September 2012 vs. October 2012

The real estate market in Southern Oregon has continued to be very busy. In the lower price ranges under $200,000 buyers are competitive. If a home is well cared for, nice neighborhood and priced well it will in all probability have multiple offers. I tried to write two offers today for a client for homes that were new to the market. One already had 9 offers and the other had an accepted offer with 4 buyers in back up position. Buyers have to be preapproved for their loan and more importantly willing to act very fast. They need to be willing to sign on the dotted line and get their offer submitted. You always have time later to change your mind within the terms of the contract if written correctly, and retain your earnest money. If you find a home you love, do not think you have time to spend several days researching it and seeing how you feel about it. Tie it up first then see how you feel about it. You will have time to think as you move through the escrow process. It is essential that you have contingencies for approving of  all inspections,  the title report and the seller's property disclosure statement. The closing will also be contingent on the property appraising at or above the purchase price and funding of your loan. Working through the initial steps of this process will give you time to do your research. It is imperative that you stay strictly within the agreed to timelines outlined in your contract so that you keep your earnest money secure.

So here is what is happening in the Jackson County, Oregon market for the first 3 weeks of October vs. the first 3 weeks of September. We are in need of inventory. There were 99 new in-town homes added to the market as compared with 56 in the first 3 weeks of September. Even though that is an increase, we still need more inventory for all of the large pool of buyers that are in the market. 167 homes received pending sales for the first 3 weeks of October as compared with 98 in September. So even though we have more new listings they are selling at 170% faster than last month! 130 homes have sold as compared to 104 in September's first 3 weeks. Total sales volume for single family in-town residences to date in October are $29,000,000 vs. $24,000,000 for first 3 weeks in September. 50% of homes are selling in the first 30 days on the market for a sell to list price ratio of 98.66. Sellers are receiving 98.66% of their asking price if their home sells in the first 30 days. Finally, we have a total of 396 homes with some sort of real estate activity in October as compared to 258 homes in September, 153% more homes with activity.

So that tells a story we have seen over the past 4-5 months. An improving market on many levels, definitely strong activity. However pricing is slightly down by 3%. Septembers average selling price was $$230,573 vs. October's of $223,037. 80% of homes sold are priced below $300,000. A small smattering of homes in the higher ranges are selling, but it is not significant. Although the first two homes in 2012 priced over $1,000,000 sold in September and one for over $2,000,000 in October that market is slow, the good news is that we are seeing the first signs of life in a while.