Southern Oregon Home Prices Fluctuate, Affect Mortgage Demand
There is no argument that the Jackson County, Oregon housing market is far afield from what it was two years ago.
Median prices arced higher and higher during the first half of the decade, sputtered then stalled and have slowly lost elevation in the past 18 months.
While thermal currents — call it in-migration — have kept prices from falling as far as prices have in some corners of the country, a persistently rising inventory has served as a counter-weight. As a result, according to figures compiled by the Southern Oregon Multiple Listing Service, the median price for an existing single-family residence dropped to $270,000 in March from $272,500 a year earlier, or nearly a 1 percent drop.
New construction median sales prices, generally bolstered by high-end buyers in recent months, dropped to $354,000 in March from $375,878, a 5.8 percent decline from the previous March.
“It’s still a changing market,” said Colin Mullane, a real estate agent with Patricia Sprague Real Estate in Ashland and a member of the Statistics Committee of the Rogue Valley Association of Realtors. “Last year, we were beginning to see signs of the market changing and slowing down and the statistics are reflective of the same kind of market.”
Yet, on both ends of the market, there are signs of life.
In the Ashland housing market, median prices crested at $400,000 and kept going in 2006 and activity has been relatively brisk. The year-over-year rise in the median price in March jumped 10.8 percent to $447,000. In the rolling three-month snapshot for the first quarter of the year, the median price rose 7.8 percent to $434,000 and over the past five years, Ashland’s median price has nearly doubled.
“Ashland activity looks good,” said Mullane, noting 62 transactions took place in the first quarter, compared to 46 last year.
But in White City, the median price slipped below $200,000 during the first three months of 2007. For the quarter, it dropped 20.6 percent to $179,900.
In places such as Central Point and Talent, lower-priced new construction may well contribute to lower median prices. The new construction for houses in the 1,500- to 1,600-square-foot range runs approximately $230,000 to $260,000, making them affordable for many hopeful Oregon mortgage borrowers.
“People are looking for value and a good deal,” Hall said. “Buyers just aren’t paying the prices they used to pay because there is higher inventory. That makes buyers more selective and they’re able to get nice houses for the money. It’s one of those things where the developer recognized the market was not strong, and selling lots so builders can make some money, too.”
Mullane said downward pressure on prices - and opportunities for home purchase loan applicants to find a deal - is apparent in a new development by Charlie Hamilton in Talent. A four-bedroom, two-bathroom, 14,000-square-foot house with granite counters, stainless steel appliances with hardwood entry and a gas fireplace is selling for $314,000.
“There were similar houses built a couple of years ago that sold for $270,000 to $300,000 — depending on the square footage — and some of those people are wanting to sell for $340,000 or $350,000 now,” Mullane said. “Those houses didn’t have those extras and it’s hard for the secondary market to beat that when the new ones are selling for $35,000 less.”
SOURCE: The Mail Tribune