Happy October! It has been a crazy year. We are seeing rates staying low, prices great and but the biggest change is inventory is shrinking. A change in market from Buyers market to Sellers market happens between 3 and 6 months worth of inventory. An example of that is in Portland Oregon some price ranges have only 3 months of inventory. What agents are saying is that within a few days of listing the home they are getting multiple offers.
During the past few years here in Salem Oregon we have seen inventories over 15 months in some higher end price ranges inventory was calculated in years not months.
We have been trending down for months now. We were at 8.9 months last month. That is great news for Sellers looking to sell. There is just less competition. We have been finding that with Buyers we are working with that they actually can’t find a home that they want or when they do it may have an offer already pending.
The link below is a look at the past 25 years stats and this year through Sept.
Click HERE: 2012 3rd qtr Market Overview
If you have any questions please feel free to comment below or email me directly tyjhildebrand (at) gmail dot com.
Want to check out what’s on the market? Click Here to view Properties from Salem to Portland !
Seems like these days we are hearing more and more positive real estate news nationally. We are seeing housing starts up around the country, existing home sales gaining some serious momentum ( 27 month high in August) and interest rates and stupidly low .. this week at staff a 30yr fixed was at 3%. Yes, 3%. We are closing on a owner occupied commercial office building, their rate was locked at 3.49%. Just crazy.
Portland, OR — This is from the Portland Business Journal Sept 13, 2012 – read full article
“More than 2.300 Portland area homes were sold in August, the MOST sales in a single month since August 2007, when 2.554 homes sold.. source RMLS.”
“The 2311 Portland area homes sold in August was 28 percent higher than the 1,805 homes sold in August 2011. The average priced climbed 3.6 percent”.. Yes CLIMBED.. appreciated.. Words I haven’t seen in writing in 5 years.
My favorite stat! “There is now a 3.9 month inventory of homes on the market.” A 6 month inventory is considered a healthy market.
So how does Salem’s Market compare?
Our business is way up from last year. August is always a strong month but this year we had a very strong March, May, June and if we can keep everything together September will be our largest closed sales volume since 2006. What I am seeing in the market is a lot of Buyers writing offers on the same house. We started seeing that in the first quarter of this year. Investors were coming into the market buying fixers to either flip or rent. That is huge still right now. Investors are buying finished lots in the $20k range building homes on them and renting them out.
Even in the higher price ranges, We have a listing over $500 that had 3 offers on it. There still are tons of foreclosures, short sales and REO’s out there but it seems like they are getting absorbed faster than before
Stats for August in Salem Oregon Residential Real Estate Market:
In the month of August 2012, there were 1091 new listings that came on the market and a total of 5636 listings available. In the month of August 2011 there were 1066 new listings that came on the market and a total of 6426 on the market. That is a 12.3% decrease in listings available this year over last year at the same time.
In August 2012, there were 664 closed sales. With that number of closed sales we have approximately 8.4 months of inventory on the market.
Days on the market currently are:
Marion County: 149
Polk County 150
Closed Sales in Units for the last five years:
Through the end of August 2008: 4180
Through the end of August 2009: 3442
Through the end of August 2010: 4058
Through the end of August 2011: 3921
Through the end of August 2012: 4307
Yesterday some new stats came out and I wanted share them. The stats that we are really digging: 1. More homes sold this June than last June… I know it is only 7 more homes but that is 7 homes that are OFF the market. 2. Look at the avg price it increased from $165k to $172k. Growth is good. Not barn burning appreciation but could this finally signal that maybe the folks saying the we already hit bottom could be right? I hope they are. I am ready for some growth in values!
Have to start out by saying this was the best month we have had in a really long time. Great feeling for sure. We have listings with multiple offers that hadn’t had any traffic in months. There is a change in the air. Rates are staying low and prices are still low but with multiple offers we are seeing sales coming in over the asking price. Here is how things stacked up last month in the Salem Oregon real estate market!
June 2012, there were 1219 new listings that came on the market and a total of 5449 listings available. June 2011 there 1165 new listings that came on the market and a total of 6582 on the market. So we had more listings hit the market but still have over 1000 homes less for sale. That is a 20% decrease in listings available this year over.. 2 Thumbs up!
In June 2012, there were 563 closed sales. With that number of closed sales we have approximately 9.7 months of inventory. If you have been reading my blog you will know that a 6 month inventory would really start things changing towards a more even Buyers=Sellers market. Portland has some pockets right now that are in the 4 month range.
Days on Market are staying around 144
Closed Sales in Units for the last five years:
Through the end of June 2008: 3035
Through the end of June 2009: 2301
Through the end of June 2010: 3081
Through the end of June 2011: 2846
Through the end of June 2012: 3021
Overall conditions are good right now. Investors are back into the market buying rentals. The rental market is very strong. If you have any questions about buying or selling or know someone who is in need of some help. Please feel free to point them in our direction. Salem Home Search: http://SalemListed.com or call us directly at 503-945-0234.
