“Buyer gets 50% off short sale listing!”…”Homes in Detroit selling for $1.”
I know some buyers are thinking this will happen here in Salem Oregon as well.
That’s the sound of those buyers hitting their heads up against the wall because those stellar deals they read about on Google, aren’t coming to fruition here. Now that’s not to say that there aren’t some really good deals out there… There are, but not like that. Salem Oregon home buyers need to set their expectations. Make no mistake the market will continue to decline here as unemployment rises…but how much? That depends on how well people saved for a a rainy day.
Our Salem Oregon economy is in dire straights right now,and you can’t help but read some articles that talk about those great deals out there on homes. So, once again, it is time to take a look and see if short sales are the end all be all for home buyers.
So…in Salem Oregon 15 short sales have closed so far in 2009, according to the WVMLS. Yes…I am aware that some short sales won’t make it to the MLS, but hey…I can’t track that data. There are 130 active short sales on the MLS right now so we are running about a 11.5% success rate in getting short sales closed here so far this year.
For those of you that think the sky is falling and that short sales are the only game in town, you need to understand that right now in the Salem Oregon real estate market that only 4.1% of total sold homes so far this year have been short sales. 4.1%. That’s it. Small potatoes here folks…so far. Yes, I realize that unemployment is rising and yes…I would expect that number to head up this year. Will we be like parts of Florida where 84% of sold homes are short sales? No. I really don’t need a crystal ball to call that one.
What does this mean? Well if you are a buyer bent on purchasing a short sale home in Salem Oregon…you’ll probably be waiting for a bit. There’s just not a lot to choose from. Oh…and the ones that actually DID close sold for an average of 4.6% off of asking price. Not 30%, not 40%, not 50%….4.6%.
Remember just because you read it on google, doesn’t make it reality. Sometimes the media and reality collide.