What Seasonal Slowing Looks Like

 The Portland real estate market has been crazy for the past year. After the initial COVID shutdown, it roared back with a vengeance. There was no normal, seasonal slow down in the summer, and we sped through civil unrest, wildfires and smoke, the winter holidays, an unconventional  election, assault on the capitol, snow, ice and widespread power outages.

Our active real estate market has had many components; high demand, low supply and low interest rates.  This resulted in very short market times, multiple offers well over list price (when the list price was priced to recent comparable sales), as-is sales, cash sales, buyers paying the difference between the high sale price and an appraisal at market value, sellers getting up to 60 days possession of their house after closing (at no cost), buyers releasing earnest money to sellers in advance of closing and so on. 

We still have much of that going on.  But we are seeing a sliver of what I think is seasonal slowing.  This is not a "crash". It's an easing in the rate of price increases. It's fewer multiple offers, and not as high over list price. We see some properties stay on the market for a few weeks.  Some buyers are getting the opportunity for inspections.  Heck, some are even getting concessions from sellers in inspection negotiations.  

Real estate agents are breathing a sigh of relief as the pressure cooker we've been in lets off a bit of steam.  Unless of course,  there is a seller expecting the conditions of a few months ago, which may or may not occur for their particular property.  

With a slight shift, comes the education piece (like this 😊). Buyers who tired of getting beat up and out, may want to come back in the market about now.  Sellers afraid to sell their home as they might not be able to find a new home, might be able to get an offer accepted contingent on the sale of their current home.  And sellers expecting the highest and craziest competition for their listing, may need to revisit those expectations.

Our multiple listing service releases monthly statistics around the 10th of the month. So in July, we'll see the June numbers.  In advance of that, I look at the number of properties coming on the market as compared to the number going under contract (absorption). I look at the market time for properties currently on the market as compared to the market time for those under contract, or recently sold.  These are a few of the ways we can get sense of what is happening in the short term.

We are, after all, cramming two summers into one.  Some have backlogs of unused vacation from 2020, and face a "use it or lose it" policy. Many are taking this opportunity to see family they've missed in the past year +.  Family reunions, weddings and other get togethers are back on the table. No wonder things aren't as frenzied.

If you've got questions about your particular neighborhood, house or situation, get in touch. I love talking about real estate.