Something changed in the Portland real estate market around Labor Day, and Steve Nassar and Joe Fustolo say it was hard to miss.
Mortgage rates climbed quickly, buyers pulled back, listings that might normally have gone pending started sitting, and an already challenging market suddenly felt even more uncertain.
In this special edition, Steve and Joe break down what they’re seeing firsthand and why this latest shift feels different from the slow market agents have already been navigating for the past several years.
Steve shares just how dramatically activity dropped across his own listings, while Joe looks at the bigger forces squeezing affordability, from interest rates and housing inventory to employment concerns, rising living costs, and the broader economy.
They also dig into one of the toughest questions in real estate right now: how do you price a home when the market is changing faster than the comparable sales can keep up?
Looking backward at recent sales is no longer enough. Sellers and their agents have to think about where the market is headed. That makes affordability part of the strategy, not just the problem.
Steve and Joe explore creative ways sellers can make a home more attractive without simply taking a huge price cut, including permanent rate buydowns, temporary 2-1 buydowns, and seller-carried financing.
They walk through the numbers and explain why money spent lowering a buyer’s monthly payment can sometimes accomplish far more than the same amount taken off the purchase price. They also tackle the inevitable comparisons to the sky-high mortgage rates of the 1980s.
While plenty of buyers are sitting on the sidelines, that doesn’t mean nothing is selling. Steve and Joe explain why a standout property that is priced correctly can still attract multiple offers, even while the house down the street struggles to get attention.
A slower market isn’t the time to coast. Joe returns to his mantra to “master your craft,” while Steve encourages agents to use the quieter stretch to sharpen their skills, improve their businesses, and prepare for whatever comes next.
From nervous buyers and frustrated sellers to lenders, inspectors, and agents all feeling the slowdown. This is a look at a housing market that seems to be shifting beneath everyone’s feet, what we can do about it.
Key Takeaways
The Portland real estate market shifted noticeably around Labor Day, as rapidly rising mortgage rates caused buyer activity to slow and left more listings sitting on the market.
The speed of the mortgage-rate increase is creating as much uncertainty as the rates themselves, making it difficult for buyers to know what their payment or purchasing power will look like even a few days later.
Affordability remains one of the market’s biggest challenges because home prices rose sharply during the low-rate years and have not fallen enough to offset today’s much higher borrowing costs.
Accurate pricing is more important than ever, and agents can no longer rely entirely on recent comparable sales when the market may be moving faster than historical data can reflect.
A seller’s purchase price, renovation costs, or desired profit do not determine market value; buyers ultimately compare a property with the other homes available to them right now.
Overpricing can lead to months of chasing the market downward, while a well-priced, well-presented home can still attract strong interest and even multiple offers in a slower market.
Sellers may be able to improve affordability more effectively by contributing toward a buyer’s mortgage rate than by making an equivalent reduction in the purchase price.
A temporary 2-1 rate buydown can significantly lower a buyer’s monthly payment during the first two years of ownership while allowing the seller to preserve more of the home’s sales price.
Permanent rate buydowns and seller-carried financing can also create opportunities, particularly when sellers have substantial equity and traditional mortgage rates are limiting buyer demand.
Today’s market cannot be meaningfully compared with the high-interest-rate environment of the 1980s without also considering the enormous differences in home prices, incomes, and overall affordability.
Some sellers who have the option to rent their homes may choose to leave the sales market rather than accept lower prices, further changing the balance of available inventory.
Economic uncertainty, higher everyday expenses, employment concerns, and rising borrowing costs are giving buyers additional reasons to delay major financial decisions.
The current slowdown extends beyond Portland, with agents, lenders, inspectors, and other real estate professionals in multiple markets reporting similar declines in activity.
Real estate professionals cannot control the market, but they can use slower periods to improve their knowledge, technology, marketing, and business systems rather than waiting for conditions to improve.
The market will become easier to assess once mortgage rates stabilize, even if they do not immediately decline, because buyers and sellers will have a clearer environment in which to make decisions.
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