Lack of Inventory Frustrates Some

We’re hearing more tales of multiple offers, buyers writing strong offers and getting beat out, and talks of this being the beginnings of a seller’s market.  We ran some reports in the different RMLS areas for detached houses under $300,000.  This is what we found:

RMLS Area Location Houses Available
141 N. Portland 93
142 NE Portland 248
143 SE Portland 412
144 Gresham/ Troutdale area 233
145 Milwaukie/Happy Valley Clackamas 270
146 Oregon City/Camby area 212
147 Lake O./ Wets Linn 45
148 West Portland 95
149 NW WA Co. 37
150 Beaverton/Aloha 179
151 Tigard/Tualatin/Sherwood/Willsonville 146
152 Hillsboro/Forest Grove 228

Six months of housing inventory used to be considered the neutral point between a buyer’s and seller’s market. The inventory statistic is a ratio of the number of available houses divided by the number of closed houses in a month. My feeling is that the neutral point in today’s market is between four and five months. Buyers are more willing to let the not-quite-perfect house for their needs go by and the sense of urgency may not be what it was. The neutral point may rise as the market settles in but I think sellers with an accepted offer should probably feel less secure than the did in a pre-bubble market. Buyers are willing to compete for listings but not as hard as they were when the market had run a long upwards trajectory.

Regardless of where the neutral point, most buyers would probably agree that there is a shortage of listing to look at. This, of course, bodes well for sellers thinking about coming to market and if the number of available listings doesn’t increase may change for a new market attitude adjustment yet again.

One Comment on “Lack of Inventory Frustrates Some

  1. It’s still a sellers market especially in California towns like Pleasant Hill and Orange County California. Every buyer should make sure that they hire an aggressive realtor to help them get the home that they really want during this sellers real estate market

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