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Southern Oregon real estate is in a transition market

Riche Garza

Southern Oregon real estate is currently going through a transition market also known as a buyer's market.

“The buyers have a lot more power and I’ll tell you what they’re doing: they’re dragging their feet; they’re waiting; they’re looking at a lot more houses; they’re asking for more concessions; they’re asking for more new roofs; they’re asking for more repairs; they’re coming in quite a bit lower than what they would’ve even a year ago,” Alice Lema, Broker at John L. Scott said.

This is due to the recent spike in mortgage interest rates, but it is also part of the real estate cycle.

“We have a very interesting market right now. It’s definitely transitioning down," Lema said. "All of the neighborhoods are soft. It started with the higher price points a while ago, now it's bleeding down into the $300,000.00 price point.”

"The first few batches of interest rate increases, the buyers actually absorbed that into their payment, now with all the recent ones [higher interest rates] they can’t do that so their payments are so high now they actually can’t write the offers on the houses they wanted even six months ago,” Lema said.

Approximately every ten years home prices tend to level out and have a normal correction.

This creates an opportunity to buy low, but many sellers are hesitant to let their properties go for a lower price than they had originally been valued at. “It is a buyer's market in the way the market is behaving, the sellers are not getting the offers they used to, the house has to be in primo condition, there’s not a lot of fighting anymore, not a lot of multiple offers,” Lema said.

“A buyer's market is a technical term and the definition is six months or more for you to sell your home - not six minutes like it used to be - but we are experiencing such a lag and the days [a home is] on the market, the sellers are not getting their way with a transaction, the buyers have a lot more power,” Lema said.

Local real estate agents predict this cycle will be over soon.

They also recommend, to anyone planning on selling, to sell now since there are more buyers to choose from. According to Lema, interest rates are due to go up again this month and are believed to go up at least three times next year.

“It’s not a crash, we’re not having a huge downturn but it is a great time to buy,” Lema said.

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