Could 2023 Homebuyers Gain $54k In The Next 5 Years_
Could 2023 Homebuyers Gain $54k In The Next 5 Years_
Full Video Transcript Below
Could 2023 Homebuyers Gain $54k In The Next 5 Years__
Alice Lema: [00:00:00] Hey, real estate fans, Alice Lema here broker John Scott in beautiful Southern Oregon with another edition of the Weekly podcast. Today we have a very interesting topic because we have some predictions from K C M keeping current matters that anybody who buys a house in 2023 could earn in five years, about $54,000 in what they call household wealth.
But that's prices going, equity, that kind of thing. So let's talk about that. I wanna show you this chart that just was published by K C M and it's showing between 2023 and 2028 the potential for people who do a purchase this year and they're using the $400,000 mark as a average that in five years you could earn $54,000 in equity. Also known as wealth building, household wealth, whatever you wanna call it, $54,000. That's for living in a house that you buy right now during these tumultuous times.
Now part of the reason is we still have [00:01:00] ongoing shortages in many parts of the country. I know not all of the parts of the country right now, but Southern Oregon in particular is still in something of a seller's market. And we're gonna go over the local stats at the end just to give you an idea of where we're really stand with those numbers. But ongoing shortages are creating kind of a bottom of the prices, like we don't feel like it's gonna dip below that. Yeah, so there's a, a support for the price right there. And then you add on that the interest rates went down.
And here's another chart that I wanna show you from Keeping Current Matters of what's happened in the last 30 years, and now we're back down in the interest rates where it makes it more possible for buyers to make a purchase and that is happening. So if you add the ongoing shortages with a decrease in the interest rates, it's creating ongoing demand.
Also additionally we have a [00:02:00] volatile stock market, so we have even more buyers. We've talked about this before, even more buyers fleeing to real estate because during volatility and high in high inflation than real estate is one of the asset classes, if you will, that you can put your money in. And it's somewhat protected from inflation. So with those predictions going on it gives some more weight to what we're experiencing in the market right now, that it's not completely a buyer's market unless you're in the million dollar range. But even those are selling. We've had some multiple offers on $2 million properties just in the last week.
So very interesting times. But lastly, I wanna show that the local stats really, really show that at least Southern Oregon is holding its own. So Jackson County, the five year change in the last five years on prices, Jackson County has increased in prices [00:03:00] 41%. The average day is on market right now for people doing residential transaction is only 68 days, so last year it was 36 days on market average. Now it's 68. Some people say, well, that's double. Well, yeah. But check it out. A normal market is 120 days or to 180 days, so four to six months we're, we're averaging right now in Jackson County, about two months. That's still a seller's market. See there's still a shortage.
So just a side note, tangent here, sellers, anybody thinking of selling, it's not a bad time. We still have more buyers than sellers, but finishing Jackson County's statistic update, if you go to the one year change in Jackson County, we just talk about the five year change, if you go to the one year change, we're only down 3.4% in prices from this time last year in Jackson County.
Let's loop back to the short sale and foreclosures, cuz we're starting to track this every week [00:04:00] because people are talking about it. So let's bring the numbers. In Jackson County, the last quarter, the last three months, we've had seven foreclosures sold and one short sale sold. That's below even normal, not to mention what happened in 2007 2008, 2009, or whenever your neighborhood started tanking. So Jackson County is really showing some strength.
Let's talk about Josephine County. The five year price change in Josephine County is even more dramatic. Josephine buyers in the last five years have gained over 50% in appreciation. The average days on market right now in Josephine County are only 62 days on market. That's, again, two months. This time last year, Josephine County days on market was 41. Yes, hyper, hyper seller's market last year, but still a seller's market this year in Josephine County the one year price change in Josephine County is down 5%, but that's [00:05:00] not that much.
It really isn't. And then the foreclosure and short sale stats last three months in Josephine County, they've only had three foreclosures sold and zero short sales. So again, we're going to the data. We're not being emotional. I'm not trying to make it look better than it is. I'm not trying to make it look worse than it is, but Josephine and Jackson County are definitely showing some strength, especially during all this volatility.
And in fact, we are one of the locations in the United States that people are still coming to and it has to do to the quality of our lifestyle. And this is why we all live here as well. So if you are thinking of buyer, selling, please check the data. Please look to other resources like K C M, keeping current matters.
Please share this podcast with your friends and family. Again, we don't wanna make it sound better than it is, but we don't wanna make it worse. And what I'm experiencing out there as an agent is, is not only high demand, but we're getting some [00:06:00] sellers who are taking the taking the leap, so to speak this spring, getting their house on the market and they're having great results.
So yay for the brave. And again, if you'd like to have a conversation about your real estate needs, I'd love to be your agent. I'm a great listing agent, great buyer's agent, great with investors, riverfront rural, downsizer, upsizer, first timers. This is my bag, so would love to hear from you. Please call me, text me (541) 301-7980. And like and subscribe to the channel.
We'd love to get to 1,001 subscribers. That would be awesome. But in the meantime if you've got some concerns about market, or you just want some information, give me a jingle, gimme a text. We can always talk, and then you can decide what's best for you, right? We wanna make you a good consumer. So thanks for tuning in.
We'll see you next week. Have a great rest of the weekend, and hug those you love. Bye now.