On Real Estate & More – February 2019
February weather in Southern Oregon doesn’t always seem like spring but this is the time that many people start to think about the real estate market again; spring marks the beginning of the busiest home-selling and buying season. With warmer weather, more daylight, and the motivation to get settled before a new school year begins, there are more buyers in spring and summer. And relative to demand, the supply of homes is usually tighter in spring and summer than in fall and winter.
Whether you are ready to sell, often depends on your personal situation. Sometimes financial reasons, a divorce, a job move, a new family member, or a health concern can determine when you will need to sell. However, if your decision is based on the market, Jackson County, and in particular, Jacksonville, still has a really limited inventory.
Do you have enough equity?—Look at your annual mortgage statement or call your lender to find out how much you’ve paid on your loan. The first few years of your mortgage don’t usually show much of a difference, as monthly payments are mostly interest. But if you’ve owned your home for five years or more, you may have significant gains.
Has your income or financial situation changed?—If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving. If your income has decreased, you may want to consider downsizing.
Are you ready for a different neighborhood?—The neighborhood you chose for your current home might not be the same one in which you want to settle down. You may have realized that you’d like to live in a different school district or live in a more urban environment.
Can you remodel or add on?—Sometimes you can make your home bigger by adding a new room or a second story. But if your property isn’t large enough, your city or county doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger or more updated home may be your best option.
Are you comfortable moving in the current housing market?—If the market is good, your home may sell quickly and for top dollar, but the home you buy will also be more expensive. If the market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you look for a new home. Ask your real estate professional what they see happening locally, as even different areas within the valley increase at different rates.
Are interest rates attractive?—Low rates help you buy “more” home, and also make it easier to find a buyer for your current place. Mortgage rates have recently declined so rates are still historically low.
Is the effort and cost of maintaining your current home becoming difficult to manage?—If your current home is too much to maintain, a smaller house, condo, or rental may be appropriate.