Hope you enjoyed a happy St Paddyâ€™s Day and thereâ€™s just a tinge of springtime in the air.Â As a real estate broker, Iâ€™m revving my engines and getting ready for our peak season!!Â So, howâ€™s the real estate market, you ask??Â I could make this quick and just say more of the same (see February)â€¦. but, how disappointing would that be?Â Our metro area real estate activity remains very solid.Â I was thinking that, perhaps, we were off to a bit of a slower start than last year but I just went back to last yearâ€™s transactions and Iâ€™m pacing about the same.Â Februaryâ€™s closed sales were the strongest since 2008.Â Active inventory continues at historic lows and unsold inventory remains very low at 4.5 months!!Â Prices are on the rise in the Portland areaâ€¦slowly but surely.Â If you compare the average sales price of homes in the area in the last 12 months, it shows an increase of 5.8% and time on the market remains very low**.Â The biggest challenge is appraisal and underwriting demands.
BUYERS:Â What does this mean for buyers?Â Anxious buyers are on the lookout for well-priced, good condition properties and long to take advantage of the historic low, low interest rates.Â But, they are thoughtful and cautious in their decision-making.Â The biggest challenge is lack of inventory!
SELLERS:Â What does this mean for sellers?Â Again, low inventory usually impacts the whole â€œsupply and demandâ€ aspect of pricing more dramatically than it has thus far.Â **Pricing of the home for sale also impacts time on the market.Â Aggressively priced homes often get multiple offers, well-priced homes will move quickly, over-priced homes will linger.Â The biggest challenge is pricing correctly!
INVESTORS:Â What does this mean for investors?Â Real estate is a great way to diversify your financial portfolio.Â The triple whammy is the tenantâ€™s paying off the mortgage, the tax benefits and the possible or eventual cash flow!Â The biggest challenge is again lack of inventory!