Are We Headed For Another Housing Bubble?

Housing Bubble

Real estate prices are rising, but are they going up too fast? Are we headed for another housing bubble?

This is unlikely. The low supply of houses for sale is one reason that has been driving the recent upsurge in prices. We’re seeing a lot of people who are able to sell or who are finding it more attractive to sell. We should see inventory levels used up a bit.

One strong factor that we’re not heading for another housing bubble is the mortgage rates. Economists believe that they are going to continue to go up, slowly but surely. Along with this is the fact we’ve seen very little foreclosure activity of late. With some of the recent changes on how foreclosures are processed, we’re going to start to see more foreclosures and that’s going to add to our inventory help.

I just read a report from CoreLogic, one of the biggest real estate data firms, and they also admit that housing bubbles are usually spotted in hindsight. But to reach affordability levels that we saw back in our bubble here, prices would have to go up by as much as 47% or interest rates would have to rise to 6.75%.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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Why You Should Buy A Home Now

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Anyone who’s been thinking of buying a home may want to hurry up and follow through. But what’s the rush?

It’s all about appreciation. We’re hearing predictions that prices might still go up by as much as 12% in the next 12 months. Based on this percentage, if you wait for a month, you’ll be paying $3,000 more; if you wait for 3  more months, you might be paying an additional $9,000, and in 6 months, it could be $18-20,000 more for an  average-priced home.

Mortgage rates have been rising in the last few months, and it is expected to continue that way. This adds to the price of a house too. The Mortgage Bankers Association predicts that they’ll go up by as much as a full point this year.

If you’ve been thinking of selling your home, you should act soon as well, for the same reason. The price appreciation is based around the lack of supply while there’s a huge demand. A good percentage of our sellers who would be selling right now are those who bought in 2005-2007. They’re locked out of the market due to a lack of equity. But as prices go up, more of these people will be able to sell, so supplies will be enough for a short time. This, combined with the interest rates going up, could cool the market.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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The Latest Buzz on Portland Housing Market

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Are home prices still rising?

It’s a crazy market right now and home prices are still increasing.  Also, we need to consider the growth of the higher end market as it affects the average. For the true measure of value, buyers and sellers should speak with their Realtors.

We’re down to 2.5 months of inventory. If real estate agents stopped taking listings, everything that’s currently on the market would sell in 2.5 months. This is the lowest inventory since May 2006. For reference, a balanced market is 6 months of inventory. We’re seeing an influx of new listings, but due to the high demand, they’re being absorbed by the market right away. There are buyers who want to purchase a home but are unable to because of the low inventory.

Mortgage rates are increasing; they’re right around 4%. This is partly driving the frenzy; some buyers are starting to realize that if interest rates goes up, the amount of house they can afford goes down. For every 1% the interest rate increases, the affordability decreases by approximately $10,000.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to Real Estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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Twitter @Rick_Sadle
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Facebook Page

 

 

Is It Better To Price Your Portland Home High To Test The Waters?

Is It Better To Price Your Portland Home High To Test The Waters?

Well. . . the answer might surprise you.

A lot of sellers believe that starting with a higher price to “test the waters” is the right strategy. Research shows that the most activity that you will get around a new listing is during the initial listing period. That is when the most people will see and pay attention to a new property for sale. If your price is too high, all that you are doing is helping to show what a great deal the property down the street is.

Properties that are priced right to start with sell for more money and in a shorter period of time than those that are “testing the waters”. The numbers speak for themselves.

January – Should I Sell My Portland Home Now Or Wait ‘Til Spring?

Should I Sell My Portland Home Now Or Wait ‘Til Spring?

Home sellers are wondering if they should sell their home now or in the Spring.

 

Well. . . the answer might surprise you. While most home sellers are thinking about selling in the Spring, most home buyers start thinking about buying in January. Now that the holidays are behind them, they are ready to start looking at homes. Since most home buyers start their search online and can take (on average) 60 days to decide on a home, a seller in today’s market would be smart to get their home on the market in January or February to take advantage of all this demand. This year in particular, due to low interest rates and the fact that most buyers believe prices will continue to rise, the Spring “buying season” has started even earlier than usual.

It’s simple supply and demand. Why wait to put your Portland home on the market in the Spring when there will be more competition. I would suggest marketing it now while there is lots of demand and not much supply. It’s the best way to get the most money for your home.

 

 

February – This Month in Real Estate

This Month in Real Estate

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