2009 Home Prices on the Upswing

Home prices are on the upswing according to a jump in the national S&P Case-Shiller home price index which suggest that the very steep price drops of the past may be over.  

“This is great news; prices may be starting to grow again” said Pat Newport, a real estate analyst for IHS Global Insight. “Three independent sources, the National Association of Realtors, the Federal Housing Finance Agency and Case Shiller are showing price improvement.”

What’s helping provide the boost?

• The slide may be over partially because prices have reached affordability levels not seen in a generation, drawing many buyers into the market.
• Helping housing markets, too, is the government economic stimulus effort, which includes an $8,000 first-time home-buyers tax credit. That added discount has spurred many entry-level buyers into home-ownership.
• The rebound may mean that potential home-buyers will have more of a feeling of urgency, afraid that they’ll miss the market bottom.

It’s true, we’re on the road to recovery – “recovery” being the operative word.  While we’re hearing almost uniformly positive news about the housing market on national, regional, state and local levels, I’d express caution towards “any” over-zealous claims that state it’s a “sellers market” right now.    It should go without saying that after such a significant economic shift, our respective markets as we knew them will have a new definition as we stabilize and “the balance” takes place. 

There’s still a lot of damage control that needs to take place in the foreclosure and unemployment markets.  An increased amount of bank repossessions could unleash a large supply of inventory to the market that will need time to burn off.  With that, banks may be more likely to release their inventories over time to prevent a flood among the markets.  Simply put, while we’re headed in the right direction it’s going to take some time.  Many experts are saying the bottom is here and that while areas may firm up a bit, it still looks like it will be a buyers market for while. 

Moving forward we remain very optimistic as 2009 is yet again a record-breaking year for The Gardner Team.  Momentum matters and we’re sure seeing a lot of it as we successfully serve our many clients in Sherwood Oregon and the surrounding areas.  Whatever case of the market, the basics still apply – your agent should greatly understand the pulse of your local area, neighborhood, the supply and demand.  The more success they have in your area equates to more experience when representing you.  The goal in any market is to insure you’re maximizing the potential of YOUR investment whether you’re a home buyer or seller.  The Gardner Team would be honored to also represent you.  Please let us know how we can be of service to you.  You can always reach us direct at 971.832.1234

In recent press:  In areas said to lead the Rebound, the Salem Oregon area was also named among the few.