4278 W Main Street Medford, OR 97501

New Listing! Opportunity Abounds With This One Story Farm House on 8.54 Irrigated Acres, Just Minutes to Jacksonville | $499,000 | Whether your dream is a produce stand, family farm or vineyard, this property has location, location, location! From the minute you enter this 3 bedroom, 2 bath 1742 sf home, your eyes are drawn to the beautiful pastoral views and you feel a million miles away. The home has been beautifully updated and enjoys pastoral views from almost every room. The property is fenced and cross fenced with vinyl fencing. The property features a large pole barn, 2 car garage, and shop. Seller financing may be available with a large down. Bring your family and your dreams!

Timber Ridge Estates

Premium Building lots in iconic Timber Ridge Estates subdivision in Jacksonville! The road is paved and all utilities are in on this one of a kind subdivision that includes 23 build ready parcels with stunning views of Jacksonville, Medford, Roxy Ann, and Mount McLoughlin and surrounded by wooded HOA land, the trail system and the sounds of the Britt Festival. Each lot is situated so that no 2 lots are touching which gives each property its own private rural feel all while being in town with city water, sewer, and utilities. HOA will cover road maintenance, common space maintenance and will also provide private access to the trail systems open to owners only.

 Visit www.expertprops.com/timberridge for more information

Want more information? Contact Us.

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The Delta Effect

When home prices increase in an area, the highest percentage increases happen for the lowest priced homes. The greatest demand in any market is for the most affordable homes. For example, 711 Nobility in South West Medford sold for $223,000 in December of 2015 and then sold again five years later in December of 2020 for $320,000. This is a 45% increase in just five years which is a higher percentage increase than homes selling at higher price points. The “Delta Effect” is the effect that makes is easier for owners of lower priced homes to upgrade and afford a higher priced home, sometimes upgrading without increasing their monthly mortgage cost.

The other major factor that affects home affordability is the interest rate. Most of us thought we had seen the end to the lowest interest rates since the great depression, but then came the pandemic and interest rates plunged again! As of January, 2021, the average 30-year fixed interest rate, per bankrate.com is 2.88%, which is an all-time low during my lifetime.

When you add these two factors together, the “Delta Effect” and all-time low interest rates, many buyers can upgrade and get a much nicer home without increasing their monthly mortgage payment. Let’s look at the numbers for an actual client of ours. She bought her first home in March of 2019 on Sharon Way in White city – a 2 bedroom, 2 bath, 922 square foot townhouse with a small backyard and a one-car garage for $190,000. Her loan covered 100% of the purchase price, with zero down, with an interest rate of 4.625%. She wants to know what she can spend on a new home without increasing her monthly mortgage payment. So, if she sold her home, used her equity and took advantage of the lower interest rate, what can she spend on a new home?

Recap of the Sharon Way purchase:
• $190,000 Purchase price
• $186,428 Current Balance of the loan
• 4.625% USDA 100% loan – Zero down
• $220,000 Current value of the property
• $986 Monthly mortgage payment

Recap of what she can purchase now with the same mostly mortgage:
• $220,000 current value of her home
• $33,500 Down Payment, derived from her home equity
• 2.88% Interest Rate
• $996 monthly mortgage – $240,000 financed at 2.88%
• $273,500 is her budget for a new home. $240,000 financed at 2.88% and $33,500 down payment coming from her equity.

With a budget of $273,500 she can move to a nicer neighborhood, afford a larger house with a larger backyard and hopefully a 2-car garage.

The Delta effect, low interest rates, and the loss of homes in Phoenix and Talent by fires have all caused the hottest sellers’ market in years. When she is ready to sell her townhome, she will most likely have multiple offers exceeding her $220,000 expectation. The lowest priced home listed for sale in White City is currently $259,000. Conversely, when she goes to buy her new home, she will have to keep in mind that she will have lots of competition and most likely have to give the seller more than they are asking for.

How could the Delta Effect impact you? Contact Us.

