Salem + environs real estate market (mortgage, loans, rent)

[CalculusE.]

Any opinions out there on the market? I'm getting itchy to buy but with prices coming down a bit in the last couple of months... thinking maybe I should wait despite a couple of possible deals available.

[freedom]

Originally Posted by CalculusE.

Any opinions out there on the market? I'm getting itchy to buy but with prices coming down a bit in the last couple of months... thinking maybe I should wait despite a couple of possible deals available.

Speculative buying is best in the winter months.
Retirement homes are best when you find the one you like.

Current market trends put the bottom, somewhere into next year.
Depending on the Politics of the Fed reserve and Presidential issues, it may not really start going up again until after winter of 08.

IMO.

freedom

[DavePautsch]

National news stories do not always accurately predict local housing trends!
Are we seeing pockets of softening due to the stress in the mortgage market...yes we are but it is NOT NECESSARILY a rampant buye'rs market out there.

If you are thinking of buying:
(1) Make sure you have solid financing and down payment money. This puts you in a strong negotiating position when you find the house that meets your needs and a motivated seller. Trading time for money is the classic win-win in real estate. Talk to a lender and look at conventional loans vice adjustables (although there IS some speculation that ARMS that are NOT sub-prime could be a good investment as rates may drop in the future). If you MUST go to 100% financing, or a sub-prime...rent instead.
(2) Target the right neighborhoods and the right houses and then BE PATIENT and watch. That way you'll be able to identify the seller who is motivated to work with you. Is the house vacant? How long has it been on the market? Have they had any offers or 'failed sales?' Minimum 3 bedroom / 2 bath (look at resale fundamentals...no busy streets, up and coming or established neighborhood...not one in decline).
(3) IF you are planning on staying in the house for longer than 6 or 7 years, it doesn't really matter if the market takes a temporary dip...you can ride out the wave and still be in a solid position down the road...and in the mean time you'll be investing in yourself vice paying someone else's mortgage. If you are only looking for a 2 year investment...again, my advice is to rent until the true bottom comes.

The mid-Willamette valley is in a neutral market right now (inventory is rising, but there is still less than 6 months of homes out there in most of the markets). We have had insulation from much of the national bubble because the market here was NOT an over-inflated one fueled solely by greed...and with no one paying attention to unrealistic valuations. Prices have gone up fueled by supply and demand...and actual construction labor/material costs.

It CAN be a good time to buy if you are a good buyer...but you have to inform yourself about the LOCAL market and not get caught up in the hype from the national news which just likes to keep the sheeple glued to the sets in panic because it gets them ratings.

Dave