Will Higher Interest Rates Cool the Market?
813 homes sold in Portland this November which is 42 more than October. Pending sales are starting their predictable softening into Fall and Winter. The market is still favoring sellers and promises to keep inventory low, although buyers should have an easier time this winter vs winter 2015, which had the lowest inventory ever. Rising interest rates could have a cooling effect on the market.
Wild cards: As prices rise, more buyers are priced out of the market which could slow the pace of sales. Interest rates have dropped close to all time lows. Out of state investment continues to push prices and rents higher and keep inventory low.
I’m predicting around 700 closed sales in Portland (RMLS areas 141, 142, 143 & 148) in December.