Hey guys! Anthony Beckham here, and today we’re going to be talking about the recession, how we are seeing price drops on Roseburg Oregon houses left and right, and are entering the closest thing to a buyer’s market as we’ve seen in years in Roseburg! And this is all while CNN is predicting a 20.4% increase in Roseburg home prices this year? We’re here to give you the boots-on-the-ground perspective of what’s going on with the Roseburg real estate market.
So since our last Roseburg Oregon market update where I gave some predictions on what we’d see in the housing market this year, we had two camps of thought, one being that inflation runs rampant and Roseburg home values continue to go up with everything else in sight, or two being that interest rates hike up so much that Roseburg’s affordability becomes too challenging thinning out many buyers and in turn stabilizing or even decreasing prices.
Well in the last 4 months a lot has changed! We saw interest rates rise from mid 2% to mid 6% in a matter of weeks. Just to put that in perspective a 3% interest rate on a $300,000 mortgage would give you a payment of $1264 while a 6% interest rate on the same $300,000 home is a payment of $1798. That is a $534 difference in payment just because the rate went up a measly few percent!
By having less active buyers shopping, it’s put a little bit of downward pressure on prices, but we haven’t seen the market necessarily go down just yet. However, it has become more important than ever that sellers are preparing their homes for sale and pricing their homes right, because days on market are increasing, and the longer you sit on the market the less likely you are to get market value.
CNN and others still seem to think that Roseburg Oregon prices will continue to skyrocket, and it is possible they will… The Beckham Group continues to work with new out-of-state clients every day who want to move to Roseburg, BUT what happens when the metro markets where these buyers live start to soften? When these out-of-state buyers can no longer sell their homes for top dollar this will in turn affect the local real estate market. We are already seeing markets like Phoenix quickly adjusting.
As always, be cautious in your real estate endeavors. As a buyer, enjoy the lack of competition right now and plan on staying in what you buy for the foreseeable future until things level out. For my sellers, now is still a good time to capitalize on your equity and minimize the risk of losing it. None of us have a crystal ball to tell the future, but we can look at the data and at least make sure we are making the best decisions for ourselves and our families.
If you guys have any thoughts, opinions, or questions for me post them down below!
Thanks so much for reading and watching our video on Roseburg Oregon Real Estate Market Going Crazy! If you haven’t already, make sure to check out our blog and subscribe to our YouTube channel to learn all about what it’s like living here in Roseburg Oregon and the greater Umpqua Valley!
-Anthony Beckham
