Well
, it's time for my newsletter again. Seems like summer just flew
by. Here are some of the things that are new since I sent my last
one in May.
FORECLOSURES:
What do you think of when you hear
about foreclosed properties?
If you are like most people I talk to, you think of houses that are
going to be cheap.
For the most part, that is true. In fact according to the
statistics we have been tracking, REO (bank owned) properties have
sold at a median price 40% less than non-distressed properties. In
fact, the median price of sold REO properties for the last 3 months
was $120,000.
However, this week has seen the addition of some higher priced
houses to the Foreclosed list. Starting with a new listing in our
office of a 4534 sq/ft house on the outskirts of Ashland on 26
acres listed for $841,500.
Other REO properties include
$643,500 for 4819 sq/ft on 32 acres in Ashland.
$695,000 for 3036 sq/ft on 133 acres in Jacksonville
$699,000 for 5344 sq/ft on 2 acres in East Medford
$770,500 for 5615 sq/ft on 1 acre in East Medford
$795,000 for 1791 sq/ft on 186 acres in Butte Falls
And the drum roll please......topping the list at a whopping
$4,850,000 get you a 5 bedroom/7 Bath 8500 sq/ft house with extra
building lots, 2 additional homes, and 388 acres.
Now that's what I call a deal. ;)
|
|
Summary
of Graphs--------------------------->
|
I have included the graphs to the right that I use when trying to
ascertain the state of the real estate market. These particular
graphs are what I use as predictors of what may be to come.
The indicators I use are
- Pending
Sales
- New
Listings
- Absorption
Rate
- #
of Homes Available Per Buyer
There
is not much here that is new. I think that without the home buyer
tax credit, which I discuss below, these graphs would look a lot
more level.
My concern right now is placed more on the rural property. There
are links near the top of this newsletter for market conditions for
various areas..and then a combined report of Rural houses.
The number of active listings in that category has risen
substantially, and the number of sales has decreased at the same
time. This is making for an over 2 year absorption rate. This will
drive prices down in this area more drastically than in the other
markets. The median price of the listed houses in this section has
increased from $315,000 to $365,000 at the same time that the
median sales price has dropped from $255,000 to $204.500.
The area that seems to have the best news going for it would be
East Medford. There seems to be a fair rate of increase in the
number of properties selling, and even an increase in the median
sales price. Additionally, the difference between the median
listing price ($240,000), and the median sales price ($214,000) is
fairly close.
|
|
The
Tax Credit Expired-Aftermath
|
 My last newsletter asked the question of what effect
did the home buyer government stimulus money have?
My answer was I thought that the short term impact was huge. But I
was really curious about what the long term impact was going to
be.
And I concluded last time we're really just in a wait and see mode
to fully assess the impact.
And now we have waited...and now we can see. From the graphs, I
would say that the tax credit worked, sort of. There is a definite
bubble of activity that happened in April, but it was followed by a
depression in July. And now, most indicators are pointing to being
roughly the same as last year.
Therefore, what I thought might happen did appear to come true.
People who were thinking of buying rushed their decisions, and
bought early. Which did reduce inventory temporarily, but the after
effect lull caused that figure to return.
I think the benefit of the credit, and a reason to do something
similar again was to give 1st time buyers some cash to make repairs
that are needed on many of the foreclosed homes that are dominating
the market at the moment. But I could just as easily argue that the
effect of that is probably not worth the cost of the entire
program.
A different program that targeted foreclosed homes, and provided
extra money to make them livable would be more likely to help.
There are loan programs that are designed to do this, such as the
FHA 203k loan, but
the regulation and requirements for this particular loan can be a
challenge to qualify for. I guess what I would like to see is a
more streamlined method to borrow home improvement/repair money and
incentives to do so. Especially for houses that will be primary
residences.
|
|
Protect
Your Investment
|
 Tip of the Month:
Before the weather turns cold, now might be the time to analyze
your home's energy loss.
You can get an energy audit for free from most gas or utility
companies. Some even will do a blower-door test for free that will
show you where drafts occur, and where to focus your effort in
sealing your home from heat loss through the winter.
In our area, the City of Ashland has great resources, and
incentives for promoting energy efficiency. They currently have
rebate programs for Refrigerators, Dishwashers, Toilets, Water
Heaters, and Washing Machines, Heat Pumps, Thermostats, and
more.
Go the the city's conservation page for an up to date list. City of Ashland
Conservation.
Finding out how to get the energy audit from Avista is a
frustrating experience. You can pay the City of Ashland $50 if you
are an Avista customer, and they will come do the test.
Most of the other utility providers have teamed up with the Energy Trust of Oregon. to
provide tools to analyze your home's energy loss.
So while the weather is still good, and the caulk isn't frozen, the
the sun is shining...let's all do our part to reduce our energy
consumption this winter.
Our pocketbooks, and planet will appreciate it.
|
|
Sincerely,
Adam
Bogle
Agent
In A Kilt w/ Coldwell Banker Pro West
190
Oak Street
541-482-5590
|
|
|
