Happy Valley, Oregon - Just How Happy Is The Real Estate Market?
From January 1st, 2011 to July 17th, 2011 there have been 203 closed sales of stick-built residential homes in Happy Valley, Oregon. This statistic includes condos and attached homes. The chart below is a breakdown of these sales.
Distressed Market Share Is Significant
57 of the above sales were REO's or what are known as Bank Owned Foreclosure Homes. These homes were previously foreclosed on by the lending institutions and then resold to the general public through Real Estate Brokers and the MLS system.
33 of the above sales were Short Sales. This is where the lender has agreed to allow the owner of the home to sell for less than what is owed. The process can be long and drawn out and only a small fraction of attempted Short Sales actually succeed.
Based on the above data, there were a total of 90 distressed sales out of 203 total sales for the period. This translates to 44.33% of the market.
Current Trend
There are currently 277 active listings for sale in the RMLS system for Happy Valley. Of those, 15 are Bank Owned Foreclosure Homes. Another 37 are currently listed as Short Sales.
There are currently 60 pending sales in the RMLS system for Happy Valley. Of those, 7 are Bank Owned Foreclosure Homes. Another 8 pending sales are listed as Short Sales.
Based on an average of 31 sales per month so far this year, and 277 current active listings. There is approximately 8.9 months of inventory available for Happy Valley.
My Forecast Of The Real Estate Market For The Next 2 Years
As recently stated in a previous post, I think we are in for more of the same. Market values will continue to trend downward. It is simply a matter of supply & demand. There are far more home sellers than buyers in the market. Inventory levels will continue to be high with distressed properties capturing a large portion of the actual closed sales. There are millions of home owners out there who owe more than their homes are worth. Many of them are behind on their home loan payments. I have read reports that some have not made a payment in excess of 3 or 4 years. All of these homes will eventually get foreclosed on. This will put further downward pressure on the market value of homes.
Silver Lining
Is there a silver lining in this situation? In my opinion, yes. Homes are becoming more affordable to the average buyer / first time home buyer. Investment / rental units are actually making sense now, cash flow wise. All of the displaced home owners, who have been foreclosed on have to live somewhere. So they are renting, which is creating an increased demand for rental units. Once again it is supply and demand driving this market as well. An astute investor, can capitalize on this trend by purchasing homes as rental units, creating a handsome return on their investment.
Distressed Market Share Is Significant
57 of the above sales were REO's or what are known as Bank Owned Foreclosure Homes. These homes were previously foreclosed on by the lending institutions and then resold to the general public through Real Estate Brokers and the MLS system.
33 of the above sales were Short Sales. This is where the lender has agreed to allow the owner of the home to sell for less than what is owed. The process can be long and drawn out and only a small fraction of attempted Short Sales actually succeed.
Based on the above data, there were a total of 90 distressed sales out of 203 total sales for the period. This translates to 44.33% of the market.
Current Trend
There are currently 277 active listings for sale in the RMLS system for Happy Valley. Of those, 15 are Bank Owned Foreclosure Homes. Another 37 are currently listed as Short Sales.
There are currently 60 pending sales in the RMLS system for Happy Valley. Of those, 7 are Bank Owned Foreclosure Homes. Another 8 pending sales are listed as Short Sales.
Based on an average of 31 sales per month so far this year, and 277 current active listings. There is approximately 8.9 months of inventory available for Happy Valley.
My Forecast Of The Real Estate Market For The Next 2 Years
As recently stated in a previous post, I think we are in for more of the same. Market values will continue to trend downward. It is simply a matter of supply & demand. There are far more home sellers than buyers in the market. Inventory levels will continue to be high with distressed properties capturing a large portion of the actual closed sales. There are millions of home owners out there who owe more than their homes are worth. Many of them are behind on their home loan payments. I have read reports that some have not made a payment in excess of 3 or 4 years. All of these homes will eventually get foreclosed on. This will put further downward pressure on the market value of homes.
Silver Lining
Is there a silver lining in this situation? In my opinion, yes. Homes are becoming more affordable to the average buyer / first time home buyer. Investment / rental units are actually making sense now, cash flow wise. All of the displaced home owners, who have been foreclosed on have to live somewhere. So they are renting, which is creating an increased demand for rental units. Once again it is supply and demand driving this market as well. An astute investor, can capitalize on this trend by purchasing homes as rental units, creating a handsome return on their investment.
Posted by Donn's Blog at 7/18/2011 1:20 PM 
Categories: Real Estate Investing, Economy, Property For Sale
Tags: Happy Valley Oregon
Categories: Real Estate Investing, Economy, Property For Sale
Tags: Happy Valley Oregon
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