Home prices are going down, real estate agent says

According to a new Redfin report, a record share of sellers are giving concessions to buyers. Last quarter, sellers gave concessions in 41% of sales.

PORTLAND, Ore. — Portland real estate agents say the market is back into historical trends.

The two-year home buying frenzy has slowed down as interest rates have hit nearly 7% – something that’s stopped buyers from going all in on their future homes.

But real estate agents say things are looking brighter in the new year.

“Buyers particularly are in a whole new world,” said Alex Roy, a realtor with John L. Scott. “Where now they don’t have to compete with big multiple offer situations. And even though they’re paying higher interest rates at this point, pricing has come down so that we’re back to a little bit more of the end of 2021 pricing.”

According to a new Redfin report, homeowners are increasingly selling for below desired prices. 22% of redfin home sales in the fourth quarter had a final sale below the listing price with concessions – like money for repairs and mortgage-rate buydowns.

But when can we expect interest rates to go down?

“Economists are saying that by the middle of the year those interest rates will stabilize probably peak by the second quarter of the year. And then hopefully see them come down a bit,” said Roy.

Jonathan Bach, a real estate reporter with the Portland Business Journal, says he’s optimistic home affordability will increase as interest rates and home prices drop and incomes go up.

Traditional mortgage rates drive buyer behavior,” said Bach. “2021 was an outlier year for the real estate market. So, If you’re looking for a more reasonable year to compare or a reasonable year to get back to. You’d really want to look at sort of 2019 and back.”

Bach says home prices in the Portland metro area are still up year to year, according to the Regional Multiple Listing Service – but they’ve also seen home prices go down month by month.

According to another Redfin report, homes are going for about the same price as a year earlier. Pending sales also dropped to lowest levels since at least 2015.