Rockwell Real Estate, KDRV Channel12 & The Salvation Army have teamed up to help a local family in need. With rental rates on the rise and inventory at an extreme low we are finding that many people
Todays Market Vs Before The Crash
My name is Rocky Primo. I'm the Principal Broker at Rockwell Real Estate and have been a licensed Realtor in Southern Oregon since 2001. I experienced the rapid acceleration of the real estate market in the early 2000's, its crash, and of course the impressive recovery we have experienced up until today. Pricing seems to be close to where we were at the peak, but of course there has been almost a decade of inflation since. I'm no economist but I think that should be factored in.
Probably the most significant difference between yesterday's market and today's is the financing available for buyers. Before the crash anyone who wanted a loan could get one -- it was that easy, but ultimately it crashed the market. As a result the government stepped in and imposed stricter guidelines onto the lenders in an attempt to make sure the people who are getting loans actually qualify for them.
There are more "qualified buyers" out there right now than one might think, and added back in to that pool now are those who may have previously had a short sale or foreclosure on their record because enough time has passed for many of them to where that issue is moot.
The real estate market of the early 2000's was fueled by subprime lending practices, whereas today's market is more the result of short supply and high demand. Nation wide there is a housing shortage and at the same time the population is growing exponentially. Here in Southern Oregon limited inventory has been a chronic problem, and as large as the buyer pool currently is we also have the Californians that are coming here in droves -- a lot of them retired with cash and don't require financing. In addition, pricing still remains cheap to the Californians as compared to where many of them are from.
One other factor contributing to the strength of our current market is the historically low interest rates available for those that qualify. Today a well qualified borrower can get a mortgage for about 4%; back in 2008 it was closer to 6%. There in itself is a 33% discount, which might help explain how one may all of the sudden "qualify" now when they may not have in 2008 at the same price.
Investors are in fact a large presence in our market, and understandably so. If you think supply and demand is out of balance for real estate purchases, consider what one might face looking to secure a property to rent. Rents are outrageously high, but that too has a lot to do with supply and demand. When rents go up there is a direct correlation in the value of investment property and what investors are willing to pay. Aside from that, real estate is and always has been a fantastic long term investment.
Rocky is a lifelong resident of Southern Oregon and has been a licensed real estate broker with John L. Scott Medford since 2001. In that time he has won numerous awards for top sales production and ....