Summer Smoke Hits Higher End Homes Hard

In an article two months ago, we talked about how the real estate market was being negatively affected by the smoke and repeated closures of interstate 5. Now that summer has ended, we can look back and survey the actual effect the fires had on our summer home sales.

Since 2013, the real estate market in Jackson County has seen year over year growth in both the price of homes and the number of homes sold. 2018 will most likely be no different, except that the pace of growth will be slowed down due to poor summer sales. If you look at this summer’s sales, July 1st through September 30th, the number of homes sold decreased by almost 15% compared to last summer. The decrease came in the higher end real estate markets, mainly Jacksonville, Ashland and East Medford. These are areas of higher end homes that cater heavily to out of state buyers. Jacksonville was the worst hit with 46% less homes sold this summer than last summer. Not everyone saw home sales decline as we had very healthy increases in homes sales in West Medford, South West Medford and areas of lower priced homes catering more to the local buyers.

Home prices this summer increased an average of 4.5% over last summer. This number represents one of the lowest increases we have seen in a while and, again, areas of more expensive homes were harder hit, some seeing a price decline. The median price of homes in Jacksonville fell by 4.1%, Ashland fell by .6%, and East Medford increased by only 3.4%. In areas of lower priced homes, we saw some drastic price increases this summer with North West Medford increasing by 25.5%, West Medford increased by 16.2% and White City increased by 9.2%. The overall median price of a home in Jackson County has increased over 43% the last 5 years and is currently at an all-time high of $290,000, with it likely to hit $300,000 by the end of the year.

To sum it up in one sentence, this summer brought increased home sales and higher prices for lower priced homes and lower prices and lower sales of higher priced homes. The local home buyer continued to shop for homes but, by all accounts, the out of state buyers chose to stay home.

The question now is how quickly the higher end housing market will recover from a smoke filled summer. We hope there isn’t much long term effect to our market but we do know some of our clients have decided to retire in other areas with fewer forest fires. We also are seeing some first time home buyers that are getting squeezed out of the housing market by rising interest rates.

On a positive note, the economy is doing well, our area is growing in population, we have full employment, and 10,000 baby boomers are hitting the retirement age of 65 every day. Many of these retirees are deciding to retire to areas outside of where they are currently living that are less crowded, less expensive, and offer more activities. Southern Oregon is perfectly positioned to take advantage of the exploding number of retirees, as long as we can curb the fires.

 

7756 Upper Applegate Road Jacksonville, OR 97530

Charming 2-Story Rural Farmhouse on Almost 5 Acres of Pasture | $549,900 | You will fall in love with this charming 2-story rural farmhouse nestled in the heart of the Applegate Valley. The 2, 100-square foot floor plan encompasses four spacious bedrooms, three bathrooms, and a traditional kitchen that flows through to the dining room. Beautiful French doors open up to a private rear patio. In the colder months, cozy up to the lovely rock fire place located in the family room. The master suite ensures a private space with beautiful panoramic valley views. Located on 5 acres of rolling pasture with a barn and nearby fire station, this home has the ultimate potential for horses and other livestock. Perfect for a family or as a retiree dream property, this home is ideally positioned to enjoy the proximity to Applegate Lake, McKee Bridge, Jacksonville, Britt, local wineries and an abundance of outdoor activities. Don’t miss out on this stunning one-of-a-kind property!

1569 Papago Drive Medford, OR 97504

Price Reduction! Immaculate Charming Move-In Ready East Medford Home Near Great Schools | $295,000 | First time on the market! Great location near Lone Pine elementary, this cute, immaculate home has been well cared for and lovingly maintained by the owner-occupant since it was bought new. A great place to call home with a master suite, 2 guest bedrooms, guest bath with 2 sinks and tub/shower, formal living room with gas fireplace and built-ins, family room with a platform for a wood stove, kitchen with breakfast bar and dining area, and a partially finished 2 car garage with washer and dryer. The spacious back yard has mature landscaping, and a covered deck just off the family room. This home is move-in ready and easy to show!

2922 Fairfax Street Medford, OR 97504

Don’t miss this fantastic home on the outskirts of East Medford! | $299,000 | Very private home with a large backyard and patio. Enjoy summer BBQs or gathering around the fire pit in the winter. Located in a quiet neighborhood, the abundance of windows make this home feel very open and spacious. New paint inside and out in 2013 and a new roof in 2011. The large 2 car garage features lots of shelving for extra storage. Located just minutes from shopping, restaurants, medical facilities and the airport, making it convenient for commuting or travel. Come tour this home ASAP it won’t last long!

515 G Street #353 Jacksonville, OR 97530

The Farms of Jacksonville townhome community | $345,000 | Low-maintenance lifestyle waiting to be enjoyed in one of the newest townhomes in the Farms! And only ONE owner! Quality built and energy efficient. Master bedroom has French doors that lead to the second story covered balcony. Private back patio downstairs. All exterior doors have retractable screens. Kitchen and bathrooms have granite counters. Hardwood flooring throughout main level. Half bath downstairs. Attached single-car finished garage. This home is spotless and move-in ready. Community center perfect for large gatherings and events. A few blocks from historic downtown Jacksonville for great dining, boutique shopping and Britt Festival. Woodland trails nearby too.