What is the current Home Inventory?
Unfortunately, our beginning of the year weather was tougher than Portlanders are accustomed to, and they largely decided to stay in rather than go out and look at homes to buy. Therefore, our home inventory balooned in January to 12.8 months, the highest recorded level since hitting a high of 10 months in January 2000. (Historically, the month of the year with the highest home inventory is January, so things should improve from here.) Keep in mind though, if you're looking in a price range much lower than the average home price for that area, then the home inventories are much lower. Generally, it is not a heavy Buyer's Market for homes priced less than the average home for that area. Let us know if you'd like us to send you the average home sales price for any certain area! (Ex.: Beaverton/Aloha is $257,100, West Portland is $503,100, Tigard/Sherwood is $377,700) Currently, home sellers on average are still receiving about 97-98% of asking price. Homes priced much higher than the average for the area are experiencing much more of the Buyer's Market, and those tend to receive a bit less.
Is it Best to Buy Now or Wait it out?
That depends on what you're buying and/or selling. If you're looking for a move up home, then you're likely do better buying in this down market rather than waiting for more of a Sellers Market. Right now it is largely buy low and sell low. So, yes, you may have to sell for a bit less this year, but you get to buy your move up home for less as well. For example, if you'd sell now for about 5% less than you would in a Seller's Market, but you're buying a mor e expensive home, also at a rate of 5% less right now, then you'll come out ahead vs if you wait until the market prices go up again. Because, then you'll get more for your home, but you'll pay more too. Make sense? This can vary depending on your area and your price range though, so call us and we can run the numbers that are specific to the area and price range that is of interest to you!
Friday, February 22, 2008
The Market Today
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1 comment:
You are absolutely right that this is a great time to buy, even if you have to sell. If you have been in your home for several years it has most likely appreciated and you will be selling it for a profit. Of course had you sold 2 years ago, that profit would be larger but it is a profit none the less and you obviously weren't ready to sell 2 years ago. So now is a great time to get into a "move-up" home.
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