You might choose to study the market for the type of home you are seeking and in the price range you are searching for rather than look at a broad picture. As to the second half of your questionâ€¦ a lot of what drives our market is supply and demand. Interest rates are still very low â€“ at 6.0-6.5 percent the range is some of the best cost of money weâ€™ve ever seen. The economy here is relatively good. Money for buyers is available (they just need to do what they always did before, qualify for the loan). We have not had an explosion of subdivisionsâ€”yes, weâ€™ve had growth, but not uncontrolled as in other markets. We also had high rates of appreciation, but not out of control. nor do we see a huge number of short sales and foreclosures as Corvallis didnâ€™t experience the high numbers of sub-prime loans found in other areas. We are a desirable destination for everyone from young families to retirees.
Recent reports indicate that there is some relief in the hardest hit markets. When those markets absorb the excess inventory and come into balance it will help to loosen up the rest of the country. Most real estate professionals in Corvallis do not expect a prolonged correction in our market. As long as interest rates remain reasonable and employment is relatively stable, the Corvallis housing market will continue to be stable and/or improve. So, no significant reduction in prices is expected.
Lana gave you a great answer. What I will add is that this is a great time to buy. Prices are very low now. While we may see some additional decreases I would anticipate things will get better and in 5 years I believe as do many economists that we will be back at a plus 30% from where we are now.
Corvallis is a great town. It has been a tight market in the past and those days will return as there are not that many new projects going in there. Your biggest risk is interest rates. A 1% increase in interest rates will cost you $100,000 dollars on the price of a home. Therefore I would say shop hard, make a good buy for this market, move in and get your homeownership going. Stay 5 years and the tax and investment benefits will outweigh the other issues.
Don't worry. Jump in and buy!
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