Predictions for this summer’s market
Hi All,
As always, thanks for following along with these newsletters. Since we’re currently shifting from the spring market to the summer market, I’ll share my prediction for the next two months, including some advice if you’re planning to buy or sell this summer.
First, some market context:
In Portland, our real estate market is seasonal with activity peaking in the spring and slowest at Christmas. As we start into summer, I’m beginning to see the typical slowdown (fewer multiple offers, houses taking slightly longer to sell, and some price decreases). Here’s a graph showing how the number of days on market decreases (houses selling faster) through the spring and then begins to increase again during July.
My prediction for the summer market:
I expect the next 2 months to be a more balanced market between buyers and sellers where buyers will have slightly more leverage in negotiations (think accepted offers under list price and negotiated repairs) then they had this spring. This is because there will be more available homes to choose from and less buyer competition (aka supply and demand).
If you’re selling right now:
There are still plenty of good buyers in the market hunting for houses and a quick sale with a high price point is still possible. The key is understanding that there are more houses for sale right now then there were a few months ago and you’ll have more competition from other sellers. These sellers may have been on the market longer than you and thus be more motivated than you. If these, more motivated, sellers start reducing their prices, you’ll want to keep that in mind when listing your house to be competitive.
If you’re buying right now:
Focus your search on houses that have been on the market for 2 – 4 weeks. There are still a lot of great houses in this group and there can be window of opportunity to get them for a reduced price before somebody else does. After the past few years of a very hot market, Sellers have become accustomed to houses selling in the first week. So, if the house hasn’t sold in the first 2 weeks, sellers can start getting nervous and become more open to taking a lower price.
As always, feel free to reach out to me anytime with thoughts or questions. I’m easy to reach at my new phone number, which is 503-951-5476. Email always works well, too. I’m at [email protected].
Thanks, and talk soon,
Chris
