Southern Oregon Real Estate News

Sept. 10, 2021

Options for First-Time Homebuyers [INFOGRAPHIC]

Options for First-Time Homebuyers [INFOGRAPHIC] | Keeping Current Matters

Some Highlights

  • With a housing market this competitive, sometimes you have to think outside the box.
  • Work with your trusted real estate advisors to do things like assess your budgetexpand your search radius, look into other options, and determine your true needs.
  • If you’re having trouble finding your first home, explore your options. It’s out there!
Posted in Home Ownership
Sept. 8, 2021

Southern Oregon Market Stats Aug

Southern Oregon Market Stats

June 1st, 2021- August 31st, 2021

 

By Jake Rockwell

Can you believe that just 5 short years ago that homes were selling in Medford and the surrounding areas for under $200 thousand? White City specifically had a median home sales price $174,000, its now selling for $310,000 median price with an 80% increase in that short time frame of 5 years. Comparatively, in that same time frame Gold Hill & Rogue River has jumped from $180,000 to $360,000 up by 100%! Additionally, the Year to Date average of the Absorption Rate has increased to 2.53 from just 1.34 at this same time last year, which ultimately means that the lack of inventory is starting to slowly pick back up! While days on Market in Josephine county is still comparatively lower than many years past, its continuing to decrease, going from  26 CDOM (cumulative days on market) to 7 CDOM.

Key Take-Aways:

    • Average Days on Market Josephine County Urban Home Sales went from 41 in 2020 to 19 in 2021
    • Average Days on Market Jackson County Urban Home Sales went from 43 in 2020 to 18 in 2021
    • Jackson County jumped in number of sales from 694 in 2020 to 825 in 2021
    • Josephine County jumped in number of sales from 169 in 2020 to 191 in 2021

Links to Stats:

 

Create a custom market report catered to your neighborhood or any specific area and criteria.

Want an instant market valuation for you property?

 

Sept. 3, 2021

What Does Being in a Sellers’ Market Mean?

 

What Does Being in a Sellers’ Market Mean?

Whether or not you’ve been following the real estate industry lately, there’s a good chance you’ve heard we’re in a serious sellers’ market. But what does that really mean? And why are conditions today so good for people who want to list their house?

It starts with the number of houses available for sale. The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still astonishingly low. Today, we have a 2.6-month supply of homes at the current sales pace. Historically, a 6-month supply is necessary for a ‘normal’ or ‘neutral’ market in which there are enough homes available for active buyers (see graph below):What Does Being in a Sellers’ Market Mean? | Keeping Current MattersWhen the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which leads to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer. As this happens, home prices rise, and sellers are in the best position to negotiate deals that meet their ideal terms.

Right now, there are many buyers who are ready, willing, and able to purchase a home. Low mortgage rates and the ongoing rise in remote work have prompted buyers to think differently about where they live – and they’re taking action. If you put your house on the market while supply is still low, it will likely get a lot of attention from competitive buyers.

Bottom Line

Today’s ultimate sellers’ market holds great opportunities for homeowners ready to make a move. Listing your house now will maximize your exposure to serious buyers who will actively compete against each other to purchase it. Connect with a local real estate professional to jumpstart the selling process.

Aug. 26, 2021

What To Do with Your Vacation Home as Summer Ends

 

What To Do with Your Vacation Home as Summer Ends

As summer comes to a close, is it time to think about selling your vacation home? Based on recent data and expert opinions, it’s something you may want to consider. According to research from the National Association of Realtors (NAR), vacation home sales are up 57.2% year-over-year for January-April 2021.

If you’ve taken your last vacation this summer, here are reasons you should consider selling your vacation home this year.

1. Remote work continues to drive demand for vacation homes.

As the report from NAR says, based on continuously evolving work needs, there could be more interest in your second home than you think:

“In 2020, across all nine divisions, the fraction of the workforce that work from home is typically higher in the vacation home counties than in the non-vacation home counties… The opportunity to work from home could further raise the demand for vacation homes in future years.

