The Portland Real Estate industry is very often scrutinized for usually displaying a Pollyanna attitude about the real estate market. Most home owners believe that Portland’s current strategy ‘to buy now or sell now’ is nothing more than a tactic to scare everyone in to moving to create a greater commission for them self. There is only one way to find out if this is true or not, so let’s take a quick look at some numbers to see if what we are hearing is actually truthful to what they are saying.
The cost of any newly purchased or bought home is figured by two major components: the actual price of the home and the current mortgage rate. In accordance with the most recent Case-Shiller Home Pricing Index, real estate values have risen a total of over 10% in the last year alone. If we look at Freddie Macs Weekly Primary Mortgage Market Survey®, the highly sought after 30 year mortgage rate has also substantially increased from 3.67% to 3.91% during that exact same one year period.
The table displayed below shows the difference between the cost of the same exact Orlando real estate over the previous twelve months: We can now see that the advice given by the Godfrey Real Estate Group to buy one year ago made complete financial sense for anyone looking to move.
What About Moving Forward?
Most real estate experts are not only stating that prices will continue to rise day after day, but are also substantially upgrading their current forecast as the housing market is displaying very strong signs that it is fully recovering. In regards to the infamous interest rates, the popular 30 year mortgage rate has rapidly increased by over a half point since this year began in January and most real estate agents, brokers, writers and experts are under the assumption that the increases on all things Portland Real Estate will continue. Even those who are trying to be the ultimate voice of reasoning on this newly discovered issue are even projecting higher rates. To give you an idea from a mortgage analyst point of view, Polyana da Costa, senior mortgage analyst at Bankrate.com said: “Rates are unlikely to keep going up so quickly and should remain below 5 percent.”
Hearing that now is the time to buy and sell is not a sales pitch, it is the truth. The market is low on inventory and high on buyers. Bidding wars are on the rise and if you list a property, you better expect to get multiple offers and fast. Cash offers are flooding the market and those looking to just purchase a home are getting beat out left and right by higher offers. The way we see it, the house is the newest iPad and you are selling yours. Look for multiple bids and the highest will win.
Portland real estate is constantly on the rise now-a-days and it doesn’t seem to be coming down any time soon. The longer the buyer waits, the more out bid they will be. As for a seller in this barren market, the inventory is low and diminishing daily. If you wish to have your home sold for above market value, now is not a terrible time to do so!
Feel free to call us for any and all of your Portland Real Estate needs!
The Godfrey Real Estate Group
1915 NW Amberglen Parkway
Beaverton, OR 97006