2023 MARKET PREDICTIONS
So far this year, we’ve been very surprised with what we’re experiencing in the Portland Metro real estate market, especially with recession fears and company layoffs taking place. Despite this, Austin & I have been involved in four multiple offer situations already this year and it looks like many buyers are back in the market and off the sidelines.
With what we’re seeing, it’s our belief the housing market here locally (Portland Metro) won’t experience a significant decrease in home values. Builders have slowed production, urban growth boundary limits land development opportunities, inventory is rising but still low and mortgage interest rates are much lower compared to their peak a few months ago.
We also don’t predict a huge increase in foreclosures like we saw back in the real estate depression and economic crisis of 2008. While some homes have taken significant price decreases, overall we’re seeing homes get good offers in the first 60 days on the market (if not multiple offers in the first week), including luxury homes priced over $1.5 million. Ultimately, it all depends on location, condition of the home, and of course, the price. Homes that are sitting on the market for over four months are typically not in move-in ready shape, priced high, or have a location issue. If you’re thinking about listing your home, reach out to us and we can help you present your home in the best possible light.
This time of year always presents a unique window of opportunity to purchase before the spring season picks up and things get even more competitive. Average days on market for the Portland Metro area right now is just below 60 days. This tells us we’re still in a seller’s market but with affordability being a challenge for many buyers, sellers are being more understanding and flexible on closing cost credits and negotiating repairs. If you or anyone you know has questions or wants a deeper understanding of the market, we’re available seven days a week - reach out anytime.
Will the real estate career take a hit this year?
You might know someone who had a career change and decided to dive into the real estate world over the past few years. Turns out, there’s more Realtors in the industry than ever before, but we’re hearing over 250,000 agents could be leaving the industry this year with the market shift and expected activity being comparatively low. Austin & I are so grateful for all your support and referrals and are excited to continue working hard to thrive as a team, no matter the market conditions.
As a way to make that mission even more meaningful, we’ll be giving back to our community bigger than ever this year - AND, we’re putting the power of giving in your hands. With every referral you send our way, you’ll get to select an organization close to your heart and we'll send a donation on your behalf. We can't wait to see all the great causes Gerritz Realty Group gets to support this year with your help.
The Era Of iBuying
Over the past couple years, we’ve helped multiple clients sell their home to an internet buyer (also known as an iBuyer).
In fact, it might sound shocking, but I sold my home to Zillow in the summer of 2021. We were renting the home (which is always a great option for financial wealth-building), but after hearing what an iBuyer offered my cousin for her out of state home, I had to call and get an offer on our rental. The price I was quoted was so shocking, I sold directly to Zillow as soon as our renters moved out. I knew we wouldn’t be able to get that same price on the open market, and sure enough - Zillow ended up listing and selling our home at a $60K loss.
So, what can we learn from this experience? The era of iBuyers is no longer in its heyday. Zillow lost hundreds of millions of dollars and subsequently left the business of buying homes, Redfin heard the news and pulled out as well, and OpenDoor purchased thousands of homes in spring 2022 only to end up in turmoil over the market shift with stock prices down almost 90% in the past 12 months.
The unsteady nature of the internet buying business model means it’s more important than ever to A) be cautious with any online estimates, and B) make sure you’re leaning on experts like Austin & I for comparative market analysis reports and home value opinions.
Our 2023 Personal Goals:
It’s a new year and for many of us, this means assessing how we want to change and grow over the next 365 days. For our team, this year’s focus is on health and a balanced lifestyle. As part of that mission, I’ve made a commitment to run a 15K mile race in about 45 days and I’m so grateful I have Austin to help keep me accountable on a regular basis. If you have fitness or health goals this year and want a cheerleader or accountability buddy, we’re here for you 100%. Hit reply and share your goals so we can encourage each other on the journey. Have another resolution you want to share? We’re all ears!
We wish you all a wonderful year ahead and we’re so excited for an awesome 2023.