A Starbucks coffee card for anyone that can tell those two lines apart…
Not a big surprise with the numbers on duplexes, the average price is $212,108 which is down 7.3% from 2007. The median price dropped 1.1% from 2007. With sales cut but 50% from 2006, the prices are going to have to continue to adjust downward if stability is going to be had in this sector.
The lack of sales in this sector will have to force prices down, if sellers really want to sell.
One of the things that never ceased to amaze me in the past few years was how many people purchased investment properties without looking at the fundamentals. Some purchases had such negative cash flow, I was truly stunned that someone was willing to purchase the property.
- Listed vs. Sold Duplexes in Salem Oregon
That dynamic is coming around as listings are increasing and sold properties decreasing. With the inability to count on appreciation as a factor in a purchase, buyers are going back to the basics of cash flow.
For other 2008 Market Reports: