February 2023 -- Market Update Email

Monthly Market Report
February 1- February 28, 2023
Hey hey hey, have you heard the news? Home prices are down for the sixth month in a row!
 

But don't freak out yet, it's only a measly 4.4% decrease (well, 5.3% in portland but who's counting amiright?), which is nothing compared to the insane increase we've seen since 2020.
 

 
Ok so let me put it into perspective for you: if you were eyeing a house at the start of 2020 for $300,000, it's now worth $435,000. So, even with this dip, we're nowhere near pre-pandemic levels.
 

That being said, home price declines are rare, with only three instances of six straight months of decline. And what has me up at night is the *pace* at which we're declining. If you compare it to the early stages of the 2008 crash we're actually dropping at a rate that's 4x quicker :o[
 

That crash took years to bottom out, and the median price of a home declined by about 27% nationwide.

So, what can we expect going forward? Who knows. The Case Schiller index is a lagging indicator, and the latest report was from December which showed home sales in October, November, and December... and here we are in March.

Interest rate hikes likely contributed to prices falling in that period, as between August to November the average interest rate jumped from 4.99% to 7.08%

 

With the short-lived New Year bump I wouldn't be so shocked to see that prices improved in January so the next case Schiller report might snap the decline streak.

But it doesn't change the overall trend. My gut still tells me it's going to get a lot worse, quickly

If you're planning on selling this year, my advice is you move fast. Taking the next couple of months to "fix your house up to be ready to sell" you might find that the negative appreciation wipes out all of your effort.

And if you are planning on selling this year.....


 
Click Here for the Full Comprehensive Report

5 most expensive sales this month


 1.  869 S Stonehenge Ter, West Linn -- $3,275,000
 2.  17627 Kelok Rd, Lake Oswego -- $2,995,000
 3. 1956 Highlands Loop, Lake Oswego -- $2,910,000
 4. 17688 Upper Cherry Ln, Lake Oswego -- $2,500,000
 5. 4938 SW Park Bluff Pl, Lake Oswego -- $2,470,050

 
Real Estate in the News
-Reuters
 
Silicon Valley Bank collapses after failing to raise capita
-CNN Business
-Realtor.com
-Zillow News

Current mortgage interest rates

 
rates as of 3/10

This week's showing activity

Thinking of buying or selling?

We are happy to sit down and talk about it. Let us know if there is anything in the world we can do for you

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