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September 2023 Monthly Market Checkin

October 2, 2023

I continue to be immersed in our Real Estate market and absolutely love giving you updated information so you can be well prepared.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)2568Up 4% from last month & up 11% from this time last year
Current Pending Listings1062Down 10% from last month & down 19% from this time last year
Sold Listings Last Month863Up 10% from last month & down 11% from this time last year
New Listings Last Month1123Up .2% from last month & down 9% from this time last year
Months of Inventory3.55Up 4% from last month & up 43% from this time last year
Absorption Rate34%*Up 6% from last month & down 21% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$470,000Up 4% from last month & even from this time last year
Average Residential Sales Price$493,000**Up .8% from last month & up .2% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates7.12%***Up 3% from last month & up 31% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage
Some amounts are rounded up or down

The average homeowner has around $200,000 in equity in this current US Real Estate market.  That is great news because it allows people to work with that equity to help in other areas if needed.  Many people are pulling funds out through HELOCs to purchase more Real Estate, but this flexibility might just be an added unintended insurance policy at a bad time.  As consumer spending continues to increase dramatically, many people are putting those purchases on credit cards and not intentionally saving money for a rainy day.  

The difference between credit card debt and savings is a whopping amount!  It has been reported that the average credit card debt surpasses $10,000 for each cardholder and the average credit card interest rate is over 28%!  It doesn’t take long for people to run out of options with those numbers and they will look to other means to help remedy the problem.  That is where Real Estate can benefit.  It is no surprise that many people are holding tight to their 3% mortgage rates, however, when inflation finally catches up and their credit cards max out; their Real Estate portfolio might be the best thing to turn to.  Mortgage refinances have slowed to molasses rates, but that might change soon.  Consolidating debt to a 7.13% rate sure sounds better than 28%, doesn’t it?  

The CPI report just came out and it shows that Core Inflation (excluding food and energy) rose .3%, which is higher than expected.  Inflation rose .6% for all items, which is the highest monthly increase this year.  The Fed has mentioned that they will consider raising rates if the inflation reports are not encouraging.  This is another sign that the economy continues to grow and I expect the FED to take more action on rates when they meet on the 19th and 20th of this month.  This is not encouraging for mortgage rates.

Unfortunately we continue to see the market trending towards more challenging times in the short term.  With interest rates continuing to increase, the challenging economy, and updated jobs numbers suggesting that the initial jobs reports are not as strong as they indicated; the shift continues.  This market is definitely not great for borrowing buyers and it is argued that it is not the best for sellers either.  The people who are taking advantage of this market are cash buyers.  It is also important to note that we have been accustomed to lower than normal rates for many, many years.   We have been spoiled, but the average mortgage rate over the last 30 years is around 7.74%.  You don’t have to look very far to find someone who paid 18% back in the early 80s.

If you know anyone who might be experiencing challenging situations ahead and need a good lender or Real Estate consultation regarding any matters, contact us right away.

August 2023 Monthly Market Checkin

October 2, 2023

2023 is zooming by!  We hope you are doing well and enjoying tHere is a synopsis of our current market based on the most recent statistics.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)2469Up 6% from last month & up 12% from this time last year
Current Pending Listings1176Down 2% from last month & down 17% from this time last year
Sold Listings last Month780Down 13% from last month & down 17% from this time last year
New Listings last Month1121Down 11% from last month & down 21% from this time last year
Months of Inventory3.41Up 7.6% from last month & up 46% from this time last year
Absorption Rate32%*Down 17% from last month & down 27% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$451,000Up .44% from last month & down 4% from this time last year
Average Residential Sales Price$489,000**Up .6% from last month & down .2% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.9%***Up 1.3% from last month & up 26% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

Residential values continue to increase overall within this year, but the interesting fact is that on average we saw a high of approximately $493,000 back in September of 2022.  We did see a little drop in average values and research tells us that this is because the higher end properties were not keeping up with the pace of the lower end properties at the turn of the new year.  The lower end properties continue to be in high demand, as we’re talking about the $400,000 price range.  How can that be the lower end?!  This is the reality these days as this is a typical “Starter Home” in our market.  All of the big Real Estate research companies are showing appreciation rates from 5% on up to 10% nationwide to finish out this year at our current pace.  In our market by taking the starting residential values in January we are on pace for a 7% appreciation rate if everything continues on its current trend.  Real Estate continues to be a great investment!  Time is your biggest asset, so if you have many years ahead of you; don’t delay in buying as much as you can!

