The Latest Buzz on Portland Housing Market

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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