Southern Oregon Radio Show August Market Update

Full Video Transcript Below

[00:00:00] Well, good morning, Southern Oregon, and welcome to the real estate show. Pete Belcastro, Alice Lema here. We're your hosts today. And we're going to be talking about all things, housing and market in Southern Oregon. Welcome back Pete.

[00:00:22] Well, I'll tell you one thing, the way you described that we don't have enough time to talk about housing, housing in general, because it's such a big topic right now.

[00:00:32] And there's so much on the line. There's so many uncertainties out there, Alice regarding housing in real estate and in everything right now around our state. So, you know, at this point it's so weird because it seems like all bets are off. Okay, all bets are off. Now. We were, we were at this very big peak here about the last few weeks, and now I have a feeling that, that tip because that tip has happened.

[00:01:01] And that's what we're gonna talk about a little bit too. The stats we're going to share with you and what they're telling us as to what's going on the statistic wise, and then what's going on up here in our heads because they're two different things. And real estate I think, is going to be affected by this uncertainty going forward.

[00:01:19] Well, the emotion, right? It's the, the undercurrent of emotion and uncertainty and what do we do? And we had such a nice, steady amount of new listings coming on the market. And that was really welcome. And I think we still have a lot of properties coming on the market this week, Pete, but I've got some other folks that are kind of dragging their feet now because of the uncertainty.

[00:01:42] Well, we're definitely seeing more listings and we'll share that with our, with our viewers and stuff here. But we're also seeing a slow down some, so that's, what's making the market interesting with all the uncertainty out there. Now look, we're going back to March, 2020 it seems like to me, I had to get my mask, wear my mask again, when I go into certain places that is not something that I, I look forward to. And I'm telling you, there are tons and tons of people out there who are very upset over what's happening right now. Again, and I know others are not, but I'm saying there are certainly a lot in our areas.

[00:02:21] We're seeing the high cases again here because of low vaccination rates. So. We we want choice. We we're seeing choice being played out right now.

[00:02:32] Well, and now we have business closures. Try to go, try to go to a restaurant there's signs everywhere we're closed, no staff. So there's the still the employment situation.

[00:02:42] Yep. Absolutely. It's it's an interesting time again where like deja vu, we're going back to March, 2020. It seems like to me.

[00:02:50] It does. It does. Well, we've got a great show for you today. Folks, please stay tuned. We have a quick word from our sponsor. We're brought to you by John L. Scott here in Southern Oregon Guy, Giles Mutual of Omaha mortgage and the Rogue Valley Association of Realtors. Pete Belcastro, Alice Lema. We'll be right back.

[00:03:08] Well, welcome back to the real estate show folks. I'm Alice Lema here with my cohost Pete Belcastro. We're both brokers here in Southern Oregon with John L. Scott, and we want to welcome you to another edition of our market watch .What a week to be having a reporting on MarketWatch.

[00:03:24] We have so many changes. We were on a good track, Pete. Now we have this, this kind of shutdown situation again, plus fires, plus water issues. Plus plus, plus what do we do now with the housing market?

[00:03:39] Well, before we go there and look, that's like a punch here with water. How about a punch here with fires and smoke? The maps that you can see now, because my son is involved in emergency management and these fires and stuff in Alice, the thousands and thousands of acres, our beautiful forests in Northern California in our own, in our own state here, it is just devastating. I can't even, it it's beyond me when you look at that, how much of Klamath county for example, was destroyed and the Northeast portion during the, the bootleg fire.

[00:04:16] And, you know, in the homes that were destroyed there, there were homes there look at California ,Lake Elinor or, I mean, it is devastating. And so as a result of that what do we have? Another year of smoke and things coming up and down for us. And, you know, that plays a role in real estate. You throw that in there with water shortages in a drought that we're experiencing you know, it's a big punishment but somehow real estate just seems to, to move along because most of the sales take place in urban areas where these effects have not hit us yet.

[00:04:49] Just the smoke has, but not the water and the other kinds of issues that are out there.

