The latest Market Action report from RMLS not only showed a continuing pattern of inventory expanding, but an acceleration of it. At 3.1 months, inventory in Portland-Metro went over the 3-month mark for the first time since 2015. This was a 34 percent jump from the previous month. Some of this inventory expansion is seasonal but it has become clear that the market is not just seasonally shifting, rather it is fundamentally changing.
Now, before all the lemmings jump off a cliff keep in mind that this is not a bad sign or an indication that the market is collapsing around us. Many metrics are indicating a very healthy market. Home values are higher than they have ever been, with the median sales price increasing 6.9 percent for the last 12-months compared to the previous 12-month period.
Our message to our clients about the current market: The market remains a seller’s market. However, buyers are finally able to negotiate and there are more properties on the market for buyers to choose from. Smart sellers should not be afraid to list their property this winter. Many sellers wait until spring to list and we predict a big inventory expansion from February through May. In other words, beat the rush.
As for buyers, if you were burnt-out by the market over the last few years due multiple offer situations, having to offer well over asking price, and getting beaten-out by all-cash offers come on back into the pool, the water is just fine!