It has been about six weeks since my last Lake Oswego housing market update so I thought I’d fill you in on what I’m seeing on the ground these days.
There is a continuing calming down trend. The craziness of the last 18 months has gone out of the market taking with it buyers who were relying on “free money” (at 2.5%) to bid up prices.
In addition, the stock market ride has put caution in people’s paths as they try to sort out the impact all the commotion will have on their big picture.
As a result, buyers don’t quite know what to think and in many cases, neither do sellers. That’s why it’s more important than ever to be working with a Realtor who truly understands the local real estate market.
One thing I’m seeing is buyers who, because they’ve heard the market has slowed, think they can come in low and get their offers accepted. It reminds me of when my wife and I moved here from California and put our first offer on a house. Our California snobbiness had us thinking we could offer quite a bit below asking price because we hailed from a market much stronger than Oregon! After we lost the house to a higher bidder, we ate humble pie and came back with an offer over asking when the house came back on the market.
Despite the fact that the market has calmed down, inventory is still limited (1.9 months) and in Lake Oswego, 46% of properties sold for over the original asking price in July. Remember, anything under 6 months of inventory reflects a seller’s market; anything over 7 months indicates a buyer’s market. So buyers need to be going into offers with their eyes wide open and their egos left at the front door.
Another indicator is that the average sale-to-list ratio is 100%. Granted, this is slightly lower than it was in July of last year (at 102%) but it still reflects a solid market.
Sixty-one homes sold in Lake Oswego in July of this year, compared to 97 last July which was a decrease of 37%. So the volume has slowed, a reflection of both limited inventory and fewer buyers in the market. But the things that are selling are holding value.
I like being your resource for information about the Lake Oswego housing market so please feel free to give me a call to discuss how current market conditions impact your plans to move in, out or around Lake Oswego. You can reach me at 503.939.9801, email me at email@example.com and/or check out my website. I look forward to hearing from you.