Portland, OR Real Estate Update for Q3 2019
Is the sky falling? Are home prices falling?
No is the short answer to both Chicken Little’s infamous question. Many people who are watching the Real Estate Market are trying to decide if they should buy now or wait for lower prices. One of the problems we all face in life is we can only look back. Even the weather forecasters can’t always get it right looking just 8 hours into the future. Our current market resembles many previous times when a long cycle of ever-increasing prices in Real Estate seems to be coming to an end.
In the past 40 years or so, a typical 7-year cycle of growth was followed by a 1-2 year cycle of declines or flat prices. Typically, those were tied to high-interest rates or recessions and high unemployment times. None of those triggers in place at this time. Typically see a bit of slowing or delay in markets as we go into a presidential election year. We are experiencing all kinds of price drops on homes currently for sale. This is just a reaction to longer times on the market.
Realtors and home sellers rarely offer their homes for sale at the same price they paid for it. Even if they only bought it a couple of years ago. Everyone buys Real Estate expecting it to increase in value. When a home is priced ahead of the market, then price drops are required to get it back to a price that will sell. Typically, we see prices going up in March-May, then retreating a bit in July-November. September and October are often very busy months for buyers. Homes that didn’t sell right away in Summer, come down in price and sellers are more willing to negotiate with an interested buyer.
This is NORMAL. We are seeing a more NORMAL real estate market in Q3, 2019 starting to emerge. It’s been several years since we have seen NORMAL and we are personally very optimistic about the future. Thanks for reading our Real Estate Update for Q3 2019.
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