Portland Market Update
Pending & closed sales in the Portland metro area saw gains compared to September 2018, with pending sales up 8.7% and closed sales up 4.6% year-over-year. Current inventory is still historically low at 2.8 months and total time on market from initial listing launch to receiving an accepted offer is 52 days on average.
Market activity has cooled since 2018 with pending sales down 0.1%, new listings down 1.3%, and closed sales down 2.5%. Despite the slower activity, home values have increased 1.1% from an average sales price of $453.800 to to an average sales price of $458,900 year-over-over, and median home price has increased 2.5% from $400,000 to $410,000.
These numbers tell me that while we're still in a seller’s market, buyers are slower to pull the trigger on homes and are getting a lot more in negotiations. With inventory still below what’s considered a “balanced market” of 5 - 6 months of inventory, buyers have less options to choose from, giving sellers more leverage in negotiations.
This leverage seems to be shifting for higher-end homes however, with homes priced above $600K sitting on the market for longer with more price drops taking place. If you’re looking to purchase a home at or above this price point, now may be a great time to get a serious deal on a high end home. For buyers looking in this range, I’m seeing appraisals come back well above the negotiated price points - so if you’ve been considering a move, let’s chat about current market movements and get you into a great home at a killer price.
Could Rising Interest Rates Negatively Impact Your Purchasing Power?
Interest rates are beginning to rise once again. During an open house this Sunday with one of my preferred lenders (Rick Valdez), he shared that in the last couple weeks interest rates have started to climb and we’re now seeing standard 30-year conventional loans just above 4%. While this is historically still a great rate, if you’re thinking of buying before the end of the year or early next year, it may be a good idea to get the ball rolling before higher rates impact your purchasing power.
INSPIRATION WITH LOGAN GERRITZ
Why Giving Is Better Than Receiving
I pulled into a Chevron late the other night and the man working there was doing the best he could to provide me with a great customer service experience. He ended up helping me with both my gas and getting the air refilled in my tires. He had a great attitude about being there late and was happy to go beyond the bare minimum to help me out.
Not surprisingly, we got to chatting and I began to ask him questions about himself. He told me his name was Peter and that he’s struggling with homelessness. A recovered addict who’s been clean and sober for months, he’s now striving to be the best father he can be to his kids. His desire to be a better man was apparent in his words and it was clear he was taking real steps to make that happen. I asked him if I could pray over him and his family and he said yes. We prayed together and I pulled out $100 for him at the Chevron ATM. As I handed him the money, I told him to have faith, that brighter days were coming and that his actions were an inspiration to me. I told him to treat himself a little with the money and use the rest to do something fun with his kids. We hugged and as I waved goodbye to him, his eyes had welled up with tears.
As I drove away, I thought about Peter and his story, and I felt good that I had positively impacted his day - but I felt even better about how he had positively impacted mine. I have found in life that when we give, we are truly receiving just as much back. The shared experience of open communication and having faith in others is such a beautiful thing.
As we head into the holiday season, when so many people are cold, hurting, and lonely, I encourage you to be truly open to the people in your community. Lift them up with your support and your words and always remember that when you give, you are impacted even more than the person receiving. It doesn't have to be giving your money if that's not comfortable for you, it can also be giving kind words, listening to someone's story with love and a lack of judgement, or simply showing humanity to those that are down on their luck or hurting. A simple kind exchange can make the ultimate difference in someone’s life - so be generous with your kindness, because the world is never a darker place for it.