Hey Lance,
Just my 2-cents.
Don't be worried about what other markets are doing. If Corvallis is the market you are settling on then study it by studying not only how fast properties are going, yet see what kind of listings and deals are being put together. Are they cash only, financing, etc.? Are multiple offers being solicited with a "offers to be reviewed on Tuesday"? All this does is push the price up - I stay away from these.
I have been looking in Vancouver for almost a year for a personal residence, and have submitted almost 10 different offers, some before I was a Realtor and some after. Of those offers, 5 or 6 have stuck (frankly it no longer matters to me any more to count them), yet all except 1 have "failed" because I terminated them. Here in Vancouver, and more so in Portland, properties "go fast" because those that are interested want to lock them up immediately, and then they use the offer/contract they submit to weed through the property for defects. I see it time and again. Only the purchasers that are "new" or whom rarely purchase are getting get caught up with the speed of the market.
In our area, 1.3 months of inventory is irrelevant to me. Why? Because if I "miss it" lol, so what? I have time to wait to find another one - and I get to talk to more people. Yet, considering those numbers... I looked yesterday, and there were 13 SFR affordable properties for sale currently that would net positive rental cash flow of at least $100.
Another thing to consider is available housing. Here in Vancouver, as it is a bedroom community of Portland, it is cheaper to buy than in Portland, though more expensive to rent. And then consider how rents are calculated. Here in Vancouver it is common to pay rent AND pay a fee for water, sewer, and garbage. Before I lived here and tried to rent, as I was from Portland, all these "extra fees" shocked me - yet there is no way to get around them.
And then consider what you should offer versus your highest and best. Most people I have found prefer to offer their highest and best when purchasing property. Yet if you get away from that frame of mind - yes it can be very hard - consider what you should offer as your highest and best, and then toss it onto a property in an offer. Then study the response. Interestingly, for me at least, the more I do this, the lower my offers are AND the more comfortable I am during a negotiation. And ultimately this helps me be more comfortable in my preferred market. You can play the could've, should've game all day - through on offer onto something - that's where the education is, and if the deal is structured right your not going to lose any real money if you decide to terminate the deal.
Just my 2-cents.
Steve
