- The Lake Oswego housing market is ending the year strong. By November’s end, we saw an 8.6% increase in home sales values and a cumulative increase of 316.3% increase in value since 1997. A total of 694 homes had sold over the course of the year, slightly besting last year’s total of 681.
- The Month’s of Inventory (or MOI) tells us we are still in a seller’s market as the number was 1.4 for single-family homes and 1.3 for condos or attached homes. The MOI speaks to how long the current inventory of homes on the market can last relative to demand and traditionally, inventories of four months or less are considered a seller’s market. Anything above six months is a buyer’s market and a balanced market looks at an inventory between four to six months.
- Despite it being a seller’s market, mortgage rates are working in the buyer’s favor hovering at a record low, 2.72 for a 30-year fixed-rate loan. Realtor.com predicts they will tick up by the end of 2021 to the vicinity of 3.4% so buyers need to weigh that into the timing of any decision they make.
- The maximum conforming loan limits have been raised for single-family properties from $510,400 to $548,250 which is good news for people looking to buy a home in Lake Oswego where property values tend to be higher. Why is that? Anything over the conforming loan limit kicks a loan into the “jumbo loan” category which is considered riskier for lenders because they are not guaranteed by Freddie Mac and Fannie Mae. As a result, the underwriting criteria for a jumbo loan are stricter including: higher credit score, cash reserves, and larger down payments. The interest rates charged can be a little higher too as well as the closing costs. The higher limit on conforming loans gives buyers a little more wiggle room, especially in a market like Lake Oswego.
- Personally, I am seeing the lure of suburban living drawing newcomers to Lake Oswego. Just in the past month, I’ve worked with a couple buyers looking to move out of Portland and a couple others moving out of the San Francisco Bay Area. Every week I tout the benefits of living in Lake Oswego on this blog because it really does have so much to offer. From the sheer physical beauty to the highly rated school district to its location, I am never surprised when it is “discovered” by homebuyers looking for a place to settle.
If you or anyone you know is looking to move in or around Lake Oswego, please have them give me a call at 503.939.9801 and/or check out my website. I’ve been helping buyers call Lake Oswego home for over 30 years and I’d love to do the same for you!