Portland Real Estate Market Update- April 2022

Inventory is up slightly from March to April at just 0.8 months.  Although inventory remains very low, the market is starting to shift.  New listings are up 4.6% in April over March and buyer demand for homes has softened slightly as interest rates passed 5%.  Pending sales were down 1.3% in April from March.  Our boots on the ground perspective is most homes are seeing fewer offers and the price generally isn’t going way over asking.  That really depends on how the listing is priced to begin with.  If the home is priced well or below market value, those homes are still seeing offers push the price well over asking.  If the home is overpriced, those homes are selling at or near the asking price.  We expect that if interest rates continue to rise, inventory will increase, multiple offers will become less common, and contingent offers will be back.  It is still both an excellent time to sell while homes are still selling very quickly and easily as well as a good time to buy because buyers have more choices and less competition.  It may at first seem like waiting to buy would be best if the market is slowing down, but interest rates are expected to continue to rise and the impact of the interest rate on an affordable monthly payment is often underestimated. The chart below illustrates how the interest change can often have as big of an impact on the monthly payment as a significant difference in price.