Recent data shows we’ll likely see a sustained increase in the rate of remote work over the next five years. That means your vacation home could be highly sought after by certain buyers. Lawrence Yun, Chief Economist at NAR, puts it best, saying:

Vacation homes are a hot commodity at the moment . . . . With many businesses and employers still extending an option to work remotely to workers, vacation housing and second homes will remain a popular choice among buyers.”

2. Selling could allow you to upgrade your vacation spot – or even your day-to-day scenery.

When demand is high, so is buyer competition. When competition is strong, buyers will do everything they can to make their offer on your vacation home as appealing as possible. This can include things like all-cash offers and more. If you sell now, you’ll be able to benefit from high buyer competition and pick the offer with the best possible terms for you. That offer could give you the opportunity to purchase the primary residence of your dreams.

Or, if you find that you’ll continue working from home, you could consider taking up more permanent residence in your vacation home and selling your primary residence instead. While this isn’t a choice everyone can consider, it could be a great option.

No matter what the situation, you don’t have to make the decision on your own. Your trusted real estate advisor can help you determine your best option when you’re ready to sell.

Bottom Line

Buyers remain interested in vacation homes this year for a number of reasons. Now that summer is winding down, it’s time to think about taking advantage of today’s demand for vacation homes. Talk with your trusted real estate advisor if you’re ready to give your second home its day in the sun.

Posted in Home Ownership
Aug. 19, 2021

Sellers: Make Today’s Home Price Appreciation Work for You

 

Sellers: Make Today’s Home Price Appreciation Work for You

Home prices continue to rise as we move through the summer, and that’s good news for sellers who are looking to maximize their home’s potential. If you’re on the fence about whether to list your house now or later, the question you should really ask is: will this price appreciation last?

Here’s what three leading industry experts have to say about what lies ahead:

Lawrence Yun, Chief Economist, National Association of Realtors (NAR):

“At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year.”

Selma Hepp, Deputy Chief Economist, CoreLogic:

“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months . . . . Nevertheless, with more new listings and new home construction, home price acceleration that has built momentum, and continues to reach new highs, will likely slow later this summer but remain in double digits.”

George Ratiu, Chief Economist, realtor.com:

Many sellers are going to take advantage of higher prices. This summer is going to signal the move to the next chapter, and this will very much be the year they’re going to put their home on the market.”

What It Means for You:

The experts agree that the summer months give sellers a great opportunity to capitalize on today’s home prices. And while prices aren’t expected to depreciate, the rise in prices is forecast to moderate over the next few years. That means selling your house today could set you up for a bigger win.

Bottom Line

Listen to the experts. If you’re ready to make a move, work with a trusted real estate professional to sell your house sooner rather than later so you can take advantage of today’s home price appreciation before it moderates.

Posted in Home Ownership
Aug. 12, 2021

With Rents on the Rise – Is Now the Time To Buy?

 

With Rents on the Rise – Is Now the Time To Buy?

According to recent data from realtor.com, median rental prices have reached their highest point ever recorded in many areas across the country. The report found rents rose by 8.1% from the same time last year. As it notes:

Beyond simply recovering to pre-pandemic levels, rents across the country are surging. Typically, rents fluctuate less than 1% from month to month. In May and June, rents increased by 3.0% and 3.2% from each month to the next.”

If you’re a renter concerned about rising prices, now may be the time to consider purchasing a home.

Monthly Rents Are Higher Than Monthly Mortgage Payments

When you weigh your options of whether to buy a home or continue renting, how much you’ll pay each month is likely top of mind. According to the National Association of Realtors (NAR), monthly mortgage payments are rising, but they’re still significantly lower than the typical rental payment. NAR indicates the latest data on homes closed shows the median monthly mortgage payment is $1,204.

By contrast, the median national rent is $1,575 according to the most current data provided by realtor.comIn other words, buyers who recently purchased a home locked in a monthly payment that is, on average, $371 lower than what renters pay today (see graph below):With Rents on the Rise – Is Now the Time To Buy? | Keeping Current Matters

Rents Are Rising Sharply, and They Continue To Increase

The difference in monthly housing costs when comparing renting and homebuying today is significant, but many would-be homebuyers wonder about the future of rental prices. If we look to historical Census data as a reference, the median asking rent has risen consistently since 1988 (see graph below):With Rents on the Rise – Is Now the Time To Buy? | Keeping Current MattersThe rise in rent over time clearly shows one of the major advantages homeownership has over renting: stable housing costs. Renters face increasing costs every year. When you purchase your home, your mortgage rate is locked in for 30 years, meaning your monthly payment stays the same over time. That gives you welcome peace of mind and predictability for many years ahead.

