PORTLAND REAL ESTATE MARKET - SEPTEMBER 2023

The Portland area real estate market slowed in September as rising interest rates remained persistent. Most notably, the number of closed sales in September was a 20.3% decrease from August 2023. Interest rates went up considerably in early August causing some buyers to pump the brakes on their plans to purchase a home. Pending sales, reflecting offers accepted, also witnessed a dip, with 1,809 offers being accepted. This represents an 11.9% decrease from August 2023. This reduced activity resulted in an increase of inventory to 2.9 months in September, which historically is still low, but is the highest that we’ve seen in over two years. Inventory may continue to rise due to lower demand, however, new listings in September saw a decrease, with 2,713 new properties hitting the market at a 7.2% decrease from August.

With rate hikes expected to continue, sellers need to be realistic about the price of their home and put effort into making the home look its best before it hits the market. For buyers, rate buydowns will continue to be key and there’s little data to support that waiting to purchase a home will be beneficial. The number of potential buyers waiting for rates to drop has doubled since May (according to John Burns Research) and when rates do drop, buyer demand will increase, supply will likely remain limited, and that will drive prices up. Rising rates may diminish prices slightly, however, the interest rate hikes will have a greater impact on a buyer’s monthly payment. Additional inventory and more days on the market is giving buyers more options and more negotiating power. Although the third quarter was rather slow at a time when the real estate market is typically strong, we at Ark Realty Group are seeing strong activity in October with signs that the 4^th quarter may bring at least as much activity as the 3^rd quarter.