THE DANGERS OF PAYING "THE WAITING GAME"
Despite the low home inventory numbers we’ve had so far in 2023, things are finally starting to heat up. Inventory is on the rise and more buyers are entering the market as spring approaches full swing. However, buyer demand is still outpacing inventory, which is creating slightly increased home prices throughout the Portland Metro and surrounding areas. We expect this to continue through spring and into summer until inventory becomes equal to or greater than buyer demand.
Looking back at previous years, buyer traffic tends to exceed inventory in the beginning of the year and even out toward the summer months, which means now is an ideal time to sell a home as the market is still relatively competitive. Understanding these predictable seasonal cycles allows us to make accurate market predictions to help guide our clients to successful transactions.
While we don’t have a crystal ball, studying past and current market data enables us to give highly educated and overall historically accurate advice on patterns and best practices. We take our jobs very seriously and always put in the time and effort to make sure we have a firm grasp on the ever-changing real estate market.
If you’re thinking of selling your home but don’t have another home lined up to purchase, don’t panic. As a seller, we’re able to help you negotiate a “rent back” after closing. This allows sellers to live in their home for up to 59 days after closing so they don’t have to worry about temporary housing while trying to scramble to find the next property. Moving can be overwhelming, and having to move twice in a short amount of time is definitely not ideal!
Weighing Your Options Between Now & Later:
As in life, timing is very important in real estate. Taking advantage of the market when it favors you (whether you’re buying or selling) can put thousands more dollars in your pocket in the end. However, there’s a balance between taking advantage of current opportunities in the market vs. waiting for a more advantageous market down the road. The trouble with playing the waiting game is it doesn’t always pan out (here’s where that crystal ball would come in handy). People want to wait until housing prices go way down to buy but that usually only happens if there’s an extreme economic/real estate crisis. If you end up waiting years and with no significant decrease in home values, then you’ve lost out on the opportunity to buy a house for less and have 5 years of equity already built.
Predicts For The Spring & Summer Markets
As you can see from the chart below (courtesy of Fidelity National Title), the number of homes with price decreases are continuing to drop as the current seller’s market becomes more active. With this information, we believe housing prices should continue to increase mildly as more buyers become active in the spring and summer months.
The Value Of Slowing Down & Living Mindfully
I know we’ve all been waiting (and waiting!) for the weather to change, and it seems like we’ve finally turned a corner! Every year, I get tired of the rain and start waiting impatiently for the sunshine (especially on very wet years like this one). I love Oregon and how beautiful and lush it is, and for that I am grateful for the rain - but it’s amazing how some sun really changes things.
The sunshine brings new energy and excitement and I seem to always have a little extra jolt of happiness when the sun is out. I feel like it doesn’t matter what I’m doing when the sun is shining, as long as I’m outdoors, I’m happy. I’ll even enjoy weeding in the yard! I hope you’re feeling the same and enjoying the beautiful weather. I challenge you to get outside as much as you can this spring/summer to appreciate all the amazing new life and blue skies this time of year brings.