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New construction may be answer for low inventories Wednesday May 3, 2017 at 4:53 PM May 3, 2017 at 5:57 PM Greg Stiles Mail Tribune @GregMTBusiness With the inventory of existing homes sliding to historical lows, local home buyers may find new construction an attractive alternative. That was the case for a Spokane couple looking for a two-family setup in the Rogue Valley. "They had specific needs, because they are wanting to bring their parents in with them," said Susie Bermudez, an agent with Coldwell Banker Real Estate in Medford. "Our inventory is running very low, and unfortunately there was nothing out there to meet their needs." At that point Bermudez steered her clients toward new construction. "For a lot of people out there, they're having to settle for an area they don't like or a house that might not have all they want." Although there is a significant amount of construction that doesn't appear in the Southern Oregon Multiple Listing Service system, the new homes are selling in much of the valley. The median price for new construction in Jackson County was $299,000 for the three months ending April 30, a 12.9 percent gain over the $264,900 figure a year ago, according to SOMLS. The countywide median for existing houses during the period rose 14.6 percent to $255,000 from $222,450 a year ago. Except in west and northwest Medford, all zones of the county saw medians rise in April. At the same time, the inventory fell 17.4 percent year-over-year to 738 units. Bermudez's clients had a choice of waiting until something came on the market, or taking steps on their own. They began looking for two lots together. In the current market, Bermudez estimates a buyer can be in a new home in eight to 10 months. "You can start building what you need versus waiting for a specific home to come on the market," she said. One fewer new home sold in the county during the past three months than during the same period in 2016, but those houses were sold within two months, on average, versus three months in 2016. Existing house sales fell nearly 16 percent to 501 units from 596 during the three months, but those places were gone in 40 days as opposed to 46 a year ago. Shady Cove/Trail saw the biggest jump of 32.9 percent to a median of $187,500, while Jacksonville's median slipped 6 percent to $328,000. But east Medford, which accounts for more deals than any other two zones, matched the county gain of 14.6 percent and saw its median price climb to $282,000. The median price for a rural home was $360,000, up 18.8 percent.  — 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.