Are Homebuyer Conditions Improving?
A market shift is on the way!
After months and months of a robust sellers' market with scales tipped in their favor, it's finally starting to balance out. When the interest rates went up substantially earlier this year as well as soaring housing costs, it caused many house hunters to simply drop out. This is providing some relief for those buyers who remain. They are seeing the price growth slow, competition decline, an ease in the housing shortage and the mortgage rates come down from their 2022 high. Sellers have been lowering asking prices and many haven't been going over list price. The conditions are improving.
Housing remains expensive but the mortgage interest rates recently posted their biggest drop since 2008, which helps make buying a home a bit more affordable. They're not where they were at the beginning of the year, but have come down from the 2022 peak. Buyers can negotiate again by making an offer and asking the seller to cover closing costs, especially on homes that have now been on the market for a while. Listing agents have been telling their sellers to price their homes realistically, otherwise it will probably sit on the market, and they'll have to drop the price to attract buyers.
Data sourced from Fidelity National Title, the week of July 11, 2022, the Median list price for Forest Grove is $649,969, Hillsboro 97124 is $599,450 and 97123 is $699,945. For info on rates, reach out to me.
Robert Groves, Senior Mortgage Broker
5635 N.E. Elam Young Parkway, Suite 308
Hillsboro, OR 97124