There is no question the market is hopping and more and more For Sale signs are popping up. We are interviewing for listings every week and glad to report it looks like more inventory is in our future. Compared to this time last year, the inventory across our county is greater. Fortunately, Buyer appetite is also very strong and we are seeing a lot of activity among the locals as well as those looking to move to our area.
For those of you following the trends, you have probably realized interest rates have fluctuated a bit over the last few weeks. Even though they are slightly higher than they have been, they are still well below 5% for most loan programs. Now is a great time to connect with your local lender experts on what different loan programs are available. We are seeing conventional loans with as little as 5% down, strong FHA products and other programs where lenders assist their borrowers with down payments and closing costs. For homes that are in rough shape, there are some great rehabilitation loan programs available, allowing a homebuyer to finance the cost of the improvements that need to be made.
You might wonder who is buying right now and it’s actually quite a mix. Many local homeowners are finally in a positive equity position so they are looking to upgrade. As families are growing they often just need more space either within their home or on their property. We are also seeing the baby boomer generation either upgrade in the quality of their home as well as downsize into something more manageable for their now empty nest.
There is also a strong appetite among investors who have either sold other investment properties and want to re-invest their proceeds in our community, or they are diversifying their portfolios and moving money from the stock market into real estate. While it remains true that our current prices are still somewhat inflated (as much as 5-8% on the average), the rental market is so strong that with a reasonable down payment, most investments are still producing positive cash flow. Lastly, we are also seeing out-of-area buyers purchase property now that they will eventually retire in. Although they are a few years out from actually retiring to the Southern Oregon area they are taking advantage of pricing and interest rates so they can secure their future plans. In the interim, they are renting that property out until they can fully retire and enjoy all they have worked so hard to achieve.
It is in these current market conditions when we really encourage you to connect with your local experts so you can pick their brain on what might prove beneficial to you and your family now and in the future. We often don’t realize what is possible, but after we meet with professionals we often find there is another route. If you don’t have an established relationship with a Realtor, give us a call. It just might be that now is the perfect time to upgrade your home, purchase that investment property or vacation getaway in the mountains.