[00:04:54] And when the wind changes, you know, we have a few days of smoke and then we'll have half a day of clear or a day of clear. And that brings our hopefulness. I think Southern Oregonians are naturally like optimistic people where they go, it's going to be okay.

[00:05:07] But even if you could get to the lake, there's no water. And that's really why we live here is so that we can enjoy nature. And it's, it's tough, right? Yeah.

[00:05:15] It is being destroyed around us. And it's really sad to see, especially for people who've lived here like me who grew up here and stuff.

[00:05:23] It's pretty devastating to see, to see the fires and the smoke, but that's also given us, you know, what's one thing that we, now, we all know what it is outside. We know the AQI. It never came up, you know, for, in anybody's language until recently. And now we know what our AQI is. So the air quality index and,healthy or unhealthy, moderate, whatever, when teams can play a practice sports, when you can meet outside all these types of things.

[00:05:53] And so, that effects how many people come here. I mean, it just affects everything that we do from businesses on down. And then you throw the pandemic in and then you throw all this now uncertainty for school.

[00:06:07] Oh yeah our poor schools and parents.

[00:06:11] Ashland, I think it is. And so with mandates and people being forced to do things and stuff, throw all that in on top of all this Alice man, I'm telling you, as I said, I think all bets are off right now.

[00:06:24] I don't know what's going to happen. It's going to be really interesting to see. But again, real estate seems to churn along during this time, how much it churns along future wise I'm not sure.

[00:06:37] Well, real estate is driven quite strongly by life events. And when we have all these calamities at the same time, there's a certain segment of homeowner that just says I'm done.

[00:06:49] I have profit because of the run-up from the fires last year and, and the COVID. And so I'm going to cash out and I'm going to either downsize, move away, something like that. We do have people with health issues. That are not going to be able to stay here and they're moving away, but we still have buckets and buckets of people moving here, because this is better than where they're at.

[00:07:09] So it's a very interesting dynamic and we were on track to have the prices stabilize, maybe even soften a little bit. And that's where I don't know now. Because we're either going to have, and this is just me making one of my predictions, you know, how I like to do that.

[00:07:25] One of two things is going to happen in my opinion, this is just by Alice, that it's either going to dry out and we're going to go back into a shortage level like we were, you said March, 2020, we're going to go back into that where people just stop and wait to see what happens or there's going to be a flood of listings because people don't want to sit and wait anymore.

[00:07:45] I don't think there's going to be a happy medium. It's going to be one of the, yeah.

[00:07:48] Well again, but the problem that all of us faces is where do you go? And and where do you live ? What state do you go to? I mean, we're seeing this all over, so but you know, it's a tough that part of it's very tough. And we'll see. What was it, Jackson county this last week. Okay. We'll just give you 468 listings on the market and when we started, there were 200 and some back few months ago.

[00:08:16] So you're saying we doubled the 468, which is by the way, 26% below a year ago. So what did we have a year ago at this time of the pandemic? We were getting ready to start school again. Okay. Remember all online a year ago, right. About now a year ago, there were 640 listings. So we dropped the 26% even from a year ago.

[00:08:41] So we're not there in what the again, the funniest part of that thing to me anyway, when you look at it, Alice is that 92 of those 468 or 20% of that market are luxury homes.

[00:08:55] Wow. That's the highest I've ever, ever seen it. In doing this so much.

[00:09:01] Some of those are selling.

[00:09:03] Yes. And here was the other part. I was going to say that four of them closed last week, which are $900,000 or above. And I believe there were four more that went pending. So they're selling, but they're also having new listings, more new listings are coming up.

[00:09:18] So it is definitely a buyer's market in the luxury market right now, because there's plentiful, plentiful listings to choose from not only Jackson county, but Josephine county as well. So, in that market, that's kind of the way it would be. But the sheer number is what's so amazing. Where are these? Why are these people all wanting to go. Wow.