The jobs report that came out last week shows that most of the gains came from part time jobs.  Employers continue to decrease hours to make up the difference and save money.  268,000 household job gains appear to look good on the surface, but 585,000 full time jobs were cut and replaced by 972,000 part time jobs.

The CPI report that just came out and it shows that inflation increased .2% last month and up 3.2% YOY.  This shows to be a stronger number from the previous month so I expect the FED to raise rates again at their September 19th meeting.  We’ll hope for the best.  Shelter & rents continue to increase, but nothing close to their increases a year ago.  

The mortgage market experts are struggling to understand the FED’s actions as they threaten to continue raising interest rates in stride to reach their 2% CORE Inflation goal.  Many people fear they are going to push too hard to cause the economy to break.  Lagging effects, like rental rates, seem to have little influence on the FED members even though inflation has declined over 100% from its high of 9.1% in June of 2022.  Fitch’s credit rating of the US didn’t help matters either as they expect the US to deteriorate fiscally over the next few years.  It turns out that spending over your budget and then just printing more money isn’t sustainable after all.  Your vote matters.

Everyone is still expecting rates to decrease once the dust settles, but it appears it will be longer than expected.

We are seeing excellent success for our clients whether they are selling or buying in this current market.  Our buyers are having more opportunities to choose from and our sellers are maximizing their profits by strategizing intelligently.  

True value is gained or lost in negotiations.

If you know anyone planning to buy or sell, give us a call!  We know you have a lot of options as there are many hobbyists in our industry.  Don’t let your friends and family compromise one of their largest financial decisions to anyone.

July 2023 Monthly Market Checkin

October 2, 2023

I hope you are enjoying this beautiful Summer and are taking advantage of the many opportunities that we have here.  Here is a synopsis of our current market based on the most recent statistics.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)2324Up 5.2% from last month & up 21% from this time last year
Current Pending Listings1199Up 1.4% from last month & down 21% from this time last year
Sold Listings last Month890Up 15% from last month & down 22% from this time last year
New Listings last Month1253Up .64% from last month & down 16% from this time last year
Months of Inventory3.16Up 7.5% from last month & up 55% from this time last year
Absorption Rate38%*Up 8% from last month & down 43% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$449,000Up .45% from last month & down 4.6% from this time last year
Average Residential Sales Price$486,000**Up 1% from last month & up 1.7% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.81%***Up 1.5% from last month & up 21% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

Real Estate is Local.  Although transactions that include land, manufactured homes in parks, commercial, etc have continued to struggle, we continue to see Residential prices be resilient in our Mid Valley.  We are also seeing many homes that are desirable, experiencing bidding wars.  It is reported that the cash that is available to the middle class has been a driving force to hedge against the higher interest rates.  Cash buyers are seeing opportunities with less competition, and they are also doing a good job in helping keep our inventory down.  Cash sales contribute to 27% of our sales here in the Mid Valley.  This does not take into account the large amounts of down payments that are being established with conventional financing purchases to get the buyer over the finish line.  That is significant.  Conventional financing contributes to 49% of our transactions, FHA is 16%, VA is 7% and USDA and contracts contribute to 2%  These stats are all Year to Date. 

Some people have expected a deeper housing crisis, but I can tell you that we have only seen a handful of Notice of Defaults go out to each of the 4 local counties in our area.  Some people seem to be struggling to make their payments, but this is very insignificant at this time.  A Notice of Default is given by the bank to mortgagors who are 3 months behind in their payments.  This can trigger the foreclosure proceedings as the next step would be a Notice of Foreclosure if the borrower doesn’t get caught up or work out a modified payment arrangement.  This is public record, so we are able to keep track of them.

