As a socially conscious real estate consultant from Grants Pass, Oregon, when I look at the choices of homes out there I sense that two different markets will emerge out of the ongoing economic upheaval. One of these markets will be a rebound or stabilization of prices for existing homes everywhere, including Grants Pass real estate. This will lead to modest or flat appreciation in the local Southern Oregon real estate market and elsewhere in the country. The other trend will be the market for new homes in Oregon and throughout the country. Ultimately, this trend will become the hot new market that will drive a resurgent new economy. This market for new Green homes and hybrid green homes has huge potential since it has revealed many of the unspoken culprits of the economic melt down, including our vulnerability to the shock of rising energy prices as well as our dependency on imported commodities.

As we have recently experienced in Grants Pass and throughout the country, , the rising cost of fuel and it’s effect on commodity prices along with land shortages and cheap financing created a perfect economic storm. As the price of real estate falls and affordability improves on every level here in the Oregon real estate market and everywhere else, most buyers are beginning to think hard about homes in the same way that they looked at owning an SUV. Is it practical? The new economy will be based on affordability, sustainability, and durability, and will emphasize the true cost of the homes and cars we decide to buy. Regarding real estate in Southern Oregon, Grants Pass, or Anywhere, U.S.A., , this “true cost” is not just the price you pay but the cost of ownership of a new home. Buyers in the immediate future will be considering the impact of a new home to the community and even its impact on the global economy. For instance, many buyers now are thinking more about energy, about clean indoor air, and about whether the products incorporated in the their new homes and cars come from a source that may end up being eliminated. A perfect example of this is the avoidance by consumers of products that are harvested from rain forests even if they are cheaper.

When you couple these nationwide factors together along with the change coming in Washington, D.C. then it is clear to me that an industry of green homes in Oregon, Grants Pass, and throughout the country is on its way. Also coming are economic opportunities and new jobs in the form of retrofitting older homes to lessen their cost and impact. The older home will undoubtedly have a much lower level of appreciation because they will cost more to live in or cost more to be upgraded to the new standards in the Grants Pass real estate market and throughout the region. Older homes are selling for great bargains but the young couple that would have bought it simply to flip it years down the road may need to look at the cost of rehabilitating these older homes in order to meet the demands of the next wave of wiser consumers. These trends will lead southern Oregon real estate into the next housing up-cycle as we look ahead to the new era of American prosperity in real estate that is surly to come.

     

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This entry was posted on Thursday, January 15th, 2009 at 9:00 am and is filed under the category Grants Pass Real Estate, Green Real Estate, Michael Masters. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.