Bene's Blog • Sellers • May 13, 2025

Portland Home Sellers’ Dilemma: Should You Fix It or Leave It?

by Bene Foley

Thinking of listing your Portland home before the summer selling season winds down? One of the biggest questions you’ll likely face is: “What needs to be repaired, replaced, or upgraded before I go to market?”

Most home repairs fall into three key categories for sellers: those necessary to pass appraisal, upgrades that could boost market value, and repairs that may be negotiated with the buyer post-offer.

Prepping for a Portland Home Appraisal

If your buyer is using a mortgage — which, according to a 2017 report by the National Association of Realtors, applies to 88% of buyers — then an appraisal will be part of the process. Even some cash buyers opt to bring in an appraiser to confirm property value.

An appraiser is hired by the lender to verify that the home is worth what the buyer has agreed to pay. If major problems are found that affect the home’s safety or livability, the lender may decline the loan.

To avoid surprises, many sellers in Portland bring in a real estate agent for a pre-listing walk-through. They’ll help spot potential issues that could flag the appraiser’s attention, such as:

Peeling lead-based paint (especially in homes built before 1978)
Wobbly or missing railings on stairs and decks
Non-functioning heating, cooling, electrical, or plumbing systems
Roof leaks or water damage
Structural cracks or signs of foundation issues
Water intrusion in the basement or crawl space
A roof in poor condition or near the end of its lifespan

If your home has any of these problems, a buyer relying on traditional financing may have difficulty closing the deal. While renovation loans exist, most buyers prefer move-in-ready homes.

Do Home Improvements Add Value?

Some sellers go overboard, pouring money into last-minute remodels. But the truth is, not all improvements pay off. Many updates bring a limited return on investment.

Still, some upgrades can be worthwhile — especially if they help your home compete at the top of the price range for your neighborhood. A knowledgeable real estate agent can help you identify changes that are likely to make an impact with buyers.

Insights for Portland Home Sellers

Given Portland’s emphasis on sustainability and curb appeal, the following projects are particularly beneficial.

Energy Efficiency Upgrades: Enhancing insulation, sealing ducts, and updating HVAC systems can improve your home’s energy score, appealing to eco-conscious buyers.
Minor Kitchen Remodels: Updating cabinet fronts, countertops, and appliances can yield a high ROI, especially when keeping the layout intact.
Deck Additions: Portland buyers value outdoor living spaces. Adding or updating a deck can enhance appeal and functionality.

Post-Offer Repair Considerations

When deciding on repairs to do pre-listing, it is important to remember that after having an offer accepted, buyers may request repairs based on inspections. Every inspector will find some things that need to repaired (even on new construction). Here’s how to approach these requests:

Assess Affordability and Timeline: Determine if the repairs are cost-effective and can be completed before closing.
Negotiate Strategically: Consider offering a credit or price reduction instead of undertaking repairs, allowing buyers to handle them post-purchase.
Consult Your Agent: A seasoned real estate agent can provide guidance on which repairs are reasonable and how to negotiate effectively.

By focusing on high-ROI projects and approaching repairs strategically, you can enhance your Portland home’s marketability and achieve a successful sale.

If you need assistance or advice, feel free to ask!

Uncategorized • April 29, 2025

Texas Bill May Limit NAR’s Hate Speech Policy

by Bene Foley

A new bill under review in the Texas Senate may soon limit how professional associations, including the National Association of Realtors (NAR), handle violations of their codes of conduct—especially those related to hate speech.

What Is Senate Bill 2713?

Senate Bill 2713, introduced by Senator Mayes Middleton (R-Galveston), would prevent trade or professional organizations from denying or revoking membership based on someone’s legally protected speech or assembly—regardless of the organization’s internal rules.

The bill also reinforces that groups cannot exclude someone based on race, religion, sex, disability, or other protected characteristics, and allows individuals to take legal action (including seeking damages and attorney fees) if they believe their rights have been violated.

How This Affects NAR and Realtors in Texas

The National Association of Realtors currently enforces a Code of Ethics that includes Standard of Practice 10-5. This standard prohibits Realtors from using hate speech, epithets, or slurs based on race, ethnicity, religion, and other protected categories, even outside of work settings (such as on social media).

If SB 2713 becomes law, NAR’s ability to enforce this standard in Texas could be weakened. That means Realtors might no longer face disciplinary action from the association solely for certain speech-related violations, depending on how the bill is interpreted and enforced.

Supporters and Opponents

At a recent committee hearing, several individuals who had been previously investigated or penalized under NAR’s ethics rules spoke in favor of the bill, saying they felt they were punished for expressing personal or political beliefs.

The Texas Association of Realtors has taken a neutral stance on the legislation, and the bill is still pending in the Senate committee.

What Happens Next?

If passed, the bill would go into effect on September 1, 2025. Its impact could extend beyond real estate to other professional industries with similar codes of conduct.

What This Means for Clients

For clients, this legislation does not change existing laws about housing discrimination. Realtors are still bound by the federal Fair Housing Act, which prohibits discrimination in the sale or rental of housing.

However, the bill may shift how Realtor associations handle internal discipline, particularly when it comes to speech or conduct outside of direct client interactions.

Bene's Blog • Sellers • April 22, 2025

Sell Your Home Quickly Without Sacrificing Value

by Bene Foley

While the time it takes to sell a home can vary based on location, the national average is around 60 to 75 days. If you’re looking to move faster without settling for a lower price, here are several proven strategies that can help.

Start with Smart Pricing

Pricing your home accurately from the beginning is one of the most important steps. Setting it too high can deter potential buyers, while going too low may leave money on the table.

Why This Works: Homes that hit the market at a competitive, well-researched price tend to sell faster and closer to asking price, with fewer price reductions needed later.

How to Do It: Analyze comparable homes in your area, consider current demand, and lean on a real estate expert for insight into local trends.

Make a Strong First Impression

The exterior of your home sets the tone. Buyers often form an opinion within moments of arriving—or even from the listing photos.

Simple Upgrades That Make a Difference:

Repaint the front door and trim
Keep the lawn tidy and walkways clear
Replace outdated house numbers and light fixtures

Improving your home’s curb appeal can increase its perceived value and draw more attention from buyers.

Set the Stage for Buyers

A well-staged home invites potential buyers to picture themselves living there. It can highlight your home’s strengths and help it stand out from the competition.

Quick Staging Tips:

Remove clutter and personal items
Arrange furniture to showcase the space
Use neutral colors and cozy lighting

Homes that are thoughtfully staged often sell faster—and in some cases, for significantly more than those that aren’t.

Invest in Quality Marketing

Since most buyers start their search online, how your home is presented on the internet is critical.

What Makes a Difference:

Professional photos with great lighting and composition
A compelling listing description that emphasizes standout features
Video walkthroughs or virtual tours to attract out-of-town buyers

Be Open to Showings

The more accessible your home is for viewings, the more opportunities you have to connect with the right buyer.

Tip: Keep your home tidy on a daily basis so last-minute showings feel less disruptive.

Use Incentives to Sweeten the Deal

Instead of lowering your price, offering small perks can help sway undecided buyers.

Examples Include:

Contributing toward closing costs
Providing a home warranty
Including appliances with the sale

These added benefits can set your home apart—without dipping into your bottom line.

Highlight Upgrades and Energy Features

Today’s buyers appreciate modern features and energy-saving improvements. Make sure to showcase things like:

Smart thermostats or smart home systems
Energy-efficient windows or solar panels
Recent updates to HVAC, roofing, or flooring

These upgrades can help justify your asking price and appeal to eco-conscious buyers.

Selling Quickly Without Compromise

Speed and price don’t have to be at odds. With the right strategy—smart pricing, thoughtful presentation, strong marketing, and buyer-friendly flexibility—you can position your home to sell quickly and profitably.

If you’d like support navigating the process, I’d be happy to guide you through it with proven techniques tailored to your home and the local Portland market.

Bene's Blog • Home Loans • April 15, 2025

A Major Shake-Up at Fannie Mae: What It Could Mean for Homeownership in America

by Bene Foley

A new political wave is sweeping through the nation’s top housing finance agencies—and it could have big consequences for people hoping to buy a home, especially in communities of color.

Today, Omeed Malik, a businessman with strong ties to Donald Trump Jr. and described by New York Magazine as “MAGA world’s premier financier,” was appointed to the board of Fannie Mae, one of the most important players in the U.S. housing market. Malik is a former Wall Street banker and founder of two investment firms, including one where Trump Jr. recently became a partner.

This appointment is part of a broader shake-up led by Bill Pulte, the new director of the Federal Housing Finance Agency (FHFA)—the regulator that oversees Fannie Mae and Freddie Mac. Since taking the job, Pulte has fired 14 board members from Fannie and its sister company, Freddie Mac, and made headlines by declaring that “DEI is dead” at both agencies.

What Is DEI, and Why Does It Matter?

DEI stands for Diversity, Equity, and Inclusion. Over the past few years, Fannie Mae and Freddie Mac have launched programs to help close the racial homeownership gap—offering things like:

Down payment help for first-time buyers
Special credit programs for people with limited borrowing history
Support for community-based lending in Black and Latino neighborhoods

These efforts aimed to address long-standing inequalities in housing access, especially for groups who have historically been excluded from homeownership.

What Could Change Now?

With Malik’s appointment and Pulte’s leadership, there are signs that these programs may be cut back or eliminated. Here’s what experts are watching:

❌ Programs for Minority Homeownership May Be at Risk

The new leadership appears to oppose targeted efforts that support specific racial or ethnic groups. That means some of the programs designed to help close the racial wealth gap might be scaled down or scrapped altogether.

🧊 Innovation in Underserved Communities Could Slow Down

New ideas—like helping families buy homes together or counting rent as part of your credit score—might lose traction. These were key tools for helping people in underserved communities become homeowners.

🧾 A Shift Toward “Colorblind” Lending

Instead of equity-based solutions, we may see a push for so-called “neutral” policies that treat everyone the same on paper—but may ignore how unequal the starting points really are.

Why This Matters

Fannie Mae and Freddie Mac help make home loans more affordable for millions of Americans. If they shift away from programs focused on inclusion and equity, it could become harder for families of color to access the credit they need to buy a home.

This shift could also widen the racial wealth gap, at a time when many communities are still trying to recover from the effects of the pandemic and rising housing costs.

What Happens Next?

It’s still early, but changes like these tend to happen quickly. Housing advocates, civil rights groups, and lawmakers are already preparing to respond. Some may try to challenge the changes in court. Others might propose new protections at the state or federal level.

For now, homebuyers—especially in communities of color—should stay informed and ask questions. The rules of the housing market may be changing, and those changes could have long-lasting effects.

Have questions about what this means for your own homebuying journey? Reach out for up-to-date guidance.

Uncategorized • April 8, 2025

Understanding Home Appraisals: A Quick Guide

by Bene Foley

When you’re involved in a home transaction, understanding the appraisal process is essential. But what exactly is an appraisal, and how can it influence your home purchase or sale?

What Exactly is an Appraisal?

A home appraisal is a neutral, professional estimate of a home’s market value conducted by a licensed appraiser. This valuation helps determine whether the agreed-upon sale price aligns with current market conditions.

Who Orders and Owns the Appraisal?

The appraisal is:

Ordered by the buyer’s lender as part of the mortgage process.
Typically paid for by the buyer.
Owned by the lender (although the buyer usually receives a copy).

Note: Sellers don’t automatically receive the appraisal report. They’re only informed if there’s an issue—such as a low valuation—that might impact the transaction.

What Factors Influence an Appraisal?

