Housing recovery: The Shifting Sands of Coastal Real Estate
According to the New York Times article published yesterday (New Indications Housing Recovery is Underway), there is indication of a significant recovery in the housing market.
This article does point out some trends that apply to Coastal real estate such as an increasing inventory in most price ranges and a reduction in the number of distressed properties on the market. It alludes to a slight increase in sale prices after steep declines over the past 6 years. This is not quite true on the Coast. Over the past 2 years our market has seen a decline in values of closed properties of 13%. This is in contrast to the historical figures up to 2006 when we consistently saw average annual increases of 15%.
What does this mean to home Buyers in the Coastal market? Depends on the objective. If you are an investor the competition is stiff for homes and condos that can be easily placed in the rental market. The demand for clean affordable rentals continues to outstrip the supply. For homes to be used as primary residences the inventory is fair to good.
Oregon coast homes priced between $190,000 to $250,000, are being caught in “bidding wars” that have not been common since 2004-2005. New construction is still at a standstill on the Coast as builders wait for cash Buyers prior to breaking ground, and bare land is in ample supply. For Investors coming in with cash, excellent buys are available. For primary coastal residences and beach homes, the selection is fair to good if the Buyer can come pre-qualified for a new loan with good credit.
This is overall a great time to invest in Coastal real estate no matter what the objective. After all, there is only one Oregon Coast. We love living here – so might you.