I recently received this question from one of my readers:
"I read your blog this morning and noted your comments regarding the 2011 foreclosure rate in Ashland. Given the information I sent you recently, plus your 17 years of experience in the Ashland area, I wanted to ask you a few specific questions so that my wife and I can better focus our search. Below are the key questions that we’d like to hear your professional opinion on:"
1. What are the realistic foreclosure projections for 2012 – 2013 in the Ashland area, for the type of properties we are specifically looking for?[Krista Laulainen] The areas that we have seen the least foreclosures in our valley are the Ashland and rural properties. Ashland because most of the people who would bought after 2002 have good income resources, and if they bought before that wouldn’t have negative equity. In fact, most of the agents who work primarily in Ashland (I don’t, I work the whole valley), have not sold or listed short sales and/or REOs because there are not that many ot those types of distressed properties. I think we will continue to have distressed properties in Ashland, but not too many. Prices will continue to be flat in the under $300k range and I think there is definitely a good possibility for properties over $400k to have some further price reductions.
[Krista Laulainen] Rural Property throughout the valley is going to be about the same as the town of Ashland statistically. Otherwise, if it is some of the other townin our valley like Medford, then I would say the market is flat for under $200k, but room for future price reductions if over $300k. In some areas, prices are at 1995-98 levels, and in these areas, it is cheaper to own than to rent.