This Spring we are ‘celebrating’ the 2nd anniversary of our home search. It has been a frustrating process, and I’ve been particularly mystified about the Portland area real estate market’s apparent disregard for the law of supply and demand. The number of houses on the market continues to grow, the number of days on the market grows, and yet there is no significant pullback in prices. A post on the Hillsboro Realtor blog today has a perspective on the market that I really appreciate:
The Hillsboro Realtor: Weekly Mortgage Matters!: “Many of us are anchored to home prices and mortgage application processes in vogue four years ago. But that’s not today’s market, and no amount of wishing will turn back the clock. If buyers are only willing to pay $200,000 for a house bought for $250,000, the $50,000 difference is gone. Listing the house for $250,000 is a waste of time for everyone involved. Same can be said for applying for a subprime, non-verified loan.
This isn’t to say that home-price appreciation and more relaxed lending standards aren’t in the future; they very likely are. But if someone needs to sell a home or get a mortgage today, he has to play by today’s rules. The sooner everyone realizes that fact, the sooner the housing market will begin its recovery.”Share this: