Greetings:
BIG NEWS! Umpqua Bank and Columbia Bank formally merged effective March 1, 2023. As a result of the combination, the new Umpqua Bank will have over 300 branches throughout the Northwest. The investment arm of the new merger will be called Columbia Wealth Management. This represents the largest merger of 2 entities for a total of over $50 billion in assets. Most customers will not see a change in operation of the bank, in fact many services will be enhanced. I was fortunate to serve on what was Umpqua State Bank and then Umpqua Bank in the late 80’s and 90’s as a director! It was a very positive experience, and I learned a lot about the banking industry as well as our local business community.
In March of 2023 the job market saw one of its largest gains in the past few years. There are over 5.5 million jobs that have gone unfilled; however, that is slowly changing. Health Care continues to see the largest job growth. As our population continues to age, there will continue to be a need for health care providers. The unemployment rate in the US is down slightly at 4.4% with Oregon’s at 4.5%. Ideally, the Feds like to see the unemployment rate around 2-2.5%. Locally, many employers are seeing more applications and job growth since the COVID benefit package has run out.
In our local real estate market the average sales price year-to-date in 2023 is down (-5.4%) at $316,400 compared to 2022 at $334,400. This is good news for buyers! Many ask if we are in a buyer’s market. However, the lack of inventory means we remain in a seller’s market. When you compare February home prices to January 2023 prices are up from $309,100 to $324,500 or (+5%).
THE REAL ESTATE MARKET IN OUR AREA CONTINUES TO REMAIN STRONG, EVEN THOUGH THERE ARE SOME SIGNS OF IT WEAKENING. IF YOU WANT TO TAKE ADVANTAGE OF OUR CONINTUED POSTIVE APPRECIATION RATE, GIVE US A CALL SO WE CAN HELP YOU NOW!
In our local area, new listings were down (-17.3%) to 234 compared to last year at 283. Currently, there is a 3.3-month supply of listings on the market, which is down from January when it was 3.7 months. In other words, if we did not take another listing it would take us around 3 months to sell our current inventory. A normal balanced listing market is about a 6-month supply. Since inventory is still tight, the market continues to favor the sellers.
In Douglas County our closed sales decreased in February to 93 down from February 2022 when there were 114 (-18.4%). However, they have increased compared to January of 2023 when they were 84. So far compared year-to-date our closed sales are down by (-24.8%) 179 from 238 in 2022.
Our real estate market continues to mirror the national market with inventory tight, interest rates fluctuating and prices remaining high. Our prices are adjusting, and we are setting more housing starts in our community which is encouraging. I feel that 2023 will be a year of change and adjustment, but we will come out of it stronger.
Please keep all the men and women that are serving in the military, health care workers, and our first responders along with their families in your thoughts and prayers. Their service and sacrifice keep us safe and free.
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