The other day I wrote how experts are now viewing months’ of inventory.  It was the norm in the past to say a balanced market had 5-6 months’ of inventory.  However, due to technology, a shift in thinking has taken place. It is now considered the norm to have 4 months’ of inventory for a balanced real estate market.

MONTHS’ OF INVENTORY

In our Portland metro real estate markets and Lake Oswego, we are edging closer to that 4 months’ of inventory that is now considered to be more balanced favoring both buyers and sellers.

“Here is a recent quote regarding “shaving off two months’ of inventory”

Inventory of existing homes for sale edged up 1.1% year-over-year to 1.88 million homes. Unsold inventory rose to 4.4 months’ supply. And this is where it gets interesting – because it breached a new line.

Housing market players are relying more and more on technology to make the purchase of a home and the approval or a mortgage much faster and more efficient. What might have taken months can now be done in days.

These technologies include online listings that are instantly viewable by everyone (rather than printed listings that took a long time to get to the potential home buyer), online research tools, drone-generated video of the home, automated income verification tools for lenders, automated credit approvals, and the like. These technologies are impacting every part of the market. And there have been big consequences.

“Technology has permanently taken two months off the time required to sell a home,” Rick Palacios Jr., Director of Research at John Burns Real Estate Consulting.

A SHIFT IN THE REAL ESTATE MARKET

As I also noted the other day, my experience has shown that once we enter into a balanced market phase, it does not take long to shift to a buyers’ real estate market. A balanced real estate market seems to be short-lived based on the history of previous years.

The media seems to be playing loud and clear that another recession is headed our way. However, all this is not to get panicked over as we were at a fever pitch in real estate sales since the past Recession, in price and lacking inventory. Over time this frenzy could not be sustained and it has now been 10 years.  Inventory levels are increasing.

Buyers are sitting back and taking their time right now so there has been a slow-down for the many reasons I wrote about in my last post yesterday.  None of this is a bad thing. Perception is everything and buyers and sellers will need to adjust to a “new norm”. Real estate is ever-changing and each recession or market is different.

RISE IN INTEREST RATES

Historically, interest rates are good.  Remember the days of 9, 12, 18 and up to 21% (for a short time).  I remember those days.  I have sold real estate during many recessions.  We still sold houses in each recession.  There were still buyers wanting to buy and sellers wanting to sell.  I remember I had a listing that took 3 years to sell, but it eventually did.  I remember the short-time period when we had 21% interest rates.  As agents we couldn’t wait until the interest rates fell to 12%, then we were hoping for 9%. Those years were some of the best years I have had selling real estate.

WANT TO BUY OR SELL?

There is never a better time to sell than when you want to.  The same holds true when buying.  If you want to buy now, buy now! But now is not the time to panic over a perceived recession as reported in the news media which may or may not happen.

RECESSION??

Source: The New York TImes

It is really difficult to look into the future. We can only look back at what history has shown.

Most economists I have heard or read have said they do not feel real estate will be affected very much, if at all, or at least very little. Here is a link to a recent Economic Report I was at while attending our recent Oregon Association of Realtors’ Convention in September 2018.

Granted no one knows for sure about what will happen.  There are many factors in play that can affect an outcome. We can’t worry about something that “might” happen. I will continue to watch and will write updates here on my blog site. (Chart Source: The New York Times)

If you want to navigate the real estate market here locally, I can help.

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.

Advertisements