When home orices are falling, like they have started to do here in the Portland area, this can create a great opportunity for first time buyers or for homeowners who have been thinking of buying a more expensive home.  Ther benefits to a first time buyer are fairly obvious; increased inventory means that buyers have nore homes to choose from and flat or lower prices means that home buying dollars go farther.

Those homeowners needing to sell their homes before buying a larger or more expensive home might not see the advantage so let me explain.  Say for example that the value of your house is $300,000 and you would like to buy a house that is worth $600,000.  The difference in prices is $300,000.  If the market decreases in value by 7%, the current house is now worth $279,000 for a "loss" of $21,000.  How can that be good?  Well, the $600,000 house has also lost 7% of its value and is now worth $558,000 for a "loss" of $42,000.  If a homeowner were to sell their home and move up in this situation, they would realize a net gain of $21,000 vs if the market had not fallen.

There is great opportunity in this market for homebuyers right now.  To learn more, please visit my Portland Oregon Real Estate website.

Have a great day,

Adam Highton