[00:09:42] And this is where having another shutdown or soft shutdown or whatever you want to call, what just happened, whatever you want to call that. I was thinking when that went down from the governor's office, our rural property prices are going to go back up again, or there's going to be higher demand. People who didn't you know, make that move last year are going to make it this year to get more elbow room. They're probably going to work from home and maybe even do school from home.

[00:10:08] So speaking of going back to school, we have kind of a lot of, a lot of upheaval and disruption in that back to school idea.

[00:10:17] More than more than a lot of people may think, look, if you have kids in the school or things like that is one thing, but there's a tremendous number of people who, you know, oppose this, these mandates having to be forced to take a vaccination, which they do not want or believe in.

[00:10:35] I'm talking about teachers. I hear it. My, my family is involved in all that kind of stuff. First responders and everything, and, I've heard them say, I've heard them talk about. And I have not talked to them directly. Okay. But I'm hearing where everybody, everybody telling me there's been a big movement of people who are going to quit rather than take this shot.

[00:10:54] Take them. Then they'll take a vaccination here on this. Alice and this is quite amazing to me. I wonder what's going to happen. But mandates and forcing people to do things without choice in our countries is a no-no for many, many, many people. And this could disrupt schools. This could disrupt, how hard it is for restaurants and businesses to keep people and stuff and mandates and this, and that worries me it concerns me a lot to be honest with you. I don't know.

[00:11:21] That is a definitely a difficult conversation for people, but this is where we're at. Okay.

[00:11:26] It's exactly where we're at. And yeah, anyway, back to the real world, another thing that certainly is happening in our market or in the countries of the interest rates.

[00:11:39] Predicted that we're going to be going up, have remained in that low, low threes, even into the two ranges, still for certain, certain, loans and things. So that part still continues in my opinion, to be the big event in real estate. Because again, I can still buy something for the low interest rates and move myself up into that four or $500,000 range where we're seeing people go. That's where so much of the activity takes place.

[00:12:09] But yet it's less than half the listings in Jackson County are that $500,000 and below.

[00:12:16] Yeah, but you know, if you sell your house, if your house was a $300,000 house, and now it's worth four or 350 to 450, so that maybe that's where some of the buyers are coming from.

[00:12:27] And that eight, nine and a million dollar cars with the interest rates so low, a lot of people never would have been able to afford a home like that.

[00:12:35] Yeah. If you believe in the future of the Rogue Valley okay. And a smokeless summer, or some reduction of what we've been going through with water and things like that, if you believe in our community, that you're exactly right. It's a fabulous opportunity right now to sell your home with that $350,000 range, or even four, because you'll be able then to move up easily above into that 500 range. That seems to me where people are moving to locally. You're not coming down to far there's no place to go. Try to find a rental again.

[00:13:11] Oh my gosh. We should talk about that in the next segment.

[00:13:14] Yeah. And we forgot that part of it. And you'd add that into it too. So for a local person who believes in who believes in the valley, there are some really unique opportunities in that 500,000 range if you can get it up there into having a low enough payment, so where you don't put yourself in a bind.

[00:13:34] And that's what we don't want people to do is to put yourself into a bind with a big high payment, even though you've moved up into you at nicer home or something, because then you're, you're just stuck. And you don't want to be stuck with a payment that's going to whack you, even though it might be 3%.

[00:13:51] Yeah, it's all about the outgo of your monthly budget. That's that's really, and we want it to be comfortable. We're never encouraging people to spend more than they're comfortable or put them in jeopardy. And at the same time, we also want to remind people that in the middle of chaos is opportunity.

[00:14:06] Right. And that's exactly what you're speaking to. And so even though we have a lot of uncertainty, there, there are a certain batch of people they're going to jump right now and they're going to make the deal of a lifetime.

[00:14:19] That's true. I thought that maybe we were going to see a, reduction in, in rural sales, coming into this May, June, July period that we just went through, even though we're getting out in mid August, that last three months, period.