Bottom Line

With rents continuing to rise across the country, renters should consider if now is the right time to buy. There are multiple benefits to buying sooner rather than later. Talk with your trusted real estate advisor so you can make your most powerful decision.

Posted in Home Ownership
Aug. 10, 2021

Southern Oregon Market Stats August

Southern Oregon Market Stats

May 1st, 2021- July 31st, 2021

By Jake Rockwell

Stats tell us if you have owned your home for 5 or more years in Phoenix, Jacksonville, West Medford, Central point, Gold Hill & Rogue River you home have gone up over 70% in that time frame this means and average of nearly $130k in equitable value increase. Now would be great time to cash out on some of that potential, think about it. What would you do with an extra $130k in your bank account? That's specific to those areas, however the overall average for all areas of Jackson county are 52% above what it was 5 years ago. If you bought a property with acreage, the average is up 66.4%. Thats incredible! 

Key Take-Aways:

  • The highest 5 year change was seen in White City, up 80% since 2016
  • That same area now has the lowest Days on Market at just 10
  • The largest jump was just in the past year in Rural home sales, with the medium jumping from $458k... to $687K

 

 

Links to Stats:

 

Create a custom market report catered to your neighborhood or any specific area and criteria.

Want an instant market valuation for you property?

July 22, 2021

Remote Work Has Changed Our Home Needs. Is It Time for Your Home To Change, Too?

 

Remote Work Has Changed Our Home Needs. Is It Time for Your Home To Change, Too?

Over the past year, many homeowners realized what they need in a home is changing, especially with the rise in remote work. If you’re longing for a dedicated home office or a change in scenery, now may be the time to find the home that addresses your evolving needs.

Working from Home Isn’t a Passing Fad

Before the pandemic, only 21% of individuals worked from home. However, if you’ve recently discovered remote work is your new normal, you’re not alone.

survey of hiring managers conducted by Statista and Upwork projects 37.5% of U.S. workers will work remotely in some capacity over the next 5 years (see chart below):Remote Work Has Changed Our Home Needs. Is It Time for Your Home To Change, Too? | Keeping Current Matters

Working from Home Gives You More Flexibility and More Options

If you fall in that category, working from home may provide you with opportunities you didn’t realize you had. The ongoing rise in remote work means a portion of the workforce no longer needs to be tied to a specific area for their job. Instead, it gives those workers more flexibility when it comes to where they can live.

If you’re one of the nearly 23% of workers who will remain 100% remote, you have the option to move to a lower cost-of-living area or to the location of your dreams. If you search for a home in a more affordable area, you’ll be able to get more house for your money, freeing up more options for your dedicated office space and more breathing room. You could also move to an area you’ve always dreamed of vacationing in – somewhere near the beach, the mountains, or simply an area that features better weather and community amenities. Without your job tying you to a specific location, you’re bound to find your ideal spot.

If you’re one of the almost 15% of individuals who will have a partially remote or hybrid schedule, relocating within your local area to a home that’s further away from your office could be a great choice. Since you won’t be going into work every day, a slightly longer commute from a more suburban or rural area could be a worthy trade-off for a home with more features, space, or comforts. After all, if you’ll still be at home part-time, why not find a home that better suits your needs?

According to the latest Top Ten Issues Affecting Real Estate from The Counselors of Real Estate (CRE), many homebuyers are already taking advantage of their newfound flexibility:

“. . . after years of apparent but variant trends towards urbanization, the pandemic universally caused a movement away from urban cores, particularly for those with higher incomes who could afford to move and for lower-income individuals seeking lower costs of living.”

Bottom Line

If you’ve found what you’re looking for in a home has changed due to remote work, it may be time to make a move. Talk to your local real estate advisor today to start prioritizing your home needs.