Appraisers consider several key elements, including:

Recent comparable home sales in the area
Condition and maintenance of the home
Renovations or significant home improvements (such as kitchen updates or energy-efficient installations)
Neighborhood appeal, including local amenities, schools, and market dynamics

Why Appraisals Are Important for Buyers

Appraisals protect buyers from paying more than a home’s worth. If the appraisal matches or exceeds the sale price, the transaction typically moves forward easily. However, a low appraisal can create complications. Buyers might need to negotiate a lower price, challenge inaccuracies in the appraisal, or, if protected by an appraisal contingency, cancel the contract without losing their deposit.

Why Appraisals are Important for Sellers

For sellers, an appraisal that matches or exceeds their asking price validates their listing. But a lower-than-expected appraisal can stall or jeopardize the sale. Sellers can choose to lower the price, negotiate with the buyer, or provide evidence to dispute inaccuracies.

Navigating a Low Appraisal

If an appraisal falls short of the agreed sale price, both parties have options:

Sellers can agree to reduce the sale price to the appraisal value.
Buyers can challenge any inaccuracies through their lender.
Buyers and sellers can negotiate and potentially split the difference.

An accurate appraisal helps everyone involved avoid surprises and proceed smoothly. If you have questions or need support understanding the appraisal process, don’t hesitate to reach out!

Bene's Blog • Sellers • Tips for Selling • April 1, 2025

Boost Your Home’s Curb Appeal: Easy Updates with Big Results

by Bene Foley

Curb appeal is important when selling your home

A home’s exterior creates the critical first impression, influencing buyers before they even step through the front door. Enhancing your curb appeal doesn’t require huge investments—small touches can significantly impact a buyer’s perception.

Start with the Front Door Your entryway sets the stage. Freshen your door with a coat of paint in a bold yet tasteful hue, like navy, deep red, or classic black. New hardware, house numbers, and a stylish welcome mat can instantly elevate the entrance.

Pro Tip: Adding seasonal wreaths or plants creates an inviting atmosphere.

Spruce Up the Landscaping A tidy, vibrant yard gives buyers confidence in the home’s overall care. Prune shrubs, plant bright flowers, and eliminate weeds. Simple touches, such as potted plants or hanging flower baskets near the doorway, can significantly boost appeal.

Tip: Native plants are typically easier to care for and environmentally friendly.

Keep it Clean Neatness conveys value. Regularly mow the lawn, trim hedges, remove weeds, and clean sidewalks or driveways. Pressure washing walkways and exterior walls can give your property a fresh, inviting look.

Small Upgrades, Big Impressions Sometimes minor adjustments can make the biggest impact. Upgrade your mailbox, repaint fences, or install shutters. Small, tasteful decorations, such as lanterns or comfortable outdoor furniture, can make your home feel welcoming.

Why Does Curb Appeal Matter? Studies suggest that homes with poor curb appeal can lose up to 30% of their potential value. Conversely, attractive landscaping and a welcoming exterior can significantly boost a home’s selling potential by drawing more buyer interest and increasing perceived value.

If you’re considering selling and want practical tips to improve your home’s appeal, let’s connect—I’m here to guide you toward impactful improvements that attract more buyers!

Uncategorized • March 25, 2025

All About HELOCs

by Bene Foley

For many homeowners, their home represents their most significant financial investment. Naturally, protecting and maximizing this investment through home equity is appealing. A Home Equity Line of Credit (HELOC) is one way to achieve this, but understanding exactly how HELOC loans function is essential before you proceed. This guide provides clear insights to help you decide if a HELOC is the right financial choice for you.

Key Information:

What a HELOC is
Eligibility requirements
HELOC payment details
Comparing HELOC and home equity loans

What is a Home Equity Line of Credit (HELOC)? A HELOC lets you borrow money using your home’s equity as collateral. Equity is the portion of your home’s value you fully own, which fluctuates depending on your home’s current value and your outstanding mortgage balance. A HELOC provides you with a credit line, allowing you to borrow funds up to a specified limit. Interest is charged only on the amount you use, typically with repayment periods up to 20 years.