[00:14:34] It didn't seem to be the case of which there were, I'm trying to get numbers, were 187 sales in rural properties of at least an acre or more there. So there was quite a bit of that that went on in those prices, by the way, increased by Alice, 28.3% from a year ago. The medium prices that are, that are just getting so to me, out of hand and the affordability issue, which was also out there that we had needed to talk about, because the rural properties of Jackson, County, 187 that sold that three month period the median price was $625,000. And the median price in Jackson county as a whole in that same period from $250,000 5 years ago. Okay to 315,000 a year ago, $286,000 now.

[00:15:33] Isn't that something I was talking about that 350,000 being in the, you know, with kind of that demarcation line, most of them into that range right around that 350 range. Look at that. The median price now yeah.39,000 ahead of that.

[00:15:52] So I wonder if FHA will step in and again, and raise their, their minimum. Cause you know, they do that. They have like these ceilings on how much loan for an FHA buyer. And they raised it during the pandemic. Remember they raised it 340, 350 something.

[00:16:09] Yeah, I forget what it was in the 4's wasn't it? Cause people were pretty excited about where it had gone., but yeah.

[00:16:15] It's interesting because the government is watching, they're watching the region.

[00:16:19] What has not is the need for the buyers to remember that a conventional loan is the, is really what you need to work with in this market. For the most part, not everything, not every community understand that, but for the most part, because they're still with the low inventory, even though our inventory is, has risen.

[00:16:40] Okay. Even though we're rising slowly sellers want those types of things and so conventional, much easier to do.

[00:16:47] And we've got a quick break coming. Hold that thought, Pete, we've got lots more to talk about. This is our market watch show. Pete Belcastrok, Alice Lema. We'll be right back.

[00:16:56] Well, good morning again, everybody. Alice Lima, John L. Scott broker here with my cohost Pete Belcastro also John L. Scott broker. And we're in the middle of a very interesting conversation and series of observations about all the turmoil we've had in our housing market this last week. And then you throw in the pandemic and the fires and the water, and we have just the most unusual circumstance ever.

[00:17:20] So Pete, one of the things that we were touching on in the last segment was the effects on tenants of all this chaos and commotion and price price rises. What are your feelings about where that's going to go in the next few months?

[00:17:34] Well, the biggest thing there was that this federal moratorium eviction, which takes away, obviously the property rights of the building owners and the end of your tenant, even having to pay you, which is just. You know, so shocking.

[00:17:50] I don't know you, you see investors more so than I do regarding that and what they may think of this, I mean, they could sell, I don't know what they are going to do, but that's having an effect of the market.

[00:18:02] I also hear on the other hand, boy, wait until the rents rise next time. The people aren't going to go for these rents. You know, that are going to force people out as well. They can go up to 10%. Remember in our state. That can happen on July, on January the first, but you have to give, be given 30 days, notice to what you're going to raise it to. You know, I think the rental market is just going to, it's tough.

[00:18:24] I think it's really hurting. And I think it's going to get worse. We will see some apartments being built, things like that. But the rental market, the rental housing market is what we like to look at. And that follows the real estate market. And you can see what the prices have done to the real estate market.

[00:18:39] Alice, are going to do the same darn things here to the rental market. Absolutely. It follows each other it parallels each other. We've known that for years.

[00:18:48] Well, and also it's not just a Southern Oregon problem. I've been looking into the national tenant situation and the investor markets are being encouraged to purchase single family homes because they're expecting nationwide a 7% increase in rents nationwide, which is really, really high now in Southern Oregon.

[00:19:12] I think it's going to be higher, Pete. I think it's going to be more like what, what you're talking about closer to 10. Landlords are scared. A lot of them have had some loss because of the moratoriums or they've had property damage things like that.

[00:19:26] So going against what we would have done in the past, where we would not have raised rents. If we had good tenants, we would have just left them where they were. But now I think they're trying to be proactive or they're trying to repair some of the investment that they've lost during the shutdown. And they're going to go for the higher rent. It's going to be, it's going to be bad.

