By Living Room Realty, June 3, 2020
Unemployment related to Covid-19 has had a big impact on the viability of buyers in our market. Since many buyers are no longer pre-approved, due to losing their income after COVID 19, there are less buyers able to buy. Check out the graph below on the levels of unemployment claims in Portland. Fewer buyers mean less demand.
In January, we only had 1.8 months of inventory and multiple offer situations in the double digits. Today, our inventory is almost doubled, at 2.5 months. Did you know, 1-3 months is a seller’s market, 3-6 is a neutral market, and 6+ months of inventory is a buyer’s market?
Right now, We are creeping towards a neutral market in Portland! It’s been almost a decade since we have seen this. It’s a huge window of opportunity for the remaining buyers. Especially since interest rates are still at all time lows.
The good news is for buyers who are still shopping, they can find a home with far less competition. Instead of 10-20 offers on each house, we are seeing only a handful or sometimes no other offers. Warren Buffet says, when it comes to being a good investor, “simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” While many are still qualified buyers sit on the sidelines, afraid of what COVID might do to the future economy; those who are brave enough to keep shopping will reap the benefits of a more neutral market….while it lasts.