Governor Kotek recently signed into law a new regulation cap on rental increases.  To replace the previous law of SB 608SB 611 narrows the ability of landlords to increase rents up to 10% or 7% plus the 12 month average of the CPI, whichever is lower; capping it out at 10% from the previous year.  With inflation at high levels the 2019 law apparently didn’t take into account the high costs of living and they now want to make sure those costs are not passed along to tenants.  This new law also requires notices of rent increases to be given at least 90 days before taking effect. 

Things are starting to look a little better concerning the recent CPI report suggests with Headline Inflation increasing at just .18% in June and also decreased to a rate of 3% from 4% from this time last year (YOY).  The Core Index recorded at 4.8% which is down from 5.3% this time last year.  Shelter costs make up 43% of the core index and have been at focus for many months.  They are up .4% from last month, but down significantly from this time last year.  This segment is causing that index to remain stubborn.  Rents are still up at .5% from last month and lodging away from home is down 2% from last month.  Used car sales and airline fares have also finally come down to also help with this report.  

The PPI report also suggests that inflation is coming down considerably as the new numbers surprised the experts.  They came in at .1% of a rise (MOM) and also just .1% higher than this time last year (YOY).  So inflation continues to lose steam at an increased level as we have been reporting.  The brakes are taking more effect.

The FED’s meeting on July 25th-26th should expect them to raise rates once again, but they should be seeing the writing on the wall, and make only a minor adjustment.  Hopefully this is the last one.  Although they have communicated that their target Core Inflation goal is 2%, it will take a lot of work and possible destruction to get it down to that level anytime soon.  All of the economists that we are listening to are saying that the FED needs to stop making adjustments and let the lagging effects come to fruition as the indicators are signaling.  Doing much more could cause a deeper and lasting damaged economy, which many people may have a hard time recovering from.

At the core, if you live in this country, you have won the lottery of life.  There are so many issues throughout the world and we continue to be very fortunate.  There are opportunities everywhere.  Real Estate continues to be a strong segment in this economy so if you are wanting to increase your portfolio, give us a call.

June 2023 Monthly Market Checkin

October 2, 2023

I hope you are well and enjoying this beautiful and rare June we are having.

Here is a synopsis of our current market based on the most recent statistics.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)2207Up 11.8% from last month & up 28% from this time last year
Current Pending Listings1216Up 4% from last month & down 10% from this time last year
Sold Listings last Month767Up 17% from last month & down 26% from this time last year
New Listings last Month1245Up 19% from last month & down 8% from this time last year
Months of Inventory2.93Up 14% from last month & up 60% from this time last year
Absorption Rate35%*up 5.8% from last month & down 52% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$447,000Up 2% from last month & down 5% from this time last year
Average Residential Sales Price$481,000**Up .41% from last month & even from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.71%***Up 4.8% from last month & up 23% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

Interest rates are being so stubborn. They are still bouncing around in the upper 6% range, and even though CPI is showing a slowdown, the Fed continues to verbalize that their target PCE (Personal Consumption Expenditures) at 2%. They are currently at 4.7%, so it will take some drastic measures to get it down to their goal. Consumers continue to spend with used cars up .4%, shelter up .6% and ‘away from home lodging’ up 1.8%. People are still taking their vacations and getting away. CPI was up .1% overall, but the CORE CPI was up .4% which is without taking into account the food and energy sectors. Although they “skipped” their rate hike this month, they are signaling that they are going to continue to raise rates until something breaks.

We were expecting mortgage rates to start declining last month and then the excuses of the debt ceiling came into play, then the Saudi Arabian reduction of oil production, and it seems that there is yet another reason why rates are still being stubborn. This continues to be the leading issue with our reduction in sales in the Mid Willamette Valley, however prices continue to increase overall! There are some areas within the Mid Valley where prices have flatlined and decreased a bit over the last few months, but the issue really is house specific. Even though inventory continues to increase slowly, we continue to see high demand in quality housing. We are also seeing multiple offers and bidding wars in some sectors, especially when a home is nicely kept and updated. Buyers are cautious with properties that have challenges. Wallpaper, datedness, busy roads, dysfunction, poor condition, challenging location, etc are all issues that buyers are not settling with. Some items can’t be resolved, but it does pay off to spend some time and money updating and getting your home into great condition.

