Portland Oregon Real Estate Market Update January 2022

Okay... as you can see in the subject line of this email and in the above video, the market is WILD right now.

More than ever before.

If you are an active home buyer or seller you are most likely already fully aware of this. I know because I have been having many detailed conversations with you over the last few weeks.

Firstly, always the biggest indicator of this current market, inventory of homes, went DOWN again, to 0.6 months. Unbelievably the lowest it has gone in years.

Our minds were blown when it hovered around 1 month and then went down to 0.8 months this time last year.

But before we go into the why of what's put us in this situation, and freak out you buyers out there too much, I will say that we have been able to get plenty of buyers into homes as we have hovered around 1 month for the last year.

And historically (including the last year) inventory of homes has risen as we headed into the warmer months. Giving buyers more options and less urgency and competition.

Okay, so how did we end up here? Well, the current market feels oddly similar to the market we had near the beginning of the pandemic because the reasoning is so similar. I.e. uncertainty around a new virus and sellers hesitant to sell because they are concerned over what their next move will be.

While historically the holiday season often leads to a lessening in the number of homes to the market, and that certainly played a part here, we are seeing and hearing from potential home sellers, that they are currently hesitant to sell mostly because of the two issues stated above.

The introduction of Omicron, a new variant that is threatening the efficacy of the vaccine, is starting to affect home sellers' willingness to sell. The idea of having strangers walking through your house is unfortunately starting to feel scary again.

Luckily, with the market being so hot, if you are considering selling your home, most likely you will only have to have it listed on the market for a few days before receiving offers. Plus, there are a myriad of other ways we can work out showings, to make it more comfortable for you.

The other hindrance for sellers, is the concern that once you sell your home, where will you move to next? While many sellers are aware that it's a hot market and they could get good money for their homes, the concern of going out into that same market and having to buy outways the benefits.

Luckily with the market being so hot, if you are motivated enough to sell your home, there are a few great terms we can employ to make the move as seamless as possible. The best being, giving you 30-60 days in the home post-closing, sometimes even for free. Allowing you to have up to 90 days in the house while you find your next home.

We also recommend talking with your lender to see if there are any creative ways you can finance your next purchase without selling first, giving you more time in your home and greater peace of mind.

What does this all mean for homebuyers? The market is tough, and I want to make sure to validate your feelings if you are currently feeling a bit lost because of it.

But by no does this mean that your home buying dreams are impossible. And while this market is hard, waiting it out probably will not do you much good.

Interest rates are set to rise, and so are purchase prices. And while I never want to use fear tactics, I do want to give you all the information, and the reality is, I have had clients get priced out of this market. So let's avoid that for you!

The good news is like we touched on in the beginning, it really only feels like we can go up from here.

Historically the spring and early summer always lead to a higher number of homes coming to the market. And if Omicron passes us quickly like many experts say it should, that should help a lot as well.

If you are looking to buy asap, it really all comes down to strategy and flexibility and I am here to help you with all of that.

If you are looking to make a move in 2022 (or beyond) or just have a question we are always here for you. Contact us HERE.