As you drive around Salem you see something happening that hasn’t happened or been seen in a few years. That new phenomenon is NEW CONSTRUCTION. Seriously, you probably don’t pay attention to these things like I do but it started towards the end of last year that I noticed actual fresh 2x4s stacked up in front of a lot and dirt being moved around.
There are currently 81 NEW construction homes on the market currently. Not all of them are finished but there is plenty to choose from. See listings here!
I think this is a tell tale sign that a change is in the air. Finished lots that were 100k 5 years are now on the market for $20k to $35k. Yes, we have a few lots listed in NW that were purchased by the builder in 2008 for $95 and 1 of the lots is currently on the market for $29k. Finished, ready to build. Crazy. But, what is happening now is builders are starting to call. We had 3 builders look at the lots last week alone.
It is so interesting to have lived through this real estate cycle. To go from the frenzy of anything and everything selling and at crazy high prices to absolutely nothing where foreclosure, short sale and REO was the only thing that sold to now multiple offers and builders building.
I don’t think that we are out of the woods and things will be rosie from here on out but one thing is for certain people are looking. Our phone is ringing buyers are responding to our ads, our website is active, even our open houses have traffic. With a 15 year loan in the mid 2% range how can you not want to take advantage of this Perfect Storm .
Lived here in Salem Oregon for around oh I hate to say it but 34 years now. I am nearly 43 so the secret is out. But, not since I was little have a stopped and smelled the roses so to speak. I was coming back from getting some signatures in West Salem and I am working on building some photography content for our new real estate website and I thought today is a great day to stop, get out and take some pictures. It was actually kind of relaxing. I met a few nice people that were probably wondering why I was taking pictures of the capital but they got over it. I am pretty harmless.
The new website is going to be pretty cool I think. I want it to be much more than just a real estate search site. I am thinking of it as a Salem Lifestyle website. Where you will be able to search thousands of homes for sale but you will also be able to plan a trip through wine country, find great restaurants (with some local reviews) and find a home next to a park or your church. I know this sounds pretty broad but I feel like home search has become so one dimensional. You can search for homes everywhere online but I want to search for that plus a great restaurant. I want to build something that I would use. I spend a lot of hours online looking at homes and so do our clients. Why not make it more than the home. I think many home buyers are after not only the home, but the entire lifestyle. Whether it is in the great Gaeity Hill neighborhood or on your favorite country club or next to your favorite school it is truly about the lifestyle you want.
Salem Oregon has a lot to offer. Growing foodie culture with some great locally owned restaurants, wine shops, great craft beer revolution brewing , and we are globally known for a little grape called Pinot Noir which is literally growing in our back yard. The new website will celebrate the good that Salem has to offer for even those that live here and want a cool spot to go to for local info. The site has some new map search technology that I think is so cool.. It truly is a lifestyle search. If you have kids and want to be near a certain school or a certain park or church you can search homes for sale around that exact park.
Stay tuned for the new website and if you get a chance stop and smell the roses. Even if it is at the Capitol Mall I highly recommend it.
This is becoming one of my favorite days of the year. It seems like the older Jackson gets the more fun we have together. It also makes me a bit sad because I can see him pulling away a bit, finding his own way. The best memory of the last year I have is walking into Safeco field for both of our first visits to this great park and he grabs my hand and doesn’t let go. Although I know there will be a point in time when he doesn’t grab my hand I will always want his.
He has a knack of making me feel important in his eyes. I can only hope it lasts forever. He is 10 and still needs me ocassionally not as much as he used to but I still love hearing anything that starts with “DAD?”
This day reminds me of times with my dad and makes me very thankful that he is in my life and that we can all go throw the baseball around. There is just something about dads and baseball. Jackson I think would play catch 12 hours a day if we could. I really dig that time because he talks about all sorts of stuff and it takes me back to those days when I played.
Memories are made for a reason. Gives us something to hold onto while life “grows up”!
One of our favorite things to do is Friday night Happy Hour at Vitae Springs Vineyard. They are a great family and the wine is awesome.. Our favorite has to be the 2006 Pinot Noir but they are all great! It is a super fun experience hanging out where the wine is made, the grapes are grown and the family lives! Truly a must visit.. Tomorrow 6/15 their normal Happy Hour will be enhanced with a great Blues band.. Can’t beat great wine and live music. If you get a chance go see Ray Beltran BlueMax and drink some of the best wine in the Willamette Valley! Tell them Ty sent you I am sure that will get you absolutely nothing.. But, sounded good.. Cheers!
Directions to the party: 3675 Vitae Springs Road, Salem, OR 97306