Document text
Oregon Road Conditions & Cams Email Story to a Friend July 26, 2005 Medford-Ashland No. 2 for property ‘flipping’ By DAMIAN MANN Mail Tribune Investors now make up 23 percent of new home buyers in the Medford-Ashland area, an analysis compiled by First American Corp. has found. "A lot of people are buying newer homes with no intention of moving into them," said Steve Swearingen, regional manager for First American Title Co. Newsweek magazine highlighted Medford in its July 25 edition as the No. 2 area in the country for investor property, behind Redding, Calif., where 24 percent of homes are being purchased by investors this year. John Hubbard, account executive for the Oregon region of Real Estate Solutions, a division of First American Corp., said statistics for the Medford-Ashland area were based on assessors records, deeds and other data. What the report found, he said, is that about one out of four buyers had a different address than the home just purchased. Advertisement Hubbard said many economists believe there is no real estate "bubble," but rather a lot of tiny "bubbles" that have the potential to continue the upward spiral in home prices in particular market areas. However, he said, "I personally think there is going to be a tremendous correction." Gateway broker Tierney Kramlich said the statistics parallel what she’s found in her own real estate dealings. A woman from Los Angeles bought a home in a new subdivision in Ashland sight unseen. "It was her full intention just to flip the house," she said. "Flipping" refers to people who buy a house expecting a quick turnaround, taking advantage of real estate markets like Jackson County’s where home values have jumped 20 to 30 percent or more a year. New subdivisions are particularly appealing for investors, who sometimes gobble up 25 percent or more of the homes. In one new subdivision off North Mountain Avenue, where 50 percent of the recent purchases are by investors, Kramlich said it’s not unusual for the buyers to not physically look at what they’re buying. "I never met the people who bought Lot 21," she said. Ron Galbreath, a broker with John L. Scott, said a couple from Santa Rosa, Calif., spent $1.1 million several months ago and bought two houses in Medford and one in Talent. "They pulled up all their Albuquerque (N.M.) holdings and put them into Southern Oregon," he said. Galbreath has worked with investors who find a property on the Internet, then request digital photos to help them make their decision. The entire transaction is handled by e-mail and telephone. With prices jumping so fast, spurred by investor interest, Galbreath said it has become difficult for young, local home buyers to enter the market or trade up to a larger house. John Doelger, a broker at Windermere Van Fleet and Associates in Medford, viewed with skepticism the statistics that found almost one out of four homes are being sold to investors. "I would doubt that that is the case," he said, adding, however, "Last year, it is probably pretty close." He said that last year he was seeing some investors who bought five or six houses at a time. But this year, he said, "Most are owner-occupied." Rhonda Cochrane, a broker with Gateway in Ashland, said with less confidence in the stock market, real estate has become the investment of choice. "There are definitely a lot more investors this year than in the past," she said. "I just sold one to a lady this week who has not seen the property." While Cochrane expects the woman, who is in Hawaii, will eventually check out her real estate investment, she has noticed that many people don’t buy a place that they’re going to call home. "Right now there is a flurry of people buying properties for kids going to college," she said. The down side for some investors is that it is now more difficult to rent out properties because the inventory is so high. "That’s what I warn people about," she said. Reach reporter Damian Mann at 776-4476, or e-mail Medford-Ashland No. 2 for property �flipping� ">[email protected] . Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2005 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback Free Music Downloads Conference Calls - $50/Month Home Security Systems Trunks, Footlocker, Trunk, Footlockers dvd-r helzberg diamonds Distance Education Diamonds Online Poker Computer Security Home Equity Loans Slippers Student Loans tcg student loan consolidation Canadian Pharmacy Website Design & Marketing Memory Foam Mattress w2 forms Mortgage Calculator Free Home-Loan Referrals Online Casino News Air Purifiers Advertisement s