[00:19:49] I would love to know how many renters are not paying. I would love to know that stats. Okay.

[00:19:59] And I think in Southern Oregon, it's not very high, but yeah, we should get, we should call Sterling West (local property mgmt company).

[00:20:05] I would also love to know how many landlords are, are thinking about or are going to raise their rent. Because I think that's really going to be a big play and rentals are hard to find.

[00:20:15] I'm telling you the prices are pretty high. I see some of the rents rentals. You'll see a house here and there that can go on the market on the rental market and, you know, $2,800, $1800, you know, $2000. You can get a house payment for less than that back again. And so throw that into our equation too Alice, because renters have to look at that as they're able to qualify at all to, to look at something like that.

[00:20:41] But again, we don't have a lot of condos built in our communities that people a lot of first time home buyers get. You know, buyer or condos and things like that. We have a lot of old housing, you get it. So are we building new housing? Are you ready for this one? So the last three months, you know, we saw 91, a new homes sold in Jackson county 91. I think, I think about that 91 over three months. That's about one a day, one a day. Median price was $415,000, but where do you think they were built? Yeah. Yeah. Where do you think they were built?

[00:21:22] What, like what, what area of Southern Oregon? Well, I would guess, I would guess Eagle point and east Medford.

[00:21:29] Wait, wait, you got, you got two or three of the top three. Number one, which is of course been East Medford there were 30 of those new homes over there.

[00:21:40] 30 of them.. I'm not sure where they were. They had, they had to be.

[00:21:44] I know Stone Gate is building there. Yeah.

[00:21:49] I can see that 30 the next place is White City.

[00:21:51] That's where the land is.

[00:21:53] 21 of those more affordable. I guarantee you those 21

[00:21:58] Weren't those townhouses.

[00:22:03] I'm not sure what the 21 are, I don't know. The 21 in White City though, are more affordable than the 30 in East Medford I can guarantee. And then it drops off to literally nothing in Jacksonville.

[00:22:15] And it's just too small, you know, and it's hard to build there.

[00:22:19] But there's nothing in shady Cove and nothing in a Gold Hill, Rogue River.

[00:22:23] So I'm saying it so we're not building new housing anywhere that we need. And that is our problem affordable housing.

[00:22:32] So, and then the demand for new construction is so high. Do you know we were negotiating a a house for somebody in East Medford this week. And the price went from mid 500 while we were making our offer.

[00:22:46] The builder came back and said, no, we just decided we're not going to sell it to you for 550. It's going to be 580. Take it or leave it. Yeah, but you know what they had, they had a sale the night before that was all cash, no appraisal. And like overnight that house that they were going to build next went up 30, $30,000.

[00:23:09] Well, when you're in that range and you have cash as you know, cash is king and anybody's going to take the cash offer on that.

[00:23:14] Well, that's, what's happening in some places. Yeah. Well, I I've got one back to the new construction part of this, and then we'll change again. So there is new construction going on is what we're doing. Phoenix,Talent right now, where we're seeing, you know, new construction happening. We're seeing some condos, we're seeing that kind of thing and some homes, but boy the pace is slow, right.

[00:23:35] And the prices are going up. And so are people, what are, what are the folks who own those going to do? It's going to take longer just to rebuild those communities and more expensive to do. So, you know, that's gonna force people, more people away from there and that's going to be part of the affordability issue that Jackson county is facing and affordability.

[00:23:55] Well, they're building three bedroom, two bath homes. They're replacing the homes that were lost.

[00:24:00] Right. And, and what are the prices going to be, as you say. I watched the trains go by, you know, in Klamath area,, all the lumber that's going south, and it's just remarkable.

[00:24:11] And what's going to happen with all the burnt timber. We have hundreds of thousands of acres of burned timber that's out there .You have to use it before a certain time, or it goes bad. What's going to happen with all of that. Is that going to lower those prices? Because the prices really went high.

[00:24:26] It discouraged a lot of people know, who thought about this or do this or that. But people who were buying land even said, gee, I can't even afford, I can't afford to build now.

