We already know that housing is in short supply in the Portland real estate market. And this is not inclusive of Portland either. In just about every market across the country, the lack of inventory is squeezing homebuyers making offers over asking price and escalation clauses the norm. We just barely touched into spring so what are we expected to find as we continue into the spring real estate market.
Increased mortgage rates.
Regardless of how well the economic recovery is going, mortgage rates will continue to rise. I feel that we’ve probably seen the lowest mortgage rates in history and they will continue to rise, although not that fast. Rates have been on the rise for weeks and while at the beginning of 2021 they were holding under 3%, many analysts and economists believe that it would be a good time for borrowers to try to lock in low rates even if they don’t plan on buying for the next month or two.
The current 30 year fixed rate mortgage is anticipated to average 3.1% throughout the spring months of 2021. At the first part of the quarter, it was under 3% at about 2.9%.
As more and more Americans become vaccinated, the economy will recover even more pushing mortgage rates up as more and more buyers hit the market. And, many economists feel that there won’t be a major crash to the spring real estate market but price appreciation could slow down slightly as new homes are being built.
Inventories will increase.
While the price of everything has gone up including building supplies, builders are still constructing new developments, subdivisions, and communities. Homebuyers have felt very frustrated over the last year being bought out, outbid, and turned down on multiple offers and while it might be almost impossible to find available properties now, homeowners may be more likely to list their properties because people are vaccinated and there will be a less fear of the pandemic. This means that more homes on the market as well as more builders allowing more inventory for current homebuyers.
Millennials are moving.
Another major trend in 2021 that could influence the spring real estate market is millennial’s. Nearly 5 million millennials are set to turn 30 years old this year and are making the biggest jump of their life… Becoming homeowners. In 2018, millennial homeownership was at record lows but that’s definitely changing. According to a recent article around, “86% of younger millennials and 52% of older ones are buying first homes, and some are buying luxury properties that are well beyond what you think of as a starter home.” [Source]
Millennials will likely drive the market throughout 2021 and 2022. According to a survey from the National Association of Home Builders, 27% of millennial respondents said they plan to buy a home in the next 12 months, up 19% from the previous survey.
Online is always the way to go
Online real estate services are continuing to grow in popularity. This is unlikely to change even with the majority of Americans becoming vaccinated. There are so many ways that technology has accelerated the real estate market over the past year that most people will continue that trend with virtual showings, mobile or online closings, and simpler ways to buy or sell a property.
If you’re looking to sell your property in Portland, now is definitely the time. Spring has sprung and is definitely upon us. Now is the time to sell your property for the most profit and have buyers compete over the highest price.
Whether you’re planning on selling your Portland home, understanding the market is a huge part of knowing how to price and sell. Contact Matin Real Estate Group at any time to find out what your Portland real estate or property is currently worth. You might be surprised! Home values are up all over the place! Let us help you get every penny you deserve.
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