Home prices are projected to rise between 3 and 5% in 2010. Inventories of houses have fallen recently, nationwide, because new home buyers are snapping up houses. About ½ of all the sales have been by folks who haven’t owned a home in 3 years. The government’s tax credit is undoubtedly fueling this first-time buyer’s frenzy.
Around Eugene, we actually have a bit of a seller’s market in some areas, as measured by inventories of less than 6 months, which is in sharp contrast to the prolonged buyer’s market we’ve experienced. Prices tend to rise in a seller’s markets.