Albany Oregon Real Estate Market Outlook Is Positive

For the last 5 or 6 months the continuing low mortgage rates have not led to more buyers -implying that there was an issue of confidence, or lack thereof - in the homebuying decision.  The media report of the "worst housing market conditions since the early 1990's", or "worst market since the Great Depression", just doesn't apply to the Albany area market.  The recent subprime fallout is still a homebuyer concern, though the shakeout will be good for the housing market over the long-run as the market eliminates bad mortgage lenders.  I am glad to see that my preferred lenders are still standing. 

Mortgage rates have been falling recently and could be even more favorable in upcoming months.  A revival in FHA loans, which had lost substantial market share to the risky subprime market, will provide funding for low-to-moderate income households at much more attractive mortgage rates.  If a modernization of FHA loans is implemented including lower initial payment requirements, higher loan limits, and risk-based pricing then there could be a surge in FHA loan usage.  That is great news for many people!

(The following statistics are excerpted from National Association of REALTORS(R) 2007 Price Analysis for the Salem Region)

Price Activity                                                       LOCALLY                 U.S. AVERAGE

• 1-Year Appreciation (2006-2007)                 3.2%                         -1.7%
• 3-Year Appreciation   (2004-2007)                43.8%                        11.1%
• 3-Year Housing Equity Gain                       $71,700                     $22,167

Foreclosures                                                         OREGON                  U.S. AVERAGE

• Foreclosure Rate 2007                                 0.6%                           1.7%
• Prime Loan Foreclosure Rate 2007               0.3%                           0.8%
• Subprime Foreclosure Rate 2007                 2.9%                            6.7%

It is important for anyone considering a home purchase to be aware that the local market might be faring so much better than the media portrays.  Just like individual thumb-prints, every market is unique.  Right now is a great time to buy in my market.  Buyers are realizing it too.  Buyer traffic has noticeably picked up this week!