Douglas County Real Estate Market Trends Feb. 2022

    Douglas County Real Estate Market Trends Feb. 2022

    Mar 29, 2022

    Greetings:

     

    “Soaring inflation, spiking gas prices, and the war in Ukraine have taken their toll on just about everyone’s bank account as well as their frazzled psyches,” according to Clare Trapasso, real estate reporter for Realtor.com. She went on to say, “The overwhelming uncertainty for what’s coming next has already led to turbulence in the stock market and investment portfolios which will have a negative impact on an overheated housing market.”

     

    Some economists predict that existing home prices will adjust downward in 2022 because we are seeing the highest inflation rate in over 40 years. The Feds raised the interest rate by 25 basis points or 0.25% last week and are likely to raise it 3 to 4 more times this year. History has taught us that raising interest rates often leads to a recession, which is likely to happen this year.

     

    Purchasing a home has become an affordability issue when prices out pace wages. Even a mild recession will cool the housing market because many people will decide to stay in their homes.  This will have an impact on inventory, along with rising costs of building a new home or remodeling an existing home. Also, entering an off-year election causes uncertainty and concern.  Many consumers will likely decide to stay put. 

     

    Despite the many challenges to the economy, Douglas County has several new developments and projects underway. The Hanna Family complex continues to expand on their campus off I-5 with a new bank building under construction and a new commercial building. MOD Pizza announced plans to open on Garden Valley, Evergreen Clinic is building a new complex in Sutherlin, Loggers Pizza is near breaking ground in the Winchester area, and it appears Chipotle Mexican Restaurant is locating to Roseburg. 

     

    New listings in our area increased in February 2022 (145 v. 137) compared to February 2021. Year-to-date new listings have increased over last year by 1 (283 v. 282) or 0.4%.  Pending sales decreased to 139 from (144 in January 2022) however, are up year-to-date from 2021 by 3% at 273. Pending sales are a good indicator as to how strong or weak the market will be in the next 30-45 days when these offers begin to close.  Closed sales were down in February by -5.8% (114 v.121) compared to January 2022 but are up year-to-date (238 v. 197) or +20.8%. The average sales price increased significantly to $354,800 in February compared to February 2021 at $265,500 or +33.6%. The year-to-date sales priced increased as well to $334,400 or +15.4% compared to 2021 at $289,900.

     

    Home values continue to increase: the Winston-Dillard area average sales price was $308,500; the Glide area average sales price was $552,900; Sutherlin-Oakland had an average sales price of $354,900; in Myrtle Creek the average sales price was $264,300; the Hucrest and Garden Valley area average sales price was $464,200; Melrose and west Roseburg’s average price was $397,100; the Winchester and College area’s average sales price was $272,600; in the SE part of Roseburg the average sales price was $335,000; home prices increased in Green to $280,100; and in North Douglas County and Drain the average sales price increased to $280,600.    

     

    HOUSING PRICES CONTINUE AT AN ALL TIME HIGH AND INVENTORY OF HOMES IS AT AN ALL TIME LOW! IF YOU WANT TO TAKE ADVANTAGE OF THESE INCREASES, GIVE US A CALL! 

     

    Please keep all the men and women that are serving in the military and are our first responders along with their families, in your thoughts and prayers. Also please pray for the Ukrainian people.