As we pass the halfway point of 2019 and take stock of our Portland market, there are three developments that buyers and sellers need to be aware of.
First, appreciation rates have normalized, which is great news. I like the pace of appreciation as it stands. There’s not a mad dash from sellers to draft their price upward and attract multiple offers, and prices aren’t rising to the point where buyers can’t get in the game. This doesn’t mean there are gobs of inventory to sift through, either. This year has been nice and steady. In fact, it’s one of the healthiest years for real estate I’ve seen in some time.
In the Portland Metro area, year-over-year appreciation stands at roughly 4%, which is a very good spot to be in—any economist will tell you the same thing. If you go too far over 4%, you’re in danger of sliding backward. If you dip too far below it, the market starts to stagnate. The national appreciation rate, meanwhile, is about 5%. Some people claim the sky is falling because we’re not seeing double-digit appreciation anymore, but if you’re a homeowner or a homebuyer, you want conditions to be nice and steady so there’s no risk of a market correction.
Second, interest rates are extremely low. They recently dipped to their lowest point in two years and are hovering in the 3% range. This means buyers’ buying power is increasing and sellers’ selling power is strong. It’s important to have that balance where buyers can afford houses and sellers can take advantage of strong demand. Good interest rates mean a good market, so if you’re thinking about making a move or refinancing, now’s the time.
Lastly, there are no indicators that a recession is imminent. Many people assume a great market can’t happen without being followed by a terrible recession because of what happened in 2008, but there’s no reason to believe a crash is coming. In any case, a recession doesn’t automatically mean we’ll fall off a cliff the way we did more than a decade ago.
To be clear, markets always ebb and flow, and we’re due for a shift, but there’s a healthy balance between buyers and sellers right now. Additionally, the Portland market is well insulated due to the high number of people moving to the area.
If you have any questions about our market or you’re thinking of buying or selling soon, don’t hesitate to reach out to me. I’d love to help you.