Portland is so cool. It’s the coolest. That’s the buzz about its real estate market as well. Last month saw several articles examining the June 2018 real estate trends. The term “cooling off” became the Portland buzzword of the moment. Ironically, this “cooling off” arrived just prior to 3 successive heat waves that drove many buyers out of the market and into the movie theaters with their reliable central air. Try showing properties without central air when it is 97 degrees outside. “Hey look at that; it has an ice maker,” she said hopefully.
Will this cooling off period continue? Frankly, for a balanced market, let’s all hope so. July numbers just came out today, and our inventory has crept up again, now at 2.4 months.
We have been in a strong seller’s market for years now. And let’s be clear, at 2.4 months of inventory, we still are. Being a buyer in this space is tough, and representing buyers who want to “win” at all costs is sometimes like watching a slow car crash. How can an agent best leverage her experience, expertise, and calm presence in a transaction when buyers are ready to sign on this dotted line, that dotted line, ANY dotted line, small print be damned?
We all got used to insane year-over-year price increases. How many times have I heard “we plan to sell next year” as if next year’s double digit price gain were a foregone conclusion? And why wouldn’t sellers think that? Buyers were pulling out all the stops to get sellers to pick them over the other 15 offers on the table. Waiving inspections and inspection contingencies. Waiving appraisal contingencies and agreeing to bridge the gap between reality and what they were willing to pay just to “be done with it” and not lose out on yet another house. And let’s not forget that offer of a lifetime’s supply of pizza. Yep – that happened here in Portland. When a business transaction devolves into a popularity contest, buyers have zero leverage, and the winners are always the sellers, regardless of whose offer is chosen.
So while others may regard this “cooling off” data as a signaling of the end of the world as we know it, I prefer to look at it as a sign of sanity. Of balance. Imagine a real estate transaction where both parties in a transaction want to come together through the process of give and take and do what is fair to get to the end. Imagine a world where a repair addendum is negotiated and reasonable repairs are considered and not rejected outright just because.
Did you manage to sell your home for a good price without staking claim to your buyer’s first born child? Great! Were you able to buy a home without promising to fix the seller’s car for the rest of your life? Awesome!
I say bring on this cooling off period and let sanity and rational expectations return to Portland’s market. In the end, everybody can walk away feeling good about the transaction. That’s a successful marketplace.
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If you are thinking about buying or selling in Portland, it would be my honor and privilege to meet with you and see if we would be a great fit. Contact me today. We are on the cusp of such an interesting time in our market. I would love to help you navigate it.
Danni Duggan, OR Broker, Premiere Property Group, LLC.
Licensed in Oregon.
1201 NE Lloyd Blvd, Suite 115, Portland, OR 97232
503-719-2279 | danni@dannipdx.com