Tax credit a 'pretty big deal' in local home sales

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November 07, 2009

By Greg Stiles

Mail Tribune

Jackson County real estate sales activity continued its upward trend for the ninth-straight month.

According to Southern Oregon Multiple Listing Service figures, existing home sales rose 27.2 percent for a three-month period ending Oct. 31, with 501 residences exchanging hands, up from 394 during the same period in 2008.

The median sales price for the three-month period was $185,000, down 2.5 percent from the $189,700 median a year earlier.

With the first-time homebuyers tax credit and expanding coverage to include current owners, local real estate agents hope to see the trend continue. Congress extended the tax credit, slated to end Nov. 30, through April 30, 2010. Many current homeowners also are eligible to receive a credit of $6,500 if they buy during the prescribed period.

"I think it's a pretty big deal," said SOMLS Chief Executive Officer Steve Blanton. "Looking at the sales growth we've seen, it's been a big factor, along with declining prices and good interest rates."

Blanton said he thinks the expanded program could trigger a move into a second purchase for homeowners ready for a change.

"This sets the stage," he said. "It's true your house may not sell for what it could have a few years ago, but this will give people who want a bigger or smaller house an opportunity."

Existing homes sold faster than a year ago as well, with the average days on market falling to 80 versus 104 last year. The latest figures show distressed properties — bank-owned and foreclosures — make up roughly 42 percent of sales. That's down somewhat from the nearly 50 percent level seen earlier in the year.

West Medford, with more homes in first-time buyers' price ranges, saw nearly double the sales during the 90-day period compared to 2008. A total of 109 single-family residences exchanged hands, up from 58 the year before. The median sales price for that area dropped 12.2 percent to $147,000.

East Medford was the biggest segment of the market with 138 sales in the past three months, up from 114 in 2008.

Although the median price for homes in the Upper Rogue region of Shady Cove/Trail fell 3.2 percent to $221,250 in the past year, they are one of only two geographical areas among the 11 tracked by SOMLS that still are above the 2004 median.

The recent median sales point in Shady Cove/Trail was 17.7 percent higher than the 2004 figure of $187,985. Eagle Point was the other area with a higher median than five years ago. While the year-over-year median sales point tumbled 18.8 percent to $195,000, the median was 3.9 percent above the $187,750 2004 median.

Realtors caution that the median sales price can be misleading, as it represents only the median price of the specific homes that sold during the time period and not necessarily the entire market.

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

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