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The Delta Effect

When home prices increase in an area, the highest percentage increases happen for the lowest priced homes. The greatest demand in any market is for the most affordable homes. For example, 711 Nobility in South West Medford sold for $223,000 in December of 2015 and then sold again five years later in December of 2020 for $320,000. This is a 45% increase in just five years which is a higher percentage increase than homes selling at higher price points. The “Delta Effect” is the effect that makes is easier for owners of lower priced homes to upgrade and afford a higher priced home, sometimes upgrading without increasing their monthly mortgage cost.

The other major factor that affects home affordability is the interest rate. Most of us thought we had seen the end to the lowest interest rates since the great depression, but then came the pandemic and interest rates plunged again! As of January, 2021, the average 30-year fixed interest rate, per bankrate.com is 2.88%, which is an all-time low during my lifetime.

When you add these two factors together, the “Delta Effect” and all-time low interest rates, many buyers can upgrade and get a much nicer home without increasing their monthly mortgage payment. Let’s look at the numbers for an actual client of ours. She bought her first home in March of 2019 on Sharon Way in White city – a 2 bedroom, 2 bath, 922 square foot townhouse with a small backyard and a one-car garage for $190,000. Her loan covered 100% of the purchase price, with zero down, with an interest rate of 4.625%. She wants to know what she can spend on a new home without increasing her monthly mortgage payment. So, if she sold her home, used her equity and took advantage of the lower interest rate, what can she spend on a new home? 

Recap of the Sharon Way purchase: 
•    $190,000 Purchase price 
•    $186,428 Current Balance of the loan 
•    4.625% USDA 100% loan – Zero down 
•    $220,000  Current value of the property 
•    $986 Monthly mortgage payment 

Recap of what she can purchase now with the same mostly mortgage: 
•    $220,000 current value of her home
•    $33,500 Down Payment, derived from her home equity 
•    2.88% Interest Rate 
•    $996 monthly mortgage – $240,000 financed at 2.88%
•    $273,500 is her budget for a new home. $240,000 financed at 2.88% and $33,500 down payment coming from her equity.

With a budget of $273,500 she can move to a nicer neighborhood, afford a larger house with a larger backyard and hopefully a 2-car garage. 

The Delta effect, low interest rates, and the loss of homes in Phoenix and Talent by fires have all caused the hottest sellers’ market in years.  When she is ready to sell her townhome, she will most likely have multiple offers exceeding her $220,000 expectation. The lowest priced home listed for sale in White City is currently $259,000. Conversely, when she goes to buy her new home, she will have to keep in mind that she will have lots of competition and most likely have to give the seller more than they are asking for. 

How could the Delta Effect impact you? Contact Us.

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2021 Real Estate Forecast

2021 Real Estate Forecast

I just read over our 2020 Jackson County real estate forecast which we published in the Review a year ago. We predicted that in 2020 would see over 4,000 homes selling, with the median price surpassing the $300,000 mark. As I write this article, 2020 is about to end and it looks like we will meet and exceed both predictions. 2020 will mark the greatest year the housing market has ever seen in Jackson County despite social unrest, record destruction from fires, a contentious election year, and a pandemic that caused the shutdown, temporarily and permanently, of hundreds of local business, and the resulting recession which is more severe than most of us have lived through.

Where is the real estate market headed now? What happens following a record year, during arguably, the worst year? Will we see the market crash, hold, grow slightly or explode? Let’s look at the EIGHT trends that will determine the 2021 local real estate market.

Upsizing homes has become essential for many
The pandemic has created pent-up demand. Many buyers are in the market purely because they’re working and schooling from home and realizing their space is no longer big enough, particularly now that the temperature’s dropping so they can’t easily escape to their back patio to catch up on emails. Add to this the “Delta Effect” where younger families have purchased homes in the $200,000 – $300,000 price range that have seen the greatest price escalation. They can use this price escalation combined with low interest rates to upsize into a price category that has seen less price escalation. The “Delta Effect” means going from a first home that cost $300,000 to a second home that cost $500,000 has never been easier, financially speaking.

