By Jacob Weigel, August 17, 2023
Find out what’s happening in the Portland real estate market for Mid-May 2023.
Hey everyone, this is Jacob Weigel, licensed Realtor in Oregon and Washington, with Living Room Realty, here to tell you what you need to know about the market for mid August 2023.
Inventory
While total inventory jumped, hitting a seasonal high of 2.4 months, new listings dropped month-over-month, with 399 fewer homes coming to market in July as compared to the previous month of June of 2023. One may ask, “How is it that fewer homes came to market last month and yet inventory grew?”
Rates
Well… RATES. With the national average conventional mortgage rate hitting its seasonal peak this week of 7.24%, pending sales dropped 5.6% and closed sales dropped by 8.3% as buyers felt an extra squeeze in their affordability. However, if you are in the market right now – keep your head in the game, there are more options out there for you to see before the weather begins to turn.
This slight change in inventory still keeps our market far from balanced, which we consider locally to be 3 or 4 months. While many economists in 2021 believed that higher rates would dramatically increase the inventory in the national market, they did not consider the social impacts of higher rates.
Locked in?
Nearly twenty six percent of American households that hold mortgages are amortized at an interest rate at 4% or lower, making it difficult for homeowners to consider moving to a home that may be a better fit for their lifestyle while having to upsize their interest rate. Looking forward – we will continue to see low inventory levels in our market for this reason.
I personally own a home with a sub 4% interest rate, yet I didn’t let this hold me back from finding my perfect living room. I made my own move last month, choosing to rent my home in Southwest Portland, trading up for a swanky south facing loft in the Sunnyside neighborhood of SE Portland.
Make A Move
If you are a homeowner and notice that your current property no longer fits your lifestyle needs, consider reaching out to us.
Living Room Realty is committed to connecting you with as much information as possible, to help you make an informed decision. If you’re ready to make a move, give us a call today. We’d love to help you find your next Living Room.
