Portland Market Update - January 2022
The uber-competitive seller's market that started to relax this past fall, is back into "bananas" territory. Traditionally inventory tightens around the holidays and starts to slowly increase after the new year with a crescendo in spring. Those typical trends are continuing but we don't have nearly enough inventory resulting in serious competition.
The country and the world are grappling with lingering supply chain and Omicron issues and inflation rates are at levels not seen in decades. To help control inflation the Federal Reserve is starting to raise interest rates, and those rates are expected to continue to rise throughout the year. When interest rates rise, some buyers may begin to feel priced out - which could lead to a slight easing up of that intense competition.
Is it still possible to buy a house in Portland right now? Yes. Is the competition fierce? You betcha. You just need to be on your toes, know your purchasing power, and have a plugged-in realtor to help guide you and advocate on your behalf.
To address a question that's come up over and over with my buyers right now, "How do I avoid overpaying for a house in this market?" Here's the thing. Economists suggest that property values will continue to rise and that buying a home is still a solid investment. If you envision being in your new home for at least 3-5 years, history shows us it's likely you'll make your money back and then some.