Dear Friends and Clients,
It’s been awhile… As this new year in Real Estate begins to take shape, it’s anybody’s guess how it will evolve… According to some, it will continue to move forward building on last year’s base – according to others, it will sputter and flatten out… And, it seems that whichever camp you’re in, you can find very credible sources to ratify your beliefs – each with “numbers” to back it up.
On the bright side, the local market prices under $250,000 are being buoyed by severe lack of supply! Two current examples, I recently closed one that after prepping it, the day we opened it for broker-showings, we had 6, yes, SIX offers! And, I have one in escrow now that we put in the MLS on a Friday at 8pm and by Sunday noon, had three offers… WOW!
While prices in the higher ranges aren’t being pushed up like that by multiple offers, really “nice” properties that you feel good about helping people move into, that are usually available and somewhat plentiful, are truly scarce… Again, current examples: I have been trying for months to help a client find a nice, clean east Medford 3 bedroom 2 bath subdivision type home with RV parking for $250,000 – should be handfuls – not… Also, been seriously looking for a nice newer home with a three car garage and in-ground pool with the master suite on the first floor for up to $450,000 – should be a dozen or more to choose from, ho, ho, ho
If you know of anything that fits those two descriptions, please let me know!
Of interest is the fact that inventory is that tight here locally.
One reason is still “shadow inventory” – since Oregon shifted to a judicial foreclosure state last year, there are a substantial number (no one that I have found, has a credible guess as to a specific number) of vacant homes slogging thru the process and already foreclosed upon being temporarily managed by REO Brokers waiting for the lender’s OK to market… Yet, there do not seem to be any rumors locally that the lenders intend to mass-sell like is happening in some of the larger urban areas… So, we wait and a few at a time, they get released…
Another reason is that Owners (potential Sellers) are holding on, hoping that last year’s price gains will parlay into even bigger gains this year. In some individual cases, that makes sense if you’re really not ready or motivated to move, but some are literally speculating in my opinion… Good example – this week I made an offer for a client on a home that the owner paid $305,000 in 2005 and is/has been renting out at a NEGATIVE monthly cash flow. (It is worth about $195,000 in today’s market) – for that owner to continue “feeding” that property hoping that the value will rise more than his expenses is sheer speculation, not investment… He’s between a rock and a hard spot as the saying goes…
It is a really good time to be moving UP with these market dynamics, but a bit more difficult to be downsizing…
Commercial usually follow Residential in recovery, but there seems to be more of a lag in our office and retail sectors… Good example is a free standing 1954 sq ft office building in a nice professional business park in a good eastside area within a block of the busiest intersection in Medford with 8 offices and a conference room for only $275,000… It would have been mid $400’s not long ago… and probably will again…
I have a GREAT REFERRAL for you! This gentleman was referred to me and I used him recently for a large-cabinet remodel… Rocky James Barth 541-601-5927
He has been in the cabinet building and installation business for 31 years, and is a real craftsman, pleasant to be around and keeps the project area clean!!! He needed a special angled tool/jack to raise a large cumbersome upper cabinet so as to not scratch the lower finished countertop removing it – showed up the next morning – he had crafted it overnight! And his touch-up fill and stain where needed to match existing was beautiful. A real find, and at only $30 per hr., a real value!
If you or someone you know is thinking of Selling, I really would recommend putting your property on the market NOW – why not give it a shot against LESS competition? Chances of receiving a higher price are really good…
Please feel free to forward this newsletter, if you feel someone would benefit from it…
Bob Seldon, ABR, CRS, GRI
PS Think about us for your Property Management needs… you will be pleased!