Inventory of homes for sale is up, but this is what’s really happening
Inventory of homes for sale is up, but this is what’s really happening:
It is actually true we there is a greater inventory of homes for sale, but hidden beneath the surface are some market dynamics that just don’t show up in the statistics.
Sure enough, in almost all areas and price ranges it will take longer to sell the homes on the market now than it would have a year ago. Currently, the months of inventory across the Portland area is 3.8. A year ago it was 2.7, and the year before that it was only 0.8!
However, if you observe open houses and talk to agents you’ll see and hear a lot more activity than a year ago. Here are some explanations for the incre
It is actually true we there is a greater inventory of homes for sale, but hidden beneath the surface are some market dynamics that just don’t show up in the statistics.
Sure enough, in almost all areas and price ranges it will take longer to sell the homes on the market now than it would have a year ago. Currently, the months of inventory across the Portland area is 3.8. A year ago it was 2.7, and the year before that it was only 0.8!
However, if you observe open houses and talk to agents you’ll see and hear a lot more activity than a year ago. Here are some explanations for the incre
asing inventory:
1. Buyer preference for homes that are “move-in ready” has increased. This has been an ongoing trend but the era of inflation has made taking on a project even less appealing. Add in a busy schedule and taking on a project is even less appealing.
2. Observing houses on the market shows that most have at least one significant project left to do. It’s usually obvious once you see the house.
3. Buyers have become accustomed to being able to take their time to see homes, there just isn’t the sense of urgency there once was. Once they go see the home and only to see a lack of preparation, they’re glad they didn’t disrupt their schedule to make a showing happen.
While generally inventory has increased this isn’t true everywhere. For instance the price range of $700,000 - $1,200,000 has done quite well since mid December. In fact, in the last three weeks of December that segment of the market had 39% more activity over the prior year.
Another segment is under $700,000 in “area 146”, which includes Oregon City and Canby. This segment has seen 19% fewer listings but 24% more sales since the beginning of the year!
Two takeaways are:
1. Every area is different, areas and price ranges fall in and out of favor.
2. It’s good to be prepared with renovation financing. Some of these can be great deals.
3. If you’re planning to sell a little preparation goes a long way. It doesn’t take much to turn off a buyer.
At all times it’s important to enter the market with a strategy, but that’s particularly important now.
1. Buyer preference for homes that are “move-in ready” has increased. This has been an ongoing trend but the era of inflation has made taking on a project even less appealing. Add in a busy schedule and taking on a project is even less appealing.
2. Observing houses on the market shows that most have at least one significant project left to do. It’s usually obvious once you see the house.
3. Buyers have become accustomed to being able to take their time to see homes, there just isn’t the sense of urgency there once was. Once they go see the home and only to see a lack of preparation, they’re glad they didn’t disrupt their schedule to make a showing happen.
While generally inventory has increased this isn’t true everywhere. For instance the price range of $700,000 - $1,200,000 has done quite well since mid December. In fact, in the last three weeks of December that segment of the market had 39% more activity over the prior year.
Another segment is under $700,000 in “area 146”, which includes Oregon City and Canby. This segment has seen 19% fewer listings but 24% more sales since the beginning of the year!
Two takeaways are:
1. Every area is different, areas and price ranges fall in and out of favor.
2. It’s good to be prepared with renovation financing. Some of these can be great deals.
3. If you’re planning to sell a little preparation goes a long way. It doesn’t take much to turn off a buyer.
At all times it’s important to enter the market with a strategy, but that’s particularly important now.
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