Portland Housing Market Report – September 2017
Real estate sales statistics are out for the month of September 2017. This is the first report that provides the Portland real estate market insight for the fall season. Last year around this time, market activities slowed down and was overall slow throughout the rainy season. So what is happening this year at the start of the rainy season?
In the September of 2017, the Portland housing market is showing signs of further slowing down. This doesn’t mean the home prices are gone down. Prices have gone up more than 7% since last September. Average days on the market for September 2017 is 31 days, which is significantly higher than the number from September 2016. Homes are taking longer to sell now than before. That is the testament of the home value increase, decreasing demand from what used to be a hot seller’s market. In many neighborhoods in Portland, the market atmosphere has now shifted to buyer’s market. Buyers have more choices as home stays on the market longer. What happened to bidding wars? It still happens out there for homes marketed for less than the market value. That’s sometimes done purposefully to generate interest. Despite the market conditions, when a product is offered way cheaper than what it should sell, it will generate lots of demand. Overall, I have witnessed less bidding wars and multiple offers in 2017 including spring and summer than previous years. This fall and winter being a slow market, the bidding war seller’s market will probably phase out completely with exceptions.
According to Ycharts.com, the 30 year mortgage rate has been on a downhill trend since January 2017. Now it’s around 3.8%. Feds have raised interest rates but the bond market has been falling due to hurricanes and the threat of North Korea. Home buyers should take advantage of this low rate. More millennial buyers are jumping into the real estate market in Portland and the demand for housing will still remain strong for the foreseeable future. Having your mortgage fixed at a low rate for the next 30 years can be a blessing.
I will keep you posted on the market report for the upcoming winter months and compare it from last year. I am hoping for a mild winter or at least a regular one without a snowpocalypse but that’s just me.