By Living Room Realty, January 19, 2024
Oh hey, 2024… Didn’t expect you so soon 👀 Does anyone else feel like 2023 was somehow lightning fast and slow as molasses? Cost of living and mortgage interest rates reaching a record high, increased migration to Portland from feeder cities, and continued low inventory had us all feeling a bit… defeated. However, if you read my last blog, you’ll know how I feel about the current doom-and-gloom mentality; it’s misleading! We have entered a new market, that’s for sure. It doesn’t do us any good to look behind us, at the Portland market of the past. We are moving forward and asking… how can I make this new Portland market work in my favor?
Since you’re here, reading this blog — hello! — you’ve likely just entered the Portland real estate market, are considering taking the leap in 2024, or you rode the 2023 real estate wave with us. Either way, welcome! I’m Jake, ½ of the Houselab Team, and have dedicated my career to keeping it real with my clients. We’re taking the fear and uncertainty out of real estate, helping the Portland community achieve their investment goals, and pointing the lens back on Portland’s one-of-a-kind, historic homes.
Before we run head first into 2024, let’s quickly look back on 2023. Out of curiosity, what would you guess the top three economic search terms of 2023 were? I went on an Investopedia deep-dive and here’s what I found…
According to Investopedia, 2023’s most searched term was “The American Dream,” which is telling and curious. I’d say it’s more of a literary term than a true investment term… not a conventional economic phrase but a concept of upward mobility, completely unrelated to living in the USA. Homeownership is widely considered the cornerstone of the American dream, and not many of us dream of renting for our entire lives. However — we’ve all heard these conversations — there’s been a notable shift as many millennials have begun to abandon homeownership, and the trajectory for Gen Z remains uncertain. Wall Street seemingly is banking on them becoming a significant renter generation. Woof.
The two other most searched economic terms were “Bank Failures” and “Artificial Intelligence,” both clearly anxious searches. Shockingly, “The American Dream” has never even cracked the top ten in Invesopedia’s list. What does this mean? I’d say, widespread, significant financial unease. Personally, I’ve always felt this financial anxiety. I’ve been self-sufficient (and definitely struggled when I was young) without family as my financial safety net. My journey to my current position required persistent effort, overcoming obstacles with no familial support. Real estate — owning, renting, and rehabilitating — has been the primary driver of my financial success over the last two decades. Helping others achieve this American dream has been the cornerstone, the pinnacle, of my career motivation since entering the business.
Throughout my 20 years in the industry, I’ve felt and coached countless buyers through uncertainty about the right time to enter the market. The reality is, there’s never a perfect time (sorry folks); it’s always a mix of right and not-so-right. The optimal time to buy real estate always seems to be five or 10 years ago. Those who purchased in 2023 faced higher interest rates but benefited from lower home prices. Recent rate drops may intensify competition, potentially leading to higher prices, though concerns about a Covid-like spike in home values are debated. I personally believe we’re at a tipping point with affordability, leaving limited room for further price increases!
2024 won’t be significantly easier than the last, and for those who recently purchased, refinancing is an option despite the cost. While spending around $7,000 for a refinance, you very likely secured a house at a considerably lower price than it will likely be in 2024-2025. AKA, you’ll be avoiding fierce competition and the associated heartbreak and wasted time. Real estate demands courage, and I’ve observed homeowners and prospective buyers remaining on the sidelines for a decade, hesitant despite a genuine desire for homeownership.
Advice from The Houselab Team to you… Consistently monitoring the market without taking action can result in missed opportunities. TAKE CHARGE, PEOPLE! Real estate is a leap of faith, and attempting to time the market often leads to loss. Success lies in spending time in the market, not timing the market; getting in and staying in for the long term is key.
Reach out and let’s chat about your buying, selling, and investing goals in 2024. This is your year! Put your trust in the Houselab Team. We’ve got you.
Jake Goodson — jake@houselabteam.com
Tony Le — tony@houselabteam.com
