What Do Current Market Conditions Mean for Your Real Estate Goals?
2019 has been somewhat of a mixed bag as far as our Portland real estate market goes. Some statistics, like the current average sales price of a home, have stayed relatively flat – this number is up just 1% compared to last June’s average, and is now at $456,000.
While some statistics have stayed steady, other trends saw a more significant change. For instance, while the amount of inventory available has stayed fairly low for our market overall (just 2.4 months), there is a lot of variation in available supply across the different micro-markets in our area. In general, buyers across the Portland Metro Area seem to be enjoying the fact that they have more options than in the recent past. The sense of urgency that once prevailed in our marketplace has lessened as a result.
One of the most obvious effects of this change in attitude is that homes are taking longer to sell. In fact, homes are selling 20% more slowly than they were in June of last year. The current average days on market is now at 57 days.
On the other hand, interest rates are now significantly lower than they were in the fall of 2018. This comes as a surprise since economists predicted rates would be in the mid-5% range by now, but it’s certainly not an unwelcome one.
Even with buyers in our market being slightly less enthusiastic than usual, the high affordability that these low rates bring still serves as a strong incentive for people to make a move.
All in all, buyers and sellers alike should approach our current market with cautious optimism. For buyers, the increased leverage afforded to you by our slowing market is sure to serve as a powerful tool during your home search. As for sellers, patience is the key to success. You must be thoughtful and strategic in pricing and marketing your home, but this shouldn’t be a problem, so long as you have the right professional help.
But what if you have no plans to buy or sell? What if you’re content in your current home? If this is the case, now may be a good time to refinance. Rates are at historic lows right now, but they won’t stay this way forever. You could easily save a few hundred dollars every month by refinancing. However, this is not a decision to take lightly, and you should always consult with a mortgage professional before making such a move. If you need a good recommendation, I would be happy to refer someone to you.
As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.