Are We in for a Market Correction Soon?

Property values continue to rise in Lane County, but I don’t think this trend is sustainable.

 If you’re a buyer, I think you should buy now.

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As most people are already aware, home sales continue to rise in Lane County. Over the past 12 months, property values have also risen to the tune of 8.4%. This is great news for sellers, but not for buyers.

Does this mean we’re in for a market correction soon? There are two prevailing opinions about this.

Some experts predict that property values will increase by 4% every year for the next several years, mostly due to millennials entering the market with more zeal than they have in the past. Others maintain that we can’t sustain such growth without running into an affordability issue, and we’re already having affordability issues as it is.

If I was a betting man, I’d predict that Lane County can’t continue this increase until more industry develops. For example, property values in Portland are rising more quickly than ours, but they also have more industry.

If you’re a buyer, you can either buy now and hope values keep rising so your home’s value does as well or wait for a correction. The problem with waiting for a correction, though, is no one knows if or when that will happen. It could be several years from now, so renting for that length of time definitely wouldn’t be advantageous. Another issue to take into consideration is interest rates will continue to rise, which hurts both buyers and sellers.

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The problem with waiting for a market correction is nobody knows when that will happen.

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With that being said, my advice to buyers is to buy as soon as possible.

If you have any other questions about our market or any other real estate needs, don’t hesitate to give me a call. I’d be happy to help you.