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REAL ESTATE Affordable listings in west Medford often draw bidding wars Comment By Greg Stiles Mail Tribune Follow @@GregMTBusiness MailTribune.com By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted Jun. 10, 2016 at 9:23 AM By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted Jun. 10, 2016 at 9:23 AM » Social News Medford's west side may not exude glamour, but when it comes to affordable housing with an attitude, look no farther. Heading into June, 100 houses were listed for sale in the northwest, southwest and west Medford market areas, according to Southern Oregon Multiple Listing Service. That's two more than three years ago. Yet, the March-through-May single-family residence transactions have incrementally climbed from 88 in 2013, to 98 in 2014, 104 in 2015, and 118 in 2016. In a county where inventory is drying up to the tune of 20 percent, year-over-year, every listing draws attention, often setting off a bidding war. For the three months ending May 31, the median sales prices for existing homes in northwest Medford was $198,700, up 23.8 percent. In west Medford, the median was up 22.5 percent to $170,900, and in southwest Medford the median rose 7.1 percent to $225,000. All those regions were below the countywide median sales price of $234,500, which rose 5.6 percent, from $222,000 year-over-year. But there's concerted attention on the west side of the tracks, where prices rose faster than the rest of the county this spring, while east Medford's median was unchanged. "With the low inventory, as soon as a house hits the market, there are seven to eight offers, especially in the lower price range," said Chrystal Sanchez, an agent with Keller Williams Realty Southern Oregon. "In west Medford it's almost always going above and beyond the list price. It's been going on like this for a year now, but it's becoming more intense when it comes to multiple-offer situations." With mortgage rates still around 4 percent, buyers are seizing the opportunity to escape escalating rents. "A lot of people want to get out of the rental tracks, because rents have kept going up," Sanchez said. "They're eager to get into the market." The affordability index points buyers in certain directions, and west Medford is where the wind is blowing, said Jared Hokanson of Hokanson Real Estate in Medford. "There's just not the same demand on the high end," he said. "You go to an affordable area, and that's why there's such a jump in the median price year-over-year." While low-end developments could ease the pressure, it's not that simple. "In talking to developers, there are opportunities and challenges," Hokanson said. "Low-end homes don't have the same profit margins, so the infrastructure cost per lot and building costs go up. It's kind of a double-edged sword where the affordability and profitability numbers don't work for them. That's why so many focus on middle- or high-end properties." Countywide, the pace of sales picked up for the latest three-month period, as 670 residences exchanged hands, up 8.6 percent from the 617 sold a year earlier. The sales time was reduced nearly two weeks, to 44 days from 56. Appraisals still can be a sticking point, even though sellers are getting their asking price or better, Sanchez said. "Appraisals are based mostly on sold property," she said. "So we're seeing appraisals coming in low, which becomes an issue." While most sellers will come down to the appraised value, that's not always the case. "Some are needing every last penny," Sanchez said. "So some transactions are terminated and the seller waits for a cash offer or a better appraisal." There were decidedly fewer sales during the three-month period in Ashland, where activity fell by more than 30 percent. The median sales price on 66 transactions was $382,724, up 6.9 percent from a year ago. Jacksonville wasn't far behind, with a median of $375,000, up 36.4 percent, while Phoenix retreated 7.7 percent to $224,950. Reach reporter Greg Stiles at 541-776-4463 or [email protected] . Follow him on Twitter at www.twitter.com/GregMTBusiness , on Facebook at www.facebook.com/greg.stiles.31 By Greg Stiles Mail Tribune Follow @@GregMTBusiness MailTribune.com By Greg Stiles Mail Tribune Follow @@GregMTBusiness Posted Jun. 10, 2016 at 9:23 AM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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