If you’re thinking about buying a home this year but are waiting for prices to drop, waiting could cost you! Prices in Jackson County have increased 10.3% from a median price of $239,900 in 2016 to today’s median price of $264,700 in 2017.
Job increases have also spurred economic growth in the valley and have contributed to raising the population of the area. Naturally, this impacts and balances supply and demand and will continue to drive upward pressure on home prices. With increased prices, comes an increased fear of a crash. Bill McBride of Calculated Risk (who called the bubble back in April 2005) states that two measurements are used to determine the speculation in a housing market:
1. The number of homes purchased by an investor and
2. The number of homes being flipped results within 12 months
As compared to 2005, Investor purchases are down dramatically from 23% to 13% and so is flipping from 8.2% to 5.7%. Last year, we saw home prices appreciate by 7% at the national level, 8.91% in the Pacific region, and 8.8% in the state of Oregon. The home price index predicts at home prices will appreciate by 4.7% over the next 12 months along with anticipated increases in interest rates this year.
Rest assured, Freddie Mac, states, “The levels of appreciation we have experienced over the last four years are anywhere near the levels that we reach in the four years before the last decades crash.”
Keep in mind that most of today’s buyers are buying homes through higher-quality loan types and with stricter lending standards than those that were used a decade ago to help avoid the potential pitfalls of a crash. Now is a great time to put your plan of action together so you’re ready to house shop this spring! Contact your local REALTOR to see if buying a home this year is right for you.
Shanon Pewtress
Real Estate Broker, Licensed in the state of Oregon
Published Medford Sneak Preview Magazine - February 2018
Shanon holds an MBA in International Business, loves writing in her “At Home with Shanon” column that has been delivered to 47,000+ homes in Medford since 2014, has appeared on the Real Estate Radio Show, and was also featured on A&E TV network’s Real Estate Reality TV show.