If you’ve been watching my updates over the last few months, you know that our market has been extremely hot. High prices, low inventory, and multiple offers were the norm. However, I knew this day would come.
Part of this change is seasonal, but we are definitely seeing some indicators that the market is starting to shift. Here are five of them:
1. Contingent offers are going up. We saw a huge bump in these in the last 30 or 45 days. There are about 100 homes right now that have contingent offers on them. We haven’t seen that many in a while.
2. Expired homes are on the rise, too. We saw over 200 expired listings in the last 30 to 45 days. These are all homes that failed to sell on the market for one reason or another.
3. Failed sales. About 612 home sales failed in the last 45 days. These are all instances where a sale was agreed upon but fell apart during negotiations for whatever reason. This tells us that buyer expectations are high right now and they aren’t afraid to walk away.
4. A big increase in price reductions. We’ve seen 43% of all homes in the Portland metro area have at least one price reduction in the last 30 to 45 days. This is significant because we haven’t seen many price reductions in a long time. We’ve seen more of the opposite with bidding wars.
5. The closed sales have dropped. We’ve seen a 13% year-over-year drop since July, as well as a 7.9% drop in pending sales. After a strong first two quarters, we saw a steeper drop in the third quarter than usual.
We’re starting to see some indicators that our market is starting to get leveled out. It’s starting to get more healthy and normal. However, it’s still a fantastic time to sell a home if you’re in the market for it.
If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.