All’s quiet in the college town…
Monmouth Oregon has had a steady track record during the bust that has occurred all around. Currently, Monmouth has 5.3 months of inventory which puts it squarely in a neutral market. While real estate inventories climbed in Salem, Monmouth barely blipped.
So where is the 2nd quarter lead us?
The median home price has dropped 18.4% since 2nd quarter last year.
Monmouth didn’t have the overbuilding that Salem Oregon had. Some of the newer construction homes built since 2005 are starting to reappear on the market, but with unemployment as high as it is, relocation is not unexpected. 
Sales volume is still a little on the low side, but the inventory is neutral so that is not a particular concern at this point in time for the Monmouth real estate market. It is up over the 2008 2nd quarter which is a good sign of stabilization.
Monmouth like all of the Salem Oregon area towns, still remains to be impact from potential foreclosures due to job losses this fall. How much the high unemployment rate impacts this market remains to be seen, but through this entire debacle, Monmouth has been one of the more stable real estate markets in the Salem metro area.
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July 25th, 2009 at 9:37 pm
Although the chart is pointing down you believe there is reason to believe there is improvement in store. I agree the more speculative areas are suffering the most with the greatest overbuilt areas are having a harder time. Over all however I don’t think your area was in the extreme speculative areas like S. Cal., Vegas, Arizona, Florida etc. Hopefully if mortgages stay ok, it will get better as time rolls on.
July 25th, 2009 at 9:55 pm
Yes Richard the chart is pointing down because it had to point down. With lenders requiring more normal debt to income ratios home prices in most areas of the country had to self correct. Prices dropped and as a result do did inventory. Self correction is a good thing.