Keizer Oregon has been one of the more stable real estate markets in our Salem metro area, relatively speaking mind you. I had talked before about how Keizer home prices had kind of flattened out, vs. the slow corrections that occurred in the Salem market, and then just kind of plunged early in 2009. So what did the real estate year look like in Keizer Oregon?
Keizer Oregon Average Home prices
As of the end of 2009, the average home price in Keizer Oregon had dropped 12.8% from the previous year. The median dropped 14%. An average single family home in Keizer was $202,544 at the end of 2009 and the average median was $185,000. The graph clearly shows the trend that we have experienced in Keizer for the past few years. Prices are dropping.
Keizer Oregon Days on the market
Many sellers get focused on the days on the market. For 2009, that average was 132. That’s 4.4 months. For those of you upset that your real estate agent didn’t bring in a buyer in the first two weeks, you have to realize that the average house is taking 4 months to close. Home sellers have to be one of the best deals in town if they want to sell in less time. It is just the way it is. Buyers want a good house at a great price. That dynamic hasn’t changed.
Keizer Oregon real estate market. What does the future hold?
You would all like to know wouldn’t you? So would I, but alas my dog was acting weird all night and kept me up. In my sleepy stupor, I dropped my crystal ball, watched it roll across the floor and hit the wall, shattering into a bazillion pieces. I was reaching for my coffee and the time so my reaction time was just too slow… As such, all you will get is my best guess with a bunch of qualifiers…
This year 283 homes sold in Keizer Oregon vs. 2008’s 310. That’s an 8.7% drop in home sales. This is not unexpected. With our high unemployment rate it’s not like buyers will dive in full force if they think they are going to lose their job. We will need some economic stability before buyers regain confidence, I think. Now normally I would be more worried about the drop in home sales, but unlike last year where 42% of homes listed sold, in 2009 50.4% of homes listed sold. While home sales were less, thankfully Keizer residents that don’t have to sell are staying off the market. This allowed Keizer to end the year with a respectable 7.6 months of inventory.
So what do I think?
I think Keizer will be like Salem in 2010. I do think that home prices will continue to decline, but maybe 5% like I am expecting from Salem…barring any significant increases in unemployment rate (disclaimer here). I would expect most of the downward pressure on that median and average home price to come from the higher end homes. For home sellers, you will have to be at the top of your game. Your home has to look good and be priced well. Wishful thinking, in this real estate market, isn’t going to help you out too much. Get focused. Get staged. Get priced right. Get sold. It’s that simple…well sort of anyway.