Greetings:
IS THE HOUSING MARKET GOING TO CRASH?
Now that the housing boom is threatened by rising mortgage rates and the possibility of a recession, buyers and homeowners are asking us every day, “Are we in for another crash?” Certainly, there is a need to be concerned. However, most housing economists predict that while our economy will take a hit, it will not be as drastic as before. The decline in the housing market will be softened by low inventory, a lack of new construction, many new buyers, strict lending standards, and a drop in foreclosures.
The last time the market crashed (2007-2008) the average price of a home in Douglas County was near $115,000. Since then, real estate prices have increased in October to $375,700 or (+ 30.57%). As you can see, real estate remains a good asset to grow your wealth. Douglas County residents are very fortunate since we live in a desirable area based on location and mild weather.
Comparing 2022 to 2021 through October, the average sales price has increased from $319,800 to $360,400 or (+12.7%). In the same comparison, the median sale price has increased to $325,000 from $289,000 or (+12.5%). September 2022 compared to October 2022 the average sale price is $375,500 over $353,700 an increase of (+4.4%). Our average sales continue to rise but more slowly than in 2021. Last year had double digit increases in sales prices compared to single digit increases now.
In Douglas County, new listings decreased in October by (-8.8%) to 156 to the 171 listings taken in September 2022. New listings are down (-7.2%) year-to-date from 1,973 to 1,830. Currently, there is a 3.2-month supply of listings on the market to sell, which is up from last month when it was 2.9 months.
Closed sales decreased in October compared to last month (-10.8%) to 116 from 130. This trend continues when comparing year-to-date closed sales through October were 1,496 in 2021 to 1,356 in 2022 or (-9.4%).
Changes in values by area year-to-date from 2021 to 2022: Winston-Dillard saw an increase to $344,700 or (19%); Glide saw an average sales price increased by (+43.6%) to $662,100; the Sutherlin-Oakland area saw an increase of (+17.5%) to $388,000; the sales price in the Myrtle Creek and southern part of Douglas County values decreased by (-4.6%) to $274,500; Hucrest and Garden Valley’s average sales price was $511,900 or (+15.9%) ; in Melrose and West Roseburg the average price increased to $402,900 or (+6.4%); Winchester and College area’s average sales price decreased to $309,400 or (-6.9%); SE Roseburg saw average sale prices increased to $310,000 or (+14.8%); Green prices increased to $314,300 (23.4%); and North Douglas County and Drain saw prices increased to $343,400 or (+8%).
THE REAL ESTATE MARKET IN OUR AREA CONTINUES TO REMAIN STRONG EVEN WITH SOME SIGNS OF WEAKENING. IF YOU WANT TO TAKE ADVANTAGE OF OUR CONINTUED POSTIVE APPRECIATION RATE, GIVE US A CALL SO WE CAN HELP YOU! IT CONTINUES TO BE A GOOD TIME TO SELL.
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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