The Silverton Oregon real estate market has been one of the unhealthier real estate markets in the Salem metro area for a while now. While this is still the case, it has made some steps towards improvement and correcting. It still has a ways to go, but at least the trend is pointing in the right direction.
The biggest issue with the Silverton market has been the complete disconnect between supply and demand. In the early part of the decade about 65% of homes listed sold. 2008 was a dismal year in Silverton as only 29.7% of homes listed sold. 2009 started the year with insane inventory in Silverton and the fact that inventory is at 13 months right now, is a great step for this small market.
In 2009, the listed vs. sold was 44%. This was a huge improvement over 2008, which just stunk. No nice words for that year in the Silverton real estate market.
17.4% fewer houses were listed in 2009 over 2008 which was sorely needed. Supply and demand is still out of whack in Silverton, but at least it is moving in the right direction.
You don’t have to know anything about statistics to see that home prices have come down in Silverton Oregon. In fact the average home price dropped 9.6% in 2009 over 2008 down to $224,180. The median home priced dropped 13.27% to $202,000. The median home price is almost back at 2005 levels right now.
I know “blah, blah, dropped, blah, blah, bad” is what some of you are thinking, so here’s my opinion on the near future of the Silverton Oregon real estate market…
Still going down.
In fact I would not be surprised at all if it corrects another 10% in 2010. While I am only calling 5% for Salem and Keizer, I really think that Silverton has much farther to go. Supply and demand is still out of whack in this small town, unemployment and foreclosures are rising, lending is getting more difficult, and inventory is just too high. Unfortunately for folks living in Silverton home prices just have to come down more to get in the ballpark for more home buyers. I would really encourage folks living in Silverton to not “try” the real estate market there. If you don’t have to sell and want to wait for “top dollar” this is not the market to do so, unless you have something extra special about your property. Either you are in the market, or not. With the average days on the market jumping 30% from 2008 to 173 days (5.7 months), selling a home in Silverton is starting to become a marathon. You gotta have the stamina to sell it out there.
P.S. Statistics used in this post were calculated from the WVMLS.