We live in Oregon. With the exception of these fine summer days, we know to check the weather forecast before we head out for the day. The forecast is the indicator that lets us know if need to toss our rain coat in the car.
As a Real Estate Broker, I evaluate the market indicators so I can arm my clients with the insight they need to make their real estate decisions. For years, the forecast has been the same; low inventory, low interest rates, and high buyer
demand have resulted in quick sales and frequent bidding wars.
We are now seeing a shift. Interest rates are up and now hover around 4.75% (vs. 3.88% in June 2017). From a historical perspective this remains “cheap money,” but the buyer who could purchase a $650,000 home at 3.88% last year, can now only afford
to purchase a $586,000 home if his goal is to have the same monthly payment, otherwise, it is a 10% increase to the monthly payment.
Beyond interest rate changes, we have increases to our housing inventory and days on market, as well as an increase in the number of price reductions. As I write this, more than 44% of the homes currently listed in LO have reduced their price.
The market is cooling.
We offer automated home valuation on our website. It is a great place to start, but not a substitute for a true market analysis. Talk to us to learn how we help our sellers to sell and not to sit on the market.