I grew up fishing and I still love it today. My dad taught me how to be successful when casting my line; the simple rule is: fishing in the place the fish are biting increases your chances of catching something when you throw your line in the water. So, finding where your target fish are active gives you better chances for success.

This is similar to deciding when the right time is to sell your home. Since you can’t change the location of your home, it’s important to price it correctly. When you put your home on the market, there is always a buyer for that property, if you price it correctly for the activity in your area. This is when having a great real estate agent makes all the difference in the world to your bottom line as a seller. When the real estate market is strong, and inventory is less than adequate, sellers will see better returns as buyers are in competition with each other and properties move quickly.

A recent study by Freddy Mac said,

“Excluding the District of Columbia, Oregon has the largest housing supply deficit “

Freddie Mac Insight Examines the Housing Supply Shortage by State: Feb. 28, 2020

The 2020 housing market has started off with a bang and is presently better than we were seeing last year at this time. Lower mortgage interest rates have been a driving factor in that change. The average 30-year rate in 2019, according to Freddie Mac, was 3.94%. Today that rate is closer to 3.5%.

The Census Bureau also just reported the highest homeownership rate since 2014 for people under 35. This is evidence that owning their own home is becoming more important to Millennials as they reach the age where marriage and children are part of their lives.

According to the latest Confidence Index Survey from the National Association of Realtors (NAR) Research Group, buyer demand across the country is strong. That’s not the case, however, with seller demand, which remains weak throughout most of the nation. Here’s a breakdown by state:

Demand for housing is high, but supply is extremely low. NAR also just reported that the actual number of homes currently for sale stands at 1.42 million, which is one of the lowest totals in almost three decades. Additionally, the ratio of homes for sale to the number purchased currently stands at 3.1 months of inventory. In a normal market, that number would be nearly double that at 6.0 months of inventory.

What does this mean for buyers and sellers?

Buyers need to remain patient in the search process. Because of low inventories across the nation (and specifically in Oregon) properties will continue to be snatched up as soon as they are listed keeping inventories low in all market tiers except for luxury properties. At the same time, buyers must be ready to act immediately once they find the right home. Having your downpayment ready to go, and your financing in place will mean you can grab that property you want when you see it come on the market.

Sellers may not want to wait until Spring to put their houses on the market. Listing now will give you the most exposure to buyers who have been waiting to buy in your area, but low inventory has kept them from finding what they want. With demand so high and supply so low, now is the perfect time to list and sell your house for the most potential profit and the least hassle.

Bottom Line

The real estate market is entering the year like a lion. There’s little indication it will lose that roar, assuming inventory continues to come to market and interest rates stay low.

I’m here to help answer any of your questions whether you are in the position to sell or purchase. We can find the right fit for your situation. Just reach out and we can discuss your plan and how to make it happen.

Cheers,

Michael Jester
Oregon Licensed Real Estate Broker
My Real Estate Advisor Team
(503) 799-8354 cell
(503) 437-9005 office
michaelj@myreateam.com

Bella Casa Real Estate Group
207 NE 19th Street, Suite 100
McMinnville, OR 97128
(503) 437-9005 office
https://thebellacasagroup.com