What’s going on in the Central Oregon Real Estate Market?
There are so many opinions out there about what is happening in the world of real estate, the noise is nearly deafening if you’re trying to search for expert opinions. The fact is, no one can say for certain, not even the most seasoned real estate professionals. We can predict with moderate certainty what will happen this week and maybe next, but not much more than that. We can even project with some sort of confidence what will happen over the next several months, but it is an educated guess at best. For those of us in the business, it is worthwhile to help guide and educate our clients but, at the end of the day, we just don’t know. Work hard and advise as honestly and concisely as you can.
All that said, what do we think is going on?
Let’s start with what we can actually see. We see price reductions galore, less buyer activity, and longer days on market for current listings.
All of this points to a big change in our market, as it is the complete opposite of what we have experienced the last 2 years. These are all good things, as they are indicators that point to us moving towards a healthier market, meaning a market more stable for both buyers and sellers. From the outside looking in, and with the backdrop of the 2008 recession that all of us still have in our mind, it appears that something serious may be starting to unravel. Experts don’t believe that to be the case. So many things were different then, the largest of which was lending standards, but we are not on the edge of a recession cliff. What we are on the verge of is some kind of market correction. And that does not mean we have to “fall” to correct. We just need to begin to head towards a more stable market, and that would most certainly include things like slower appreciation, less buyer desperation, and longer sale times (all things we are seeing now).
The uncertainty of what the future holds is a reason for both buyers and sellers to stay put and see what will happen before they make a move. Consumers are just taking a breath to ensure they make a wise decision, and there is nothing wrong with that. Once we see that the sky is not falling, we should see more sellers entering the market – and buyers will follow. At the end of the day, so many homeowners have a lot of equity in their homes and they will eventually want to cash in on that. It will just take a bit for homeowners to trust their footing before jumping back in the market.