Real Estate Market: If You Can Afford the Mortgage, Buy
The Real Estate Market over the last 90 days features a housing shortage amidst a strong demand for housing. In Albany, the average sales price increased over the last 90 days to $384,687 and in Corvallis to $466,706. Median home prices increased in Albany to $384000, and in Corvallis to $440,000. In Albany, average days on market is down to 82 days, but stayed the same in Corvallis at 67 days.
In Lebanon over the last 90 days, the average home price is lower than in either Corvallis or Albany at $310,546. The median sales price there is up to $301,500, with homes spending an average of 56 days on the market.
The number of listings on the market rose to 36 listings active in the MLS in Albany, equaling less than half a month of inventory, and 37 active listings in Corvallis, which accounts for just under one month of inventory. In Lebanon there are currently 16 active listings, which is just over a month’s worth of inventory.
The above statistics were provided to The Advocate by Dave Pautsch of Remax. Pautsch hosts “Real Estate Talk on KGAL” every Saturday at 10 a.m. on KGAL. His interpretation of the market is as follows:
“The numbers just don’t lie. We have a shortage of housing supply and a very strong demand. People are asking if there is a ‘bubble’ and plenty of smart folks are commenting on it. For me, I don’t think so. Here’s why. Real estate is all about supply and demand. Supply, as a function the time it takes to find and develop land, get permits, and actually build homes is a long lead-time process. We are several million units nationwide behind over the course of the past 12 years since the last housing market crash. Easy to see that the SUPPLY side of the equation will not change dramatically any time soon. In the meantime, low interest rates, a strong economy, and the very large demographic of Millennials who are now aging into wanting to be home owners are keeping demand strong. So, short of a major national economic melt-down, there is no reason to suspect that the DEMAND side will see any rapid changes. Therefore, to my mind, there is no Bubble there to burst. For better or worse, the market we have is likely to be the market we will have going forward for the next few years. While frustrating for everyone (except maybe for Sellers who don’t need to buy something else), multiple offers, over-asking price sales, agreeing to concessions of paying over appraisal value, or limiting repairs are going to be the norm for a while. Focus on your monthly payment. If you can live in a home you love, at a price you can afford on a monthly basis, it’s still a good time to buy. I mean, you have to live somewhere, right?”
Check in next month to see where the market goes from here.