From my perspective as a real estate professional in the Southern Oregon real estate market, I’ve been dealing with the human complexities of economic recovery for a market turned upside down since 2006. I can accurately report that economic recovery has been making incremental forward progress over the last year as the foreclosure market evolves. For over two years, the growing number of foreclosures was traceable to the increased payment load for borrowers stuck with variable sub-prime loans converting to higher interest rates, and the accompanying increased payment load broke the back of many home owners.

But lately, borrowers with fixed rate mortgages are joining the ranks of the distressed as foreclosures proceedings respond to the fresh fuel of unemployment. Even the affordable 30 year fixed rate mortgage payment can become a home wrecker when a borrower can’t find work. Before the economy can begin to truly heal, recovery for the Southern Oregon real estate market means enduring the hardship that comes from unemployment. And amid this bleak reality stands the good news that while the numbers of foreclosures are still cause for alarm, at least the numbers are diminishing.

Meanwhile, milling in the darkness are the forecasts of many experts that point to an end of the Great Recession as financial declines grind to a halt and the indicators for growth begin to point to an impending economic recovery. With a little luck and a lot of patience, the U.S. and global economies at large will begin to correct themselves, employment will rise, and distressed borrowers will find a way to stay in their homes.

As we struggle for economic recovery on the national, global, and local level, I am drawn to the good news for young, trustworthy Buyers: take advantage of the low prices, excellent interest rates, and an $8000 tax credit to make your dreams for home ownership come true. The window of buying opportunity is currently wide open but it will be closing soon. And this could be the best time to get up off your hands and sign on the line that is dotted.

Michael Masters

A Socially Conscious Real Estate Consultant

These days, sellers in Grants Pass all seem to be asking the same question. Has the Grants Pass housing recovery started yet? They ask this question because for a lot of sellers in the Southern Oregon real estate market, they’d love to sell their home for a fair price and move forward with other life choices, like relocating for a better job or moving into larger or smaller digs. Unfortunately, the answer continues to be “maybe.”

Statistically, after three years of intense price declines, the nationwide recovery for the housing sector appears to have begun. The Case-Shiller housing index for the top twenty cities in America reported Continue reading The Grants Pass Housing Recovery and the Southern Oregon Real Estate Market

I’ve been blogging for months now about the Southern Oregon housing market recovery by focusing on Grants Pass real estate and Medford real estate, as well as homes throughout the rest of the country. Now there is evidence both from my personal sales in the Southern Oregon real estate market and from the Case Shiller home price index that we’ve finally turned a corner.

It seems that 15 of the top 20 markets in the country have seen either price increases or no declines at all for the month of May. In some of my previous blogs, I wrote that the bottom of the housing market was June 2009. Interestingly, Jim Cramer of CNBC’s Mad Money feels the same way. Admittedly, we’ve all been wrong before but on his July 28th show Jim told his viewers that those who wait for evidence of a turnaround in the housing or stock markets will be missing out on the great buying opportunities.

Now, to be fair, Jim actually called the bottom of the market in Continue reading Grants Pass Real Estate, Medford Real Estate, and the Southern Oregon Housing Market Recovery

With a few exceptions, whether your primary residence is located in the Southern Oregon real estate market or just about anywhere else in the United States, you are probably wondering just how long it’s going to take to attain an unquestioned real estate recovery let alone a real estate rebound.

Ever since the market began its slide into the land of plummeting prices, Optimists have been predicting the repair of the market and a return to growing equity, but with every passing month, then quarter, and now every passing year, sellers desiring to move on must calm their anxiety and instead seek Continue reading The Southern Oregon Real Estate Market Recovery and the Real Estate Rebound

In the course of watching the Southern Oregon real estate market recover from the housing crisis that was initially launched by the crash in sub-prime loans and the subsequent unprecedented surge in foreclosures, it becomes increasingly clear that the housing sector is in a “trickle up” recovery mode. It is mid-summer of 2009 and we are finally beginning to see a slow down in the inventory numbers for both short sales and foreclosures in the Southern Oregon real estate market and nationwide as well. The price range dominated by foreclosures and short sales is at the low end, and as the inventory is reduced we’ll begin to see an increasing number of homes listed for sale in the higher price ranges.

It is fairly safe to predict that as the lower priced homes are removed from inventory, the housing recovery will begin to “trickle up” because there are many home owners in the price range of $400,000 and above who would like to sell their home but see no point in listing with the market dominated by discounted property. At the first sign of a sustained recovery, the market for higher-end homes may well be flooded by owners anxious to sell. Unfortunately, the laws of supply and demand will dictate that as the inventory of higher-end homes grows, the price a buyer is willing to pay will decrease, and as we’ve already seen, when buyers have a lot of choice, prices drop.

So where’s the good news in the “trickle up” forecast of housing recovery for the Southern Oregon real estate market? The good news is that those homes currently listed and priced above $400,000 have a better chance of selling right now at their listed price than they will when the recovery begins to “trickle up” driving prices down.

So if you’re a higher-end seller thinking about making a move, the time to list your property for sale may well be right now.

Michael Masters

A Socially Conscious Real Estate Consultant

The stats are in. Sales activity for June, 2009, suggests that while its pulse rate may be low, the real estate market is still alive and its condition is stabilizing. Housing recovery for the national and Southern Oregon real estate market is bouncing off the bottom. For the last two months, consumer confidence rose, but in June consumer confidence took a slight dip.

Meanwhile, the number of homes listed in June on our local MLS has fallen to 1,142 from one year ago where the number of homes on the market was at 1,409. Additionally, Josephine County is working its way through its distressed property inventory as evidenced by the number of foreclosures on the market, down to 156 from a month ago where the number of distressed properties was at 165. Anyway you interpret the statistics, it seems the housing recovery for both the Southern Oregon real estate market and the national real estate market points to a reduction in value by 1/3 compared with the real estate market’s peak in the second quarter of 2006. The good news is that the values are unlikely to drop any further. Continue reading Housing Recovery and the Southern Oregon Real Estate Market

There’s nothing like good news even if it is in small increments. For the month of March, pending home sales nationwide showed a gain of 3.2% over February. This gain is the 2nd consecutive increase in pending sales and it may signal the start of an economic recovery in the housing sector for the nation and the Southern Oregon real estate market. This increase may also explained by the first-time homebuyers tax credit of up to $8000 that has motivated some buyers to get off the fence and finally make a contractual commitment to buy.

Additionally, on May 4th, there was a show of support from the Stock Markets driven by the better-than-expected data from the housing market. The Dow Jones Industrial Average Continue reading The Southern Oregon Real Estate Market Recovery

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