Portland Real Estate Market Update- May 2021

Inventory hit a record all time low of 0.7 months of inventory in May, but not for a lack of new listings!  New listings are up 9.3% year to date, but the low inventory reflects the strong buyer demand for the homes hitting the market.  Heading into the summer, usually more homes hit the market than any other time of year, so we are optimistic that summer may bring more options for home buyers.  Holiday weekends can be a great opportunity for buyers that stay in town – fewer homes hit the market, but the competition for those homes drops even more than the new listings coming on that week.  Many potential buyers have concerns about prices rising so quickly – we don’t expect that prices will go down.  At some point, they will likely stop appreciating so quickly, but there is no indication that prices will go backwards.  If you’re wondering when the best time to buy is, NOW is the time.  Rates are still great at just over 3% and prices will only continue to rise.

The market continues to be AMAZING for sellers with prices up 18.9% on average since the beginning of the year.  Homeowners are gaining equity faster than nearly any other investment at the moment.  It’s an incredible wealth building opportunity.  Some homeowners are reluctant to sell even though they would like to make a change because they don’t know if they will find what they are looking for.  This is a big concern for sellers, but there are options to help sellers move on to where they want to go next.  Most are finding that they can get a free 60 day rent back (the buyers close on the home and rent it back to the seller for an agreed upon length of time up to 60 days) from a buyer that is happy to get their offer accepted.  In that 60 day rent back, most of the time, the sellers are able to find a home and often close on it during that time preventing them from having to rent for a short time and move twice.  Contact us to find out how to navigate this and make your move happen!