Portland
Oregon Real Estate - Live Green...Live Well!
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Patrick
Smith, MBA, AHWD
Eco Broker Certified
503-421-3824
Licensed in the State of Oregon
CONTACT PATRICK
4001
NE Halsey Street, Suite 100, Portland, Oregon,
97232
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Are Potential Buyers of Portland Real Estate Going to End Up Kicking Themselves? A few days ago I sat down and reviewed my sales activity and efforts for the previous year as I make it a habit to do at the end of each year. What I discovered did not necessarily shock me (as I had a fairly good idea of what was happening throughout the year), but I will say I was a little surprised by the magnitude of the results: Approximately 3 out of every 4 prospective buyers of Portland real estate with whom I began working in 2008 never actually followed through with a purchase! Seventy-five percent! And only a small percentage of those persons failed to purchase due to not being able to get a loan or for fear of possibly losing their job in the near future.
So why did most prospective buyers not actually make a purchase? If I heard one of the following lines once I think I must have heard them a thousand times: “I think I’ll wait to see if prices drop some more”, “I think I will wait to see if interest rates drop further”, “I’m just not sure if this is a good time to buy” or some other non-committal phrase. Unfortunately, prospective buyers are continuing to utter these words. The harsh reality is that, at some point, they will have missed an incredible opportunity; an opportunity that was available for quite some time and suddenly no longer available to them.
I read a statement the other day by a realtor in another state that went something similar to “This is a buyer’s market! It’s called a buyer’s market for a reason. It’s not a I’ll Think About It market, or a Waffling market, or a Fence Sitters market…” and it went on much further than I care to add to this blog. However, his point was well-accepted on at least two accounts: One, because it made me realize I wasn’t alone in this crazy market and, two, because it is sadly true!
Just as some seller’s of Portland real estate waffled or hesitated just a moment too long a few years ago, there are many buyers doing the same thing at this very moment. Seasoned professionals tend to look at two indices of where the market is headed: What most people think the market is doing and what the market is actually doing. The difference between the two provide a lagging indicator of where we are headed. For example, I suggested in December of 2006 that the market was going sour. I based this assumption on what I observed and what was actually happening at that moment in the Portland real estate market. Unfortunately, I had a few clients who felt compelled to complete a few more projects before listing their homes. And when they were finally ready to list, they insisted on listing at 2005 prices. Not surprisingly, they were disappointed when it took their homes so long to sell and after having dropped their prices several times.
Currently, I have seen home prices stabilize in recent weeks and more activity happening in the market place. The lagging indicator in this market is, again, price versus action. If potential purchaser’s of Portland real estate continue to “sit on the fence” they will soon realize they missed their best opportunity: No one should expect interest rates to go much lower – the reality is they are likely to begin climbing; home prices are not likely to drop much lower either – we have already seen a decline in the month-to-month foreclosure rate which is a good indication the market will be improving.
If you are a potential buyer of Portland property and are simply playing a waiting game, I would suggest the game is almost over!
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