Thursday, July 14, 2016

What is going on with the market?

I’ve been trying to get a handle on what’s happening in our real estate market.  It feels like there is a slight shift. Some houses are staying on the market longer; longer being eight days instead of four.  And some sellers are needing to reduce their prices in order to attract offers.   But some houses are still getting multiple offers quickly, and are still selling well over list price.

Buyers have become weary. Weary of rushing around to see houses as soon as they come on the market, rushing to get offers in, and scraping to offer as high as they can.  Sometimes this weariness results in that high offer; they’re tired of making offers and want to actually buy a house.  Or this weariness results no offer, as they don’t think they can compete.

Seller expectations and listing agent pricing strategies vary widely.   Some price low in hopes of attracting multiple offers to drive the price up.  Others price where they think the value is, and some (usually due to seller preference) price high, so there is some room to come down in negotiation.
Just as real estate is local, the dynamics of a real estate market break down to the idiosyncrasies of the individual buyers, sellers and their agents.

RMLS just released their numbers for the month of June, and they tell a mixed story.  Inventory is indeed up.  We have 5.2% more properties to see now, than in June of 2015, and 8.6% more than in May 2016.  But, pending sales are down from both May 2016 and June 2015.  So wait, we have more houses to sell, but fewer people are buying them?

With inventory up both from 2015 and last month, we can see the long and short term trends.  Similarly, pending sales being down from 2015 and last month, help discern longer term change from seasonal change. 

 And the median year to date sales price is up 13.3% from last year’s median year to date price.  We’re at $339,000 now.  The median year to date sale prices in North Portland, Northeast Portland and Southeast Portland are $366,500, 365,000 and $311,000.  Make note that Northeast and Southeast Portland stretch east past 148th Avenue.

What does this mean if you are buying or selling?  Buyers, there is hope!  Sellers, you’ll still get a pretty penny for your property.  Call or email me if you’d like more in depth information.  Leslie Jones 503-312-8038