If you've noticed a bit of a slowdown in the real estate market in Portland and Central Oregon, you're not alone. Forecasters are predicting that this deceleration might stick around through the end of the year. While they're not specifically stating that home prices will begin to drop, they are anticipating prices to begin to level off and interest rates to remain stagnant for now. Thanks to international shakeups and continued uncertainty in global markets, we will see the effects here at home with a more stable and "normal" housing market.
What this means for home buyers:
- A little less frenzy. If you've purchased or tried to purchase a home in the last 2 years, you've likely been competing with anywhere from 3-30 other people on the same home. While this competition won't be eliminated completely, I do expect that we won't see quite the seller's market we've been experiencing since 2013.
- Steady interest rates. The prediction is that the Fed won't raise rates this year. As a homebuyer, this gives you continued buying power and the ability to leverage your funds.
Find your Bend, Oregon home and take Advantage of continued low interest rates.
What this means for home sellers:
- While home prices aren't expected to rise as rapidly as they have over the last 3 years (nearly 40% in Bend, Oregon and 50% in parts of Portland Oregon), I don't expect that they will fall sharply either. However, the days of buyers offering their first born child in exchange for an accepted offer might be over...for now. Be prepared to put your best foot forward to get maximum value for your home.
An excerpt from the Clear Capital Summer Market Report:
Reno, NV — July 11, 2016
Clear Capital’s adjusted 2016 year-end forecast is in, and the numbers indicate that the nation will see a new regional front-runner as the South is expected to outpace the West over the next six months.
- Nationally, quarter-over-quarter growth appears to be holding steady at the 0.6% growth mark with no change since last month. Additionally, the annual spring housing boom has been beneficial to most regions across the nation, with most markets outside of the Northeast seeing a small bump in quarter-over-quarter growth in the last month. Western QoQ growth has increased by 0.2% to 1.3%, while quarterly growth in the South and Midwest have increased to a modest 0.8% and 0.3% respectively.
- The regional year-end forecasts may also be a cause for concern, with the West and Northeastern regions projected to fall potentially into negative territory over the next six months. By the end of 2016, the nation may see a new leader in terms of regional growth – the South and Midwest are predicted to have the highest price growth over the next six months, around the 0.5% mark. While these six-month growth rates are lower than what we have seen in recent years, slower growth does not necessarily spell disaster and instead could be indicative of markets that are finally beginning to moderate and even stabilize in these regions.