Here’s what we are seeing in the Lake Oswego housing market.

There are pockets in today’s market. Some homes, especially those below $1M, are selling quickly, occasionally with multiple offers. In the higher priced pocket, prices are coming down which means we may be seeing less than our usual 5-6% appreciation this year in that category. Price adjustments are happening and they do seem to help. It’s not unusual to see a high-end property be reduced in the neighborhood of $200,000 – $600,000. Some new construction houses have seen price reductions of up to $1 million from the listing price at the start of the build.

The table below shows you that in July houses priced $2,000,000 and above were considered a buyer’s market with 23 homes listed in the $2M to $2.4M price range, making for 7.7 months of inventory. Compare that to homes in the $800,00 to $1.2M range with only 2.2 months of inventory.

Buyers are out there but they are being very pragmatic and factoring in things like the costs to update/remodel, appreciation and interest rates which are still stubbornly high even though they’ve just crept down about a quarter of a point.

In this past year we’ve seen more sale fails than we have in the past. In the recent months it has been as much as one in five houses. Factors that influence buyers to back out include job loss or insecurity, rising insurance costs, and inspection reports that indicate replacement or maintenance far exceeding buyer expectations. We even recently had a sale fail due to CC&R’s whose truck weight limit for parking in the driveway was lower than our client’s vehicle.

I have been selling homes in Lake Oswego for over 35 years so I have seen it all, including interest rates of 9.5%. With that historical perspective, I can assure you that interest rates will come down. Prices will stabilize. Seller expectations will come more in line with buyer expectations.

But in the meantime, both sellers and buyers need to be patient. Some houses in that under $1M category can still be getting multiple offers and buyers need to be cautious not to get caught up in the frenzy and still make a sound financial decision. As we’ve said before, we have talked buyers OUT of buying homes that we thought were not a good investment.

Sellers also need to be patient, especially in that higher price range. And with the scrutiny with which buyers are approaching that market, it’s wise to have the house as updated and maintained as possible before listing. Eliminate any surprises that might show up in an inspection by being proactive and taking care of things. We have also been known to talk sellers OUT of selling their home depending on their life circumstances, their plans for moving forward, and current market conditions.

We are here to help both buyers and sellers make their next move their best one, no matter the market conditions. We are grounded in experience, market expertise, resources and a commitment to providing advice in our clients’ best interests to ensure that the homebuying and selling experience is a positive one. Please give us a call if you are looking to buy or sell in Lake Oswego.

Kevin Costello kevin.costello@cascadehasson.com 503.939.9801

Riley Costello riley.costello@cascadehasson.com 971.322.6205