How Does a HELOC Work? A HELOC operates similarly to a credit card. You receive a credit limit and can borrow from it as needed. The key difference is that your home’s equity secures this credit line. If you fail to repay the loan, the lender could foreclose on your home. It’s crucial to borrow responsibly and have a clear repayment plan.

Common Uses of HELOC Funds: HELOC loans can be used for various purposes, such as:

Home renovations and repairs
Educational expenses
Debt consolidation
Major life events (e.g., weddings, vehicle purchases)

A HELOC is a practical alternative to selling your home or taking out unsecured personal loans when extra funds are needed.

Qualifying for a HELOC: To qualify, you must have equity in your home. Lenders usually require a homeowner to maintain at least 5%-20% equity, allowing some homeowners to borrow up to 95% of their home’s value. Good credit scores and manageable debt-to-income ratios are also essential.

Borrowing Limits with a HELOC: Your borrowing limit depends primarily on your home equity. Most lenders permit borrowing 80%-85% of your home’s appraised value, with some offering as high as 95%.

Interest Rates on HELOCs: HELOC interest rates are typically variable and fluctuate over time, usually tied to the prime rate (the rate banks offer their most reliable customers). For example, if the prime rate is 4.25% and your HELOC rate is prime plus 1%, your interest rate would be 5.25%.

Possible Fees Associated with HELOCs: HELOCs may involve various fees, including:

Application fees (approximately $100)
Origination fees (1%-2% of the loan amount)
Closing costs (appraisal fees, title insurance, credit report fees, possibly totaling thousands)

It’s important to understand these fees upfront. Comparing offers from multiple lenders can help minimize or eliminate some fees.

Understanding HELOC Repayments: Initially, HELOC payments often cover only interest charges for around ten years. After this “draw period,” payments typically shift to include both principal and interest for an additional 10-20 years until fully repaid. Because interest rates are variable, monthly payments could fluctuate, particularly if rates increase.

HELOC vs. Home Equity Loan: Both HELOCs and home equity loans let you leverage your home’s equity, but they differ:

Loan distribution: HELOCs provide revolving credit; home equity loans deliver funds as a lump sum.
Repayment terms: HELOCs usually have a draw period (interest-only payments) followed by a repayment period. Home equity loans have fixed repayment periods with consistent payments.
Monthly payments: HELOC payments initially may be lower (interest-only) but can change due to rate fluctuations. Home equity loans offer fixed, predictable payments.

HELOCs vs. Cash-Out Refinancing: Cash-out refinancing is another equity-tapping method. Unlike HELOCs, which offer revolving credit, refinancing replaces your existing mortgage with a new, larger loan, providing you with a lump sum.

Improving Your Approval Chances: To enhance your chances of HELOC approval, consider the following:

Improve your credit score—lenders favor applicants with strong credit.
Ensure your home’s appraisal value is sufficient for the loan you want.
Minimize existing debts; pay off primary mortgage balances where required.
Demonstrate stable income and employment history.

Keys to Successful HELOC Management: HELOCs offer flexibility and access to funds based on your home equity. Maximize your credit line by maintaining high credit scores, low debt levels, and significant home equity. Remember, understanding loan terms and responsibilities thoroughly is crucial. Missed payments can risk foreclosure, so borrow wisely.

Uncategorized • March 18, 2025

Home Insurance Guide

by Bene Foley

Home insurance safeguards your most significant investment—your home. Policies vary considerably, including different coverages and limitations, so understanding the basics can help ensure your coverage fully meets your needs.

Typical Coverage Provided by Home Insurance

Most home insurance policies include the following types of coverage:

Dwelling Protection: Covers the physical structure of your home, such as walls, roof, and built-in systems, against damages from incidents like fires, storms, or vandalism.

Personal Property Coverage: Protects your belongings—including furniture, electronics, and clothing—up to predefined limits.

