California Drought May Have Californians Shouting “Oregon or Bust”!

The Southern Oregon area Real Estate market (as is much of Oregon) has always been driven primarily by the Californian Real Estate market, but with the problems California faces with the worst drought on record ( California drought ), Southern Oregon may be faced with an unprecedented influx of Real Estate buyers in 2015, looking for wetter ground to stand on. Currently (2nd quarter of 2015) we are already faced with a Seller’s market where inventory cannot keep up with Buyer demand. Especially hit hard by this difficult scenario for Buyers is the acreage property, especially the highly desirable small acreage (2-10 acres).

If you are looking for small acreage property, be prepared to make compromises, or empty your savings, AND do it in a hurry! There is likely going to be more buyer demand and competition as the drought forces buyers North. Prices are already exceeding the appraisal values, causing the appraisers to play catch-up and place more value on active comparables than usual. This can make it very difficult for the financed buyer, as appraisals may come in lower than the offer and require additional cash to make it work (if the lender allows it). In this market, cash is king for the more desirable property types. Regardless, buyers need to consider getting out there and make a sale as early as possible this year.

For the Seller that is looking to purchase again, due consideration is in order if they are planning to upgrade ordowngrade: Upgraders need to consider taking the best offer as soon as possible, as the price difference between their sold property and new upgraded property will be at it’s lowest. If they wait out the market for higher selling prices, the difference will only widen. Downgraders may want to consider waiting out the market as the prices are driven up, as they will gain a bigger profit margin over the lower priced downgrade. This is all considering a similar percentage of price increases of course.

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