Independence Oregon was slated to be the next bedroom community during the real estate boom. With home prices in Silverton skyrocketing, Independence was the new target with it’s close proximity to Salem. New subdivisions went in and home prices jumped. Despite the jump, a home in Independence was still significantly cheaper than other outlying Salem Oregon areas.
In January of 2009, I stated that I thought home prices were going to have to drop in order to correct the supply and demand imbalance.
The median home price plunged 25% from 2nd quarter 2008 to 2nd quarter 2009. You might think that distressed properties are the cause of that, but not one home that sold on the WVMLS in the 2nd quarter was designated as distressed. Sellers just got that the local market was in trouble and responded. Independence currently has a 7.6-month inventory and sales volume is comparable to pre-boom levels. Inventory is close to neutral. Whether or not it gets there depends on the employment situation in Oregon, but this market is in pretty good shape considering the state of our local economy.