Demand is outpacing inventory in our market.
Last June, inventory in our real estate market increased 7% compared to the month prior, and the rate of pending sales increased by nearly 18%.
What does this mean? A 7% increase in inventory is a positive in that it gives us more homes to buy and sell, but because sales rose so much higher in comparison, we have a dysfunctional supply and demand model. We have more demand than supply, which means—you guessed it—prices are going up. Year to date, the median sales price has increased by almost 4%. That’s a monthly appreciation of nearly 1% thus far in 2020.
I know there’s a lot of chaos and uncertainty in the world, but if you’re considering selling your home, now’s a great time to do so. Inventory is still low and there are a lot of buyers out there who are willing to pay top dollar due to low interest rates. The average rates recently dipped below 3%, which has never happened before now. Just the other week, one of our buyers locked in a rate of 2.65% for a government-backed loan. An interest rate adjustment of 1% affects buyers’ affordability by 10%.
For example, if you’re looking to buy a $400,000 home at a monthly mortgage payment of $1,750, a 1% increase in rates would mean you’d have to shop for a home at $360,000 to get that same monthly payment.
The bottom line is, buyers are ready, willing, and able to pay top dollar for your property. So again, if you’re thinking of selling—whether that means upsizing or downsizing—consider doing so now. If you’re dealing with forbearance and aren’t sure whether you’ll be able to come out of it, now’s also a good time to pull equity out of your home. We need inventory in our Portland market, and we’d love to help you sell quickly and for top dollar.
As always, if you have questions about our Portland market or there’s anything else I can help you with, don’t hesitate to reach out to me. My team and I are here to support your real estate goals.