After a whirlwind few years, it is undeniable that the red-hot Portland market is finally cooling off. Even while property values year over year are still showing increases, and the numbers in our MLS are still showing strong sales, the overall “feel” is definitely depressed. Not as many people through open houses, not near as many multiple offer situations and price drops are everywhere you turn.
Each morning, my email is flooded with price drop notification and buyer’s agent incentives to submit offers on properties. For those of you potential sellers with thoughts that you are still going to be able to list your house for top dollar…think again. I’m going to be blunt here and let you know ahead of time that you will likely be taking 10% less for your house than you could have received late summer of 2016.
When we take all of this into account, here is what we are left with: right now, through the next 6 months, is probably your best time to BUY real estate in the last 3-4 years. For people with cash, and for those buyers who were beaten down by the competition of multiple offers the last couple years, this will be welcomed news. No longer will you be expected to go over asking…no longer will you be expected to put 2-3% down in earnest money. But more importantly, the likelihood of a seller accepting an offer BELOW asking is a reality.
And a word of advice for those of you looking to sell…pricing your house CORRECTLY is the reason to hire a competent professional to help you in the process. Overpricing in a market like we are currently in is home-sale suicide. All it takes is one sale fail or one price drop to discourage buyers from making an offer. They smell blood in the water when this happens and your home is likely to sit…
Happy holidays to you all, and good luck in your currently pending or soon to come transactions! Much like hot markets, cooling markets can also bring excitement and opportunity.
Mark Bisaccio, Principal Broker / Owner