For several months now, Medford’s real estate market has been hampered by very few homes sort after by too many buyers, hence restricting choices for prospective buyers and escalating the homes’ prices—something that has led to serious bidding wars.
The shortage of housing is a major problem not only for those looking for a cool place to call home, but also for those looking to invest in Medford’s real estate market and hopefully receive returns from rental income or profit from sale of rehabilitated homes.
Investors and buyers of all kinds are finding it a challenge getting homes in this local market majorly due to low inventory. As more properties enter the market, there are far more buyers than homes.
One Of The County’s Hottest Markets
West Medford might not look that charming, but when it comes to affordable rentals with stance, go no further. According to the Southern Oregon Multiple Listing Service, by late May this year, 100 houses were up for sale in local listings in the southwest, northwest and west Medford market areas. That’s about twice more than it was three years ago. However, the March-through-May single family residence transactions have also moved up from 88 in 2013, 98 in 2014, and 104 in 2015, to 118 in 2016.
Medford is a township whose inventory is rapidly drying up to almost 20 percent year-over-year, with each listing always drawing great attention, time and again igniting bidding war. For the three months ending May this year, existing homes in northwest Medford saw median sales prices hit $198,700, up by 23.8 percent. Medford’s west median increased 22.5 percent to $170,900 while Medford’s southwest surged 7.1 percent to $225,000.
All these areas failed to reach the national median sales of $234,500, which increased 5.6 percent, from $222,000 year over year. During this spring, more attention was drawn to the west side of the rental tracks, where prices shot up faster than the rest of the county, while east Medford’s median remained unchanged.
“With the drying inventory, as soon as a home is put up for sale on the market, there are eight to ten offers, particularly in the lower cost range,” said Patrick Vincent, a real estate investor and CEO of Asurent Property Management Firm in Medford. “In Medford’s west,is ever going above and beyond the prices on the list. This has been the trend for over a year now, but this gets more intense with the multiple-offer situations.” s in various directions, and west Medford is where they are headed.
Even though sellers still get their asking price or even better, value appraisals and low-end developments are facets that should be considered in easing the current pressure on west Medford’s real estate market.
With the low mortgage rates still standing at 4 percent, most buyers want to make the most of the opportunity to escape the skyrocketing rents.
Lots of people are really yearning to get out of their rental tracks since rents keep going up and more buyers are eager to enter the real estate market. The affordability points to potential buyer