How Can Buyers and Sellers Take Advantage of Our Current Market?
Much of the speculation heading into 2019 was that the Portland Real Estate Market was shifting, and beginning to cool off. In fact I sent out a video newsletter about this in January discussing our slow transition to a more stable marketplace. You can view that video here.
As the first quarter of 2019 winds down, much of this has remained true for the market as a whole. Prices have stayed relatively flat, up just 1.3% from January to February, and up 4.6% year-over-year. So while home values are still continuing to appreciate, the rate at which they are doing so is at a more moderate and sustainable level.
Inventory levels, on the other hand, dropped by about 18% from January to February, and we are now back below three months’ worth of inventory across the Portland Metro. Our average number of Days on Market is currently at 75 days.
While most of the data still seems to suggest a slow-moving shift toward a more normalized market, there are some interesting trends to note when we break things down by price point. When we separate things into different price brackets, we actually see signs that indicate movement towards a dual market.
A dual market is when current homeowners are able to sell their entry-level home home quickly—and for a premium—while simultaneously buying at a higher price point, where they are able to negotiate a discounted price.
However, as we increase price points in $100,000 increments, we see a small decrease in the average sale-price to list-price ratio, and a small increase in the average number of days on market. Meaning, the higher we go in price, the longer it is taking for Sellers to sell, and the more likely they are to negotiate or reduce their price. In fact, for all price points above $600,000, homes have been selling for an average of just 95% of their original asking price. Oftentimes, Sellers are having to reduce their price one to two times prior to receiving an offer.
To me, this indicates a great trade-up market across nearly every price point.
If you’ve lived in your home for longer than three or four years, now’s a good time to reflect on what your long-term goals are for that home. If you’re not living in your long-term home, I think it would make sense for us to discuss what your home would trade for in the current market, and how that sale would set you up for your next purchase. It could be a great opportunity for you to trade up.
For homebuyers, especially those looking to purchase in that entry-level price point, you need to be prepared and ready to act when the right home comes along. Get pre-approved and have a plan for funding your down payment before you start shopping for homes. When the right home comes along, you will be ready to make a move. And if we end up in a multiple offer scenario, I can help guide you on how to craft a competitive offer.
Whether you’re buying or selling in this market, I’d love to sit down and talk to you about formulating a strategy that will achieve all your real estate goals. If you’re interested in scheduling an appointment or have any questions, feel free to reach out to me. I look forward to hearing from you soon.