It’s back, the crazy market of 2006 and 2007. Shrinking inventory, skyrocketing prices, multiple offers on good properties, and buyers frantic to get in at amazing low interest rates. How can it be, since it has been less than a decade since we witnessed the identical market and then the eventual collapse?
Optimists continue to believe that the lack of inventory, combined with Portland’s newfound global popularity are the key components driving Portland to the #1 national ranking in appreciation this past year. How long will it last? A common theory is that Portland is protected due to being the little brother to Seattle, San Francisco, and Los Angeles. So long as our prices are the lowest on the West coast, we will continue to appreciate.
To the contrary, the stock market has been down over these record high valuations, and there are many articles suggesting that the US stock market is overvalued. On the lending side, experts continue to suggest that rates will rise. On the home inventory front, aggressive sellers are eagerly raising the prices of their homes up to 5% over the most recent prior sale, figuring that someone will have to buy their home as there is so little to choose from.
As a buyer, what is your best course of action? Stick to the fundamentals: do not buy unless you plan to be in the home a minimum of 3 to 5 years, hire an expert, study the market values, and consciously know just how much of a premium you may be willing to pay to jump into today’s market.
Sellers, it’s truly all about your long-term plan. If you are just looking to upgrade or downsize and stay in the same market place, then as long as you can secure your future home first, or are willing to live in temporary housing until you find that home, it is an outstanding time to sell. It may also be an outstanding time to sell due to the fact that there are many overpriced properties sitting stagnantly on the market, and placing your home with a more favorable price will likely not only bring you a successful sale, but also at a record high price. Cashing in today may be an excellent decision, as history has shown that market corrections are inevitable.
If you are reviewing your 5-year plan, we at ELEETE REAL ESTATE take pride in providing expertise. While we cannot predict the future, it is our mission to provide our clients with all of the data needed to make decisions with confidence.
