Market Report May: What the Heck is Happening?

LOW INVENTORY + PENT UP DEMAND = HIGH SALES PRICES

You probably know that the housing market is going bananas but have you dug deeper to understand why it has become a booming seller’s market and a tightrope for buyers? For the past year, we’ve been running at an incredibly low inventory, averaging at about a one-month inventory (rather than the typical 3 month inventory) to sell all the properties for sale on the RMLS. These historic numbers have meant that the number of potential buyers for each property listing has quadrupled. Sellers are now able to pick the very best offer among really great offers. We are talking tens of thousands over asking, no inspection ‘as is’ clauses, and cash. Pent-up demand from being at home for a year has meant a flood of new first-time home buyers, investors and upsizing is happening as the pandemic loosens its grip. Buyers meanwhile face rejection after rejection as they push forward. The pandemic has taught us nothing but patience right?

As a realtor helping buyers present the best offer they can is key. What that means now is that instead of looking for houses at the top of your price range, we start looking at properties that are listed 10-15% below their top budget so there is room for playing in the big leagues.

This parody from SNL really captures the insanity of the market right now. Here’s hoping that as life opens back up people will start moving again and our historically low inventory will improve and begin to stabilize the market.

ABOUT FRANCISCO SALGADO

An expert at selling homes for max profit, Portland real estate broker Francisco Salgado is persistent in the pursuit of homes and helps his clients act quickly when they’ve found a match. Contact Francisco so he can help you dig where you live, call/text 503-951-8548.