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REAL ESTATE Supply and demand boosting Rogue Valley house prices Rising inventory was offset by more buyers, keeping prices moving up Comment By Greg Stiles Mail Tribune MailTribune.com By Greg Stiles Mail Tribune Posted Jul. 7, 2015 at 4:10 PM Updated Jul 8, 2015 at 5:42 PM By Greg Stiles Mail Tribune Posted Jul. 7, 2015 at 4:10 PM Updated Jul 8, 2015 at 5:42 PM » Social News Despite higher inventory levels, there just weren't enough houses on the market in Jackson County to rein in prices during the first half of 2015. Southern Oregon Multiple Listing Service figures indicate there were typically 10 percent more houses on the market during the first six months of the year than a year earlier, but the number of transactions jumped almost 20 percent. Rogue Valley Association of Realtors spokesman Colin Mullane said pent-up demand, stimulated by interest rates in the 4.25 percent range, continues to create a shortage of available houses. "The inventory levels, even though there is a 10 percent uptick over last year, are still not meeting the 20 percent increase in demand, leading to the shortage of inventory, which is leading to the acceleration in the price of homes across the marketplace," Mullane said Tuesday at news conference. SOMLS figures show 1,163 home sales during the first six months of 2015, up from 941 a year ago. During that period, the median price for a single-family residence in the county has popped up 12.5 percent to $225,000 from $200,000. The median five years ago, at the depths of the Great Recession, was $165,000. Since then, median values have bumped up 36.4 percent. The Upper Rogue area around Shady Cove and Trail have seen a 40 percent jump in the median over the past year to $174,450 from $124,650, although the sampling size is relatively small. "We still have demand exceeding supply, which is making it stressful for buyers," Mullane said. "We're seeing multiple offers in the marketplace. It's very competitive out there." Interest rates are pushing upward to between 4.25 and 4.375 percent, he said. As a result, buyers who may have considered houses in the $210,000 range are now seeking residences closer to $200,000 in order to keep monthly payments in check. "It's putting more pressure on them to find a home today versus six months from now when they may have to taper back expectations even further," Mullane said. The pace of new home sales dropped 8 percent during the first six months of the year from the first half of 2014 as builders faced challenges such as waiting for subcontractors, financing and finding reasonably priced lots. "Demand is there, the urban growth boundaries created by the cities seem to reflect there is buildable land available," Mullane said. "It's just not as accessible to the same number of builders as in the past. ... You've got builders who would like to build that have to pay a premium if they are going to buy one or two lots a time, versus those who are well funded because they've been in the business so long that can buy larger tracts of land and can sit on it for years to come where there might be a hundred, two or three hundred houses built; that's a five-year project." Smaller builders aren't necessarily willing to risk buying large quantities of land. "Their margins are a lot tighter," Mullane said. "They're still feeling the burn from the last downturn in the market, so they've got to feel really confident they can make that build and come out the other side on a positive." "There are still not enough really big green lights out there for the construction community to say, 'Let's go,' " he said. "Lenders are really gun-shy about jumping on board, because they got left holding a lot of this land last time around. It's still a much different ballgame for the contractors and the overall developers. Hopefully, that confidence level will return, money will free up for them." 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 Jul. 7, 2015 at 4:10 PM Updated Jul 8, 2015 at 5:42 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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