With rates climbing as much as they have, many buyers who are still in the market don’t have as many resources to do those updates and therefore expect a steep discount in lieu of them. The idea of allowing a buyer to do them as they wish does not give a seller the most profit. These projects take time and money, so it is beneficial to plan these out so there is enough time for completion. Contractors are busy and backed up. Supply costs continue to rise in most categories. As a general rule, the longer one waits the more expensive it is.

If you would like any advice on planning a sale and move, please don’t hesitate to reach out. We’d love to help. We always appreciate your business and referrals and believe no one else could serve you as well as we do. With the market slowing down, we are seeing that many agents who entered this business over the last 10 years when it was “easy” are struggling to close transactions. Our office continues to be busy because we are professionals, not hobbyists; and we see ourselves as Winter Soldiers.

May 2023 Monthly Market Checkin

October 2, 2023

Again, I want to thank you for your continued business. I always want to bring you great value in the Real Estate market. I spend time evaluating our local market so that you are well educated to make a wise decision.

Here is a synopsis of our current market based on the most recent statistics.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)1961Even from last month & up 31% from this time last year
Current Pending Listings1165Up 15% from last month & down 9% from this time last year
Sold Listings last Month650Down 11% from last month & down 42% from this time last year
New Listings last Month1030Up 5% from last month & down 27% from this time last year
Months of Inventory2.54Up 4% from last month & up 61% from this time last year
Absorption Rate33%*up 11% from last month & down 72% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$440,000Down 0.9% from last month & down 7% from this time last year
Average Residential Sales Price$479,000**Up .21% from last month & up 1.7% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.39%***Up 1.7% from last month & up 19% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

Overall sales activity continues to remain slower; similar to 2015 levels. We have seen interest rates settle and be fairly level over the past few months. This indicates that the markets are not too concerned with a higher inflationary period moving forward. We are also experiencing inventory to tick up, but not by much. With that, demand continues to remain high as we are seeing a modest increase in overall Residential prices continue. May is expected to be a big month concerning the CPI data coming out on the 10th and the expectations that we will see some of the lagging indicators for inflation, like shelter costs, to take effect. Many expert economists believe we are rounding the corner of this monster, but there are so many other deciding factors that can influence our economy. I feel the powers that be are doing everything they can to destroy our economy.

Here is a question to consider. Would you rather buy a home today with slightly higher interest rates or wait for rates to drop? Waiting can be a catch 22 where we could see more competition and therefore more rejected offers or escalating offers above asking price. With remaining record lows of inventory, we are already seeing the escalation game increase in intensity as we get further into this year; so it is expected that this will continue. For many buyers who are struggling to compete, it may be better to buy when the competition is limited.

This past week, the FED raised interest rates another 25 BP or 1/4 of a point. They continue to see people pay for things they want, especially for hospitality and travel. This is expected to continue as we get closer to the vacationing season. Summer is fast approaching and many families will be moving to reposition themselves for school and other priorities as well.

If you are planning a move, then get ready. If you are a seller, then you will want to strategize a transitory plan. If you are a buyer, you’ll want to position yourself to compete at the highest level.

Give me a call as I can help you navigate through all of these moving steps.

April 2023 Monthly Market Checkin

October 2, 2023

Some of our Buyer Needs:

(Multiple Buyers) Small Acreage out South.  Primary BR on the main level. 1600-2500 SF 3+ Beds, 2+ Baths.  Up to $800,000

South Salem in town.  Single Level with updates.  3/2 in a desirable neighborhood.  Up to $500,000

Small acreage Bare Land SE Salem and outskirts to build a new home.  $300,000

Single Level in Keizer or NE Salem.  3/2 up to $450,000.  Needs time to transition from a current sale.

Central, West or South Salem. 2+ beds 1.5+ baths that is move in ready up to $375,000.

West Salem with a shop area.  $400,000

1+ acre of bare land Central Salem zoned to build a Health & Medical Facility. 

West Salem or outskirt Polk County. 2000+ SF,  4+ bed, 2.5+ baths and newer.  Open floor plan with a large enough fenced back yard.  $650,000.  June or July.

