The Market Report Is a Sponsored Article written by our Editor, who makes his living selling homes, land, commercial property, and investments in Hillsboro, Oregon and the Tualatin Valley. This is the January Market Report through 1/11/2023
How is the Hillsboro, Oregon Real Estate Market doing so far in 2023? Will this year be a bust or another boom year? Should you sell your home? Buy a home? Well, this is my 41st year selling here in beautiful Hillsboro and if I do not know the market by now, I better hit myself in the head with a tack hammer and call it a day.
But seriously, we all can see that something is wrong. Things are slowing down, and homes are sitting longer on the market. So let me give all of you an update without droning on too much. So here goes.
1) Sales in terms of Volume year over year are way down. Up to 40% fewer homes sold in December 2022 than in 2021.
2) There is a HUGE lack of homes for sale. So the big reduction in sales was greatly caused by lack of inventory.
3) Prices have fallen a bit since October 2022- maybe 2 to 3% from their historic highs.
4) We had an 11.5% increase in value last year in 2022 in Hillsboro, Oregon. Big Gains made in early 2022 were given back a little in the Fall.
5) Interest Rates were at 7% in the last part of the year and had been hanging in between 6 and 7 for 5 months. Today we were in the mid to high 5% range -this is significant.
6) Almost all homebuilding has ground to a halt. Banks are shutting off the money supply, and this stoppage means NO NEW HOUSING UNITS except for rentals are coming on the market.
7) Buyers are trying – but at these prices and rates, it is tough to afford our prices.
8) Inflation seems to be somewhat under control- good job by the White House- but now we need rate cuts.
9) Buyers will be wise to be in the market and not give up. More homes are coming on. Do NOT wait until Summer. The best buys appear to be now through perhaps May. With few homes on the market and rates trending down, Sellers will stop negotiating at some point. Right now, we are seeing sellers give closing fees, price cuts, appliances, and warranties. All of these things make it easier to buy!
10) Hillsboro is going through job losses, perhaps as many as 3,000 at INTEL. Some of these folks will sell. Many will not as they do not own homes or they have 2.75% mortgages, and they will #NEVER sell their homes.
Let’s look at some stats:
If you are selling- the market is active. We are selling our listings in 30 days, but we know what we are doing. Our clients are super happy.
Buyers, as I said above, be active. Look at options. Rents are only going up as the housing shortage gets worse. Make some compromises consider options to share housing, or add an ADU for rent. Look at your after-tax benefits of that home mortgage and property tax write-off – it is big, and this will offset hundreds of dollars of your monthly payment.
Visit me at 222 East Main- I have coffee, wine, and some cool stuff we can chat about. I am in the neighborhoods every day and doing what I have done in Hillsboro since I graduated High School and College.
Come see me or call me and let’s talk- no obligation. #2023
Thank you for the information. I look forward to following this legislation and your interpretation. My husband and I own property in Urban Reserves at the intersection of River Road and Rosa Road. We are looking forward to being able to sell soon and are hoping to be included in the UGB or to find a developer who will purchase ahead of that. We respected the process of establishing Urban Reserves and hope that if the state leapfrogs to bring in industrial property, Urban Reserves will be added in concert.
Anytime you want to talk, I am here to help. 503-799-8383