The Portland real estate market has been one of the hottest housing market’s in the nation over the last five years, seeing double digit appreciation in value year-over-year since January 2012. However, the May 2017 Case Shiller report showed an 8.89% appreciation for the previous 12 months. When comparing this to the 9.24% for the previous month and 12.47% appreciation from the last year, this suggests the Portland market may finally be plateauing. This has been borne out “in the trenches”, as we are seeing increasing market times, more price reductions, and more available inventory in even the hottest neighborhoods.
Could this be nothing more than a summer lull? It very well could be, as Portland often sees a slower market between July 4th and Labor Day. However, given the rise in interest rates – limiting buyer purchasing power – and the unsustainable rise of the market in the last few years, it is worth monitoring in case this is a more substantial shift.
What does this mean for buyers and sellers? Buyers may find themselves able to compete more easily on the market, and to have the time to view houses without feeling like they only have hours to do so. Sellers will still be coming from a position of strength, but the days of 20 offers on a listing may be gone.
If you have any questions on how this impacts your own real estate situation, feel free to reach out! I would be happy to chat any time.