Working from home will increase the number of Escapees from large cities
As more and more employees are allowed to work from home rather than commuting to an office, they are realizing that they can move outside cities where their offices are located to smaller, more rural areas where their purchasing power is greater. Their employers are quickly learning they can reduce the cost on office space as well as they can give “cost of living” adjustments to employees moving to cheaper areas. Now that this trend has started, I don’t personally believe it can be reversed.

Growing numbers of retirees flee large cities for more rural locations
Southern Oregon has increased its draw for retirees, making them an important part of our housing industry. The number of Americans retiring daily has nearly doubled since 2000 and roughly 10,000 people turn 65 each day so this trend is not stopping anytime soon. You can see the effect of retirees on the city of Jacksonville that now has a population with an average age of 61 and continues to see retirees flocking in.

Mortgage interest rates are at an all-time low, again!
Interest rates on a 30-year fixed-rate loan were 2.8% as of Oct. 22, according to Freddie Mac. Although buyers are facing stiff competition, it’s not all bad news for them. Despite high home prices, record-low interest rates mean they’ll save a ton of money. Low interest rates boost buyer home purchasing power. Despite double-digit increases in home prices in 2020 compared to 2021, home buyers are likely actually paying slightly less on their mortgage each month, thanks to much lower mortgage rates. $15,000 Tax Credit to help more Americans achieve homeownership

One of Biden’s most popular plans is to provide first-time home buyers with a down payment tax credit of up to $15,000. As home prices have soared in recent years, this could be a big help to many cash-strapped buyers. The plan is to give first-time home buyers a down payment tax credit of up to $15,000 that they could actually use at the time of purchase. As home prices have soared in recent years, this could be a big help to many cash-strapped buyers.

Demand from fire victims
We have seen so many home buyers that are victims of the Almeda Fire enter the housing market in the 4th quarter of 2020. Because inventory is so low, we believe it will take a long time for all those homeowners to find a replacement home. Some of that demand will spill into 2021 causing increasing demand in 2021.
Housing inventory is getting lower

Although buyers are plentiful, the number of homes for sale keeps getting lower each quarter. We have personally seen up to 17 offers per home on homes priced in the mid $200,000 range and it’s not unusual to have multiple offers on homes priced in the $300,000 range and even multiple offers for homes in the $500,000 range. Because the number of homes available is currently at a record low, (less than a month’s supply) even if we see some improvement, which we expect, there will still be relatively few homes for sale in 2021 and not enough to meet demand. Some sellers are hesitant to sell unless they are sure they can find a replacement home.

Development of a Vaccine
We recently received the news that a COVID-19 vaccine being developed by Pfizer prevented more than 90% of infections in a study of tens of thousands of volunteers. This is the most encouraging scientific advance so far in the battle against the coronavirus and more encouraging news is likely to be on its way. When the coronavirus is behind us, we’ll see our economy improve, not for everyone, but for many of us, and an improved economy will cause more demand in the housing industry.

Conclusion
Demand for homes in Jackson County has never been higher, and when combined with record low Interest rates, and maybe a $15,000 federal stimulus, there is only one obvious issue that can stop 2021 for becoming another record year and that’s supply. How many homes we sell will be contingent upon the inventory of homes that comes on the market for sale. There is one thing we know for certain, low inventory and high demand will drive up home prices in 2021 so sellers stand to make a killing.

Have questions about how you will be affected by the 2021 market? 

