some point additional price appreciation could affect buyer decisions.
There has been a slight decrease in the total number of new listings in Cannon Beach this year compared to the same period last year. The majority of home buyers in Cannon Beach continue to be from the Portland metro area, with buyers from Washington and the Seattle area also purchasing a significant number of local homes. Both Henderson and Brigham added that although buyers from other states continue to purchase properties here, they have not noticed an increase in buyers from areas outside of Oregon and Washington over the past few years.The repercussions from the Covid pandemic, with some people feeling the need to escape the larger cities, accompanied by the trend of more people being able to work remotely, have been factors affecting the local housing market over the past two years.
Henderson noted that the real estate market in popular tourist destinations such as Cannon Beach tend to experience less market volatility than other real estate markets, saying that increased demand is being fueled by the limited number of properties in the coastal areas, while Brigham added that the local real estate market has historically tended to lag the larger Portland area market by about 6 months.
A real estate market is considered “balanced” between buyers and sellers with an available housing supply of 6 months. For north coastal counties, the inventory in July 2022 was 2.7 months, an increase from the 1.6 months in July 2021, with a low of 1.1 months occurring in October 2021.
Henderson’s advice for anyone thinking of selling their home: keep your home well maintained, because any deferred maintenance will be noted during a home inspection and could hinder a sale. Henderson noted that the vast majority of buyers prefer to make their own cosmetic changes (such as carpeting and paint) to a newly purchased home, so these types of upgrades are not as important to buyers as a well maintained home. Henderson’s advice for anyone thinking of purchasing a home: be financially pre-qualified or pre-approved for a certain amount before making an offer, and his advice for both buyers and sellers: it’s important to find a real estate broker who will listen to you and understand your needs.
Brigham’s advice for anyone thinking of selling their home in Cannon Beach: don’t try to time the market if it’s time for you to sell. His advice for anyone thinking of purchasing a home in Cannon Beach: don’t wait to buy your dream home. If you wait another five years, your kids are going to be older and you’ve missed out on the experience and memories of owning a home at the beach.