West Salem or outskirt Polk County. 3000+ SF, dual living capabilities, 5+ bed, 3+ bath,  Primary Bedroom Setup on main floor.  Large yard for kids to play.  Up to $800,000.

Linn County small acreage, single level with Large Shop space for RV, Woodworking.  Up to $800,000.

Do you know anyone who is willing to sell?  Inventory is still so low that many of our buyers are having a hard time finding housing.

I want to thank you for your continued business, and I always want to bring you great value in the Real Estate market. I spend time evaluating our local market so that you are well educated to make a wise decision.

Here is a synopsis of our current market based on the most recent statistics.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)1961Down 0.46% from last month & up 43% from this time last year
Current Pending Listings1014Up 4% from last month & down 15% from this time last year
Sold Listings last Month730Up 33% from last month & down 26% from this time last year
New Listings last Month980Up 16% from last month & down 26% from this time last year
Months of Inventory2.44Down 1.6% from last month & up 68% from this time last year
Absorption Rate37%*up 31% from last month & down 68% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$444,000Down 1.6% from last month & down 3.8% from this time last year
Average Residential Sales Price$478,000**Up .84% from last month & up 1.5% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.28%***Down 7% from last month & up 48% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

*Correction: MLS stats for Months of Inventory were incorrect from WVmls last month. Correct data was 2.48.

We may be nearing the bottom of our slowdown, but time will tell. Low inventory still hedges against market drops even though people on the networks are sounding the alarms that Real Estate has declined. Real Estate is always local, and in our market, we are seeing activity pick up. The weather has been holding things back a bit, but once it breaks and the sun shines itself for more than 30 seconds; we can expect people to start moving around again. Hopefully that will be soon! If we separate out the active listings that are actually available, we only show to have approximately 812 homes for buyers to choose from in our Mid Valley according to the WVmls. After a small corrective and flat season, Residential prices are increasing again in 2023.

The CPI numbers came out today and the Headline shows that it came down from 6% to 5% YOY, but the Core Rate raised .4% from last month and went from 5.5% to 5.6% YOY; which is what everyone is focusing on. It has come down considerably from last June of over 9%! Overall we are seeing the trend start to crest and the economy is slowing down. We are keeping a close eye on next month as many believe that Mortgage Rates will start to decrease on a more consistent level starting in May. We hope that rates will continue to benefit the further we get into Summer and Fall of this year. Most experts believe that the days of 3% and 4% rates are days of the past for a while because the rates were suppressed too low for too long, which is one contributing cause of our problems today. Again, time will tell.

Interestingly, the ADP Employment Report shows sectors that are contracting and ones that are expanding. Construction has increased and the typical culprits of entertainment, leisure and hospitality continue to remain high as well. The FED is still expected to make some adjustments on May 3rd as they appear to believe they need to do more to slow things down even further. As we see this into fruition, we are hoping to see Mortgage Rates start to decline to a more reasonable level. Every time rates drop we see buyers get off the fence, so expect more buyers to get back into the game when this happens. We have often called this time the ‘Winter Window’ for buyers, but expect that if rates decrease to a more comfortable level then many more buyers will jump back into the market.

If you are planning a move, then get ready. If you are a seller, then you will want to strategize a transitory plan. If you are a buyer, you’ll want to position yourself to compete at the highest level.

Give me a call as I can help you navigate through all of these moving steps.

March 2023 Monthly Market Checkin

October 2, 2023

WE NEED MORE SELLERS! 

I want to thank you for your continued business, and I always want to bring you great value in the Real Estate market. I spend time evaluating our local market so that you are well educated to make a wise decision.

Here is a synopsis of our current market based on the most recent statistics.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)1970Down 2.4% from last month & up 62% from this time last year
Current Pending Listings973Up 15% from last month & down 28% from this time last year
Sold Listings last Month523Up 5.7% from last month & down 28% from this time last year
New Listings last Month836Up 9.4% from last month & down 13% from this time last year
Months of Inventory1.48Down 39% from last month & up 29% from this time last year
Absorption Rate27%*up 8% from last month & down 55% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$451,000Down 5.5% from last month & down 3.4% from this time last year
Average Residential Sales Price$474,000**Up .85% from last month & down 1% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.732%***Up 10% from last month & up 75% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

Interest Rates and Inventory. These two issues continue to dominate the Real Estate Market. Inflation is showing its cracks, which tells us that the Federal Reserve has done enough work in raising rates; and they just need to be patient as lagging indicators catch up. As we see banks fail, it is clear that some of our financial systems are fragile. Hopefully the FED will adjust policies to temper the fears and stabilize the markets.

The recent jobs reports show an interesting tale. Seasonal adjustments have kept the jobs reports stronger than expected, but the report last week showed some signs of a shift. ‘Less than 5 week jobless claims’ rose dramatically and average hours worked have adjusted down slightly. The CPI report shows inflation slowing from 6.4% to 6% so we are trending in the right direction. Many people are still spending money. Shelter costs along with some other indicating factors like airlines, travel, lodging and apparel have kept the numbers higher. These are expected to curve and some experts are saying that May is going to be a deciding month where we see rates stabilize to move in the other direction.

At this moment our inventory is staggering low. We are seeing numbers similar to what we saw in 2021. In fact, when we separate out just Residential properties, that number greatly decreases. IT IS CLOSER TO HALF THAT NUMBER! As interest rates are expected to decrease we are going to see more buyers back into the market, but if inventory does not increase substantially then they are going to be fighting over the most desired homes. We are seeing evidence of this already. The homes that are priced, maintained, and staged well are experiencing increased demand; and sometimes even driving the sales prices over asking price. As we get closer to Spring and the weather turns warmer, more people will get out and start planning to move. It is inevitable that people are discontent and warmer temperatures bring people into the market.

If you are planning a move, then get ready. If you are a seller, then you will want to strategize a transitory plan. If you are a buyer, you’ll want to position yourself to compete at the highest level.

Give me a call as I can help you navigate through all of these moving parts.

February 2023 Monthly Market Checkin

October 2, 2023

I want to thank you for your continued business, and I always want to bring you great value in the Real Estate market. I spend time evaluating our local market so that you are well educated to make a wise decision.

Here is a synopsis of our current market based on the most recent statistics.  If you have any questions, please give me a call to discuss details. 

Current Active Listings2018Down 3.7% from last month & up 67% from this time last year
Current Pending Listings848Up 19% from last month & down 39% from this time last year
Sold Listings last Month495Down 26% from last month & down 35% from this time last year
New Listings last Month764Up 20% from last month & down 18% from this time last year
Months of Inventory2.41Down 1% from last month & up 102% from this time last year
Absorption Rate25%*Down 22% from last month & down 58% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$477,000Up 2.5% from last month & up 5% from this time last year
Average Residential Sales Price$470,000**Down 4% from last month & up 4% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.12%***Down 5% from last month & up 66% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

One month of statistics doesn’t necessarily give us an accurate statistical assessment of the market, but 2023 started where we left off in 2022 in that our inventory still remains incredibly low and rates on the higher side.  Activity was slower overall in January in many areas of our valley, but we did see an uptick in activity a few weeks ago when interest rates dipped below 6%.  We have noticed more competitive bidding war situations lately, and the lower rates go the more sidelined buyers will jump back into the game.  Lately we have seen rates increase a bit more above 6% in the last week, so that has stagnated some activity.  The CPI figures that came out this week showed that inflation continues to be an issue with an overall increase of 1/2% overall.  Although goods and services have increased costs significantly over the last 9 months, people are still spending.  Retail did very well in January so that has the markets concerned for a longer than expected corrective trend.  The Federal Reserve meets the third week in March and it can be expected that they will probably raise rates again.  Most expect them to raise another 25 basis points or .25% at that time, but we will see.  We are still expecting Mortgage rates to settle down this Spring, but inflation will be the determining factor.  This overall inflation reduction plan will probably take some time.

Cash buyers are continuing to keep our Real Estate market strong as well.  People have more cash than they ever have and that stability has really helped weather the storm.  People also continue to enjoy record numbers of equity in their homes.  Many are using this equity to leverage against the markets and purchase investment homes.  Rents continue to remain strong and can be a very effective portfolio strategy.  We recommend that every person diversifies with as much investment Real Estate as they can acquire.