[00:24:35] Yeah, they were getting their bids changed in the middle of their construction.

[00:24:40] So the other part of our market that we have never, we haven't talked about in a long time are foreclosures. You know, remember, remember the word foreclosure and short sale, Alice that we used to talk about years ago in the market.

[00:24:53] Just to show you how far it's changed. 99.3% of the 468 stick built homes on the market in Jackson county are regular sales. Okay. 99.3%. When we started the real estate show back in 2009, the majority of listings were foreclosures and short sales.

[00:25:15] So how far, obviously that has come, but I had the experience this week of dealing with the 0.7% of the foreclosure, which was the Fannie Mae foreclosure. Which was which was interesting, but what's interesting how it changed was that we as the buyer, because Fannie Mae now they really don't give a darn about that foreclosure.

[00:25:36] Because there are so few of them. They changed the rules. And so there's no power on. You can't check water. You can't do anything. If a buyer wants, you're basically buying a Fannie Mae foreclosure as you would a Sheriff's sale, a sheriff foreclosure sale on the steps of the court house. Yeah, there was no contingency.

[00:25:59] I mean, there was just this, it's cash. It's this .You'll pay this. That's what we're doing. I thought that was really interesting. And cause the buyer takes all the risks. You have to at least turn the power on to even do an inspection on it at your expense.

[00:26:13] Well, and you know, those houses have been shut down for a long time and then you suddenly turn on all the services.

[00:26:19] It can be a real disaster. And if it's not a disaster day one, it might be day eight. So yeah. And you know, people have so much equity in their properties now, I'm surprised that there is a foreclosure. But that's why there's so few of them.

[00:26:35] Well, but yeah, it was just really weird. I was so surprised it was a foreclosure here. We were with it.

[00:26:41] Did you guys win? Did you win the bid? Did they buy the house?

[00:26:44] No. No, because there's the septics and things mean no, because you have to take all the risks to buy it and then go do the inspections and go to it. And so it just didn't seem like it would, I didn't want my buyers to take that risk.

[00:27:00] Oh, how much it's gonna cost. And you know, people don't have a lot of money and I hate, I just hate to see when we have money. We want to keep as much cash as we can. And so we, we want, the risk we take is when we age, you want to be very careful with that. And so I worry about that for people.

[00:27:18] Yeah, I just don't think that's necessary. There's enough other houses to choose from even low inventory, at least, you know, they're up and running. Yeah.

[00:27:26] Well, the median price last week in Jackson county, Alice was $495,000. It was the first time in three weeks that the median price dropped below 500,000 in Jackson county.

[00:27:38] That's been inflated a little bit, I think by the luxury properties that are selling. Because they are selling. Sorry, I think maybe that's inflated. There were 80 sales last week. Okay. 80, 80 sales. And again, five of those were luxury homes. So that does maybe inflate that a little bit, but still the price is pretty, it's pretty high there.

[00:27:57] And the days on the market, this is another sign that things are changing a little bit is the days on market have increased. This last week, it was 48 days. They were in the thirties, 39, 38. Now it's 48. We're getting more listings, but are the buyers there as they were in mass because of the smoke because of the water, because of all the things that we've been talking about because of the uncertainties of school.

[00:28:26] So that's really, as we move forward, that's going to be the number one thing I think we're going to all be talking about as it affects. Yeah, it's a good market right now. It's doing well. But there's more to the market than just buying and selling the home. It's about people and their, their morals and their ethics and all these kinds of things about where you want to live and how you want to do this, in the uncertainties that are still out there that we're all facing.

[00:28:48] And, you know, school district used to play a big part of those decisions, whether you were a tenant or a homeowner. And with the uncertainty of the school situation, I just don't know what's going to happen. When school opens, how is that all going to go down?

