By Lily Ray Wyss, October 25, 2022
What we discuss:
How dramatically increasing interest rates have decreased activity over all.
What this means for home buyers and home sellers.
And what opportunities are out there for both buyers and sellers in this shifting market.
The reaction to rising interest rates has fully hit the real estate market.
Activity was down across the board in September.
New listings saw a decrease of 1.8% with 3,151 homes coming to the market.
Pending sales saw a significant decrease of 20% with 2,530 going under contract.
And sold homes saw a decrease of 13% with 2,581 homes going to new homeowners.
With hesitancy from buyers being at a high, leading to less pendings and sold homes, yet new homes to the market staying fairly stable, we saw inventory of homes raise up to 2.2 months.
We have not seen inventory this high since May of 2020. Creating some great opportunities for buyers who are still out there actively searching.
High-interest rates just are not ideal. But there are some benefits for both home buyers AND sellers when it comes to the new market:
For home buyers:
With the upward pressure put on interest rates, it has forced many home sellers to list their home for a lower price or price reduce their homes when they sit on the market (average days on market just rose up to 34 days). So while you have to deal with higher rates, you will most likely never have a better opportunity to buy a home in the Portland area when it comes to price.
Also, some sellers are offering financing help right off the bat or it’s negotiable when you offer. Meaning there is potential to have the seller buy down your interest rate, and or help with your closing costs.
Additionally, in today’s market, you will have great negotiation powers during the transaction.
For home sellers:
Yes, you may not get the same price you would have gotten for your home 6 months ago, but no you did not completely miss your opportunity.
For one, the performance of our real estate market varies wildly by area, price point, and style of homes. There are still pocket markets where we are seeing homes go under contract in a weekend with multiple offers and going under contract with an above list price offer.
And if that is not the case for the market your home would fall under, there are still buyers who want your home and will buy it for a good price, you will just need to be more strategic.
You will want to make sure you do everything you can to prep your home to make it shine (we can help you come up with an action plan for this), no longer is it possible to sell a home quickly no matter its condition.
And you will want to make sure to hire the right real estate team, so we can help you price your home strategically and market it widely and smartly so you can get the most eyes on your most expensive asset.
In terms of how this market is positive for sellers. The buyers who are out there searching for homes are serious. They are not just buying because money is cheap and it’s opportune, they really need to buy.
Meaning, less flighty buyers in a lot of cases.
Also, in general, we have seen home prices stay fairly stable. The average sales price did go down slightly when looking at August to September. In August the average price was $619,000 and this month it is $617,000. So really just a change of about 2k.
This market has so many variables, but luckily you don’t need to go it alone. We are here to help you and to give you the resources you need to make an informed decision.
If you would like to chat about your options, I am here for you. Reach me at the contact info below!
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
