Portland Real Estate Market Update- June 2021

Are we near the peak of the market?   There are some signs that say we might already be there.  For example, mortgage rates are down again (under 3%) and new mortgage applications have not increased like they usually would when rates drop.  There are still multiple offers, but not as many offers and not as far over asking.    We are starting to see some more contingent offers getting accepted as well.  Inventory is still very low at 0.8 months of inventory.  That will only change when buyer demand slows down.   There were more closed sales in June of this year than any month in the last five years.  The rapid price increases over the last year continue with the average price rising 2.6% in June alone and a whopping 20.1% year to date.  We expect this rapid appreciation to slow down soon, but we don’t expect homes to depreciate.  We anticipate that appreciation will begin to slow down over time and move towards more of a standard year over year appreciation around 5-6%.  Now is still a great time to buy with interest rates being lower and a little less competition than we saw in the spring.  It’s also still a fantastic time to sell as prices have never been higher and it’s almost never been easier to sell than right now.