Slowing Market This Summer?
Tuesday, June 5, 2007
The factors in play which may impact our summer selling season are listed below. The greatest impact locally will be the interest rates and the tightening lending standards. Well be keeping a close eye on the Portland market as this is reflected in our local market especially the second home market sales. Inventories are expanding rapidly for a summer of sales.
- Interest rates have shot up in the past three weeks over a quarter of a point and could go higher!.
- Lenders are tightening their underwriting standards. Some say this has slowed sales by at least 5%. We don't know the full effect yet but there's more to come. The Homeowner's Act of Oregon could have an impact on our state market!
- Inflation is somewhat stable but what about FOOD and ENERGY prices!!! Yikes. I need to sell a house just to fill my gas tank each week.
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Investors have left the "price sensitive" housing market and moved back in to the stock market with the DOW reaching record highs.
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Housing deflation? So far it has hit the big "bubble markets" of metro areas like California and Florida. It could filter down to other areas too.
- Builder sentiment is at a 16 year low so new construction will drastically slow.
