Lawrence Yun, the chief economist for the National Association of Realtors, recently made his predictions for 2025. Let’s see how they compare to what we see happening in Lake Oswego.

He sees existing home sales rising 9% year-over-year and new home sales to jump by 11%. That seems a little bit high to us considering where interest rates are currently and are projected to be.

In addition, a recent Bankrate survey found that it is cheaper to rent than to buy in 50 major U.S. cities, Portland metro area being one of them. Factor in rising costs for home insurance and property taxes and first-time homebuyers might still be waiting for the “right time.”

But it’s important to take in the whole picture. While the Bankrate survey takes a short-term view, it neglects to consider the long-term view that historically proves buying a home is a good investment. While Yun predicts the median home price going up 2% next year, here in Lake Oswego, we see a slow, steady market with home values increasing by @5% over the course of the year.

So, buyers who choose to wait it out on the sidelines are losing out on the equity homeowners can access when they want to buy their next home.

The good news for current homeowners is that 4 out of 5 Americans still want to own a home someday. And like Yun, we have seen an influx of cash buyers who are not affected by interest rates. Looking back on this past year we probably saw 40% of our buyers coming in with cash which always puts them in a very competitive situation.

More good news for both Lake Oswego homeowners and buyers is that we live in Clackamas County, not Multnomah. Steve Duin recently wrote a column about a gentleman who has lived in the same SW Portland home for 52 years who received a property tax assessment of $16,325.05. As Duin points out, “That’s a formidable sum, almost 60% more than the property taxes on a home of similar value in Clackamas County.”

As always, it’s best to work with a hyperlocal Realtor when looking to buy or sell a home. My daughter and I have lived and worked in Lake Oswego for over 30 years so we’d love to be those experts for you. Read one of our previous blogs to learn how we work. We’re here to help you make a wise investment decision whether you are looking to buy or sell. Feel free to reach out and see what we can do for you.

Kevin Costello kevin.costello@cascadehasson.com 503.939.9801
Riley Costello riley.costello@cascadehasson.com 971.322.6205