We need a lot more inventory.  Builders are managing increased costs, new state and local building codes & laws; which can slow down incentivization as risk increases.  Many other homeowners are not interested in making the transition from one home to another in a market with limited supply.  It also takes quite a bit of motivation for someone to move from a 3% mortgage rate to a 6% mortgage rate.  We continue to see the benefits of a buyer’s ‘Winter Window’, but that may be closing quickly.  As Spring draws closer and it begins to warm up; people will get energized to make a move.  One thing that we can count on is that activity will pick up in the Spring and Summer.  The question will be, will there be any inventory to choose from?

If you or anyone you know is planning on making a move, give me a call.  Every situation is different and I can help them gain the knowledge they need to make a wise decision.

We Love your Referrals!

October 2, 2023

Your Referrals Mean the World to Us

Referrals are the lifeblood of any business, and real estate is no exception. When someone you trust refers you to a service provider, you’re more likely to do business with them because you know that they’ve been vetted by someone you know and trust.

That’s why we’re so grateful for the referrals we’ve received from our past clients. It’s a wonderful feeling to know that our work has been so appreciated. If you know anyone who’s thinking of buying or selling a home, please don’t hesitate to refer them to us. We’d be honored to help them.

We’re a team of experienced real estate agents who are passionate about helping people find their dream homes. We have a proven track record of success, and we’re dedicated to providing our clients with the best possible service. If you know anyone who’s thinking of buying or selling a home, please refer them to us.

We’re known for our excellent customer service and willingness to go the extra mile to help our clients achieve their goals.

Thank you for your referrals! They mean the world to us.

Beware of Scams

October 2, 2023

Awareness is Key to Safeguarding Against Scams

When it comes to safeguarding against scams, awareness is key. By being vigilant and recognizing consistent red flags, you can effectively thwart scammers in their tracks. Stay one step ahead and keep an eye out for these warning signs to protect yourself from falling victim to fraudulent schemes.

Unexpected contact – You receive unanticipated contact by phone, text, or email from an individual or organization regarding an invoice, order, delivery, or charge that you don’t know about.

Sense of Urgency – Scammers employ tactics to manipulate and create a fabricated sense of urgency, resorting to rude or aggressive language to pressure you into taking immediate action.

Unusual Payment Requests – Be cautious if someone asks you to make payments or send money through unconventional methods such as gift cards, cryptocurrency, payment apps, or online wire transfers to deceive you into paying for something, resolving a fabricated issue, claiming fake sweepstakes winnings, or promising unrealistically high returns on investments. .

Coercive Communication – threatening language, claiming that you owe money and using scare tactics like threatening to involve the police if immediate payment is not made.

Love Scam Trap – Watch out for a potential online love interest who showers you with romantic words but avoids meeting face-to-face. Be cautious of these “romantic emergencies” and avoid sending money to someone you haven’t met in person.

Homebuyers Specific … Particularly during the closing process, scammers employ deceptive tactics by sending fraudulent emails to homebuyers, impersonating trusted individuals such as the real estate agent, settlement agent, or legal representative. These spoofed emails contain fictitious instructions for wiring closing funds, putting unsuspecting homebuyers at risk of financial loss.

Always verify with your agent and another trusted individual like a settlement or mortgage officer that the request for funds is legitimate before transferring money.

If you feel that you have become a victim of such a scam, contact your bank or wire-transfer company immediately to ask for a wire recall.  Responding as soon as possible may increase the likelihood you’ll be able to stop the transfer and/or recover your funds.

For more information, see Mortgage Closing Scams on the Consumer Financial Protection Bureau website.

If you want to report a suspected crime, contact the Internet Crime Complaint Center or IC3.  The nation’s central hub for reporting cyber crime is run by the FBI, the leading federal agency for investigating cybercrime.  Go to their website for more information and to file a complaint.

Paramount Oregon Paramount Oregon
© 2024 Brian & Nina White
1008 12th St. SE Salem
Principal Brokers Licensed in the State of Oregon