Valley home sales rise for second month

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The newest figures show more homes in the Rogue Valley are selling than in September-October of 2007

November 06, 2008

By Greg Stiles

Mail Tribune

For the first time since March 2005 more homes were sold in Jackson County during consecutive months than in the corresponding period the previous year.

For both September and October more homes were sold in 2008 than in 2007, according to data compiled from the Southern Oregon Multiple Listing Service and Roy Wright Appraisal Service.

A two-month trend might not mean the market bottom has been reached, but coupled with declining inventories sales it could signal the beginning of a turnaround.

"Our market started changing in April 2005 and there was a one-year lag between a drop in sales and when prices started falling," said Roy Wright, a Medford appraiser.

"There are so many different variables in the market, but the trend lines are a pretty good indication that home sales are moving in the right direction."

The SOMLS rolling quarter between Aug. 1 to Oct. 31, showed 403 existing homes exchanged hands compared to 352 the previous year.

The median price for those homes declined 8.3 percent. New home sales continue to lag, but the median price for the new construction fell just 7.4 percent.

"Buyers and sellers are having more ability for a meeting of the minds," said Adam Bogle, an agent with Coldwell Banker Pro West Real Estate in Ashland. "Buyers and sellers are a little closer at meeting eye to eye and putting deals together."

Talent was the only community to see an upswing in the median price for existing homes during the previous three months.

The median climbed 5.4 percent to $245,500 — above the county's $237,500 median during the quarter.

Of the 11 markets monitored by SOMLS, four — Talent, Phoenix, the Upper Rogue and Gold Hill/Rogue River — had fewer sales than during the same period in 2007.

"From the numbers I've seen, it looks like first-time buyers are getting a much better chance right now," Bogle said. "People are still wanting to move into Ashland. It may have been a place people didn't think they could afford a couple of years ago, but maybe they think it's more affordable now."

White City sales doubled and days on the market prior to sale plunged to 40 — compared to the county average of 120 days.

"It's all about price, that's the bottom line," said John Smoak of Exit Reality. "Not everyone can live in east Medford and it's very economical to live in White City. There's more bang for the buck there and your dollar goes a lot further. As the inventory gets absorbed, prices fall and there will be stabilization."

Mortgage rates have fluctuated in recent days, hitting 6.625 percent on Monday and then falling to 6 percent on Tuesday.

"That makes a big difference in the purchase price of the house," said Colin Mullane, chairman of the SOMLS statistics committee and a broker with RE/MAX Realty Group in Ashland. "In general, we're seeing interest rates go down, which means people are taking money out of stocks and buying bonds. That helped feed sales figures in October."

Reach reporter Greg Stiles at 776-4463 or e-mail business@mailtribune.com.

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