In Part One, we explored why the Lake Oswego real estate market is changing. Higher mortgage rates, affordability challenges and more cautious buyers have shifted the balance between buyers and sellers.

But here’s the other side of that story: A changing market can create opportunities for buyers who know what to look for. After years of intense competition, buyers may have more room to negotiate, compare properties and make decisions without feeling pressured to act immediately.

Buyers: You May Have More Leverage Than You Think

Remember when buying a home meant rushing to schedule a showing, competing against multiple offers and potentially paying well over asking price?

That can still happen with desirable, well-priced homes. But today’s market may offer more flexibility. Depending on the property, buyers may be able to negotiate a lower price, request closing-cost assistance, negotiate repairs or take more time to evaluate their options. Homes that have been on the market longer or have already had price reductions may offer particular opportunities.

Of course, not every seller will negotiate. The goal is to make an informed offer based on comparable sales, the home’s condition, seller’s eagerness and current competition—not simply to offer less because you can.

Lower Prices Don’t Always Mean Lower Payments

A lower purchase price doesn’t automatically make a home more affordable when mortgage rates are higher.

Imagine a $1 million home drops to $900,000. That’s a $100,000 reduction, but depending on the interest rate, down payment, taxes and insurance, the monthly payment may still be higher than it would have been at the original price with a lower rate. Look beyond the asking price. Work with your lender to understand the full monthly cost and make sure the home fits comfortably within your budget. The best opportunity isn’t necessarily the home with the biggest price reduction. It’s the home that offers the best value for your circumstances.

Should You Wait for Prices to Drop Further?

It’s tempting to wait for the market to hit bottom, but nobody knows exactly when that will happen. Prices could fall further in some segments. However, if mortgage rates decline, more buyers could return to the market and increase competition.

Rather than trying to time the market, focus on what you can control: your budget, financing and priorities. If you find a home you love at a price you can comfortably afford, today’s market may offer negotiating opportunities that were harder to find a few years ago. Refinancing could become an option if rates eventually fall, but your purchase should make financial sense at the rate you can secure today.

What If You’re Buying and Selling at the Same Time?

For move-up buyers, there’s more to consider. You may negotiate a better price on your next home, but you also need to account for what your current home will sell for and how long that process may take.

Consider your expected sale price, mortgage payoff, transaction costs and financing options. The smartest strategy looks at the entire move—not just one transaction.

The Bottom Line: Understand the Market and Use It to Your Advantage

The Lake Oswego real estate market isn’t what it was a few years ago, and buyers and sellers need to adjust their expectations. For buyers, opportunities may lie in negotiating, having more choices and facing less competition for certain properties. For sellers, success depends on realistic pricing, thoughtful preparation and responding to buyer feedback.

Neither side should assume every home is overpriced, every seller is flexible or prices will move in a particular direction. This isn’t a market to fear or blindly chase. It’s a market to understand—and use to your advantage.

We’re here to help you with that understanding. With over 35+ years in the Lake Oswego housing market, we have a pulse on current conditions and can use that expertise to help you make a sound decision when it comes time to buy or sell your home. Give us a call and let us make your next move your best one.

Kevin Costello kevin.costello@cascadehasson.com 503.939.9801

Riley Costello riley.costello@cascadehasson.com 971.322.6205