I have to say I’m surprised. BUT I’ll take that!
Last year I predicted a 10% drop in home prices in Silverton Oregon as the supply and demand was so disconnected I really felt the downward pressure would be too great. Silverton real estate has some good news in that regard. The average home price corrected 5.3% downward, which is on par with Salem and the median home price went up 5.7%. Just to be clear the median home price is the price at which 50% of homes sold cost more than that, and 50% were less. It doesn’t mean homes appreciated, but it does mean that Silverton finally started to move some more expensive homes off their market, which had been sluggish.
The Silverton real estate market has even more good news. One of the things I didn’t anticipate when I made my 10% prediction was a 19.3% decrease in notice of defaults in Silverton. That’s right, the number of foreclosure notices served in Silverton Oregon went down by 19.3% when compared with 2009. This is a really, really good thing for the small Silverton market. The market is still slow, but this huge drop now means better things for the 2012 Silverton real estate market.
The only bad news for the real estate market in Silverton is the number of homes sold. 95 homes sold in 2010 which is down from 2009. Honestly, though, I’m not sure that it isn’t too far off from what should be normal in Silverton. Silverton due to its size should really be selling about 110-120 homes a year or so there. So demand isn’t quite where it needs to be, but I think as prices continue to correct a bit more, say another 5% or so, and foreclosures go down, this will go a long way to correct the Silverton imbalance.
Data was crunched from information provided by the WVMLS and Fidelity National Title Company.