Liability Coverage: Provides financial protection if someone sustains injuries on your property or if you inadvertently damage another person’s property.

Additional Living Expenses (ALE): Covers temporary housing and living costs if your home is rendered uninhabitable due to covered damages.

Common Coverage Gaps

Despite broad coverage, standard policies often exclude certain events or possessions, creating coverage gaps:

Natural Disasters: Floods and earthquakes typically require separate, specialized insurance policies.
Wildfire Risks: While standard coverage includes fire damage, homes located in high-risk wildfire zones might need supplemental insurance.
Valuable Possessions: Expensive items like jewelry, artwork, or collectibles often surpass standard coverage limits and require additional insurance.
Maintenance Issues: Damage from mold, pests, or general deterioration due to poor upkeep usually isn’t covered.

Evaluating Your Insurance Needs

To ensure comprehensive protection, consider these steps:

Determine Home Value: Ensure your dwelling coverage is sufficient to rebuild your home at current construction rates, not just the market value.
Inventory Personal Items: Maintain a detailed inventory of your belongings to ensure adequate personal property coverage. Many insurers offer digital tools to help manage this.
Consider Local Risks: Identify area-specific risks such as earthquakes, floods, or wildfires and seek specialized coverage accordingly.
Assess Liability Risks: Properties with pools, trampolines, or frequent guests may require enhanced liability limits or umbrella insurance.

Filling Coverage Gaps

Take proactive measures to close potential coverage gaps:

Specialized Event Coverage: Obtain separate insurance policies for risks such as flooding or earthquakes. In wildfire-prone areas, consider extended replacement cost options.
Adjust Deductibles and Limits: Regularly review and adjust your deductibles and policy limits based on your risk tolerance and property value.
Personal Property Riders: Add supplemental coverage for valuable possessions like jewelry, electronics, and specialty equipment.
Business Coverage: If operating a home-based business, ensure equipment and business liability are covered through additional policy riders or standalone coverage.

Saving Money on Your Home Insurance

Here are some tips for reducing your home insurance costs:

Policy Bundling: Combine home and auto insurance policies with one insurer for potential discounts.
Higher Deductible: Opting for a higher deductible typically lowers your premium.

Home insurance should align with your personal circumstances, which may evolve over time. Regularly review and adjust your policy to keep your home, belongings, and personal circumstances adequately protected

Feel free to contact me if you would like any recommendations on home insurance in the Portland area or if you are thinking of buying or selling.

Bene's Blog • buyers • December 1, 2022

What You Want To Know If You’re Pursuing Your Dream of Homeownership

by Bene Foley

If you’re a young adult, you may be thinking about your goals and priorities for the months and years ahead. And if homeownership ranks high on your goal sheet, you’re in good company. Many of your peers are also pursuing their dream of owning a home. The 2022 Millennial & Gen Z Borrower Sentiment Report from Maxwell says:

“Many young adults have demonstrated their resolve to embark on the journey toward homeownership soon. More than half of millennials and Gen Zs plan to apply for a mortgage sometime within the next year.”

Let’s take a look at why homeownership makes the top of so many young buyers’ to-do list and what you need to consider to achieve your goals if you’re one of them.

Top Motivators To Buy a Home

Before you start the homebuying process, it’s helpful to know why homeownership is so important to you. The survey mentioned above sheds light on some of the top reasons why younger generations are looking to buy a home. It finds:

95% believe the cost of renting is too high
35% think owing a home is an important wealth building tool
16% seek the sense of security owning a home provides
37% plan to use it as an investment property

No matter which of these resonates the most with you, know there are many financial and non-financial reasons why you may want to buy a home. While your top motivator may be different than that of your friends, they’re all equally valid and worthwhile.

Key Obstacles and How To Overcome Them

Whether your homeownership goals come from the heart or are driven by financial aspirations (or both), it can still be hard to know where to start when you’re looking to buy a home. From understanding the homebuying process, to getting pre-approved, and exploring down payment options, it’s a lot to wrap your head around.

