Hip Hip Hooray for the California - Southern Oregon Real Estate Market! The chief economist for the National Association of Realtors says California's real estate market is on the upswing and that should have a positive ripple effect in Southern Oregon's Rogue Valley next year.
Dr. Lawrence Yun was the guest speaker at a Housing Summit hosted by the Rogue Valley Association of Realtors on Friday in Medford Oregon. "The California market is doing well," Yun said. "In some areas, there is a shortage of inventory and that's causing prices to rise. There will be a cascading impact from the California market because Oregon is right next door. They buy the second home initially and in the future it becomes their primary residence."
The California real estate market has been a driving force for the Southern Oregon real estate market for the past 10 years. When prices began declining in California, it caused a ripple effect here in Southern Oregon as well. Retiring couples decided to stay put in California and continue working for awhile. That meant 2nd home purchases in Southern Oregon began to diminish.
"The housing marketing has gotten a boost from stimulus dollars and tax cuts. Now that home values are stabilizing, the fear factor has diminished. There is no need to postpone purchases because the broader economy is in recovery," siad Dr. Yun.
Historically, Southern Oregon has lagged behind the rest of the country both going into recession and recovery. So, Yun said, he anticipated it would be at least a year before construction gains momentum in the Southern Oregon. By Dr. Yun's account, the housing market appears to be in an optimistic recovery stage. Hip Hip Hooray for the California - Southern Oregon Real Estate Market!