Market Talk! S Oregon Real Estate for July 12

The latest SOMLS stats are out this week and as usual, there is lots of information to share with you on the current real estate market. Take a look at what happened when we compare June 2018 vs June 2019.  What stands out to you?
Even though the Months Supply of inventory jumped 71%, it still represents a continuing normalization of the market.  We’re halfway to normal which would be a six months supply.
If you care about agriculture in Southern Oregon you must watch this week’s Real Estate Show.  Alice and I talk with Simon Hare, former Josephine County Commissioner, and Hemp Grower.  Boy, did we learn a lot about its impact on agriculture & its potential for economic success in our region.
L-R Alice Lema, Simon Hare, Pete Belcastro at KCMX.
Show airs on radio KCMX AM 880 Saturday, July 13, 10 am.
I am concerned that thousands of acres of land are being plowed under to grow hemp.  It really needs to be done sustainably in its use of water, chemicals, and erosion.
Just to show you hemp is transforming our landscape, according to Mail Tribune story this past week;  In 2015 there were 13 industrial hemp growers and 105 acres planted. Fast forward to this month and that has grown to 1, 676 registered hemp growers and 46,219 acres planted with no let up in sight.
Jackson County has 337 registered growers. Let’s start the conversation now on how this will affect rural property values and agriculture in our region.  We’d love to hear your thoughts.
According to the latest SOMLS stats shown below, the overall increase in home valuation went up 2.6% during the last three month period, April-June 2019. Modest growth is OK.  Check out the other stats which change by community and price range.  This, of course, is Jackson County Fair week. It was about a year ago the smoke first began to engulf our region. It is on a lot of people’s minds but hasn’t affected Real Estate Sales at all. Check the last week’s sales stats and you’ll see the Fourth of July Holiday cut sales and activity roughly in half from the previous week’s high.
One reason our housing market remains robust is that people can afford to buy. The chart below shows the average houshold debt service as a percentage of disposable income. The average has not been this low since 1980.  Look where the totals averaged during the Great Recession.
Finally today, as long as interest rates remain around the 4% range the market will continue to be quite active.  Last week’s mortgage range is shown below.
It’s back to work after the Fourth of July.  Please contact Alice or Pete anytime for real estate information, advise and more.
Pete Belcastro
text cell 541 621 7036
Alice Lema
text or call 541 301 7980
Have a great week!

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