What The Market Shift Means For You
As we closed out 2018, we noticed some key signs that our Portland Real Estate Market is shifting. Inventory increased, the average number of days on market rose, and the rate at which home values were appreciating started to slow.
How will these changing market conditions affect Buyers and Sellers in 2019?
First, it’s important to keep in mind that the shift we are seeing is a transition from an abnormal, unbalanced market into a more normal one.
Additionally, the shift has not been instantaneous, and rather, appears to be a slow-moving-trend towards a normalized Real Estate Market. This, of course, is positive news for everyone, as we are not seeing any signs that would indicate a crash.
Back in September 2018, we saw housing inventory increase by 35%, which at the time seemed like a pretty drastic shift for many would-be Sellers. Since then, however, inventory levels stabilized, and stayed at or below the three-month mark through the end of the year. To put that number into perspective, a balanced market has around six months’ worth of supply.
If you’re thinking about selling your home, it’s still a great time to sell. We’re not in the same market as we were in 2015 or 2016, but inventory levels are still more indicative of a market that favors Sellers.
Now that Buyers have more homes to choose from, however, it’s key to make your home stand out against the competition. So your home preparation, pricing, and marketing strategies will be more important than ever, as these will ultimately help position your home to be seen as the best product and value in your neighborhood.
If you’re a buyer, you have quite a few reasons to be optimistic as well. For the first time in three or four years, you have an opportunity to buy a home in our marketplace without necessarily having to worry about competing against multiple bids.
Although Buyers have more leverage than in years past, you still need to be prepared to act quickly and with intention when the right home comes along. Homes that are priced and marketed properly will still sell quickly, so don’t assume you can just sit back and wait. Furthermore, home prices and interest rates are both expected to continue rising over the next couple of years. And since we aren’t seeing signs of an impending crash, it might make more sense to buy now, rather than try to wait out the market cycle.
If you’re thinking of buying or selling a home, or have any questions about our Portland market, please give me a call or send me an email. I look forward to talking with you soon.