As we patiently await the passing of the Great Recession, our position is unique. Like wading in the mighty Rogue River that runs through the center of the Southern Oregon real estate market, we find ourselves floating in the middle of a roaring financial river, unsure if we’re in the middle of the waterway or how far it may be to the other side before we can pull ourselves out of this housing crisis. The Great Recession continues to be plagued by the great number of foreclosures currently on the market as well as the large amount of time and patience necessary to close either a short sale or a bank-owned property.

Looking back, we now realize that 2003 marked the beginning of an aggressive surge in Southern Oregon real estate prices driven by the ease of available credit. Today we cringe at the very mention of the term “adjustable rate mortgage,” but back in 2004, an ARM meant cheap money that could buy real estate escalating in price before our very eyes. A buyer could re-sell the property and roll the dice again, or take the equity out of the home and amass a collection of cars, trucks big-screens and computers, all purchased with money borrowed against home equity and supported by the indisputable appraisal.

We all know what happened. Continue reading The Great Recession and the Southern Oregon Real Estate Market