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340-342 S 4TH STREET JACKSONVILLE, OR 97530

Unique Multi Family Setup in Jacksonville | $749,000 | MLS# 220113871 | This unique gem of a property is the ideal configuration for a multi-family set up. As you walk into the main quarters of this extraordinary Craftsman style home, you are taken back in time surrounding yourself with original crown moldings and built-in shelving from the 1920’s. There are numerous updates throughout the home including a 3-year-old HVAC system and sugar pine wooden countertops. The 9ft ceilings and abundance of windows allows for a warm and spacious atmosphere. The property features a private deck overlooking Daisy Creek. Above the main house boasts a quaint 400 sq.ft studio apartment accessed by an outdoor staircase in the rear of the property. Adjacent to the main house is a detached 2 car garage with an additional 1 bedroom apartment above. Current rent: $2335 House and studio above house rent it unfurnished and $2800 Cottage above the garage rented short term and furnished.

Like what you see? Get on our showing schedule:

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7550 STERLING CREEK ROAD, JACKSONVILLE, OR 97530

Enjoy rural country life only minutes from historic Jacksonville | $679,000 | MLS# 220113854 | Enjoy rural country life only minutes from historic Jacksonville on 19.96 wooded acres with a beautiful park like setting. The 2,100 Sq Ft home has 3 bedrooms and 2 full baths with an attached two car garage. An extra shop area attached to garage could be transformed to RV parking or hobby room. Main living space features an open floor plan with the kitchen and dining area opening up to the large living room with vaulted ceilings and gorgeous views of the surrounding landscape. Savor your morning coffee on the concrete patio and wrap around deck. The deck features an outdoor kitchen perfect for entertaining family and friends. Beyond the deck, you will find a large gardening area complete with your own private luxurious sauna and bath house. This property is perfect for peaceful and private country living. Call today to schedule your own private tour.

Like what you see? Get on our showing schedule:

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116 McCully Ln, Jacksonville, OR 97530

Spacious Single-Level in Quiet East Medford Cul-De-Sac | $339,000 | MLS# 3011809 | Come see this spacious home in a quiet east Medford cul-de-sac. This versatile floor plan offers an oversized master, two spacious spare rooms, office space, and an open kitchen/dining area. Step out the slider off the kitchen onto a beautiful wood deck that is ideal for all your summer entertaining! The large back yard has mature shade trees and plenty of space for your garden or even a pool. Sit on the lower deck enjoying a glass of wine and a view of Roxy Ann Mountain. The 2-car attached garage offers both storage and workspace, and the large driveway has room to park all your vehicles and toys.

Like what you see? Get on our showing schedule:

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939 THOMPSON CREEK ROAD, APPLEGATE, OR 97530

Sprawling EFU Property With Two Single-Family Homes | $1,200,000 | MLS# 220113019 | Looking for that perfect property that has it all. Well here it is. This sprawling EFU property has 2 nice single family homes, a large pole barn, several workshops and outbuildings, a milking barn, 3 farmhand mini homes, several hoop houses, water rights to Thompson Creek that runs through the property, 2 man made reservoirs used to irrigate the upper fields, hiking and riding trails throughout the property that is backed to BLM. The original home is a beautifully updated 2/1 mid century farmhouse with detached 2 car garage + outside office. This home has been nicely updated with porcelain tile, hardwood floors, spacious kitchen with stainless steel appliances, granite counters and a large breakfast bar. The 2nd home is a newly finished custom 2/2 straw bale home with cherry floors and vaulted ceilings. This home has a very energy efficient soap stone stove and spacious layout. There are just too many features to list.

Like what you see? Get on our showing schedule:

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5430 HIGHWAY 227, TRAIL, OR 97541

17 Private Acres with Water Rights | $380,000 | MLS #220113189
Looking for 17 acres with water rights? Take a look at this cute 2 bed 1 full bath with additional loft office. country home set off the road for maximum privacy and backed to trail creek. This property has an enclosed raised garden with automatic sprinkler system, many mature fruiting trees, several horse shelters, paddocks, outbuildings, and grazing pastures. Home has some updates. Seller purchased additional windows, siding etc. to complete renovation (all included with sale). This home comes with RV hook up, gas generator, working hot tub, nice she-shed with garden tool enclosure and wooden porch. The well was last tested at 8GPM. Don’t wait till this one is gone too!

Like what you see? Get on our showing schedule:

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