What we discuss:
Some normalcy and balance returning to the market.
An update on interest rates.
What both home buyers and home sellers can expect from the summer market.
Home prices during an election year.
Is the frenzy of the early Spring market over? It seems so.
The hottest of hot homes are still selling for over asking, but it seems that data and comparables have caught up to the epic price jumps we were seeing a few months ago.
Balancing the market some.
Though the data does show that we are still seeing activity increase across the board:
New listings are up 12% with 3,508 homes hitting the market.
Pending sales are marginally up by just 2% with 2,363 homes going under contract.
Sold homes are up 13% with 2,140 homes going to new homeowners.
Inventory of homes has stayed steady at 2.3 months (from 2.4 months in April).
What does this “new” market mean?
For home buyers, this means that while you will still deal with a seller’s market, especially if you are shopping in a hot area, there will be more homes sitting on the market and with those homes, the opportunity returns to ask for price reductions and credit asks.
And on the hot homes, while you may still deal with competition, it’s likely not the 10+ offers of the Spring market but a normal 3-4.
For home sellers, this means that demand for your home will typically still be great, it is just more important than ever that you price your home well.
Interest rates are still high and buyers are not just as frenzied as they were in the Spring. So your likelihood of sitting on the market and not getting multiple offers is higher if you don’t price accordingly and prep your home correctly.
On the note of interest rates, it is still predicted that we will only see one significant decrease in rates this year.
In terms of what you can expect for the summer, we should see activity remain high throughout July and then slow down as it historically does in August.
But no worries if you are someone who is thinking of selling around that time or plan to buy in August, those who are serious in the market will still be making real estate moves, and things do always pick up in September.
Speaking of August, August 17th is now the new date that changes will be implemented across the real estate industry for those who belong to the National Association of Realtors (which all Portland area agents do). The main changes are that buyers will need to enter into a contract with their agent prior to seeing homes, and buyers’ agent commissions can no longer be displayed on the MLS, but counter to what has been stated in some places, as of now, sellers are still able to offer compensation to the buyer’s agent.
This will certainly still bring changes to our industry, as an experienced realtor of 7 years, I believe many of them will be positive but if you have any questions or concerns and would like to discuss them I would be happy to talk.
Have questions or want to discuss your next move? I would love to chat. You can find my contact informatin below.