We may be in the grips of winter but the market is already showing signs of heating up! Low inventory and resumed consumer confidence has resulted in a return of multiple offer situations on the best listed homes. The Federal Reserve announced on January 30th that they would take a more cautious approach moving forward. This is in contrast to it’s more aggressive approach in previous years. Fed take cautious approach
The Fed raised the Federal Reserve rate four times in 2018. Their last rate change in mid December foreshadowed their less bullish approach to come stating they where predicting only two rate hikes for 2019 instead of the previous scheduled three.
So what does the Fed rate have to do with the Portland real estate market? As you may know the federal reserve rate is the rate at which banks lend to other banks. This rate is not tied to, but does strongly effect the markets and the home interest rates lenders use to loan funds to homeowners. Home loan interest rates rose a full percent from 2017 to 2018. I feel this is a large reason for why we saw downward pressure on home values and more days on market through 2018. Through the later part of 2018 there was a significant slow down in home sales. The news from the Fed in late January 2019 was the good news anxious buyers and sellers where waiting for.
The stable interest rates and lack of current inventory has already given the market a jump start. Reports of multiple offer situations have returned. Meaning more buyers are back in the market and ready to buy! I believe the smart seller will jump in now and take advantage of those eager buyers and stable economic conditions.
Looking to sell or buy yourself? Give me a call today! I am currently offering complimentary certified market analysis to sellers wondering what their home is worth.