Portland Metropolitan Area Homeowners Take Homes off Market!
December 5th, 2007 by dirkknudsenAs the Holidays draw near we see the listing Inventories shrink. This later half of 2006 has been a very slow 6 months indeed. With job growth in Oregon and especially in the Portland regional area (Clackamas, Multnomah, and Washington County) one has to wonder why the slow down? Was it based on real underlying economic hardships or was it more based upon perception of our buying public?
One can not deny the amount of negative publicity and media that Joe Public is being offered. It is on the news everynight and in the paper everyday. There is no doubt that people are scared to transact on homes. Portland, Oregon Real Estate is some of the best in the country to own by all accounts. Prices have not fallen all and all. And yet buyers on average when we speak to them perceive this as a Buyers market.
There are some sellers that are moving, downsizing, or just needing to sell. For these folks they will have to sell at the lower end of their value spectrum. There is a range of value for every home on the market. We generally see homes being sold with about a 5% value band either side of the best comparable value. This Spectrum as I like to call it will be effected by location, floor plan, features, and quality. It is the case that the same 2000 sf home in Portland can be $25,000 below or $25,000 above a mid level price. So somebody needing to move a home would be likely to sell that home in 60-90 days at the lower end of that range.
But while these factors have played out many sellers are calling this markets bluff by removing their homes from the market and just deciding to wait things out. As the end if the year approaches the market is actually shrinking in terms of selection and inventory of homes for sale. This is a trend that may continue.
Banks shut off the supply of money to almost all new projects and are making sure that new homes for sale now will be the homes that must be bought up before new ones may be built. There are some great opportunities to buy now and with rates at 5.5% we are seeing buyers begin to move in. The media is at the same time starting to talk recovery and come back. That is going to happen as 2008 rolls out. The deals will be all gone by mid-year as things play out here.
Again we are strongly recommending that if you are in the market….if you need to buy a home in Oregon…be active and be ready. The time to shop is now and the time to educate yourself is now as well. The forces are in play for inventory to continue to shrink as well.Â
Have a great Holiday and make sure to call us and discuss your real estate needs!
Regards;
Dirk Knudsen
Re\max Metro
503-799-8383
