The last few months have seen an amazing amount of real estate activity across all three Southern Oregon counties.  However, this past week saw a decline for the first time.  For example, Jackson County’s closed sales dropped from 97 the week before to 58 last week, while Josephine and Klamath counties saw closed sales drop by more than half.   Is this a trend or just a blip in the market?  We’ll know more next week.  Check out last week’s stats below too compare.
Part of the reason sales dropped is that our inventory of available homes is awfully low.  Jackson County has less than 500 residential properties for sale.   A year ago there were 1,000.  The biggest reason sales are so active is that mortgage interest rates are so low.
On this weekend’s Real Estate Show,  Saturday 10 am, Sunday 6 pm KCMX AM 880. Guy Giles of Mutual of Omaha Mortgage joins us to explore how buyers can take advantage of this amazing time.  Rates are found in the 2.75 range for 30-year fixed mortgages.
Will the inventory of available homes increase in the coming months?  That remains an Achilles heel of the housing market. Unless inventory increases, buyers will be stressed to find appropriate housing as demand is exceeding supply. Housing prices may rise as a result. Note existing home prices in the West increased by 5.5%, which is close to Jackson County’s 5.2% increase in prices in June.
As a result, don’t expect foreclosures or short sales to become normal again after the Great Recession of 2008.  The reason, 77% of homeowners in forbearance have at least 20% equity in their homes today.      Finally, look how existing home sales dropped earlier this year after COVID hit.  In fact home sales nationally dropped off a cliff.  They have rebounded by more than 20.7% during June alone.  These are all good signs the economy is rebounding as well, but like housing, it will take time.
I love talking Real Estate with you. Our market is changing almost daily so make sure you work with someone who knows how to maneuver through this time for both a buyer and a seller. Call or text anytime:  Pete Belcastro 541 621 7036.
Have a great week.  Stay cool from the heat and safe.