[00:29:03] Oh, that's what we don't know. I mean, that's the big, the big unknown I just had to just to tell you how it's affected the market before we go out of here. I had a friend of mine who has Airbnb in Ashland booked all the way through July, as soon as the smoke hit, nothing. Absolutely nothing, no bookings. People were booking short ahead. And since this has hit nothing.

[00:29:28] That's going to affect our local economy. It all ripples apart.

[00:29:33] So folks, we've got to take another quick break. Please stay with us. Pete Belcastro, Alice Lema, bringing you the Market Watch version of the real estate show. We'll be right.

[00:29:43] Well, good morning again, folks. Welcome back to the real estate show. I am Alice Lima here with my co-host Pete Belcastro. We're both brokers here in Southern Oregon with John L. Scott.

[00:29:53] And we're just wrapping up our market watch segment here and what a week to do it, you know, Pete with the fires and school starting. And then now what I've been calling the soft shut down. It really has had an effect on the sellers and buyers that I'm working with.

[00:30:10] Some of the buyers really have a fire lit under them. No pun intended. Because they're really anxious to get settled, especially if they're tenants, if you're a tenant and you're qualified, they don't know what's going to happen next with the rents coming next year. And so they're in a real big hurry to get something closed and move in.

[00:30:30] And smart.

[00:30:31] I think, I think that's where a part of the market is for renters, especially if you're already paying a pretty high price where a loan, you know, the low threes, if you qualify for that.

[00:30:41] And it was not a lot money down but again, you're limited in the number of listings you're going to choose from and where you're going to be able to go with that. So, yeah, it's out there, you know East Medford, Alice, usually which is the biggest sale part of all Jackson counties is East Medford.

[00:30:58] And it would normally have 250 listings by itself. So in east Medford, you know, not that many years ago and it has only 60. There's always money in West Medford. The place that has the most kind of listings in all Jackson county.

[00:31:19] Ashland has the most listings, 90 but Ashland is a transient town and there's a lot of people who are moving in and out of that place right now.

[00:31:33] So anyway, so, but we're also seeing longer days on the market. So that's telling us that there is a slowing. There's more listings coming on. Buyers are being a little bit picky, a little bit fewer because of the, the conditions around us. So the days of the market have increased now this last week.

[00:31:50] So we'll keep an eye on that now to see if that trend continues, especially as school begins to get started here in the next few weeks, all across the, all across the district. So, you know, it's the uncertainty creates lots of opportunities. I know for, for people and in real estate, that is, that is, is also the case.

[00:32:10] So if you've been looking, these are really good times to look and see and choose because you have to act quickly and you have to be right. But there's also opportunities that are out there in the buying and selling in that you may not think about, that are out there. And take advantage of them in this, in this market right now, the uncertainty of schools and everything else.

[00:32:31] Alice that's a roll with dice. What's going to happen there. That's going to play out in real time with all of us. And but we're also, I think we're beginning to see the tip coming down the other way now the more and more as you and I have talked and you see it too.

[00:32:44] We kept saying it's going to happen. And even if we don't have a downturn, we have to have a softening at least. The prices cannot continue to go up. And it's like that for rents as well. You know if you are going to be a landlord or you are a landlord right now, and you're gonna increase your rents, there's only so high, you can go. And then you lose your tenant pool.

[00:33:06] And you know, it's not much fun to be a landlord if you don't have tenants. So just a warning to folks that if you are thinking about those high rent increases please, you know, double check with what everybody else is charging, because you want to be kind of in that sweet spot.

[00:33:22] Yeah. And if you're a renter and wanting to get out. Now may be a good time to look at getting out of renting, getting qualified, maybe to get out of the rent, especially if you're way up there in the high price. Gosh, you know, it's better. It's still better than it is to rent. It is.

[00:33:38] And with so many landlords selling and selling with the tenants in the house. It's intensifying the shortage of the investment properties available for people to rent. And I really want to make a plea to parents, relatives, friends. If you have a trustworthy, hardworking somebody in your. Sphere of folks. And they're struggling because they're a rental is being sold out from under them. That you consider doing some kind of a group purchase.

