The December market update definitely showed some signs of slowing down. Pretty much like we all expected. No one wants to deal with making colossal financial decisions around the holidays (which pretty much explains the surge of interest that started flowing right after New Year’s). We saw new listings last month drop by 35.6% and proportional drops in active, sold and pending listings as well.
The average sold price dropped by 3.1%, likely due to some homes being priced higher than market value, and average time on market rose as well; all expected with the holidays as we mentioned before.
The important thing to look at is where we are going from here. The new year is going to bring a lot of new buyers & sellers, as well as bring back all the buyers & sellers that weren’t active during the holidays, so we can confidently expect more activity in the coming months. But what does that mean for everyone?
Well, while interest in buying will likely come back up in the new year due to the holidays being over and inflation numbers looking more and more under control, the root of the problem isn’t solved. Lack of inventory. As long as we see less sellers than there are buyers, then we won’t be seeing housing prices coming down. As is the case with most cities, there just isn’t enough to go around. But with the new inflation numbers coming back, we do hope to see some improvement with interest rates and, hopefully, some light at the end of the tunnel as far as affordability for those who want to become homeowners.
We are excited for the start of the spring market in the next few weeks. If you’re thinking of buying or selling in Portland, now could be a great time to take action. With a strong market and a good balance between supply and demand, you’re likely to find a good deal whether you’re buying or selling.