What is a Seller's Market?

Basically, it’s a housing shortage.

A seller’s market is when there are more people that want to buy houses than people who want to sell them. This creates a shortage. When there is a shortage of home, the demand for them goes up. High demand = high prices. It also means that seller’s are not interesting in making concessions for buyers (like taking less than asking price, making repairs, or offering seller credits).

Portland is in a strong seller’s market

The technical definition of a seller’s market is when there is less than six months worth of housing inventory. Since 2020, when COVID changed the way people thought about their homes in, most of the areas throughout the Portland Metro area had less than ONE MONTH of housing inventory. That means that if no more houses come onto the market, then within one month, they would all be sold!

Since the FED began raising interest rates in the summer of 2022, mortgage rates have also gone up, which has slowed the demand for houses. At the end of 2022, Portland is now at about 2.5 months of inventory. Which means there are more options for buyers to choose from, and you don’t have to rush to select the first place you see. 2.5 months is still considered a “Seller’s market” and sellers are still not coming down on prices, offering many concessions or wanting to work with buyers who are not strongly qualified.

Getting Pre-Qualified / Pre-Approved is Key

Regardless of if we are in a “Seller’s Market” or a “Buyer’s Market,” it is imperative that you have all your ducks in a row before you go looking for a house. You want to be sure you know what you can afford (and the sellers want to know you can afford what you offer). If you’re not pre-approved already, you should talk with a lender soon to see what steps you need to be taking.