Market News: Market Summary 1Q 2008
Looking to buy a home on the Oregon Coast ?
March End Update - April Fools comes Early !
Okay, I'll be the first to admit I was wrong. The minute I hear the Fed has concerns about inflation and will hold on interest rates, Bear Sterns goes under and the Fed drops it's rates. The concern to avoid a financial crisis in the midst of a recession was overwhelming and the right thing to do.
The good news is the buyers have been coming back along with the weather ! They are looking to purchase before the market turns and while interest rates are still low. One client is more focusing on buying before interest rates increase as the Fed still has inflation concerns. They feel any reduction in price will be outweight by their increase in monthly payments as the interest rate climbs.
Got any thoughts on this ? Email me at ottercoast@earthlink.net !
March 2008 Market Update: Greater Lincoln City Area
The increase in the conforming loan rates turned out to be a myth that affected only a few markets nationwide. The news media headlines continues to report trouble in the real estate and financial sectors. The Fed may reduce rates however, the weakening dollar and potential inflation risks may cause the Fed to change their mind.
Is there any good news in this market ?
The positive news in the market is we're starting to see increased activity in closed sales climb up to the $600,000 range. Buyers in this range have almost been non-existent in the previous months. The weather seems to be improving (knock on wood) and the spring break period is right in head of us.
Even though the % of homes with accepted offers remains low, we are still seeing buyer interest increase as people are trying to time their purchases before the market takes off again. This low percentage is partially due to the impact of the seasonal increase in our inventory.
Finding properties people want is still a challenge even though the inventory is up. Given ours is a vacation market with many unique vacation homes. Thus, we are still encouraging people to purchase a home in this market when they find one they like as chances are, we may not be able to find another house like it.
We'll keep you updated on the market. If you have any questions, please feel free to call or email for the latest information.
1st Quarter 2008 Summary
In the greater Lincoln City area, we have seen the number on houses sold in 2007 drop @ 35% from 2006. However, the average price of a home is still holding and the medium price appears to be up about 10%. I believe this reflects a higher percentage of new construction homes being on the market.
It feels like the market is picking up a little since the beginning of the year. We have had an increase in the number of inquiries by Buyers however, it’s still too early to tell if this is a trend or just the effect of the improvement in the weather.
The percentage of listings with accepted offers is low at about 6% and marginally improving. The total number of listings on the market has fallen since last summer but this is mainly due to people pulling their houses off the market due to the slow sales. We expect the number of listings to increase as we get close to the summer and our selling season.
Other factors affecting the market are lender’s have been tightening up their loan criteria to buyers and with appraisers. The slowdown in sales have been a challenge for appraisers finding comparables to justify prices in our market lately.
There are positive signs about the market. Interest rates are down, the stock market is in a state of flux and the jumbo loan limit will potentially be raised. Congress is considering an economic incentive package while, will not affect the real estate market directly, could help soften the recession and help instill confidence back in the economy.
Many experts looking at the market are pointing to a recovery in the real estate market in 2009 although we now hearing some back off of this a little. Mainly, these people are generalizing about the national market overall where there is weakness in the mid-west and sunbelt states. The northwest and east coast sections of the country are not seeing the big drop in prices or sales.
Given this, I think the smart buyer will be looking to buy this year. Home inventory and selection will be up and it’s a great opportunity to purchase before the market takes off again. For sellers, pricing the property right, addressing maintenance issues and improving curb appeal will be critical.
Of course, being in the real estate business creates some bias. I do feel confident the real estate market will come back and it’s only a matter of time.
The baby boomer generation will still be a force in the real estate market here on the coast as they seek a relaxing lifestyle. They are healthier and concerned about the economy, thus they are working longer than anticipated.
Plus, we’re seeing more families purchasing vacation homes on the coast which we did not expect. It’s not only a great long term investment but it provides a place for the family to get away and spend quality time together.
Please check our website again for market updates. Please call or email if you have any questions or would like an update on our coastal market or other specific areas of the coast.
Please note: The data source for the information is the Lincoln County Multiple Listing Service, information is deemed reliable however, is not guaranteed.
Enjoy Life, Buy Real Estate !
