By Tracey Henkels, January 25, 2024
Hi, I’m Tracey Henkels, principal broker at Living Room Realty, here to tell you what you need to know about the Market for late January, 2024
I don’t know about you but I’m having major de jevu!
2008 All Over Again?
The last few years the real estate market has felt shockingly akin to the days of the subprime mortgage crisis of 2008. Let’s look back at the stats for the Portland Metro area to see just how similar the numbers are: In 2021, before interest rates started rising, the number of closed transactions was 35,182 – compared to only 20,941 transactions in 2023 when interest rates hit a high of 8%.
That’s over a 40% decrease within a 3-year timeframe and nearly IDENTICAL to the contraction we saw when shit hit the fan in 2008.
Ok, check this out: In 2006 there were 32,403 transactions closed. By 2008, it dropped drastically to 19,132. Again, a 40% decrease over 3 years.
What About Interest Rates?
The good news: this year is going to be a GORGEOUS time to make a move! All signs are pointing towards interest rates continuing to drop throughout 2024 and into 2025. Many are predicting that rates could even drop below 6% by the end of this year!
With that in mind, let’s do a quick recap of the concept of supply and demand.
As real estate agents, we don’t set the price – in fact, the seller doesn’t even really determine the price. It is based on the “demand” in the market, driven by the volume of buyers. And “supply” which is simply the available homes for sale. With so many buyers AND sellers waiting…and waiting and waiting some more…, we are soon going to have the largest pool of buyers in U.S. history! With very little inventory to show (or sell) unless sellers finally get off the fence.
So what does that mean for you?
Whether you’re a buyer or seller, the longer you wait, the more competitive it’s going to be, as the inventory of homes remains low, but the demand continues to rise along with the prices. Waiting to try and time the market until interest rates drop to 5.5 – 6% may sound like a good option, but my advice to both buyers and sellers would be to get in the game now before the flood gates open.
Make A Move
If you’re ready to make a move, call us today, we would love to help you find your next Living Room.
Tracey Henkels
Principal Broker | Earth Advantage | OR
She/Her
Tracey Henkels attributes her disciplined nature and relentless work ethic to a childhood spent rising and retiring by the light of the sun on her family's apple orchard in Iowa. Gratefully, that Midwestern mentality has served her well over the years as Tracey continues to deliver excellent customer service, superior technical skill, and a wide array of industry knowledge on behalf of her clients.
While Tracey wouldn't trade her career as a Real Estate broker for any other, her first love was Architecture. After receiving her degree at Iowa State University, Tracey worked in the architecture world for over 6 years before deciding she wanted to forge a new professional path. In 2004, Tracey jumped heart-first into the world of helping her people buy and sell houses. She's never looked back.
When you meet Tracey, one of the first things you notice is her positive energy, and zest for life. One of her favorite things about being a broker is the ability to help people make powerful transitions. Tracey's natural patience, unwavering professionalism, and optimistic attitude make her both a compassionate broker and tough negotiator.
Tracey is committed to serving others, making a difference in her community, and giving back. When she isn't working hard to best serve her clients, you might find her tending to her garden, growing fresh vegetables and beautiful flowers, cross country skiing, or planning her next exciting adventure.
Tracey works as a team, alongside Kelsey Burkett, Broker Licensed in OR.
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- T: 503-715-6140
- traceyhenkels@gmail.com
