In recent months, we’ve heard many people talk about a potential housing crash and some buyers even stopped looking because they were waiting for home prices to plummet.
Nationwide, prices have dropped a whopping 1% (LOL), but If you were waiting for prices in Portland to drop so you could snag a deal, the reality is that desirable neighborhoods in our area are still seeing multiple offers.
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Why have prices in Portland not dropped?
Well, we have pent up demand and low inventory. People still want to buy their own home and experience the benefits of owning a home. There are many first time buyers looking to get their foot in the door of the housing market, and yet inventory remains low.
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Inventory is low due to several of factors:
- Firstly, homeowners who are currently locked into a low rate on their house are less amenable to selling their home because they would have to buy their next home at a higher interest rate, which would limit their buying power.
- Secondly, the Urban Growth Boundary prevents new construction from expanding out into certain areas, which in turn limits the kinds of housing that can be built.
- Lastly, because we are simply behind on new construction. For years now new construction cannot keep up with demand.
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If we had a surplus of inventory, it could force housing prices to drop, but that simply isn’t the reality in the Portland metro area. And while buyers definitely paused their home buying after the sharp rate hike that happened last fall, many buyers have adjusted their expectations to interest rates in the 6-7% range as they’re are coming to terms with this being the new norm.
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Do you still want to own a home?
We can help you strategize! By adjusting your expectations to a realistic monthly payment based on current interest rates, you can buy a home and build equity. That equity, in time, can fund moving up to your dream home before you know it.
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Our team discusses all below, check out the full video below!
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