Posted in Home Ownership
July 13, 2021

Southern Oregon Market Stats July

Southern Oregon Market Stats

April 1, 2021 through June 30, 2021

By Jake Rockwell

In the past months, our reporting on the monthly and quarterly stats has had a similar narrative, Days on Market and Inventory are DOWN. Yet surprisingly a look at this quarter as compared to previous, one of the big ticket changes seems to be the list prices. In Josephine County the median list price went from $389,900 to $549,000, a jump by 40.81% in just a years comparison. Because of this it seems certain key market segments are feeling the increase significantly. Pending listings in the $750,000-$799,999 range from this time last year surged by 1800% going from only 1 property to 19. Look over the stats attached below... they're astounding. 

Key Take-Aways:

  • List and Sale prices are soaring as a direct correlation to the low inventory 
  • Additionally shorter days on market are driving the list prices up as sellers are realizing the potential for return 
  • Cumulative Days on Market average is just  days

 

 

Links to Stats:

 

Create a custom market report catered to your neighborhood or any specific area and criteria.

Want an instant market valuation for you property?

July 12, 2021

4 Major Incentives To Sell This Summer

 

4 Major Incentives To Sell This Summer

While the housing market forecast for the second half of the year remains positive, there may not be a better time to sell than right now. Here are four things to consider if you’re trying to decide if now’s the right time to make a move.

1. Your House Will Likely Sell Quickly

According to the most recent Realtors Confidence Index released by the National Association of Realtors (NAR), homes continue to sell quickly. The report notes homes are selling in an average of just 17 days.

Average days on market is a strong indicator of buyer competition, and homes selling quickly is a great sign for sellers. It’s one of several factors that indicate buyers are motivated to do what it takes to purchase the home of their dreams.

2. Buyers Are Willing To Compete for Your House

In addition to selling fast, homes are receiving multiple offers. NAR reports sellers are seeing an average of 5 offers, and these offers are competitive ones. Shawn Telford, Chief Appraiser at CoreLogicsaid in a recent interview:

The frequency of buyers being willing to pay more than the market data supports is increasing.

This confirms buyers are ready and willing to enter bidding wars for your home. Receiving several offers on your house means you can select the one that makes the most sense for your situation and financial well-being.

3. When Supply Is Low, Your House Is in the Spotlight

One of the most significant challenges for motivated buyers is the current inventory of homes for sale, which while improving, remains at near-record lows. As NAR details:

“Total housing inventory at the end of May amounted to 1.23 million units, up 7.0% from April’s inventory and down 20.6% from one year ago (1.55 million). Unsold inventory sits at a 2.5-month supply at the present sales pace, marginally up from April’s 2.4-month supply but down from 4.6-months in May 2020.”

There are signs, however, that more homes are coming to market. Odeta Kushi, Deputy Chief Economist at First Americannotes:

“It looks like existing inventory is starting to inch up, which is good news for a housing market parched for more supply.

If you’re looking to take advantage of buyer demand and get the most attention for your house, selling now before more listings come to the market might be your best option.

4. If You’re Thinking of Moving Up, Now May Be the Time

Over the past 12 months, homeowners have gained a significant amount of wealth through growing equity. In that same period, homeowners have also spent a considerable amount of time in their homes, and many have decided their house doesn’t meet their needs.

If you’re not happy with your current home, you can leverage that equity to power your move now. Your equity, plus current low mortgage rates, can help you maximize your purchasing power.

But these near-historic low rates won’t last forever. Experts forecast interest rates will increase in the coming months. Nadia Evangelou, Senior Economist and Director of Forecasting at NARsays:

“Nevertheless, as the economic outlook for the United States looks brighter for the rest of the year, mortgage rates are expected to rise in the following months.”

As interest rates rise, even modestly, it could influence buyer demand and your purchasing power. If you’ve been waiting for the best time to sell to fuel your move up, you likely won’t find more favorable conditions than those we’re seeing today.

Bottom Line

With supply challenges, low mortgage rates, and extremely motivated buyers, sellers are well-positioned to take advantage of current market conditions right now. If you’re thinking about selling, talk to your trusted real estate advisor today about why it makes sense to list your house sooner rather than later.

Posted in Home Ownership