Sellers, in this market, you’re faced with the opportunity of a lifetime.
If you haven’t noticed, buyer demand in our market is off the charts. Normally this time of year, the market in the northwest experiences a seasonal slowdown, but that’s not happening this year. Nationwide, we have around 1.8 months of inventory; a balanced market has somewhere around six months of inventory, so it’s clear we’re still in a hot seller’s market. For the Portland metro and the Southwest Washington areas, we have two weeks of inventory. In Polk, Marion, and Columbia Counties, we have just three weeks of supply. What spurred this demand?
News of rising interest rates has many people worried that they won’t be able to afford a home, so they’re taking advantage of our low rates while they can. That has pushed many buyers into a market without enough options to choose from. This level of demand means that homes that have been priced correctly will receive multiple offers and likely sell for over their asking prices.
Now let’s take a look at the inventory and pending sales for Southwest Washington. As of January this year, there were 35 fewer homes on the market compared to last year. Pendings are down about 21% in Clark County. In the Portland metro, there are 26% fewer homes on the market, and pending sales dropped by 5.4% year over year.
So what does this mean for you as a seller? Well, low inventory means that you have very little competition. We recently had a buyer’s agent leave us a bad review that I removed because they said we had bullied them—my sellers had refused to do any repairs. But the sellers didn’t have to since they got multiple offers.
Ultimately, if you’re planning to sell, don’t wait until spring. You have nothing to compete against in this market, so there’s no need for delay. The massive demand we’re experiencing has caused home prices to rocket skyward, and we don’t anticipate that slowing down any time soon. The problem with waiting is that interest rates are set to rise, which will decrease home affordability. That, in turn, will reduce your buying pool.
If you have any questions about the market or selling a home, don’t hesitate to reach out to me via phone or email. I’d love to help you.