The average and median home prices have been hovering in the $150,000-$160,000 range for most of this year and August was no exception. With sales of more expensive homes incredibly lackluster with no change in the foreseeable future, this is going to be where home prices will continue to stay. The nice thing about August 2011 is that it was the best year in three years for home sales beating 08-10, nicely. With interest rates insanely low and more affordable home prices many buyers decided it was close enough to the bottom to enter into the market.
The 90 absorption rate in Salem is 145.67, which means that we currently have 9.24 months of inventory in Salem. This steady drop is due to the lack of MERS foreclosures hitting our markets. 21% of MLS listings sold in August were distressed properties, and we’ve had our first decrease in active distressed properties with 18% of active listings being foreclosures or short sales. We are in a “sweet spot” for sellers right now where the inventory has dropped (still not normal, mind you) and interest rates are low. This is a temporary situation that will last maybe 6-12 months until those MERS foreclosures start chugging through the judicial foreclosure process here in Oregon.
If you are thinking of selling your home, this spring may be your best shot for the next few years. We are in a temporary sweet spot for regular sellers. If you want help getting your home ready for sale just contact us and we will be happy to help.