Oregon is often confused as being a misty gray place full of lush forest, Pinot vineyards, and affected hipsters. Yes, those conditions exist, but mostly in the northern rain shadow between the coast and the Cascade Range. Much of the state has a dry and sunny clime, including down south where the diverse vineyards of the Rogue and Applegate Valleys lie. And wine diversity defines the Valleys—the range of micro-climates allows for everything from Riesling to Cabernet to ripen. Add outdoor sports like hiking, rafting, fishing, and biking to museums, theater, live music venues, and restaurants, plus a stroll through a preserved, gold-rush era town and the activities prove as varied as the wine.
When you look at home values you get a better picture if you look at long term trends and not short term trends. Quarterly home prices go up and down but yearly growth and long term growth give you a much better picture of where the market is going.
Home values in Jackson County hit their all-time high in 2006, but then begin to fall as the housing caused recession hit. Prices continued to decline until they leveled in 2012, and begin to rise in 2013. Prices have continued to rise into 2016 and we ended the year with prices increasing 62.4% since their low in 2012. Home prices are still 7.5% lower than the all-time high in 2006 so we have a year or so before home prices are back at their all-time highs. We predict that home prices will continue to increase in 2017 due to three factors. There is a very low supply of homes on the market with is pushing prices up, rental rates are extremely high, so in many cased it’s cheaper to buy then rent , and we have an increasing amount of retirees moving to the area. All three of these trends will lead to higher home prices.
As for any average growth in home prices you have some areas that have faster price growth than others. Lower priced homes in Medford and Central Point have seen price growth that is twice that of price growth in Ashland and Jacksonville. Here are some numbers:
5 Year % Change in Existing Home Prices Median Price in 2016
Ashland + 39.1% $394,000
Talent + 64.8% $278,500
Phoenix + 47.6% $222,900
Jacksonville + 43.8% $365,000
East Medford + 61.1% $265,750
West Medford + 85.3% $161,250
Eagle Point + 63.3% $249,000
5 Year % change in Jackson County 62.4%
The number of homes selling is also on the increase, even though there is very little inventory available. In 2016 there were 2633 Homes that sold in Jackson County compared to an all-time high of 2647 in 2006.
The Rental Market continues to see 2% Vacancy which are at their lowest level since 2000. Rental prices have increase and supply is limited to we see the same trend for 2017.
Mortgage Rates have increased and now the average 30-year fixed mortgage rates are expected to average over 4 percent in 2017. The Federal Reserve announced they may increase the prime rate in 2017 which may drive up mortgage rates. At the same time mortgage rates have increase some government loans such as FHA have decreased the fees they charge for mortgage insurance so the net to the borrower can be the same as prior to the increase.
As we begin a new year and a new administration leading our nation there is a lot of uncertainly, but home sales are local and Jackson County seems more effected by the number of ageing baby boomers retiring then by any other factor. At last, home prices are nearing the record high and home sales are in reach of the all-time record, and best of all, the trend seems to be sustainable.
Having a rental property is a great investment and as we go into the new year and you get ready to file your taxes – those investment benefits will be realized!
However, a big part of maintaining your investment is to make sure that the maintenance to the property is upheld.
Here are a few ways that you can deal with a maintenance need at your rental property:
- Make sure that the property is rent ready from the beginning. If you have just purchased a rental property or you have been living in your home and are now renting it out, it is essential that you make sure that the property is ready to be rented. Any repairs or areas that need maintenance should be addressed right away before they escalate. If you notice any leaks or light switches that don’t work properly – make sure to call professionals out to investigate and make the repairs before to put it up for rent. Having a ‘clean slate’ before renters move in will help to make sure that the property stays in good condition, long-term.
- When you rent your property – make sure that you have a clear maintenance policy in place that your renters acknowledge and sign. It is essential that people know who to call and how to get help if there is a need for maintenance. The sooner that the repair or maintenance is done, the less chance there is for serious damage to your property. Having a long-term problem that isn’t addressed quickly and properly – will definitely call you more money and stress in the long run.
- Build relationships with vendors – If your rental property needs an appliance or a plumbing or electrical repair – it is important that you have a specific person to call who is an expert in their field. The longer that you research looking for a plumber – the more chance there is for serious damage to your property. Have someone on-call for each type of maintenance or repair need so that you and your renters know exactly the name and number to get ahold of.
Going into the new year, it is important to be thinking about protecting your rental property investment. You want to make sure that your tax benefits are as big as possible for next year!
Snuggling up in America’s best mountainous regions
Up in the mountains, the air is fresher and the views are better. There’s a sense of calm, as the only sounds come from nature—a babbling creek or a chirping robin. A getaway in the mountains can clear your head and get you in touch with the great outdoors, all while answering the call for adventure.
As sweater weather rolls in, now is the most idyllic time to escape to the mountains. To inspire your next rustic retreat, we’ve picked 17 of the best mountain towns in America—in no particular order. Explore these towns in the foothills and spend your days shredding slopes, uncovering the local history, and getting cozy by the fireplace.
Free 2017 Calendars are here! Come pick them up!
These Are The 10 Most Beautiful, Charming Small Towns In Oregon
Yeah, big cities like Portland tend to take up the bulk of attention in Oregon. But really, it’s the small towns that dot the state that really are the heart of this place. Most of us, even if we grew up in a major metropolis have roots in smaller communities, where perhaps our grandparents taught us good, old-fashioned values, where everyone knew each other, and where we developed our sense of community. Here are several towns in Oregon that hold a special place in the state’s heart.