By Lily Ray Wyss, September 26, 2022
First I want to acknowledge that when we look at the numbers, we are seeing data from the previous month, in this case, August.
And with things changing so quickly at the moment in the real estate market I want to say that while last month’s data is still pertinent, we will focus more on the current data and anecdotal stories for this update.
But first the numbers!
New homes did see a decrease in activity of 14% (3,209 new homes), which was not a surprise because as we have discussed before, August is one of the slowest times in real estate (people are getting in their last summer vacations and are generally less focused).
But we did see an increase in pending sales of 3% ( 2,530 homes went under contract) and an increase in sold homes of 8% (2,581 homes going to new homeowners).
So even with interest rates already on the rise, we did see a boost in motivation from home buyers.
Due to the lack of new homes to the market in combination with heightened buyer activity, we did see a downturn when it came to inventory of homes, to 1.8 months (down from 2.0 months).
Okay, now that we have reported the numbers, let’s discuss the last few weeks.
Anecdotally we saw a big boom in activity in the first week of September. Buyers were texting me excited and frankly overwhelmed seeing a huge increase in the options they had to tour, it was incredible!
And on the listing side, I had a seller hit the market that same weekend, and we were able to get him four offers, these offers had more terms and contingencies than we have seen in the super hot market, but it was still multiple offers and he is super happy!
We were really starting to feel like the fall market was in full swing and we were getting back to business as usual.
BUT interest rates just in the last week or so have gone up again, now putting us in the 6’s, which has really seemed to dampen activity.
Meaning buyers might be less motivated again, and hesitant to offer up on price, or offer on homes at all.
We could also see this have a negative effect on sellers being motivated to sell, one due to the concern that buyers aren’t as motivated to purchase their property, and two because some sellers will be thwarted knowing that if they have to enter the market as a buyer after selling their home, they will have to deal with the same crappy rates.
Discussing rates, you might wonder, should I wait to move until rates come down?
It’s going to depend on your personal scenario. If you simply cannot afford a home at the current rates, then it will be good news to hear that while we should see a spike in rates over the next few months, most experts say we should see them come down in the new year.
But if you can afford current interest rates, the current market can pose a good opportunity. Mainly, because if you were to wait to buy, and rates do indeed go down, we should see a spike in home prices as homes become more affordable again and more buyers re-enter the market.
So it could be better to buy now while you can get a home at a decent price, and then refinance later when rates go back down.
But again, what’s going to be best for you whether you are selling or buying a home, or both is going to rely heavily on your personal timeline, goals, and financial scenario.
If you want to discuss your real estate goals, don’t hesitate to reach out! You can find my contact information below.
Lily Ray Wyss
Broker | OR
She/Her
I love Portland. This city, and its surrounding areas, in my opinion, are the perfect place to call home. We have the amazing ability to put our toes in the ocean, snowboard, and visit some of the world's best breweries all in one day. Our food scene is extremely diverse and prolific. Want to see a show? Comedy, music, theater, etc all have growing, well-supported scenes here. I love selling homes in Portland and more importantly educating my clients and community on how amazing this city is and how you can own a piece of this beautiful state and call it home.
Follow me on Instagram to see my new finds and spotlights on the best places to eat, play, and be entertained in the area. And for information on buying/selling and current home market data. Follow at: @lilyrayresidential
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- T: 971-361-6114
- lily@lilyrayres.com
