What does our market look like right now? It’s time to take a look at some local statistics.
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What’s happening in our area real estate market?
There has been a lot of political unrest lately, which has definitely made its mark on the world of real estate. Today, I’d like to bring you some information and updates on our local market.
Across Oregon in 2015, the market had an inventory of 3.4 months. This dropped by almost half to 1.8 months in 2016. Last year, the inventory level sat at 1.7 months.
In 2015 in Washington, inventory was at 3.9 months. It then fell to 2.6 months in 2016 and 2.2 months in 2017.
Essentially, these numbers refer to the amount of time it would take for all listings to sell if no new homes came on the market. A balanced market has between six and seven months of inventory.
As for interest rates, we can expect them to continue rising throughout the year. Actually, rates will likely rise by a full point by the end of 2018. I wouldn’t be surprised if interest rates are in the 5% range this year. We may have grown used to rates in the 3% range, but 5% is still very low when you consider that a few years ago our rates were between 6% and 7%. When my parents bought their home, rates were at 14% or 15%.
“It’s important to keep market conditions in mind if you plan on buying or selling in 2018.”
As a result of this rise in rates, we can expect a healthier market to start to emerge. The market may slow down over the next year, which will give buyers more time to buy the perfect property. However, rising rates are definitely going to have an effect on affordability. All of these factors are things to keep in mind if you plan on buying or selling in 2018.
My team and I would love to help you navigate through your real estate goals for the year ahead.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.