By Tracey Henkels, January 25, 2024
Hi, I’m Tracey Henkels, principal broker at Living Room Realty, here to tell you what you need to know about the Market for late January, 2024
I don’t know about you but I’m having major de jevu!
2008 All Over Again?
The last few years the real estate market has felt shockingly akin to the days of the subprime mortgage crisis of 2008. Let’s look back at the stats for the Portland Metro area to see just how similar the numbers are: In 2021, before interest rates started rising, the number of closed transactions was 35,182 – compared to only 20,941 transactions in 2023 when interest rates hit a high of 8%.
That’s over a 40% decrease within a 3-year timeframe and nearly IDENTICAL to the contraction we saw when shit hit the fan in 2008.
Ok, check this out: In 2006 there were 32,403 transactions closed. By 2008, it dropped drastically to 19,132. Again, a 40% decrease over 3 years.
What About Interest Rates?
The good news: this year is going to be a GORGEOUS time to make a move! All signs are pointing towards interest rates continuing to drop throughout 2024 and into 2025. Many are predicting that rates could even drop below 6% by the end of this year!
With that in mind, let’s do a quick recap of the concept of supply and demand.
As real estate agents, we don’t set the price – in fact, the seller doesn’t even really determine the price. It is based on the “demand” in the market, driven by the volume of buyers. And “supply” which is simply the available homes for sale. With so many buyers AND sellers waiting…and waiting and waiting some more…, we are soon going to have the largest pool of buyers in U.S. history! With very little inventory to show (or sell) unless sellers finally get off the fence.
So what does that mean for you?
Whether you’re a buyer or seller, the longer you wait, the more competitive it’s going to be, as the inventory of homes remains low, but the demand continues to rise along with the prices. Waiting to try and time the market until interest rates drop to 5.5 – 6% may sound like a good option, but my advice to both buyers and sellers would be to get in the game now before the flood gates open.
Make A Move
If you’re ready to make a move, call us today, we would love to help you find your next Living Room.
Tracey Henkels
Principal Broker | Earth Advantage | OR
She/Her
Tracey grew up rooted in the rhythms of her family’s Iowa apple orchard, where rising with the sun instilled a deep work ethic and a grounded, thoughtful approach to life. That Midwestern foundation shapes the values that Tracey brings to her clients: compassionate guidance, perseverance and a commitment to making a difference for the people she serves.
With a degree in Architecture from Iowa State University and six years of experience in the architecture field, Tracey has a keen eye for design and a deep understanding of how homes are built—literally and metaphorically. In 2004, she transitioned into real estate, combining her technical expertise with a passion for helping people find a sense of sanctuary and belonging.
Tracey is known for her integrity, patience, and optimism, making her a trusted advisor and advocate for our clients. She thrives on helping people navigate important transitions, whether buying their first home, selling a cherished property or finding the perfect place to put down long-term roots.
Tracey is deeply connected to her community and is passionate about making a meaningful impact beyond real estate. She’s been a resident of the Hosford-Abernethy neighborhood in SE Portland since 2002; you’ll often find her in her garden nurturing vegetables and flowers, hosting neighbors and friends, exploring Oregon’s great outdoors, or planning her next travel adventure. Through every step of her clients’ journeys, Tracey embodies the grounded guidance and thoughtful care that define Rooted Realty.
Tracey works as a team, alongside Kelsey Burkett, Broker Licensed in OR. You can read more about them on their website: Rooted Realty.- T: 503-715-6140
- traceyhenkels@gmail.com
