Douglas County Real Estate Market Trends June 2021
Many consumers are asking us, “Will the housing boom crash in 2022 or sooner?” While that is a legitimate concern, many economists say, “NO.” The housing market is dependent on supply and demand. Currently, there is not enough houses for people to buy. Even though the COVID 19 outbreak slowed the market, that was only temporary. Many areas of our nation are seeing unprecedented sales activity. In Oregon, Portland, Eugene, and Medford continue to see double digit appreciation in sale prices with an average of 25+%.
The biggest elephant in the room for the housing market, is what will the foreclosure rate look like once the government’s moratorium ends? In the first quarter of 2021, lenders started foreclosures on 17,600+ properties. Nationwide 1 in 4,078 housing units had a foreclosure filing in the first quarter of 2021. However, economists that study the trends in real estate and banking do not forecast another 2008 crash. The difference this time is that there are no sub-prime loans, and there remains a huge gap between supply and demand. In some parts of the nation there is as a 6-year gap, which means it would take at least 6 years for the housing supply to catch up with the high demand. This trend will continue until interest rates go up where prices of homes outpace income, and building costs come down so more units will be built. People deciding to sell now rather than later will be another factor.
Douglas County continues to see increases in new listings year-to-date at 1,146 vs. 1,065 in 2020 (+7.6%). Also, our pending sales are up from 967 vs. 930 (+4.0%). We follow pending sales because it is 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. Our closed sales year-to-date have increased 813 vs. 790 or (+2.9%). However, closed sales went down in June compared to June 2020 (171 vs. 180) or -5.0%. This is the first time in the past few months that closed sales have dropped. It could be a pre-condition of a slower market coming.
Comparing the first five months of 2021 to 2020 In Douglas County, the average sales price has increased by +24.7% ($304,300 vs. $244,100). In the month of June, we saw the largest increase in average sales of +32.5 ($327,000 vs. $246,700). This is an indicator that listing prices are getting bid up because we are still seeing multiple offers on some properties. Our total time on the market for June is 36 days and listing inventory is 1.2 months.
OUR AREA IS STILL SEEING A LARGE INCREASE IN SALE PRICES (DOUBLE DIGIT INCREASES IN MOST CASES). IF YOU WANT TO TAKE ADVANTAGE OF THESE INCREASES, GIVE US A CALL!
Please contact our local Red Cross if you can help aid those who have been displaced or are suffering from any of the wildfires in our area. They need our help as that fire continues to grow and devastate the North Umpqua. Also, please keep all the men and women that are serving in the military and the first responders along with their families, in your thoughts and prayers. We appreciate everything they do to protect our communities.