I am a 2-drink max kind of a gal. Drink #3 always causes some kind of havoc that I would prefer to avoid. Regardless, occasionally I indulge.
We don’t usually associate overindulging with real estate but that is exactly what has happened over the past 2 years. Buyers, sellers, agents, lenders and brokerages have literally been on a real estate bender. The cocktail of historically low interest rates and low inventory was simply irresistible.
With rising interest rates, the mega-party is over and the hangover can be uncomfortable. I hear the angst in my seller’s voices when their listing doesn’t go pending over the first weekend and the remorse my buyers feel because they “missed out” on that 3% interest rate. Despite my encouragement that this market is actually more normal and healthier, the headache doesn’t go away that easily.
So how can we cope with this “hangover” while it lasts?
Perspective is Key
In a recent Inman News article, Gary Keller, Founder of Keller Williams, offered some wise perspective sharing that he tells people who locked in at 3% that it was literally a gift from GOD. The past 2 years have been a historical event that we witnessed and some of us indulged in. To define it as normal is an illusion.
The news has the whole world thinking that the sky is falling and that it is a TERRIBLE time to buy and sell real estate. My advice is turn off the TV and talk to a seasoned real estate professional about what is really happening in your market.
According to the July 2022 RMLS Report, Portland has only 2.0 months of inventory. Historically, 4-6 months is considered a balanced market. Although Pending and Closed sales are down approximately 30% from heydays of 2021, average days on the market is only 20 days and average sales price is $635,700 up 9.4% year to date. Not bad for a “crashing” market.
Remember A Real Estate Golden Rule
Real estate is meant to be a long term 7–10-year investment. This time period gives room to ride the continuous wave of inevitable real estate cycles and decreases your chances of losing your seat.
Tapping Into Contentment
For me, I realize that any angst about a changing market is based in greed and fear. Our market is healthier than it was a year ago. I remind myself that I have lived through FAR worse markets and because I committed to hanging in there, I came through the other side stronger. My only antidote to this “hangover” is contentment. Each day, I start by appreciating what I have and encourage others see their abundance too.
UPWARD AND ONWARD!!!