Yes, it is true, the overall RE market is getting worse. 28+% of home owners nationwide are now under water and my bet is, as with our official unemployment rates, the truth is closer to 1/3 of all home owners.
I wrote in several blogs before that just the math says that we cannot start to recover before 2015, I stand corrected and think it will be rather 2018.
NOW: as we all are aware, all markets are local. So where does this mess leave Corvallis. The answer is, in a comparably good spot.
We still do not have foreclosures in amounts that are staggering. Limited growth in the past has not allowed oversupply. So now we are not facing subdivisions with rows and rows of empty homes.
Yes, our prices are down. But a) not anywhere close to how lowe they are elsewhere and b) it appears that in certain segments the market has indeed bottomed out.
One of those segments is the area around the university. We are seeing multiple offers, very DOMs and lots of cash deals. Higher end homes above 480K are doing not so bad either. Again, lots of cash...
We will not go unscathed. But we will also not at all be so close to a communal catastrophe as towns in NV, FL etc.
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