Really now, how IS the market?
As interest rates saw a marked increase in November 2022, the market showed corresponding slowing. At the same time, seasonal slowing (but for "on fire" 2021) brought the Portland Area market back to earth.
Traditionally, Portland's market wakes from its holiday slumber in mid to late January. This means more new listings on the market along with an uptick in pending sales. Indeed, we've seen an increase in listings from December 2022 to January 2023, along with an increase in pending sales from December 2022 to January 2023.
While economic news appears optimistic, interest rates have remained elevated, though not as high as those mid-November 2022 rates.
Some buyers have tired of putting their home ownership plans on hold, and are back in the market with a vengance, interest rates be damned. Others are waiting for rates to come down. We don't expect a drastic decline in rates. While the wait is understandable, I sure hope they aren't waiting for 3% interest rates. They could wait a lifetime. Something closer to 5% may be more realistic.
Some sellers are reluctant to sell, if their current home has a particulartly low interest rate. It can be hard to "give up" that low rate. Would you let a low rate keep you from moving on?
I'm always available to answer questions about your particular situation, whether you are buying selling or planning.
5 Ways to know you are in love with the right home
What are you looking for anyway?
Home buyers usually have a "must have" list, and a "nice to have" list. While we all like to think of ourselves as rational, and solid decision makers, you'd be surprised how much emotion plays into home buying decisions. Sometimes, buyers will forgo a "must have" in deference to a strong emotional pull. That's okay! What is important is buying the house that works for you. That being said, it is good to review your "must have" list, especially when the emotional pull of the house is strong. As your Realtor, part of my job is to remind you of your "must haves" and help you reconcile the practical and the emotional. I know that kitchen is swanky, but this house has one less bedroom and bath than your "must have" threshold. Similarly, a house can check all the boxes on your list, but still not be "the one". That's okay too.
1. Is this home located in your target area?
If you were to purchase this home, how long would your commute be? Does it put you too far from family or friends? Is the location going to be the right fit for your lifestyle? Even if you love everything else about a property, if it isn’t in a great location, it may not be the right place for you to settle down.
2. Does it check your “must-have” boxes?
During your home search, you should make a list of non-negotiable must-haves, such as having a certain number of bedrooms or a sprawling backyard. While you may not be able to find a home that meets every single need, it can help you decide whether a property is right for you.
3. Will this home meet your needs both now and in the future?
As you build your non-negotiable must-haves list, it can be easy to only consider your current needs and wants. But what about five or even ten years down the road? The costs of buying and selling are not negligible, and moving is less than pleasant. While you don't want to buy at the tip top of your range and strap yourself financially, it is best when your house can work for you through a variety of life changes. Purchasing a home that only fits your current lifestyle may force a move sooner than. later.
4. Are there any potential issues you’ll need to fix?
A home inspection can not only help with repair negotiations during your purchase, it can also help you plan for fixes and upgrades duyring your ownership. Unless you are buying new construction, the house you buy will have had some systems addressed recently, and will need other work done in the future. Its not realistic to expect a house to be in perfect shape, so what it will need over time should be manageable. Does it have finicky features that will need constant attention? Will you be okay or even enjoy the required upkeep? Or is low maintenace a priority?
5. Does the price fit within your budget?
Love at first sight is important, but it’s also important to remember the practical side of things — and that means your budget! If the home you love is a stretch, are there ways to justify the stretch? It actually is in perfect shape so you won't have to spend a dime for years to come. It has an extra space that can provide income. The floor plan will allow a family member to move in. Or, you just love it and are willing to sacrifice to make it work. Just be sure you stop and think before being swept away.
