Market Watch Update 11.20.2020
Thinking of all of you as we head quickly into the holiday season.
Although we are not able to connect in person like we would like to, we want to keep you informed of what is going on in the real estate market, as promised.
What is on our minds these days?
Lack of INVENTORY! As we have been saying for MONTHS, there are just not enough homes out there for active, qualified buyers to buy. This is resulting in multiple, over-asking price offers in many areas of town. Great news if you have thought about selling your home. Also great news: interest rates are still under 3%, which makes the fight over the lack of inventory and multiple offers worth it.
How low is our current inventory? Check out the levels since 2018:
What do these numbers mean?
Inventory is measured by how many months it would take to completely sell out of homes if the buyer demand remained constant and no additional homes came on the market. To give you an idea on how today’s inventory of 1.1 months stacks up, a balanced market (neither a buyer or seller’s market) has an inventory of 6 months. As you can see from the graph, it has been years since we have seen a balanced market.
Many of you who have connected with us are concerned about a “housing bubble”, our consistent lack of inventory is one of the most prominent indicators we are not heading in that direction. Want to talk more about this? Reach out to us for all of the interesting, or boring, details – depending on your tolerance for data. 😊
Speaking of data….take a look at how October compared to September of this year:
Overall, the market stayed pretty consistent.
We saw small gains in new listings and new pending sales, with a slight reduction in closed sales month over month. Days on market and amount of inventory remained the same.
How about year over year?
Here is where we see some change.
New listings are up 14.7% while pending sales have increased by 24.2%, contributing to the shortage of inventory. Days-on-market is significantly down, and average price is up almost 12%! Time to celebrate your increased equity!
What can increased equity do for you?
Several things! If you purchased your home with less than 20% down, you may be able to refinance and eliminate your mortgage insurance.
Want to remodel your kitchen? Maybe a cash-out refinance is an option for you!
How about the vacation house you have been dreaming about? Increased equity could allow you to take out a Home Equity Line of Credit (HELOC) for a down payment. Looking to upsize? Your down payment just increased!
Want to know exactly how much your equity has increased?
Please reach out to us, as different areas have increased at different rates. We are happy to put together a comparative market analysis for your home; the numbers we quote are for an average of the Portland Metro Market.