By Lily Ray Wyss, November 30, 2022
What we discuss:
How real estate activity is down across the board.
What this means for timing your real estate moves.
How interest rates going down this month, gives us hope for the spring.
We can’t predict much but we did predict this, activity is down across the board in the Portland Real Estate Market.
With the combination of historical seasonal trends and high-interest rates, no one is surprised to see this.
We tend to always see somewhat of a slowdown in the fall/winter in Portland real estate (maybe not as dramatic as places that get snowed in, but still a slowdown) so pairing that with dramatically rising rates, it has really put a dampening on the market.
New listings fell by 22% with 2,513 homes going on the market.
But where we really saw the dramatic decrease was with pending sales and sold homes.
Pending sales saw a decrease of 42% with 1,835 going under contract.
And sold homes saw a decrease of 37% with 1,955 homes going to new homeowners.
This shows that while sellers are still timidly willing to put their homes on the market, conversely home buyers are really hesitant to make a jump.
This has resulted in another increase in home inventory up to 2.4 months (from 2.2 months).
For homebuyers, while it makes sense to be hesitant to make a move with interest rates high relative to the last few years, this new market does pose some good opportunities.
The numbers show that you are not the only hesitant buyer out there, meaning competition is low and therefore there is potential to secure a home that was out of reach 6 months ago due to price and or terms.
For example, we just handed keys over to an amazing NE Portland home in a sought-after area, to a buyer, that would have been nearly impossible for these first-time homebuyers to secure last year.
BUT the important part was, while they are hoping to refinance down the road if rates improve, we made sure they could still comfortably afford the current monthly payments.
If you are in a place where you simply can’t afford to get the house you want due to current rates, the good news is, we did see rates go down this month. This is hopefully a sign that inflationary measures are working, and we should see the improved rates everyone is predicting come spring.
Just keep in mind though, that when rates go down, everyone else who is waiting on the sidelines will also re-enter the market, meaning we should see competition, and therefore prices and competitive terms also re-enter the market.
For home sellers, while buyer demand has certainly decreased, it is notable that the average sales price has stayed fairly stable. Last month it was at $617,000 and this month it is at $615,000.
While we are seeing a large increase in price reductions, the average price has been able to remain stable due to some pocket markets remaining in high demand.
This is why it is more important than ever to talk with us, your realtors, when it comes to the sellability of your home and your timeline.
We can give you all the data and resources you need to make an empowered and informed decision, as every market and every home style is performing differently right now.
The good news is, whether you are a buyer or a seller, we are happy to help and be your sounding board. If you are looking to make a move, whether it’s now or in the spring, it’s never too early to start the conversation.
See my contact info below to set up a time to chat.
Lily Ray Wyss
Broker | OR
She/Her
I love Portland. This city, and its surrounding areas, in my opinion, are the perfect place to call home. We have the amazing ability to put our toes in the ocean, snowboard, and visit some of the world's best breweries all in one day. Our food scene is extremely diverse and prolific. Want to see a show? Comedy, music, theater, etc all have growing, well-supported scenes here. I love selling homes in Portland and more importantly educating my clients and community on how amazing this city is and how you can own a piece of this beautiful state and call it home.
Follow me on Instagram to see my new finds and spotlights on the best places to eat, play, and be entertained in the area. And for information on buying/selling and current home market data. Follow at: @lilyrayresidential
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- T: 971-361-6114
- lily@lilyrayres.com
