Prices rose and inventory dropped in our market in 2017. In 2018, you can expect inventory to remain low and prices to continue to rise.
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First, let’s talk about how our 2017 market did compared to 2016.
The average sale price rose $24,000 to $287,900. The median sale price also rose $23,000 to $260,000. The bottom line is prices rose just about 10%, which was something we addressed throughout the year. In contrast, the average days on market dropped 33% to 56 days. This means if you put your house on the market, you can expect to have a very good chance of selling it within 56 days. Of course, some properties go much quicker than that.
Looking toward the future of our 2018 market is where things get interesting. Here are a few conservative predictions.
Prices are expected to continue upward between 4% and 7%, and interest rates are expected to increase to 4.5% to 5%. Inventory, however, is expected to remain low, and there are a few reasons why.
What happened in our market in 2017? What’s going to happen in 2018?
First, let’s talk about how our 2017 market did compared to 2016.
The average sale price rose $24,000 to $287,900. The median sale price also rose $23,000 to $260,000. The bottom line is prices rose just about 10%, which was something we addressed throughout the year. In contrast, the average days on market dropped 33% to 56 days. This means if you put your house on the market, you can expect to have a very good chance of selling it within 56 days. Of course, some properties go much quicker than that.
Looking toward the future of our 2018 market is where things get interesting. Here are a few conservative predictions.
Prices are expected to continue upward between 4% and 7%, and interest rates are expected to increase to 4.5% to 5%. Inventory, however, is expected to remain low, and there are a few reasons why.
Whether you’re a buyer or a seller, you’re better off acting sooner rather than later in 2018.
First, Oregon is the second-largest moving destination in the country, which means we’ll have the continual pressure of people moving into our area and not enough homes to service all of those people.
Second, millennials are ready to buy homes. They’ve been patient and saved up their money, and the market is ready to absorb these buyers.
Now that we have an idea of what’s going to happen, what’s the potential of waiting to buy or sell—say—six months down the road in 2018? If you had a $250,000 mortgage and the interest rate rose from 4% to 4.5% in that six-month span, your payment for the same house would increase $162 per month.
My advice for both buyers and sellers is to act quickly. Prices will continue to rise, but buying is still a much better option than renting. Furthermore, the rental market is crazy and the price of rentals exceeds the cost of a house payment.
If you have any more questions about how our market will unfold in 2018 or you’re thinking of buying or selling a home soon, feel free to give me a call or shoot me an email. I’d love to help you.
