All eyes are on the market and we’re not looking away. September numbers are out. Portland metro inventory increased to 2.2 months in September. Total average market time increased to 34 days. Even so, Portland area homes, IF priced properly, and selling for 100.1% of asking price.
It seems like every timeI look at the news, I’m getting another update on inflation, and more importantly, interest rates. As summer started, mortgage rates were just slightly over 5%, but have steadily climbed toward 7% or above. This is the highest rates have been since early 2002.
Why does all of this matter? Well, that change in rate is putting some potential buyers out of the market, and could cost them $231,000 or more in additional interest on a $600,000 home. More importantly, their monthly payment has changed from $2,684 per month to $3,327 over the same period of time on that $600,000 home. That’s an additional $643 per month!
We live in complicated times and it’s a complicated market.Unfortunately, rates are expected to continue to climb through October and affect the housing market. Be sure to follow us on Twitter, Facebook, and Instagram and reach out if we can answer any questions.