MARCH MARKET & WELCOMING OUR NEW PREFERRED LENDER
Portland Metro real estate is still moving, and many sellers are surprised to be getting multiple offers with so much economic uncertainty and interest rates in the 6% range. Let us share some year-over-year numbers with you: New listings that hit the market this February are down 31.4% compared to February 2022, a significant decrease. Pending sales are down 30.5%, and the average sales price has decreased by 2.2% year-over-year. Inventory has more than doubled this past month compared to February 2022 inventory levels and average days on market is 71 days. What does all this mean?
Not nearly as many homes are coming on the market for sale, homes are sitting on the market for longer, and interest rates are significantly higher than they were a year ago. This means affordability has pushed many buyers to a lower price point and reduced the competition at higher price points. Overall, home prices have decreased on average by just over 2% year-over-year, but historically we are still seeing solid activity. Homes are selling at a steady pace with some receiving multiple offers within the first few days on the market. The homes moving quickest are resale properties in good condition, newer construction homes, or well-price homes with thoughtful updates. With inventory at 1.9 months and many homeowners “rate locked”, we believe the spring & summer market will be healthy. I recently read an article that stated 80% of homeowners who have a mortgage have an interest rate below 4%. This means inventory will likely stay low because most people will want to hold onto that historically low rate unless a move is absolutely necessary.
The latest on FED interest rate hikes:
Curious about the FED interest rate hike and inflation? Check out this update from BankRate.com:
The Federal Reserve announced that it’s raising interest rates by 0.25 percentage point, following its March 21-22 meeting, bumping the federal funds rate to a target range of 4.75 to 5.0 percent. With the move, the Federal Reserve marked the ninth straight meeting that it raised rates in an effort to rapidly reduce liquidity to the financial markets and tamp down high inflation.
The Fed’s decision comes as inflation hit 6 percent year over year in February, still among the highest levels in decades, though falling from its 2022 highs. With the Fed continuing to hit the brakes on an overheated economy, the main question for many market watchers is how much further will the Fed raise rates and how deep an ensuing recession could become.
”The fight against inflation continues,” says Greg McBride, CFA, Bankrate chief financial analyst. “The recent turmoil in banking subsided and there was enough normalcy in financial markets that the Fed was comfortable with a ninth interest rate hike.”
Welcoming Our New Preferred Lender
This month, it’s our honor to introduce you to our preferred lender, Scott Davis. Scott has helped many of our clients fund their home purchase and proven he always has their best interest at heart. Curious about a home loan, a refinance, or have questions about the mortgage process? He’s here to help, no obligation. Scott’s goal is to be a valuable resource, which means you’ll never feel any pressure from him. Get to know our friend (and excellent lender) below:
The Value Of Slowing Down & Living Mindfully
Have you noticed the speed limit on highways seems to be slowly creeping up and up? How so many people seem to be in a big rush and never take the time to slow down and smell the roses?
Life can sometimes seem like it's spinning out of control and moving so fast. When we all have so many responsibilities and to-do lists running around in our heads, it can be hard to prioritize mindfulness. We want to encourage you to join us in trying to find 10 minutes a day to slow down. Breathe deeply, be present, and take this time to reflect on your life and focus on what you're grateful for.
So often we seem to be moving too quickly, with our focus set on reaching a certain destination by a certain time, and we forget to enjoy the moments, journey, and people right in front of us. Embrace the RIGHT NOW and do what you can to practice mindfulness throughout your day, even if it’s just appreciating the smell of your morning coffee or taking an extra 30 seconds in the sun before starting your commute.