If this is such a lackluster market, why is there so much activity? Why are so many people driving through town, stopping in to chat about real estate, or asking brokers to keep them apprised of new listings?
The answer is both easy and complex. The easy answer is that interest rates of 6% are still great money, Silverton is still the most charming little town in Oregon, and our spring weather has been unusually mild and even sunny, and prices.
Prices have, of course, risen steeply over the last few years primarily because most of the units sold are new construction and a plethora of newly developed lots. But for complexity, try this – inventory is huge, prices have begun to stabilize, the bottom of the market (under $200,000 homes and sub-prime borrowers/lenders are scarce if non-existent), and buyers are like bears. They hibernated for the winter, and the only way to get them out of their caves is by placing a fresh king salmon at their door. It has to be enticing to get them to act.
What is enticing about Silverton’s market right now?
Inventory. There is more of it than we have had in years.
Range – buyers can get a great townhouse with nearly 1400 s.f. and little maintenance for under $220,000 or they can a luxury view home over 3,000 s.f. for $780,000. They can purchase a small lot for $89,000, a large waterfront lot for $199,000, or a duplex lot on the creek for $150,000. Lots and lots of lots!
New and Old – Never before have we had more selection of classic older homes, fixers, flippers, and homes under $300,000. Yet we also have a wealth of new homes with prices that have begun to dip. In 2007, prices in the area had actually risen 7% on average, even though the national press said the housing market was all doom and gloom. In the latter half of 2007 and first part of 2008, prices have begun to flatten out and even dip into negative numbers as builders try to dispose of their 2007 inventory. There are also a lot of “flippers”, those who wish to buy homes on the cheap (especially through foreclosure if they can get there first), make some improvements, and sell for a profit.
Sellers are finally, grudgingly, acknowledging that we are officially now in a buyer’s market and prices are adjusting to the realities of 2008.
Likewise, my belief has been that late January, early February almost always is a hot time of year for real estate – it’s a new tax year, investors are investing, the Holidays are over and despite the drudgery of winter, spring is just a scant 6-8 weeks away. This brings optimism, and people buy when they are optimistic. Also, families have a tendency to make purchases in alignment with breaks from school, such as spring break, summer vacation, Christmas vacation, etc. That is a good time to move and is the least disruptive.
For Silverton, the market is good. Great selection, willing sellers, low interest rates, incredible town close to most things human beings like to do. One more thing – it’s good to hook up with a broker who knows the market inside and out, can talk SAT scores, knows everyone in City Hall by name, can refer people to the best most easy to work with builders, and can tell visitors exactly why Silverton’s hospital is one of the country’s 100 best, regardless of size. I’d like to think that broker is me.
- Dixon Bledsoe
