Competition is heating up in Beaverton for the under $150,000 homes. More and more renters are getting their new lease agreements and realizing that their landlords are raising their rent. Combine that with the prices still dropping in Beaverton and you have more and more people seeing that they can get more home for the same money if they buy.
There is only one problem! When you have more buyers than sellers you get the traditional supply and demand model where prices start to rise. But, this time there was something that the normal supply and demand model doesn’t account for. That is buyers that aren’t willing to pay more than what they offer or what is being offered.
In 2008 when a good deal came on the market a home would get an offer in one day from 4 or 5 buyers, they would compete for that home by escalating their offer until they got their home. This caused prices to go up. Fast forward to today where a good deal comes on the market and on the first day 4 or 5 offers come in and instead of escalating the price you may actually get all the buyers to walk away if you send them counters to bring in their highest and best offer.
No one wants to be stuck in the 2008 price wars and are willing to walk away if they don’t get what they want the first time. They wait until the right priced home comes on the market, put their offer in and if they get it, they get it, if they don’t they don’t.
Now in a way I like this trend because it telling me people are no longer looking for a lifestyle home or an investment home, they are looking for a roof, a place to call home. We have had years of excess and friends trying to top each other. Now I think we are starting to see a trend of people just saying yes I own a home and I don’t plan to lose it and I will live within my means.
If you are looking to buy a home for your family, call me, I would love to help your family home!