Updated: May 31, 2022
Dear Shanon, How’s the Market? Thanks, Numbers Guy
Dear Numbers Guy,
Overall, we’re seeing Sellers trading up in multiple bids on properties a show well and are priced right. In addition, millennials are taking steps to pay off student loans and are viewing their investment options. According to the latest Jackson County residential statistics for existing home sales from June 1 through August 31, we saw pricing increases for the following areas Medford areas:
· Northwest Medford +4.4%
· West Medford +4.6%
· Southwest Medford +12.5%
· East Medford +11.3%
The data also indicates that the average stays home on the market was about 42 days, 132 fewer homes were sold last year over the same timeframe, and the medium price was 240,000 versus last year at 235,000. Does, resulting in a 5.5% overall price increase in Jackson County.
According to Pulsenomics, (a national survey that posts data from over 100 economists, real estate experts, and investment and market strategists), they predict an average annual appreciation of 3.5% over the next five years with a 4.5% increase over the course of 2016, 3.6% in 2017, 3.2% 2018, 3.1% in 2019, and 2.9% of 2020.
The Federal Reserve says that another increase of any future change in interest rates will rest on “incoming data.” Though we haven’t seen an interest rate hike since December here are a couple of strategies to start building your investment portfolio and equity now.
1. Buy a Rental: To yield a good return on your investment, purchase a structurally sound home that needs minor updating and so improvements like cosmetic upgrades and landscaping. If you buy within Medford‘s median price range, you could likely find a three-bed two bath home, with a good size yard and two-car garage a condo or townhome, or a duplex. Consider hiring a property management company and work with your CPA to ensure you understand the tax benefits and write-offs.
2. Add value to your existing home if you’ve determined that you’ll need to wait a little while minimum of 2 to 5 years until you could land your dream home, you may consider adding upgrades to your current home. If it is a good roof and sound structure, focus on updating the kitchen since it’s where fashion and technology move the fast meeting this area can often feel out of date quicker. According to Remodeling’s “2016 Cost vs Value” report, they suggest replacing the things you touch every day; from countertops, sinks and faucets, and if you have some cabinets, repaint them. Take the time to hone in on your DIY skills now to build value, then sell your home and market conditions allow for maximum gains, so you can sell and trade up to that dream home you want later.
Contact your favorite mortgage lender a realtor to start the conversations on investment planning or take time over the next few weeks to wrap up those DIY projects before the cold weather kicks in. Enjoy!
Real Estate Broker, Licensed in the state of Oregon
Published Medford sneak preview - October 2016
Shanon holds an MBA in International Business, has consistently received Top Realtor and President awards each year at John L. Scott (the Rogue Valley’s #1 firm), and 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.