Market Update: November 2021
-Prices are softening slightly but continuing robust buyer interest has the Greater Portland Market still deeply favored for sellers.
-This, of course, keeps upward pressure on home prices.
-At the same time interest rates are increasing for mortgages, so buyers will be losing the edge they had when rates were hovering below 3%.
-With fewer buyers able to qualify for homes, days on the market will increase putting downward pressure on prices.
-How long the above will take to develop is batted around by real estate economists who come up with varied conclusions, with the most likely scenario pegging the middle of 2022 as the point at which lower home prices will start being the norm.
-The idea, pundits say, is that this point, mid-2022, could be the being of a real estate market correction that could last 3-5 years.
-During that time we could see a 10-15% reduction in home prices until wages catch up some. At that point prices could start rising again.
Table courtesy of Regional Multiple Listing Service Portland, Oregon. November 2021.