The available inventory of homes in metro Portland is still quite low by most standards, so technically we're still in a seller's market. There's no "run for the exits" as we had in 2007, with a bubble bursting and overleveraged home owners truly needing or being forced to sell.
But there is a normalizing shift underway. The extreme imbalance of 2021 is gone and thanks to several factors we're closer to a more normal market tone today. Spiking inflation especially in fuel costs, elevated mortgage rates, and a long run up in home prices are among them. After more than a decade of artificial support by the Federal Reserve, we are seeing mortgage rates normalize in the 5-6% range from artificial levels near 3%. The only reason they ever got so low was federal stimulus originating after the 2007 mortgage meltdown which is no longer needed. Buyers are now having to adjust their thinking and budgets accordingly and that has slowed activity sharply in the past several weeks.
Several years of home price appreciation invite some kind of leveling-out or correction. A correction won't kill the market. Even a 20% correction could be healthy and would simply put us back to values from 2020 when every homeowner was happy about their equity.
The auction mentality is gone, and now sellers and buyers each have a say in what terms they can live with. We're back in a "negotiable" market space. Balance is back.
Cascade Hasson Sotheby's International Realty
15400 SW Boones Ferry Road
Lake Oswego 97035