The Keizer Oregon real estate market has been one of the most stable markets in the Salem metro area for most of the year. While it has had it’s woes, really that market seems to have corrected for the most part.
Inventory, which is an important statistic in the world of real estate, is a gauge of the supply and demand in an individual market. The more in line these are, the healthier that real estate market.
You can see that the huge spike in inventory at the start of the year has steadily dropped and has hovered in the neutral market range for the past 3 months. I can’t honestly call a stable market or bottom until after the tax credit ends. I think that we need to see what the market can do on it’s own before calling a bottom, but it does appear to be stabilizing for now.
Sales volume has been fairly stable in Oct for the past 4 years. It was only down by 6% from Oct 2008, compared to Oct 2009. There will be normal market fluctuations so I don’t find this statistic particularly concerning.
Despite some signs of stability it doesn’t mean that home sellers can start to think that they will get 2007 and 2008 home prices. The reason that there is some stability is because home prices did drop, which put them more in line with local incomes. Current home prices are the norm. Not 2008 prices.
Year over year, the average price of a home in Keizer Oregon dropped 12.3% and the median home priced dropped 13.3%. So home sellers, if your friend sold a similar house to yours last year, you can expect to get 10-15% less than they did.
This is clearly where home prices need to be in order to be affordable for home buyers.