Seeing price changes and adjustments to list price is not necessarily a "price drop" in the market. That really depends on where the prices started and what you are comparing. Some properties are sitting, some are not. On occasion, we still see multiple offers for some properties. Different price tiers are experiencing different results, which can throw off â€œmedianâ€ and â€œaverageâ€ sales prices. The number of sales are down significantly 2008 over 2007, which can also have an effect on â€œmedianâ€ and â€œaverageâ€ sales prices. In a market as small as ours, a few low or high priced properties can change the average pretty easily.
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.