The latest trends in the Portland housing market you need to know.
What’s happening to the Portland real estate market? I’ve sifted through the boring numbers, and in this short update, I’ll share some of the trends that are emerging right now.
First, let’s start with the good news. We still don’t have that much inventory. We may have climbed up to 2.4 - 2.6 months of inventory on average, but we’re still not in a buyer’s market. Houses are taking longer to sell, and the average price reduction is now one to two before the home finds a buyer. Also, the average house is now selling between 5% and 8% of its original listed price, which is fantastic news for sellers. This means there’s no need to worry about getting lowball offers and bad deals, because that just isn’t happening, especially since there’s only a glut of inventory.
Next, let’s talk about interest rates. They continue to increase and are dramatically causing a deceleration in the market. However, this doesn’t mean that houses aren’t selling—instead, this shows that the market is normalizing and returning to pre-pandemic times. We have longer market times and more downward pressure on pricing, which will likely continue over the next several months.
Also, it’s important to note that if we do head towards a buyer’s market, homes will take longer to sell, inventory will increase, and interest rates will continue to rise, causing another deceleration. I predict that next year’s real estate will likely be bumpy, but homes will still sell.
On a lighter note, if you have bought your house in the last two to five years, you have gained much equity. The double-digit appreciation happening over the last few years just wasn’t sustainable, and now we are decelerating; however, that doesn’t necessarily mean we’re heading into a crash. We are just seeing a slower market, and as a seller, you need to be very prepared.
If you have questions about this topic or anything related, call or email me. I’d love to be your real estate consultant!