The Real Estate Market continues to hold in a sellers’ market, even amid speculations of shifts in the overall economy. In Albany, the average sales price increased over the last 90 days to $355,617 and is also up to $433,731 in Corvallis. Median home price increased to $340,000 in Albany, and $414,000 in Corvallis. Homes are staying on the market a little longer in Albany with an average of 87 days, but dropped to 93 days on market in Corvallis.
The number of listings on the market remain low, as there are only 34 listings active in the MLS in Albany, equaling far less than a month of inventory, and only 44 listings active in Corvallis.
“Our current real estate market is completely a function of Supply and Demand. Supply is low and demand remains high. Any change in the dynamics of the market will happen by either an increase in supply or a reduction demand. For context – in January 2019, Albany had 121 active residential listings, Corvallis 65, and Lebanon 38. Similarly, in the prior 90 day period Albany sold 217 homes, Corvallis 111, and Lebanon 75. In the last two years, home sales have increased slightly in volume while inventory has plummeted. As a result of that shift, you also see the correlating rise in prices.
“So, what can change? Frankly, there is little that can be done in the short term to ‘up’ the inventory side. Builders are building, but there are limits on land availability and creating more takes years. That leaves the demand side of the equation. A dramatic change in the economy to the downside or a significant increase in interest rates could reduce demand, taking buyers out of the game. Not being an economist, I can offer no prediction there. That means that (again, for the short term) prices are likely to rise as competition remains high. I do believe that, as we reach an affordability threshold, some buyers will remove themselves from the market, which could cause that curve to flatten as the ‘Rent vs. Buy’ math could shift and many people choose to rent instead.”
Check in next month to see where the market goes from here.
By Kyra Young