The temperatures have been HOT this summer! Do you know what else has been hot? The real estate market. Like the temperatures prices throughout the country are on the rise. Nationally home median prices are up 8.4% but the local market is even hotter!
The most recent SOMLS (Southern Oregon Multiple Listing Service) Residential Statistics below show that when you compare the county’s total prices in June 2014 ($208,750) vs June 2015 ($240,000) you’ll see a $31,250 price increase since this time last year. In addition, the median sales price for homes in Medford from April 1 to June 30 went up 12.7% and the average days a home is on the market is now only 49 days.
Why is this happening? It’s because we’re being impacted by one of the most fundamental concepts of economics and the backbone of a market economy—Supply & Demand.
Supply = Seller:
If you’re on the fence about selling your home, remember that Buyers who are ready, willing, and able to buy are in the market in great numbers. The most recent Existing Home Sales Report from NAR (National Association of REALTORS®) revealed that the current supply of housing inventory is at a 5.1 month supply, which remains below the 6-months necessary for a normal market. The supply of homes for sale is not keeping up with the demand of these buyers. But in Jackson County, we now only have a 2.3 months supply a shockingly low number even for our progressive market.
Demand = Buyer:
There’s a lot of competition out there right now for your dream home. Do you want a 3 bed, 2 bath on a decent-sized lot in a good neighborhood for around low $200k’s? Guess what? So does most everybody else. With rising prices, it’s a good idea to act now before you are priced out of your future home.
In addition, according to Bloomberg, “More young people have been striking out on their own, leaving their parents’ homes or apartments shared with roommates as the job market improves…which has created a bigger pool of potential buyers who have helped push up prices by competing for a tight inventory of listings.”*
Whether you’re planning on buying or selling a house this summer, it doesn’t make sense to wait any longer. If you’re curious about what your home could sell for in today’s HOT market, contact a REALTOR® who would be more than happy to assist with your real estate needs.
They can also recommend a local lender to talk about your home loan options and to help you take advantage of today’s low-interest rates. As you enjoy the hot temperatures outside with the many activities our great community offers, remember to also take advantage of the hot real estate market so you can stay cool in your new house this summer.
Shanon Pewtress
Real Estate Broker, Licensed in the state of Oregon
Published August 2015
Shanon holds an MBA in International Business, 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.