Here’s a quick look at some market predictions for buyers and sellers.
What can we expect to see in the Portland real estate market as we head into the busy spring season of 2022? For one, we’re already starting to see more multiple offers on properties. Things slowed down in December and January, but now they’re starting to surge again. Homes are also starting to spend less time on the market; many are selling in less than a week.
Most experts say that we will continue to see appreciation in home values. Last year, we saw 20% appreciation in some Portland neighborhoods. It probably won’t be that drastic this year, but we can still look forward to robust appreciation regardless, perhaps around 14% to 16%. In any case, it’s still going to be a seller’s market.
“Many people are becoming more interested in real estate as a long-term investment strategy. ”
Buyers should also expect to see interest rates continue to rise throughout the year. Inventory will likely continue to be low, though perhaps not as low as it was in December. We may see some new supply hit the market in the form of homes that have been foreclosed upon after being in forbearance, but it won’t be enough to create a big market downturn.
Inflation, on the other hand, might succeed at slowing the market down some. We’re currently at a 31-year high. Real estate is a great hedge against rising prices. As the price of many goods goes up, so too does the value of a home, which equates to increased equity.
I’ve noticed that many people are becoming more interested in real estate as a long-term investment strategy. If you’ve been thinking about becoming an investor or you’d like more detailed information about what the 2022 market has in store, don’t hesitate to give me a call or send me an email.
