Here are some of the main things we saw in the month of August: The average sales price of a home in the Portland Metro Area is down about $10,000 from July, at $583,600. To put that in context, the average sales price was $511,000 in August of 2020! Inventory, the ratio of active listings to closed sales, increased again from 0.9 to 1 month. Inventory gives us a snapshot of supply and demand. If four months is considered a balanced market between buyers and sellers, we are still firmly in a seller’s market with no sign of that changing.
So does this increase in inventory and slight decrease in price mean the COVID-induced frenzy is over? Our somewhat murky crystal ball says no. We know that there is expected to be a housing shortage for at least the next 24 months. We also know that we expect these record low-interest rates to at least last through next year. Meaning we still have lots of qualified buyers (demand) and not enough houses to show them (supply). The metro area is not building new construction at a rate necessary to alleviate supply issues. In the unlikely event that home prices decrease, a rise in interest rates could still make monthly payments increase.
“Inventory goes down in the winter,” or “it’s harder to buy a home as the weather turns,” are common refrains in Portland–but what does that really mean?
All that really means to us here at Lovejoy Real Estate is that as the seasons change, we see both buyers and sellers become more serious and intentional. There’s less participation int the market (fewer buyers and sellers and overall transactions) but the need to be competitive does not go away.
As a team, we meet regularly to go over the monthly market reports in order to be positioned to help our clients navigate these competitive situations and have realistic expectations. Our role is to educate our clients on market conditions so that they can make the best decision possible based on their situation. Our team will do everything we can to make sure you know what price and terms will help you to win the home you are making an offer on.
We will promise you this: anything worth having is worth hard work and struggle. In the end, you are going to get into a house and out of the real estate storm!
Whether you are a seller ready to make the transition to a new home, or a buyer looking for your perfect space, we are confident that our team has both the knowledge and determination to make your real estate dreams come true. Ready to make that next step? Give us a call, we’re confident we can get the job done!