By Danni Duggan
Approximately One Month of Inventory
As the year draws to a close, the focus in our office continues to be the low inventory in Portland. We have been at well under 2 months of inventory since June 2020. It is not uncommon for inventory to dip in the winter. After all, who wants strangers traipsing through their home during the holidays unless they really want/have to move? Add a global pandemic to the mix, and a state “freeze.” People understandably get much more reluctant to throw open their front door and roll out the welcome mat.
Low inventory is a self-perpetuating problem. Potential sellers are reluctant to sell because they do not want to compete with buyers in this hyper competitive market. So they wait. And inventory gets tighter. So they wait some more. And low inventory continues month after month. Interest rates drop. More buyers enter the market. And it seems there is no end in sight.
What Holds a Seller Back from Listing their Home?
Sometimes a potential seller’s reluctance is finance related. They believe they cannot buy a new home without a contingent offer, which is almost non-existent in this marketplace. If that is the fear that is holding you back from listing your home, I urge you to contact us so we can put you in touch with a trusted mortgage lender. We have had some very creative scenarios offered to clients in this past year from some of Portland’s best lenders who work closely with us and our clients. There is no scenario in this marketplace that we cannot work through to help you get where you want to go.
Given that many offers to purchase yield tens of thousands of dollars above list price, some sellers are fine to do a short-term rental. Sellers can often rent their existing home (sometimes free of charge) while they look for replacement property for 30 to 60 days. The point is that there are alternatives, and buyers are willing to offer incentives to make a seller’s transition soft.
Low Inventory by Market Segment in Portland
Remember that our “months of inventory” number (currently just a hair above 1 month), is a number that encompasses all segments of the market place. The reality is that there is super low inventory in Portland’s sub $600,000 market. But that inventory is offset by the 8 and 9 months of inventory that currently exists in the $2MM+ segment.
The majority of listings we took last year were for sellers who had somewhere else to go already – either an existing second home, leaving the state entirely, or rejoining family elsewhere. Many buyers began searching for homes $25,000 – $50,000 below their actual budget ceiling because they understood that often the winning bid for a home with multiple offers might be several tens of thousands of dollars above asking price (especially true in Portland proper).
We are Here to Help
Keep in mind that we have had low inventory in Portland for several years now. It has been a constant in our market. Sure, things are tighter now because interest rates are great and buyer enthusiasm is through the roof. But this is not new territory to navigate. We are experienced helping sellers to get organized prior to go-live, to maximize their home sale, and to land on their feet after the sale by assisting with their purchase as well if that is their ultimate goal.
We are here to help break the self-perpetuating cycle of low inventory by helping you to feel confident in your decision to enter the Portland real estate market. Call or text us today, and let’s start planning your future.
Danni Duggan, Oregon Broker, Premiere Property Group, LLC, Licensed in Oregon
503-719-2279 | danni@dannipdx.com
Our real estate practice is built on a foundation of compassion, intelligence, wit, and a genuine desire to help our clients achieve their goals.
Looking to buy or sell your home in the Portland area? We would love to work with you. Buying or selling outside the state of Oregon? Let us recommend one of our most trusted Realtor colleagues elsewhere in the country.
What is My Home Worth?
Curious what your home might go for in the current market? We have a home valuation tool that will help you understand what is happening in the market closest to you.
Remember that no computer model is a replacement for an actual Competitive Market Analysis provided by a trained, experienced Realtor. Contact us if you would like a free, no-obligation evaluation of your home.