Today I had to break out my hooded raincoat. As the rain stopped and started today, I gave in to the inevitable…that our great Oregon summer is over. I actually like Oregon in the autumn since the colors start to turn, but the first rainy day is always hard for me. Between having to break out my raincoat, AND wanting to throttle the REO manager at Freddie Mac over a current transaction, I was looking for some good news…
5.2 months is the current inventory of homes in Keizer Oregon. Any agent that has done any transactions there recently realizes that homes are moving well there. This is not unexpected since the Keizer real estate market has been fairly strong through this rough economy. BUT keep this in perspective.
For homes under $200,000 there is a 4 month inventory
For homes between $200-$300,000 there is a 9.4 month inventory
For homes over $400,000 there is a 15.7 month inventory.
So if you have a $450,000 home please don’t think that particular sector is doing well. Really…if a home is priced under $250,000, preferably under $200,000, those homes are actually starting to teeter towards a seller’s market. That’s where most people can buy and demand is strong as a result.
I can also say this based on personal experience that those lower-priced, nice Keizer homes are getting snapped up quickly. You’ll have a bit more negotiating power if you are willing to take on a house that needs some work…and you can avoid a Freddie Mac REO like the plague…but I digress from my market data…
So quarter over quarter…
Sales stayed a flat 0% 3rd quarter 2009 compared to 08. Flat is good. We like flat. The reason for the nice low inventory in Keizer is the 13.7% plunge in the median home price that occurred quarter over quarter. Home prices dropped 13.7% since 3rd quarter last year and are down 22.2% since the peak in 3rd quarter 2006.
This return to affordability has left many buyers finally able to dive into the Keizer real estate market. Back to basics: supply and demand.