Ask Yourself, Where Do You Want to Be When Our Housing Shortage Problem is All Over The News Again?
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A few thoughts to consider as we start to see the first signs of interest rates leveling off due to the federal reserve’s actions to get control of inflation.
The supply of housing in the Portland metropolitan area is still extremely low at 2.5 months of inventory. This is the very problem that caused the wild over-price bidding wars that made our market crazy over the past couple of years. In short, we have a supply issue that has not yet been solved. Adding to the problem,?builders have halted production and new housing starts have been put on hold. Sellers are not willing to list their home for sale and trade their 3 to 4% interest rate for a much higher one….The problem is not going away anytime soon. One can speculate that as things progress and interest rates reach their peak / turn to come back down, the demand from buyers is likely to pick back up highlighting the low inventory problem all over again.
"Don’t take my word for it, read the following (scroll down) supporting articles and put the pieces together for yourself."
The good news is that the competitive demand that drove the market crazy in 2020 and 2021 seems to have temporarily subsided due to the higher interest rates. This have given buyers time to make decisions and capitalize on new-found negotiating power. Rates are higher and monthly payments have gone up substantially, but seller concessions and creative lender programs are allowing buyers to get into homes on their terms without smothering competition putting things out of reach. Currently, I am watching savvy buyers taking advantage of the lull between seller’s markets by remaining active in the market and seeking out opportunities to negotiate seller concessions to get their payments into a palatable range. Then…. These same people are employing a strategy of keeping their eyes open to refinance their rate down in order to further reduce their payment in the future. The end game for these buyers is not having to face the next competitive buying market that is?likely?to come due to continued low inventory.
Sitting on your hands and watching the market and waiting for interest rates to improve is likely going to get you back into the market right when?all of the other buyers come?back to the market. At that time bidding over asking and making concessions to the seller to get your offer accepted will resume being the preferred practices in a rapidly appreciating market. Ask yourself, where do you want to be when our housing shortage problem is all over the news again?
Don’t take my word for it, read the following supporting articles and put the pieces together for yourself:
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Todd Gydesen, Mortgage Broker NMLS # 89835
Vantage Mortgage Group, Inc. DBA Vantage Mortgage Brokers | OR & WA State Licensed??
Accounts Payable Supervisor at Leatherman Tool Group, Inc.
2 年Thanks for the insight, Todd!