"Get $8,000 tax credit" scream the real estate sign riders...just in case you weren't aware that it was out there. The count down has been so apparent this past month as the Salem Oregon real estate market started early. Typically I tell clients that the market starts to heat up in April, but agents were running amok this month as things got busy much earlier than usual. Sellers are out trying to get their home sold for the tax credit and buyers are out trying to get the tax credits. So...where does all this frantic activity leave the Salem real estate market for February?
The average home price dropped 6.9% and the median 2.9% from February 2009. Honestly, I think that is pretty good. If the Salem market could stay around 5-6% drop this year, I think that would be a solid sign for the market. The current inventory has spiked up to 19.4 months in Salem. Normally, I would be very concerned about that spike, but inventory always rises over winter as there are fewer home buyers out. Obviously this is a huge jump, but it is not unexpected since sellers are trying to make sure their home is on the market for buyers looking to claim the tax credit. This inventory number will continue to drop over the spring. I just think we have an unusually high number due to this dynamic.
Sales are up 8.8% from February last year. I would expect March and April to show increased sales volume as well. The big numbers, in my opinion, will be the summer numbers after the tax credit ends. It appears for the first time in several months, that the real estate market will forge ahead without the tax credit and be allowed to start sorting itself out, unassisted...well sort of anyway.
This was originally posted on the Get Real Estate Blog.
Data was crunched from the WVMLS.
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