This article just was posted on Yahoo:
The national housing bust has hit the outdoor wonderland of Medford, Ore., with a one-two punch. Because its timber industry is crucial to the local economy--wood-processing jobs represent at least a quarter of all manufacturing positions--the collapse of the new-home building market triggered higher unemployment in the area. Meanwhile, after moving significantly higher during the first half of the previous decade, home prices have dropped more than 23 percent in recent years. As a result, Medford's already affordable housing market has become even more so. Its price-to-income ratio stood at just 1.01 through the third quarter of 2009, well below its average of 1.46 for the 15 years ending in 2003. Moody's Economy.com expects home prices to hit bottom this year.
http://finance.yahoo.com/news/10-Cities-for-Real-Estate-usnews-375742734.html?x=0&mod=real-estate
Right now a first time homebuyer can buy a modest home in Medford and have payments slightly higher than what they already be paying in rent, but with the tax benefits of owning, maybe even equal cost to rent as own.
Monday, February 22, 2010
Monday, February 15, 2010
Rising Interest Rates might mean Falling House Prices
We have all been hearing the news...
The Fed plans to end their mortgage-bond-purchase program that has helped keep mortgage interest rates low in the next month. The Fed has been buying the mortgage bonds being put out by Fannie Mae and Freddie Mac, replacing private investors such as pension funds and mutual funds that have avoided bonds since the subprime mortgage crisis. This is why interest rates have stayed low all year. Once the Feds stop buying, everyone is expecting interest rates to rise.
The question on everyone's mind is - will the push up of rates stimey buyers from buying homes at a time when buyers are worried about unemployment and the economy as a whole. Even a moderate rise in the mortgage interest rate could push potential buyers out of the market and/or worse cause home prices to fall again.
For homes buyers in Ashland this could mean about about another $100 a month added to your monthly mortgage payment.
The Fed plans to end their mortgage-bond-purchase program that has helped keep mortgage interest rates low in the next month. The Fed has been buying the mortgage bonds being put out by Fannie Mae and Freddie Mac, replacing private investors such as pension funds and mutual funds that have avoided bonds since the subprime mortgage crisis. This is why interest rates have stayed low all year. Once the Feds stop buying, everyone is expecting interest rates to rise.
The question on everyone's mind is - will the push up of rates stimey buyers from buying homes at a time when buyers are worried about unemployment and the economy as a whole. Even a moderate rise in the mortgage interest rate could push potential buyers out of the market and/or worse cause home prices to fall again.
For homes buyers in Ashland this could mean about about another $100 a month added to your monthly mortgage payment.
Tax Credits to pay for the Costs to improve your Home
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Tax Credits for Solar Water Heaters
A federal tax credit makes energy-efficient solar water heaters a more affordable and sustainable option for many homeowners. Read
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Tax Credits for Replacing Heating and Cooling Systems
Upgrading to an energy-efficient heating and cooling system can save hundreds on your utility bills and earn you a tax credit worth as much as $1,500. Read
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Tax Credits for Replacing Your Roof
Replacing your roof with a qualifying energy-efficient metal or asphalt roof can cut your cooling bill and earn you a $1,500 tax credit. Read
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Tax Credits for Adding or Replacing Insulation
A federal tax credit makes adding insulation an even cheaper way to improve your home’s energy efficiency and cut your heating and cooling bills. Read
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Tax Credits for Replacing Windows, Doors, and Skylights
If money seems to be escaping through drafty windows, doors, and skylights, this federal tax credit might make energy-efficient replacements more affordable. Read
Visit houselogic.com for more articles like this.
© Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
Thursday, February 11, 2010
Homes Sales in California mean Homes Sales in Ashland/Medford Oregon
WASHINGTON , February 11, 2010 Real Estate Economic News from National Assoc. of Realtors ® .
"Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of Realtors ® .
Sales increased from the third quarter in 48 states; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.
Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate 1 of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.
Lawrence Yun , NAR chief economist, said the first-time home buyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.
The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said.
“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun said.
Existing-home sales in the West jumped 16.2 percent in the fourth quarter to an annual rate of 1.38 million and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.
“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun said."
Since the Ashland and Medford Area real estate market "follows" the California real estate market this is good news. Approximately 1/4 of the real estate transactions in the Ashland/ Medford area are from buyers from California.
"Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of Realtors ® .
Sales increased from the third quarter in 48 states; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.
Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate 1 of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.
