market in Jackson County, which is above last year but below normal market levels. While these challenges affect all prospective home buyers, it makes things especially difficult for first-time buyers. According to Hackstedde, it’s important for first-time buyers to work with a strong team of professionals to help them navigate the market. “Create a good relationship with a local lender and an experienced full-time realtor,” she explained. “Get a pre- approval from that lender because it says you are ready to buy. Listen to your realtor and lender because they will
Additionally, Wright doesn’t see a bubble happening in 2023. While there’s a strong demand, lenders have used better lending fundamentals than during the 2008 crash. Whether you are considering buying or selling, Hackstedde noted that housing wealth is the largest source of wealth among families, being 10x the median value of all of their other assets combined. However, she believes there will be more renters entering the market because they are being priced out of purchasing a house. “There is not a lot of multi-family homes being built right now, so supply and demand issues will worsen.” Wright encouraged buyers and renters to stay the course as they enter the real estate market.
Dixie Hackstedde, principal broker at John L. Scott in Medford
give you information about the market. Do what they tell you, and be patient because the process takes time.” Even with many multiple offer situations, higher prices and less inventory, Hackstedde said it’s still a good time to buy or sell. “Prices are going up and that may continue for a while. We are not hearing that interest rates will decrease; they’ll probably go up. As long as people want to come to our area, there will be a high demand,” she added. Looking ahead to 2023, Hackstedde said there is a lot of cash in the market, with over 20% of current sales being cash sales. The market should keep moving and increased prices may level out a bit as interest rates go up. Wright agreed there will still be a competitive market in 2023, but he doesn’t see price appreciation continuing at the same rate it has for the past 1-2 years. He said there are projects in motion for multi and single-family homes, which will take the pressure off of price. “We can expect 3-5% price appreciation this year. With rates rising, I don’t see appreciation staying around 15- 20%,” he explained.
“It’s not easy right now, but you’ve got to keep your eyes open and be prepared to act when something is available,” he said. n
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April 2022 | The Business Review
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