The same Maxwell survey also reveals key challenges for potential buyers. Thankfully, the knowledge and guidance of a trusted real estate professional can help you overcome both. Here’s a look at two of the hurdles potential homebuyers say they face:

1. The Mortgage Process Can Be Intimidating

In the Maxwell study, 33.37% said one of their obstacles was that the mortgage process is confusing or difficult to understand.

An article by OwnUp helps explain why the mortgage process is so challenging for buyers:

“There is a general lack of knowledge about home financing. Mortgages are a complicated topic with no one-size-fits-all answer. It’s difficult to understand the space, let alone determine what the right course of action is based on your unique financial picture.”

While you may be tempted to do a quick search online to find instant answers to your questions, it may not get you the information you need to understand the full picture. Especially when it comes to financial advice, you want to lean on a true expert. Having trusted professionals on your side can help you to learn what it takes to achieve your dream of homeownership. Not to mention, an expert can give you advice specific to your situation, not generic advice like you’ll find online.

2. It’s Hard To Know How Much You Need To Save

In the Maxwell study, 45.75% believe they don’t have enough saved to cover their down payment or closing cost expenses.

What you may not realize is that, today, there’s a growing number of down payment assistance programs available nationwide to help relieve this pressure. A report from Down Payment Resource says:

“Our Q3 2022 HPI report revealed a 1.6% uptick in the number of homebuyer assistance programs available to help people finance homes, raising the number of programs to 2,309, a net increase of 36 over the previous quarter.”

Additionally, as the housing market cools, buyers are regaining some negotiation power and more sellers are willing to work with buyers to help with closing costs. Understanding what’s out there and the options available may help you achieve your dream of homeownership faster than you thought possible.

Bottom Line

If you’re serious about becoming a homeowner, know it may be more in reach than you think. I teach a class to help you overcome challenges and prioritize your next steps. I would love to have you join me in. Get in touch for the next class coming up in January.

Bene's Blog • market news • November 9, 2022

What’s Ahead for Mortgage Rates and Home Prices?

by Bene Foley

Now that the end of 2022 is within sight, everyone is asking what’s going to happen in the housing market next year and what that may mean if they’re thinking about buying a home. Here’s a look at the latest expert insights on both mortgage rates and home prices so you can make your best move possible.

Mortgage Rates Will Continue To Respond to Inflation

There’s no doubt mortgage rates have skyrocketed this year as the market responded to high inflation. The increases we’ve seen were fast and dramatic, and the average 30-year fixed mortgage rate even surpassed 7% at the end of last month. In fact, it’s the first time they’ve risen this high in over 20 years (see graph below):

In their latest quarterly report, Freddie Mac explains just how fast the climb in rates has been:

“Just one year ago, rates were under 3%. This means that while mortgage rates are not as high as they were in the 80’s, they have more than doubled in the past year. Mortgage rates have never doubled in a year before.”

Because we’re in unprecedented territory, it’s hard to say with certainty where mortgage rates will go from here. Projecting the future of mortgage rates is far from an exact science, but experts do agree that, moving forward, mortgage rates will continue to respond to inflation. If inflation stays high, mortgage rates likely will too.

Home Price Changes Will Vary by Market

As buyer demand has eased this year in response to those higher mortgage rates, home prices have moderated in many markets too. In terms of the forecast for next year, expert projections are mixed. The general consensus is home price appreciation will vary by local market, with more significant changes happening in overheated areas. As Mark Fleming, Chief Economist at First American, says:

“House price appreciation has slowed in all 50 markets we track, but the deceleration is generally more dramatic in areas that experienced the strongest peak appreciation rates.”

Basically, some areas may still see slight price growth while others may see slight price declines. It all depends on other factors at play in that local market, like the balance between supply and demand. This may be why experts are divided on their latest national forecasts (see graph below):

Bottom Line

If you want to know what’s happening with home prices or mortgage rates, let’s connect so you have the latest on what experts are saying and what that means for the Portland metro area.