The current real estate market continues to surprise us all. National and even northwest projections all have a significant “cooling off” taking place. To be clear, that is cooling off as it relates to the pace of appreciation. It
is not meant to imply that prices are going down, rather that their frantic upward pace is slowing some. I have heard, in fact, that prices in Portland have eased some but that is I believe, honestly, just a correction to
the overheating that had been going on there for the last several years.
I keep telling my clients that this pace will slow, and I continue to be wrong. I had a client last week with a cash offer that had 10 other offers in competition. She DID get the property but only by paying cash and paying more
than $40,000 above the list price. To be fair, this was in the most competitive price range 200-300k. That is still a pressure cooker. The same problem applies here that seems to be in force all over the country there
is no new “affordable” housing being built. If a builder has a lot, there is a larger profit in an upscale home than an entry level home. They are in business to make a profit and to provide a living to their families just like
the rest of us. It is hard to see how this rights itself.
Interest rates are still phenomenally low. The best we’ve seen since 2016. Rates are just below 4% which is half of the national long-term average of 8%. This is crazy stuff!
This is shaping up to be one of the busiest summers I have ever had. While I still keep expecting this easing that has been predicted, I’ve seen no evidence of it.
If you have any questions about the current market, please give me or Steve a call we’d be happy to talk to you about it more.