While the HOT housing market may be cooling down a bit, I am still seeing quite a bit of activity in Lake Oswego. I’m also seeing a move towards normalizing the market which as I’ve said all along, I think is a good thing in the long run.
Here are some of the subtler shifts I’m spotting that indicate we are in a different market than we were a year ago. Of course, you’ve all read about how higher interest rates are taking the steam out of the market but I’m talking about shifts that don’t make the headlines.
Like price drops. For instance, a 4-bedroom 3-bath home in the Palisades Terrace neighborhood dropped its list price by $255,000 after 30 days on the market and no sale. A 4-bedroom 2.5 bath home in Mountain Park lowered its list price from $920,000 to $879,000, a drop of $41,000 after 27 days. After 29 days on the market, a 5-bedroom 4.5 bath home in the coveted First Addition neighborhood is listed at $2,998,000–$197,000 lower than its original listing price.
Like bidding wars. I’m not seeing the mad frenzy that had 10-20 buyers all vying for the same property and trying to outdo themselves with offering thousands over asking and waiving inspections. Instead, buyers are often accepting the first and what they assume is the best offer. Or buyers are finding themselves competing with two or three other buyers instead of an entire posse.
Like increased inventory. According to real-estate and economics writer, Bill McBride, an increase in inventory is the bellwether signaling a market shift in today’s market because, as he states in a recent article in The Atlantic, “…as inventory increases, house-price growth will slow.” Last year we often saw the month of inventory, meaning how long the current supply of homes on the market would last if no new listings were added, often register below one month. In May, the MOI for Lake Oswego detached homes was 1.5. While we are still months away from what’s considered a “healthy” supply—six months—at least we are headed in the right direction.
Like appreciation. Don’t get me wrong, home values are still going up in Lake Oswego. But the annual change in 2021 was a 24.3% increase. At the end of May, the appreciation stood at 11.4%. To give you some perspective, I’ve tracked the appreciation rate in Lake Oswego over the past ten years. Take a look:
|YEAR||Average Real Estate Sold Value||Annual Percentage Change|
|2022 (Year to date)||$1,365,437||11.4%|
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