Real Estate Industry News – March 2022 Edition


  • I think I mentioned this 12 months ago…. INFLATION is FULL STEAM AHEAD!
  • And it’s not over yet.
  • Just a recap of what inflation is: 
    • Inflation is an increase in the price level of goods and services throughout a specific time frame. Basically, it means that a dollar today buys less than it used to. It’s usually discussed in terms of a percentage rate. So, if inflation is 2%, a carton of eggs that was $3 is now $3.06.
  • Main causes of inflation:
    • Growing economy
    • Expansion of the money supply
    • Government regulation
    • National debt
    • Interest rates, which are rising, and this is not slowing down the purchase market. We will get to supply and demand in a minute….
  • Just a quick summary of the average increase in consumer goods:
    • Meats, poultry, fish and eggs: 12.2% increase
    • Fruits and vegetables: 5.6% increase
    • Electricity: 10.7% increase
    • Furniture and bedding: 17% increase
    • Rent of primary residences: 3.8% increase
    • gasoline and airfare saw giant price increases over the last year, partly  due to prices being deflated by lack of demand
    • Used cars and trucks, for example, saw a 40.5% price increase from January 2021 to January 2022.
    • https://www.forbes.com/advisor/personal-finance/inflation-more-expensive-january/

What has all this done to Housing costs:

  • Home Builders are STILL feeling the pain of inflation as well:
    • Lack of employees
    • Rising costs of everything…
      • Lumber
      • Oil
      • Petroleum based products are so on…
    • Average lumber package in the Willamette Valley for on a new build = $40,000.
      • On a 1,600 sq foot home.
  • Appreciation continues to rise
  • How can this be? Aren’t people getting priced out?
  • Well, some… yes, AND let me give you some perspective on that…..

Rising Rents!

  • Rents, Year over Year saw a national increase of 3.8%.
  • That doesn’t single out states like Oregon, who have Rent Control in place.
  • Which means, your landlord, will almost certainly, raise your rent 2-7%, each and every year you rent.
  • My question to you and your clients, can you afford that year over year, monthly debt to income increase?
  • For example; lets say you pay $1,800 in rent this year.
    • 1,800 * 3% = 1,854
    • 1,854 * 3% = 1,909
    • Year 3 = 1,966
    • Year 4 = 2026
    • Year 5 = $2086

Supply and demand in today’s market

  • Today’s market is a DIRECT result of lack of supply.
  • Which means, buyers, expect competition.
    • You likely, will be settling
  • Seller’s, this means, you better have housing lined up, or see above!
    • Prepare for multiple offers.
  • And NO, rising rates are NOT slowing down the purchase market.
  • Refinances, yes, those came to a screeching halt!
  • Until supply reaches demand, we will continue to see a very strong purchase market.

WVMLS outlook:

  • Which leads me to our LOCAL OUTLOOK:
    • Year over year – residential listings are up by almost 200
    • Year over year – residential closings are up by 50
  • Inventory just hit a month and some markets are less than 2-3 weeks
  • We still need supply!

This will present for a strong residential market in 2022.


Ticor Title Mid-Valley

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STE 150
Salem, OR 97301

Phone: 503-585-1881

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