What's Really Happening with Home Prices

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What's Really Happening with Home Prices

[00:00:00] Hey, real estate vans. Alice Lema here broker John L. Scott, beautiful Southern Oregon with another edition of the Weekly podcast. Today we're gonna talk about what's really happening with home prices. There's been an awful lot of price volatility in the last couple of years. We've gone from 2019, which we were trying to normalize coming out of the crash to the pandemic.

And we had in some cases people gaining as much as 20% or more on average in the United States in the residential home equity, which is super great if you owned property during that time. But, There's been a lot of talk of a crash coming or a bottoming. And yes, we're off of our highs. The price volatility has been rampant for 24 months, but we're settling down.

We're leveling off, and I wanna show you this chart from one of my favorite websites, keeping Current Matters, KCM. And you can see they've got home price growth since January, 2019. So you can see how it popped way up [00:01:00] during the shutdown and now it's coming down, and in part because the interest rate changes.

But I wanna give you especially if you wanna sell your house, I wanna give you a ray of hope because in December, just last month, December, 2022, we just got a report that 31% of the home buyers in the dead of winter were first time home buyers. So let that sink in. When you have 31% in a market like this and they're first time home buyers, that's the most vulnerable, the most difficult to, to close, lots and lots of opportunity for people when they're buying their first home, but it can be kind of traumatic cuz they're not used to all the financial disclosures. They're, they're not used to the stress. They're gonna move. They may have to give notice to their landlords. So the first time home buyer group, when they start surging, that's a very noteworthy moment in the market. So we're gonna [00:02:00] watch that because I think that is telling us the market is stronger than we might realize.

Now, as far as prices go, yes, we're down off our highs. If you're selling, don't price your house like it's 2021. Don't price their house like it's January, 2022 either cuz that was, you know, part of the peak. So now we've come off the highs, but there's still equity and we're getting more and more inventory on the market.

In fact, I wanna tell you about that for our local market, Josephine County new listings this part of January, compared to last part of January, we're up 13% in new listings in Josephine County.

Jackson County is up 7% in new listings, and Klamath County is up 32% in new listings from this time last year. So that's very encouraging. So that, what that means is the people that were waiting to sell cuz they wanted another house, you've got a lot more choices.

And check it out, in Josephine County, the average days on [00:03:00] market now is 75. So that's a little over two months. We've been watching that kind of creep in Jackson County, days on market, 81 days, which I find interesting. It's a little longer than Josephine County and Klamath Falls days on Market 71 average. And those change week to week, month to month. But it's interesting to track.

And then the prices are up from this time last year. Josephine County prices are still up 8%. Jackson County prices are up 11% from this time last year. And Klamath County is up 12% from this time last year. So yes, the world is scary. Yes, eggs cost a fortune, but if you look at the data, it kind of brings you back. You get your feet on the ground and then you can make some rational decisions. Okay? And one of the rational decisions I hope you'll make is that you'll call me. Or text me to sell your house, help you buy a new one, get an investment. Maybe it's time for an Air B&B. Maybe it's time for a vacation rental.

Maybe it's [00:04:00] time to get a bigger house. Or a smaller house, but it's always a great time to give me a call. We can chat. My number is 541-301-7980 and we can talk about what you wanna do in your real estate world. Okay? Thanks for listening. Give me a like, give me a subscribe, share it with your friends and family. Give me a call, gimme a text, hug those you love. We'll talk to you again next week. Bye.