Lawrence Yun , NAR chief economist, said the first-time home buyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.
The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said.
“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun said.
Existing-home sales in the West jumped 16.2 percent in the fourth quarter to an annual rate of 1.38 million and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.
“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun said."
Since the Ashland and Medford Area real estate market "follows" the California real estate market this is good news. Approximately 1/4 of the real estate transactions in the Ashland/ Medford area are from buyers from California.
Saturday, February 6, 2010
Why Buy a Home Now?
Ground hog day has come and gone, but D day for the first time home buyer credit is coming soon. D day stand for deadline day - April 30, 2010! Folks, that is $8000 to you from the government if you buy a house and you have not owned a house for 3 years, and $6500 is you have owned a home for more than 5 years. There are some limitations so go to www.ashlandprowest.com to read and or print out all of the information you might need.
But! there is more....interest rates are predicted to go up and this prediction is across the board from almost every economist around. What this means is that even if house prices were to go down, your payment might not, and your payment is a long term rate. So again, now is the time to buy if you can.
But! there is more....interest rates are predicted to go up and this prediction is across the board from almost every economist around. What this means is that even if house prices were to go down, your payment might not, and your payment is a long term rate. So again, now is the time to buy if you can.
Friday, February 5, 2010
Ashland and Medford Homes Sales Statistics for Jan 2010
The Southern Oregon MLS just posted the real statistics for the Ashland and Medford area home sales. The data compares the time period of Nov. 1, 2008 to Jan 31, 2009 to Nov 1, 2009 to Jan 31, 2010. Below are some excerpts from their data:
The median sales price held steady in Ashland and East Medford.
There was a 68.7% increase in the number of sales.
The number of homes on the market in all of Jackson County dropped 17%.
The number of distressed sales made up 49.4% of the closed transactions.
The median sales price held steady in Ashland and East Medford.
There was a 68.7% increase in the number of sales.
The number of homes on the market in all of Jackson County dropped 17%.
The number of distressed sales made up 49.4% of the closed transactions.
Thursday, February 4, 2010
Super Bowl Winner predicts Ashland & Medford Home Sales
The Rogue Valley Association of Realtors is sponsoring an event with Lawrence Yun, the NAR economist, in April,so I thought I should write something about the economy. You should plan to attend Yun’s presentation as he makes economics interesting and relevant to the real estate business. Now my two bits…
In the next few days, the super bowl will be over and there will be a winner. So I am going to use the super bowl indicator (SBI) to predict the future of the housing economy. Since the first Super Bowl in 1967, when Green Bay Packers whipped the Kansas City Chiefs, 35-10, the Super Bowl Stock Market Predictor has been an astonishingly accurate indicator of stock market direction for the rest of the year. The theory holds that when a team from the original National Football League wins the championship, stocks rise. When a team from the now-defunct American Football League wins, that's bearish.
The Super Bowl Indicator (SBI) has been on the money 32 years out of 40, which represents a success rate of 80%. Between 1967 and 1997 it was accurate 28 times out of 31 (a better than 90% average); it then hit the skids, going 0-4 between 1998 and 2001, but rebounded by being correct 4 years out of 5 between 2002 and 2007.
So if the Colts (NFC) win against the Saints (AFC) then look forward to housing sales rising in the Ashland & Medford area in the next year, but for real economic information, plan on attending April 23, 2010 with Lawrence Yun!
In the next few days, the super bowl will be over and there will be a winner. So I am going to use the super bowl indicator (SBI) to predict the future of the housing economy. Since the first Super Bowl in 1967, when Green Bay Packers whipped the Kansas City Chiefs, 35-10, the Super Bowl Stock Market Predictor has been an astonishingly accurate indicator of stock market direction for the rest of the year. The theory holds that when a team from the original National Football League wins the championship, stocks rise. When a team from the now-defunct American Football League wins, that's bearish.
The Super Bowl Indicator (SBI) has been on the money 32 years out of 40, which represents a success rate of 80%. Between 1967 and 1997 it was accurate 28 times out of 31 (a better than 90% average); it then hit the skids, going 0-4 between 1998 and 2001, but rebounded by being correct 4 years out of 5 between 2002 and 2007.
So if the Colts (NFC) win against the Saints (AFC) then look forward to housing sales rising in the Ashland & Medford area in the next year, but for real economic information, plan on attending April 23, 2010 with Lawrence Yun!
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