Let’s talk stats. According to a Bloomberg National Poll, Americans expect the housing market to continue improving over the next 12 months by a margin of more than 3 to 1.* Whether you are looking to buy an investment property to generate an ongoing stream of income, are using real estate as a strategy to build your overall wealth or if you’re simply tired of putting dollars in your landlord’s pockets, Americans believe Real Estate is the best long-term investment.
Let’s take a look at what’s happening right in our backyard to see if real estate is a good long-term investment strategy for you.
1. Rent is on the Rise
Historically rents increase by 3.2% on an annual basis. A report by Marcus & Millichap* projects rent increases of 4% for the next two years. That’s great news if you’re a landlord and not-so great news if you’re renting.
2. The good deals are getting snatched up
Homes are selling at a quicker pace, with the average number of days a home sat on the market from January 1- June 30 this year in Jackson County was 34 days, a -22.7% decline from 44 days in 2013*. On top of that many homes have multiple bids which mean buyers must be prepared to act swiftly when they do find that dream home.
3. Price increases are on the horizon
In 2012, CNN Money did a study throughout the country to determine where home prices are rising the fastest. Medford was listed as #2.* No kidding. Since then, home prices have gone up 5.2% nationwide. Our local Jackson county stats show that for January 1- June 30 this year, the median price in Jackson County was $200,000 compared to $185,000 last year.
So what’s the bottom line?
Real estate investing is not a “get rich quick scheme” to turn you into a millionaire overnight. As my mother always said, “Little drops will fill the bucket” and with proper planning real estate investing can be a great way to diversify your portfolio and build your long-term wealth. Contact me for a free consultation and together we’ll plan your path to help you achieve your long-term investing goals.
Shanon Pewtress
Real Estate Broker, Licensed in the state of Oregon
Published Medford Sneak Preview Magazine - August 2014
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.