[00:34:05] Now they're tricky. You gotta make sure that, you know, it's all documented and that people are going to make their payment and everything's written down. So you understand the the obligation of everybody. But I think It's very severe out there. And some of these tenants are teachers. We've got a couple of teachers where we've sold the house and they just have not been able to find anything else.

[00:34:27] They're six months away from being qualified. And this is a good opportunity for somebody to step in and help that family.

[00:34:33] Yeah, no, that that's lenders need to maybe change a little bit too. The affordability thing comes into play here, where we have to have to, that's why we've had so many multifamily people doing them together as families purchasing, properties together as families for that very reason.

[00:34:49] So, you know, you know, lenders right now. I don't know if they're going to do, but that's, that's a smart thing to do and think about it.

[00:34:55] We have a lot, a lot of people who have extra rooms in their house or renting them out. Now, do you know, some people are renting out the master suite in their house for $1,100 a month?

[00:35:08] Well, like I, I would, I would move, I would move to my spare bedroom,

[00:35:16] but I don't know that that's sustainable. So it's going to be interesting to see what's going to happen long-term.

[00:35:25] This week, we've got one more week, then it's labor days. We have a holiday coming up here. I know Ashland starts school early and everybody else starts I think they, after labor day around there. So this, what are we going to look for this next week? When we get together next, next week on the show what's going to happen?

[00:35:39] You know, and we're gonna know more of whether or not school, what role schools are going to play here with these mandates that they're coming out. You have to have vaccinations and things, and we're going to know more, I think, next week. And we're going to see what kind of feedback or kind of blow back, comes from it.

[00:35:56] If there is, maybe there won't be any, I don't know, but you know, a lot of parents forcing kids to wear masks in school again. I mean, like I say, Alice, it seems like we're going back to March, 2020, where everything is being kind of effected.

[00:36:12] You have to wear a mask at a Reser stadium for an Oregon state football game this fall. You know, it's so funny because thousands of people are going to be out of the parking lot. And I guarantee you, they're not going to be wearing masks out there. They're going to go on this trip. So, you know, people look at these things as government overreach or whatever the choices we have, whether you agree or not with any of this it's out there. And, and the people right now, the choices that they've made on, on the cases are they seem to be unvaccinated people. So that gives you some, some thought. Some food for thought there as well.

[00:36:44] So my heartgoes out to them for sure.

[00:36:48] Horrible in the, in the hospitals and the frontline health workers. Again, we're back to where we were. It seems like, Hey, we're this deja vu we're going back again. We're doing this all over again.

[00:36:58] Where on June 30th, which was what? A month and a half ago, the governor had a big celebration. We were through, we were open back. Here we are left two months later, we're clamping back down. Wow. That is a huge thing. And the blow back and feedback on the real estate market and everything else has yet to be determined.

[00:37:17] It's going to be interesting as it is always to watch.

[00:37:20] And I'm thinking that we're going to have a continuation of more listings. And and I think the buyers are going to slow down a little. They're going to be more picky. I think that trend is going to continue. But I'm going to take the side of, I don't think it's going to slow down our listings.

[00:37:34] What do you think?

[00:37:36] I agree. No, I agree with you because I think people are either tired of the smoke tired of different things whatever. And I think we're going to, we're going to continue that trend. We've seen that trend of more listings coming slowly. It began about what maybe April. We're down to 220 listings in Jackson county, not a few months ago.

[00:37:54] Now we're up to 468. So we're getting more, and the days of the market is increasing as well. That's why thinking that we're, we've tipped over the top of that market for this year. We're going to come down the other way with more listings and hopefully prices become more, more realistic to be, to be honest.

[00:38:13] Exactly. They're not going to get their price now, but they'll, they'll sell their house.

[00:38:17] We'll see. Okay.

[00:38:18] Well, stay tuned. Come back next week and see what happens happened. Pete Belcastro, Alice Lema's real estate show, brokers john L. Scott, have a beautiful weekend. We'll see you next week.