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REAL ESTATE Single-family home sales take off Both the pace of sales and prices rose in the past three months Comment By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted May. 5, 2015 at 2:33 PM Updated May 5, 2015 at 5:17 PM By Greg Stiles Mail Tribune Posted May. 5, 2015 at 2:33 PM Updated May 5, 2015 at 5:17 PM » Social News Jackson County home buyers paid top dollar in many cases during the past three months. Southern Oregon Multiple Listing Service reported Tuesday the median price for existing single-family residences jumped 13.1 percent year-over-year, to $214,950 from $190,000, during a three-month period ending April 30. New construction, which often is sold outside the SOMLS system, saw a 10.9 percent median sales price gain to $270,000. "Because of the shortage of good, sellable listings, buyers aren't messing around with offers," said Ron Galbreath, an agent with Coldwell Banker ProWest Real Estate in Medford. "They know while they are playing around with an offer, another one may come in and beat them all together." The inventory of available houses declined 4.1 percent year-over-year as of April 30, with 1,063 in the system compared to 1,108 a year earlier. For the three months ending April 30, the pace of sales picked up 17 percent, with 508 transactions this year compared to 434 in 2014. Home buyers have paid 98.7 percent the original asking price, leaving little bargaining room. "It's stressful right now," said Colin Mullane, of Full Circle Real Estate in Ashland and a spokesman for the Rogue Valley Association of Realtors. "Buyers in the market are either frustrated or getting the hang of it. When they find a house they want, they have to be ready to go, have their loan ready, make an offer quickly and present it to the seller with the best terms possible." Southwest Medford, Gold Hill/Rogue River, west Medford and the Upper Rogue areas were the top median-price gainers, while Ashland and Jacksonville — typically the highest-priced towns in the county — both saw declines of about 4 percent. Mullane, however, said the declines were the result of lower-tier houses being dealt rather than the market declining. "If anything," Mullane said, "prices in both markets are continuing to climb significantly. It was just a case of more homes in lower price ranges selling this year than last. Even those homes, however, are selling for more than they were 12 months ago." With prices up more than 30 percent from five years ago, when the countywide median was $165,000, Mullane hears plenty of talk from buyers wondering whether they are buying at the peak before a correction in prices. "Some are concerned there is a bubble forming," he said. "They use that term because that's what they heard the last time. The difference, and it's true in any market with supply and demand, is that last time the bubble was fueled by easy money. That's not the case today. Fundamentally, your buyers are way-better qualified, with much stricter standards. If values declined or retreated, those buyers are way better off and more equipped to move through the correction, if there is one." Not only are buyers more qualified, they are far less leveraged than a decade ago. "A lot of people are buying homes near or at the current cost of renting," Mullane said. "They're not borrowing at the level they are able to. If they could borrow up to $400,000, they're staying in the $250,000 range and not maxing out. A lot of lessons were learned — absolutely." The median price for new construction in east Medford rose 22.5 percent, to $348,500 from $334,900 a year ago. "It seems when a house is coming to completion and hits the market, it's sold within the first week," Galbreath said. "Builders are able to sell them on their own right now without listing. A lot of buyers are approaching the builders when they see a project going up, so they don't even see the MLS. It almost seems like listing is becoming the last recourse." With the threat of rising interest rates potentially regulating rising prices, Galbreath thinks the present market is vibrant. "It still comes down to affordable listings," he said. "Hopefully, it doesn't get out of hand. We keep hearing interest rates are going to go up. It's not a matter of if, but when." The median price for rural homes during the period was $285,000, up 14 percent from last year's $250,000. Reach reporter Greg Stiles at 541-776-4463 or [email protected]. Follow him on Twitter at www.twitter.com/GregMTBusiness , on Facebook at https://www.facebook.com/greg.stiles.31 , and read his blog at www.mailtribune.com/EconomicEdge . By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted May. 5, 2015 at 2:33 PM Updated May 5, 2015 at 5:17 PM » 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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