Last year, at the end of June 30, the tax credit ended. July was the first independent month that the real estate world had last year and the statistics were dismal. It isn’t surprising, then, that we sold more homes this July that last July. It was kind of hard not to. That said, it still wasn’t a stellar month. Real estate is still quite slow and will be for a while.
Inventory in Salem Oregon is at 10.35 months currently. Still a healthy ways away from the coveted 5-6 months of inventory we all desire, but still better than the one year plus inventories present for all of last year. 131 homes sold in July compared to the exceptionally dismal 102 that were sold in July 2010. It was an ugly summer last year.
Foreclosures and short sales made up 21.3% of sold homes in July and has been inching up slowly over the past year. I would anticipate that 25% of sales will be distressed properties by the end of the year.
Home prices took a tumble at the start of this year and the median was at $147,000 for July with a median of $152,000 year to date. It has been hovering around $150,000 for most of this year as that seems to be the number that works for buyers. Buyers in the starter home price range are finding that the good properties are getting scooped up fairly quickly and what is left isn’t exactly what they want.