Real Estate Update: Low Inventory, Higher Interest Rates Affect Mid-Valley
In Corvallis, the median asking price for houses currently on the market is $560,000 which includes a low of $274,000 and a high of just under $3.4 million. There is just over half a month’s worth of inventory at this time, and houses currently under contract spent an average of 16 days on the market.
In Albany, the median asking price for houses currently on the market is $475,000 which includes a low of $220,000 and a high of just over $1.3 million. There is about half of a month’s worth of open listings at this time, and houses currently under contract spent about 17 days on the market.
In Lebanon, the median asking price for houses currently on the market is $439,900 which includes a low of $178,000 and a high of $950,000. There is almost one month of inventory on hand. Houses currently under contract in Lebanon spent 25 days on the market.
On May 4, the federal government raised interest rates by 0.5%, which will see mortgage rates go up. While supply and demand continue to be a large factor in home sales, the fact is that local housing still sees less than a month’s inventory throughout the area.
According to Samantha Alley of RE/MAX: “The number of houses coming on the market really picked up this month with 96 new properties in April versus 80 in March for Albany, 62 vs 61 in Corvallis and 61 vs 32 in Lebanon. The interest rates increased again in April bringing the 30-year fixed mortgage rates into the mid 5’s, this does not seem to have substantially affected the demand for housing. We saw multiple offers continue to be highly competitive throughout April. If the number of houses continue to be at the low levels we are seeing now, this should continue through the Spring and Summer. Industry experts are still predicting a nationwide, slow but steady rise in property values. Many buyers are trying to get into a house before interest rates increase again.”