In real estate, and life in general, we come across individuals offering opinions to the current market conditions - especially when it comes to buying a home. There are those who have the "glass is half empty" mentality; who will sit and wait until it is announced on the major news media that the Portland/Vancouver real estate market has hit bottom. To say they are absolutely in the wrong would be a bit rash; however, we can tell you that when the headlines begin to insinuate we have hit that mark IT IS TOO LATE.
Yes, it is too late! When that happens, the masses have awakened and hit the streets to find the deals everyone has anticipated and envisioned. Yet, the trouble is as simple as your high school economics course - supply and demand.
Right now, we are experiencing high volumes of available homes in our local market - more than 10 months worth of inventory according to our recent RMLS data. This creates tons of competition and thus drives down the prices as each Seller tries to undercut the other home prices in the neighborhood. When the price is lowered, another neighbor then drops its home below that price and so forth - a domino effect and an occurrence that has lead us to the current bargains found throughout the Metro area.
Now imagine, buyers start to come around to the opportunities because they have heard the magic words "the market has reached rock bottom". Each one looking for a steal - one they can brag to their friends about. A buyer finds the perfect home and submits an offer to ultimately find they are one of three offers on the table. What now? There are three buyers who feel this is the perfect home - how far will one go to entice the Seller to pick their offer over the others? This situation then creates another competition which in most cases, drives the price of the home higher. What happened to the bargain???
The bargains existed BEFORE the big announcement. Before the large writing in the sky stating now is the time to buy because the Portland Metro area has hit rock bottom.
We are sitting on opportunity right now! Prices are low, rates are low and there are lots of homes to choose from. This is the epitome of a Buyer's Market. It could be placed in a dictionary reading: Buyer's Market, defined as the 2009 Portland/Vancouver Real Estate Market.
With all sarcasm aside, it would be unjust if we failed to emphasize this opportunity. If ever you were considering purchasing your first home, an investment or just making a change in scenery, it is so important to do it now... before the masses.
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