In my last post, I mentioned that the economic meltdown currently referred to as the Great Recession was ignited by sub-prime loans and run-a-way foreclosures, and that recovery from this economic tsunami may well take as much time to heal as did the Great Depression. Today, the Great Recession is experiencing a slow recovery, which is painfully felt by those holding real estate in the Southern Oregon real estate market.

I also mentioned in the previous blog that in 1932, money was “sucked out” out of the system by Herbert Hoover’s Recovery Act that raised taxes and left the masses even more penniless than before. In 2008, money was also “sucked out” of the system, but not by taxation. Instead, it was the price of gasoline which rose to over $4 per gallon in some geographic areas of the country that sucked billions of dollars out of the system and sent them to the oil producing countries of the world. Once gas prices began to decline in price due to decreased demand from people driving less, the economic system took a deep gasp… and crashed.

So here we are, nursing a recovery for the Southern Oregon real estate market and wary to announce that “Prosperity is just around the country.” But remember this — the Baby Boomers are still perched to retire to more comforting digs like Southern Oregon, ownership of real estate has always been the greatest protection from run-a-way inflation, and the buying incentives of tax credits for first-time home buyers and others are still engaged.

My prediction for 2010 — the Housing Sector will continue to recover and begin to make noticeable gains trackable through statistics. No, we’re not out of the woods yet, but there is light glimmering at the end of the tunnel. Stay tuned.

Michael Masters

A Socially Conscious Real Estate Consultant

Confidence is coming back. I can taste it in the air. I can see it in the office. I can feel it in my clients and agents. Yes, the pulse of the Southern Oregon real estate market is getting stronger by the day, and along with the blossoms of spring comes the increase in real estate activity traditionally exuded by buyers and sellers at this time of year.

For buyers, confidence means making the decision to purchase properties that they’ve identified but hesitated to buy from fear that the the price might drop further and that they’d be paying too much. While statistically more foreclosures are still coming on the market, buyers are sensing that the market is at its low and prices have nowhere to go but up. Once again, buy low, sell high reigns supreme.

As for sellers Continue reading Confidence in the Southern Oregon Real Estate Market

As many of you already know, the Southern Oregon real estate market is dependent on the California real estate market for much of its activity. In Grants Pass and Medford, California has always been regarded as their largest “feeder” market, driven by Baby Boomers seeking retirement.

So when sales in California began to tank back in 2006, the Grants Pass, Medford, and Southern Oregon real estate markets tanked right along with them. Now comes the latest news regarding the recovery of the California real estate market.

Sales statistics indicate that California may finally be coming out of its economic tailspin. Statistics show that Continue reading The Grants Pass, Medford, and Southern Oregon Real Estate Market Recovery and the California Real Estate Market

The economic indicators for national and local real estate markets are mixed these days. At the national level for January, 2009, home prices plunged by 19% from a year ago in 20 of the largest cities in America. However, while the Grants Pass, Medford, and Southern Oregon real estate markets have experienced a drop in prices compared with prices from a year ago, the price drops have not been nearly as severe as in the large metropolitan areas.

The price drops for both the national and the local markets are directly related to the inflated inventory of foreclosures, unsold homes, and the forces of supply and demand. Meanwhile, over the last 2 months, applications for refinancing have surged, and for the month of February, the number of pending sales nationwide is up compared with a year ago.

These mixed statistical messages suggest Continue reading The Latest Economic Indicators for the Grants Pass, Medford and Southern Oregon Real Estate Market