The latest market action report was issued this past week for September 2018.  As I have been posting here for the last few months, there has been a slowdown or lull, if you will, in our Portland metro real estate markets.  Sometimes this is typical for this time of year yet it seems there are other forces in place this time around. In addition, I have repeatedly said, as long as inventory remains low, housing prices will continue to appreciate.

SEPTEMBER 2018 RMLS MARKET ACTION REPORT

All that has changed in a mere few months. The months’ inventory has increased, days on the market to sell are longer, we are seeing more price reductions and interest rates have climbed.  All this has impacted our market.  In addition, we are seeing fewer people moving to Oregon. There is also buyer reluctance in play.

September Residential Highlights

Cooler numbers came to the Portland metro area this September.

New Listings

New listings (3,606) fell 1.0% short of the 3,644 new listings offered last year in September 2017 and 14.4% short of the 4,214 new listings offered last month in August 2018.bettyjung.com

Pending Sales

Similarly, pending sales (2,471) decreased 9.5% from September 2017 (2,730) and 10.5% from August 2018 (2,760).

Closed Sales

There were 2,272 closings in September, a 14.6% decrease from September 2017 (2,660) and a 23.4% decrease from August 2018 when 2,967 closings were recorded.

Inventory

September saw inventory rise to 3.1 months, with total market time rising by five days to 45 days.

There were 7,082 active residential listings on the market in the Portland metro area in September.

We haven’t hit 3.1 months of inventory since April 2013. An old rule of thumb was 5-6 months of inventory to be a “normal” market, however, recent market changes since the recession seem to indicate that 4 months of inventory seems to be a more balanced (or accurate) level of homes for sale and to now label it as a normal real estate market. In any case, the number of house for sale is increasing and there is more competition for your house if it is for sale. Buyers are now seeing more homes to choose from.  As this level continues to increase, multiple offers will most likely not be as much a part of our market as it has been.

Year to Date Summary

Activity so far in 2018 is mixed compared to 2017. New listings (34,440) are up 2.6%. Pending sales (24,161) are down 2.8% and closed sales (22,983) are down 3.5% for the year so far.

Average and Median Sale Prices

Comparing 2018 to 2017 through September of each year, the average sale price rose 5.8% from $428,800 to $453,800. In the same comparison, the median sale price rose 5.3% from $379,900 to $400,000.  Prices are leveling off and not increasing at such a quick pace.

Pricing

If your home has been on the market since Spring or even since Summer, it is definitely time to review your pricing.  If you had an “anything goes price” on your home, you most likely should be questioning what price you should reduce your home to if you want it sold.  In fact, a new price should have been on your radar long before today.

Buyers are holding back making offers based on having looked at many homes and comparing them to yours.  They are knowledgeable as to what a home is worth in today’s changing real estate market and it is important your home is priced to sell from the very beginning. In addition, increased interest rates are causing them to review their purchasing power.

Lake Oswego Real Estate

The Lake Oswego/West Linn real estate market currently has 3.6 months of inventory.  Inventory has increased since last month and we are heading to a more balanced market (favoring both buyers and sellers).

Past real estate experience has taught me we won’t linger in that “balanced” market mode for long.  Once we reach a balanced market, it will most likely quickly shift to a buyer’s market. We are not at a buyer’s market yet.  But as inventory increases, if interest rates climb, and the Winter real estate market takes hold, we could very likely be looking at a buyer’s market towards the end of this year.

There is never a “perfect” time to buy.  Either prices go up, or interest rates go up.  Whether you are renting or buying, there is a mortgage to be paid.  You are either paying off your landlord’s mortgage and helping him get rich, or you are purchasing and increasing your equity and/or financial pocket.

The only time I have ever seen a perfect market was during this last recession, when both prices and rates were low. If you purchased during those years, your equity has grown. If you are “waiting” you may be waiting a long time again, if ever, to see that perfect storm.

Thinking of Selling Your Lake Oswego Home?

Now may be the best time to sell your home.  Don’t know how much equity you really have or what a price would be to sell your home?  I can help! Give me  a call. Your home may be worth more than you think. 503-804-9685.

SEARCH FOR REAL ESTATE

There are links above to search for real estate.  I have a new website where you can search or you can use my mobile phone app as well. My website and mobile app provide you with access to all listings available on the RMLS™ system regardless of who the listing agent or brokerage may be. Listings are updated frequently throughout the day giving you the information you need, when you need it.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent.

I have worked in Lake Oswego as a Real Estate Broker since 1978, have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is still strong here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2018. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright law.

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