DEC 2022 - ARE HOME VALUES PLUMMETING in Portland, OR & the surrounding cities? 🏡📈🧐
If you're a homeowner who regularly looks at valuation sites, you may feel like your home value is plummeting. Your home valuation may have been $570k in June 2022; the next thing you know, it was $517k in December 2022. Does that mean you lost $53k in home value? The honest answer is No. The only way you can even make the argument for saying that you've actually lost that home value is:
You're putting your home on the market right now, and you're not buying your next residence (i.e., renting, moving in with family), or you're purchasing your next home in a different market that is very hot and overpriced.
Or you're refinancing your home/accessing a credit line, which would be strange given the current interest rates.
Other than that, the reality is that Real Estate is a long-term investment, the Housing Market ebbs and flows, and you only lose or gain something once you sell/refinance/access a credit line. Even then, valuations are notoriously questionable. And if you receive an accurate valuation, there's no guarantee you will receive that amount from a buyer and/or keep all the proceeds. If you and your agent don't properly market your home and effectively negotiate repairs, etc., you could lose more than the effects of market fluctuations. So many factors affect a home's value that you can't quantify everything into a single amount with 100% certainty.
Real Estate is a wonderful way to build wealth, but it's not a get-rich-quick scheme. Unfortunately, the hyper-aggressive markets over the last ten years have sent the wrong message regarding the financial benefits of homeownership. The average annual appreciation (i.e., the increase in your home value) should be approximately 4% to 6%. If you look at the graphs, you can see that all 12 locations are within or above that benchmark. Anything above 4% to 6% is an amazing gift but should not be expected or missed during a short-term market fluctuation.
This video is part of a new series called Trend Watch, where I create a set of videos featuring the most critical Housing Market trends and run them every month so that you can understand how trends work and watch the changes month by month.
I hope you find this information helpful.
Please remember I'm always here for any questions. 😃
Take care, Sheryl