Look For ‘Compromise’ In S. Oregon Home Prices
A television station has this update on southern Oregons’ housing market. “Two to three years of explosive growth in the Southern Oregon real estate market seems to be cooling off. Sales of new homes are down 22 percent compared to this time last year. Overall, home sales in our area are down 38 percent.”
“You don’t have to travel far in the Rogue Valley to see new homes being built and lots of homes for sale. The number of homes for sale in Jackson County is up 97 percent compared to this time last year but home sales are down by nearly 40 percent.”
“But experts, like appraiser Roy Wright, say not to worry. ‘We’re going back to where we were 5 years ago where it’s still a good real estate market. Homes are still selling, they’re just not selling at the rate they’ve been selling for the last two to three years.’”
“Now this still isn’t an easy market for first time homebuyers to get into. That’s because according to Roy Wright, the average wage earned in this area is simply too low compared to the housing prices.”
“As for purchasing a new home, Roy Wright says now is a good time. ‘This is definitely the time to buy because you can cut a deal. Anybody who wants to sell knows they’re going to have to compromise.’”
“Mark Wickman, a local homebuilder, says the cooling off trend has not affected his business. ‘We’re not changing our construction schedule for this year. We’re gonna keep on going at the pace we go.’”
“We’re going back to where we were 5 years ago…”
God I hope so. I’ll ignore the rest of this article which is totally inconsistent with that notion.
I was going to write the same thing!
“As for purchasing a new home, Roy Wright says now is a good time. ‘This is definitely the time to buy because you can cut a deal. Anybody who wants to sell knows they’re going to have to compromise”
It is always a good time to buy a home according to the real estate complex.
David
Bubble Meter Blog
What the heck is in Southern Oregon? Does anyone know what the major economic center is in Jackson county? or are all these people who are buying these houses either park rangers and working at Crater Lake?
So Or used to be in my sales territory. Medford and Ashland are the two main cities.
Kodak x-ray film plant
Boise Cascade engineered wood products
Areva (transformers)
3 hospitals & associated Dr’s offices
2 very large integrated retirement communities
RE industrial complex
The Shakespeare festival
Tourism service industries (river guides, hotels and restaurants)
That industrial base will support $300K median homes… not.
Equity refugees from the Bay area and LA, pure and simple.
All of the customers that I called on down there had moved to Ashland/Medford area from CA and opened small businesses.
sunsetbeachguy is correct about what is there. Also there is a large Jeld-Wen plant (windows/doors) in Klamath Falls.
Money Mag did an article where it was in the top 5 places to retire.
Southern Oregon used to be supported by wood products, but that’s been hit hard in the last decade. Even when lumbering was going full blast it wasn’t particularly high wage. The Medford area has some agriculture (fruit trees) and is a medical center. It’s equity refugees that are driving up prices.
Now is a good time to catch a falling knife, so come on down we can get you a good “deal”.
Anywhere in OR has low wages and a depressing job market.
If you have a job you better like it because it is the only one you are going to find.
I know of several retired couples from the SF Bay Area who have moved to Southern Oregon, especially the coast
OK, Roy, I’ll just mosey right on over to good ‘ol S. OR and buy one of them thar homes ’cause ya told me I could cut a deal. We need to hit the ‘ol number (ifin ya know what I mean) so can I also git one those ‘good ‘ol boy’ appraisals from ya too?
When did appraisers become economists? Sales down 40%, no wage base, forget 1st time homebuyer, but things are normal? WTF!!
OT: Saw a comedy show on TV last night. A 40 year old buyer was getting ready to sign a contract to buy a new condo. He said that he was excited that he will have it all paid off in 10 years, ’cause it was a 10 year mortgage. That’s when the realtor springs in the surprise that “it is actually a 10/30 year loan. 10 means the rate is only guaranteed for 10 years”. He wanted to back out, but was told that he would lose his 10% deposit.
Sure, it was a comedy skit. But I wonder how much it reflect’s today’s uninformed buyers.
That’s hilarious. What show was this?
I actually saw it on the plane. It was a new(?) series on NBC called “Office”.
Totally OT, but I’m wondering if there are websites that show foreclosures. I know about Realtytrac, not thrilled with it. Do you think there will be enough foreclosures that we can get a free site? Or do you know of one? Thanks for your input. (So Cal area)
I love the utter insanity of this time. Every place is the exception, we all live at Lake Wobegone. I know some other bright boy or girl has already commented on this fact, but when first-timers are shut out everywhere, when growth is based on tourism everywhere, and when the deep pockets of baby-boomers will save us all - how can people be so willingly blind?
I couldn’t agree with you more!
Anyone know what is going on in the Eugene OR market?
My sister just sold in OC, CA and is now looking to buy in Eugene. I have told her that I would hold off, but she is probably going to buy something right away.
Any insite would be great.
Gene
Eugene is/was over-priced as of mid 2004.
I had a co-worker moving from WA tri-cities area and it was 40% more expensive for a like house.
However, if she is playing with funny money and OK with losing it, she should go for it. It is all more affordable than CA.
Tell her to rent “to get to know the area” before she buys . . . she’ll hopefully see the falling prices and be able to hold off for 18 months which MIGHT allow for a majority of the drop to occur. It’s worth a shot.
Yea, she has been renting for and after a month and a half she THINKS she knows the market.
The wierd thing is she even knows its the top and she thinks prices are going to stop appreciating but she dosn’t seem to care. She just really wants to own a house now. I think she feels low class renting.
I told her that she should look into the prices and the trend over the last few years. What have prices done? How have sales done? Are there new jobs in the area? How is the University doing? Is enrolement up? Is there a lot of inventory? Is there lots of new homes coming online?
She humors me and tells me she will look into those things but I am pretty sure she will not. She dosn’t want to work at it….She just wants instant gradification. I guess buying stuff is more fun than doing research.
Gene
Gene -
I think you should encourage your sister to hold off. My brother-in-law lives in Eugene and it sounds like it has been pretty bubbly the past couple of years.
Yea, I am doing what I can.
Her menality is wierd…she HAS TO OWN A HOUSE”. Its like she feels low class owning.
The problem is everyone elce is still telling her that buying at the top is better than throwing your money away at rent.
I told her how if she put here money in bonds for a couple years, it would cover the rent and she could wait to see what the market up there is doing. She isn’t intrested…she wants instant gradifiacation, and the money is burning a hole in her pocket.
Gene
Mark Wickman, a local homebuilder says the cooling off trend has not affected his business. “We’re not changing our construction schedule for this year. We’re gonna keep on going at the pace we go. We typically have five to six projects going at the same time. We’re not anticipating slowing down.”
NO $hit $herlock! Once you start building a house… it doesnt make much sense to “Change Pace” or “Anticipate Slowing Down”- even though the MEDIA is reporting that you will be screwed by the time your done building the house.
These Contractors have NO CHOICE but to continue plugging along with the speculative buildings they have obtained permitting and financing on, irregardless of what it will “NET” at the completion date.
We are leasing a home in southern oregon, lease for one year to check out the area. Not much selling from Medford to Grants Pass so we are holding tight. When do you foresee the prices to start coming down by “builders” and “home owners”? Seems to me things are not moving because the builders and home owners are in lala land thinking they are living in or selling gold mines, whats your prediction as to when we will start seeing these folks start dropping there ridiculous prices?