Blog Stories Increased Unemployment Means Less Competition for Remaining Buyers

Increased Unemployment Means Less Competition for Remaining Buyers

By Melissa Dorman, 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.

Melissa Dorman

Broker Licensed in OR & WA

Ten years ago, Melissa was living in a slum in Kolkata, India, helping over 200 women escape of sex-trafficking by providing alternative work at a social business. It was there she discovered her passion for financial education as a means of empowering people to move out of poverty. After graduating from UCLA with a Masters, Melissa spent 5 years working as a Social Worker; assisting clients facing homelessness, in jail, or at a psychiatric facility. As much as she loved the work, imagining saving for retirement on the meager salary of a social worker was becoming grim. That's when Melissa discovered "passive income." In no time, she fell in LOVE with real estate as a vehicle for wealth. Soon after, Melissa began locating off-market multi-family properties to purchase through creative financing strategies and win-win opportunities. Two years into investing, Melissa quit her day-job as a Social Worker to become a full time broker and investor. Initially she was drawn to people in difficult circumstances, so she developed extensive experience assisting families facing foreclosure, short sales, and probate. Melissa is well versed in helping her client's overcome complex real estate challenges. Currently Melissa is teamed up with Super Broker, Yascha Noonberg at Living Room Realty. Together they assist client's to achieve their real estate dreams, including how to strategically buy and sell a personal residence to maximize profits. Far from the slums of Kolkata, her greatest passion now is empowering other working professionals to develop passive forms of income through buying multi-family properties in Portland.
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