Portland Real Estate Update for Q3 2019
Is the sky falling? Are home prices falling? Check out our Q3 2019 update to see what’s happening.
No is the short answer to Chicken Little’s infamous question, and to yours about the Real Estate market in Portland. Many people who are watching the Portland Real Estate Market in Q3 are trying to decide if they should buy now or wait for lower prices. Sellers have a similar concern, should we sell now before prices drop? One of the problems we all face in life is we can only look back. Even the weather forecasters can’t always get it right looking just 8 hours into the future. Our current market resembles many previous times when a long cycle of ever-increasing prices seems to be coming to an end.
In the past 40 years or so, a typical 7-year cycle of growth was followed by a 1-2 year cycle of declines or flat prices. Typically, the flat prices or declines were tied to high-interest rates, recessions, or high unemployment. None of those triggers are in place at this time. We do see a bit of slowing in markets as we go into a presidential election year. We are experiencing all kinds of price drops on homes currently for sale This is a reaction to longer times on market than sellers were expecting, and also to over-pricing where the market really is at this year. Back in the Spring, everyone thought we were going to have another great year of increasing home prices. That didn’t happen in 2019, the market flattened. And looking back, it was flat in much of the Portland Metro for 2018 as well. So many sellers are realizing that if they want to get a home sold, they need to find the market price that will get it sold.
Realtors and home sellers rarely offer their homes for sale at the same price they paid for it. Even if they only bought it a couple of years ago. Everyone buys Real Estate expecting it to increase in value. When a home is priced ahead of the market, then price drops are required to get it back to a price that will sell. Typically, we see prices going up in March-May, then retreating a bit in July-November. September and October are often very busy months for buyers as they buy before the holiday season. Homes that didn’t sell right away in Summer, come down in price in Fall. Sellers are also more willing to negotiate with an interested buyer.
This is NORMAL. We are seeing a more NORMAL real estate market in Portland for Q3, 2019 starting to emerge. It’s been several years since we have seen NORMAL and we are personally very optimistic about the future. Thanks for reading our Portland Real Estate Update for Q3 2019.
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