Gerald,

Short and sweet, the market in Klamath Falls is up slightly in value generally speaking and down in the number of sales. We are starting to here more positive comments about the housing market now. We are now seeing the numbers of homes sold increase, which should be a trend that will remain through the end of the year. We are approaching our long term average of about 4% for annual appriciation.

If you are thinking about moving this way, we probably have the most affordable housing for a town of this size of any other town in Oregon with similar or greater population. If I can help with anything please let me know.

Ron Rogers, CRS, GRI, ABR http://www.KlamathHome.com
541-891-4875
800-347-1343 ext. 7116

Many economists are saying that while we might not reach the light at the end of the tunnel in 2008,
we will certainly see it. Predictions are that after several months of dropping sales, the market will
level off with growth occurring in the last two quarters of 2008. That trend was reflected in sales
figures recorded for Klamath County for December of 2007.
A total of 46 homes were sold during December of 2007 compared with 47 during November of this
year and 63 sold during December of 2006.
However, while the number of units sold flattened out in December, the average and median prices
continued to climb. The average sales price of $210,199 recorded in December was 9.1% higher than
the average price recorded in November and 9.0% higher than that of December 2006. The median
price for homes sold was $192,450 which was 13.3% higher than November of 2007 and 9.8% higher
than that of December of 2006. (These changes are for the entire county and may vary from
neighborhood to neighborhood.)
The number of active residential listings dropped for the sixth consecutive month after recording a
high of 966 in July of 2007, but the number is still higher than normal. During a “normal” market, the
number of active residential listings would be closer to 600.
12/2007 11/2007 Diff % Change 12/2006 Diff % Change
Units 46 47 -1 -2.1% 63 -17 -26.9%
Avg. Price $210,199 $192,607 +$17,592 +9.1% $192,811 +$17,388 +9.0%
Med. Price $192,450 $169,900 +$22,550 +13.3% $175,250 +$17,200 +9.8%
Avg. DOM 147 154 -7 -4.5% 136 +11 +8.1%
Act. List. 718 809 -91 -11.2% 607 +111 +18.3%
Inv. Ratio* 15.6 21.9 -6.3 -28.8% 10.1 +5.5 +54.5%
(*Number of months needed to sell current housing inventory at current sales rate.)
Looking to the future, many economists are predicting a continued flat, or even slightly declining,
housing market for the first two quarters of 2008 and the growth beginning in the third quarter. They
point out that all other economic indicators (job growth, wage growth, interest rates, household wealth
etc.) indicate there is a pent up demand for housing, but that buyers are still waiting because many
national media reports are telling them that the price bottom has not yet arrived. As Lawrence Yun,
the chief economist for the National Association of Realtors points out, “Consumers have the means
to buy, but they’ve lacked the confidence. Once they see sales and prices stabilizing, they’ll be back
in the market.”
The key is knowing when to buy. Many buyers may wait too long thinking the bottom has not yet
arrived. However, in Klamath County the average sales price for 2007 was 3.1% higher than for 2006
and the median sales price was 3.8% higher. Plus the average sales price was above $200,000 for five
of the past seven months, a first for Klamath County.
(Statistical data is from the Klamath County Multiple Listing Service and does not include the sale of manufactured homes in parks.
Except those attributed to others, the opinions expressed here are those of only the author, and not necessarily those of Coldwell Banker
Holman Premier Realty and its associates)
©2007 Coldwell Banker Holman Premier Realty