Home Prices Have Already Hit Bottom

An interesting item in DSNews: Economists Say Home Prices Have Already Hit Bottom

I’m glad that a panel of economists could read the writing on the wall:

 “When it comes to the distressed side of the business, it’s become clear that the nation’s high level of unemployment is now one of the primary triggers of default among struggling homeowners. Getting more people back to work is key to a recovery in housing and getting a handle on still-rising delinquency numbers.”  

Home prices in some markets have hit the floor, some may be rebounding and some may still experience a dip, it has a lot to do with what the local (key word here is “local”) economy is doing including housing inventories, the job market, business growth, and potentials for lender owned properties to come into the market (affecting inventory).

Locally, there are vast differences between markets that are virtually contiguous. For example, Albany and Corvallis have vastly different economic profiles. Philomath is a community adjacent to Corvallis; it’s small and often gets overlooked in “searches” (Realtor.com, Zillow, Trulia, and other real estate search sites.) One does not “compare’ properties in these differing markets against each other when attempting to establish a market value.

Job availability and types of jobs, growth rates, volume of new construction during the “boom” (which added to inventory), profile of homes built, price appreciation during the “boom”, supply and demand (including supply and demand for rental properties), homeowner and home buyer demographics all play into the availability, pricing and negotiability of prices. 

Further, “The group of economists is projecting gains in home prices of 1.2 percent over the course of 2011”, I personally find it inappropriate to make sweeping comments about “home prices”.  There is no “national real estate market” it’s all local. Saying there’s a “national average home price” or a “national median home price” is a little like saying there’s “a national average temperature” or “a national median temperature”.  Those kinds of statistics are a method of measuring change, but one should not take the figures and attempt to apply them to any specific market. 

Consumers, either Buyers or Sellers, looking to enter any market are best served to research that market, taking into consideration the local economy and local housing market prior to drawing conclusions. Investigate communities near-by. Good values can be found in surrounding communities. Don’t assume that the market where you are going is similar to the one from which you are moving. Let’s all just know that the key to any recovery is the strength of the local job market and get on with the business of living.

Coming Soon | 3 Bedrooms | 2.5 Baths | $257,000

I have a new listing coming on the market very shortly and just wanted to let everyone know about it before it gets here!

Spacious and clean Philomath home with amazing views of Mary’s Peak and the rest of the Coast Range.  Landscaped yard with underground automatic sprinklers and trickling stream water feature. Large open living area with westward facing balcony to take advantage of those wonderful views! 3 bedrooms, 2.5 baths, approximately 1843 sq. ft. on .38 acres.  Take advantage of the extended first time home buyer/expanded buyer tax credit.

Located just of west of Corvallis and easy commute to Corvallis employment, including Oregon State University)

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