In the ever-dynamic real estate climate, there’s a slight but noticeable shift that might threaten the seller’s advantage currently in play. 

The most significant development on our radar is the surge in available homes in the Portland metro area, reaching levels not seen since January 2019. Many of us in the industry sensed a change on the horizon during that time, a cooling rather than a downturn. But then, the pandemic arrived, ushering in a new era of remote work, homeschooling, and, yes, Netflix binging. People began to ask themselves, “What can we change?” For many, the answer was a move, facilitated by historically low interest rates.

The remarkable revelation here is that we find ourselves precisely where we might have been in the real estate market without a global pandemic. The surge in supply signifies a transition to a more balanced market, granting buyers greater negotiation power and compelling sellers to provide concessions like credits, repairs, and rate buydowns.

Now, let’s talk numbers. The average sale price in the Portland metro area stands at $599,800, marking a 0.5% increase compared to last year, though there was a slight 2% dip last month. While prices have held steady recently, buyers continue to engage in a competitive environment. The local market remains robust, driven primarily by the expanded inventory, although it’s still below the threshold of an “even market,” which typically requires 5 months of supply.

For potential buyers, there’s good news to celebrate. The market currently boasts 4,895 homes, offering you a wider array of choices, especially if you have particular preferences or neighborhoods in mind.

On the flip side, sellers now need to put in a little more effort to secure a buyer. The average listing takes 41 days to find a buyer, an increase of four days from the previous month. However, this timeframe remains within a reasonable range, indicating a healthy market pace.

The real estate market is a dynamic beast, and the experiences we encounter in the field might differ from what the numbers suggest. If you’re contemplating a change of scenery, we strongly advise consulting with a local professional (like us!) who can provide you with the most current insights and expert guidance for your buying or selling journey.

Pro Tip: Sellers, don’t automatically default to reducing your price after a few weeks on the market. Whether it’s a $5,000 or $25,000 reduction, those funds might be better utilized to address what the buyer truly desires or needs, like a rate buydown or new flooring. The primary hurdle at this moment isn’t the sticker price but the monthly payment. A modest reduction in the sale price doesn’t significantly affect the buyer’s monthly expenditure. Offering a credit can provide buyers with precisely what they require to move forward. So, don’t make assumptions about what buyers want; instead, leave the door open for them to communicate their desires through an offer, just like in the good ol’ days!

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