As Foreclosures Rise, Home Prices Plunge to Never Before Lows

The US is definitely going through one of its most challenging phases. Unemployment is at its peak and as people lose jobs, they are faltering on mortgage payments. Hence, foreclosures are becoming common. Home prices have now plunged to never before lows. Hence the market is attractive for first-time investors.

Take, for instance, Mandy Icenhower and James Shannon, her fiancée. They began searching for a home early last year. Around June 2008, they found a flat in Central Point. The couple liked the four bedroom space but ultimately did not buy it because they felt the price was too much. After a few months, they took a look at a foreclosed home in Pitt View Avenue. The house, which had once sold for $388,000 five years ago, was available to them at a price of $176,000.

Buyers like Icenhower are taking advantage of plunging prices. Even the tax credit of $8,000 being extended to first-time buyers and very low bank rates are great incentives. They have pushed sales of residential homes at Jackson County to unimaginable levels. The Southern Oregon Multiple Listing Service report has pointed out that home sales have registered a double-digit growth. Sales have nearly jumped 33.8 per cent as there have been gains in nine of the 11 areas that were tracked.

Short sales and foreclosures may be driving down prices but according to SOMLS, the average sales price of homes in Jackson County have gone up to $190,000 till the period ending July 31. As many as 495 single-family homes were sold between May and July compared to 370 sold during the same period last year.
It may be mentioned here that the deal between Icenhower and the property dealers had become slow because of a number of factors. To Icenhower the deal seemed months to mature. At times, she wanted to come out of it but is now glad that she did not. However, not every home buyer shares the same experience. Amy Warner too wanted to buy a home as prices are low. This is the ideal time to buy a house, she says. She had liked a home at Summer Place in Talent and the house was available to her within a period of two months. Now she has given the property on rent.

According to the SOMLS report, the county's median price fell by 15.1 per cent to $190,000 from $223,750.

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