Though the present real estate market may look fairly abysmal, there are still some great deals out there for buyers. On average foreclosed properties sold for 34% less, with short sales averaging around 15% less. While these are national trends, they still demonstrate how much houses are discounted once they have been foreclosed upon. While many of these properties are discounted because they are in bad shape, it is still possible to find heavily discounted homes that are in great condition. There is no shortage of supply either, in Lane County 30% of all sales were foreclosures, and national foreclosure rates have jumped 2,500% in the past four years.
There may be trouble for a new mental health facility planned in Junction City. The hospital, set to replace the Oregon State Hospital along with another hospital in Salem in fall 2013, has been put into question due to budget shortfalls. While the hospital would provide around 1,000 new jobs to the Junction City area, which would greatly help the local economy, the operating costs are estimated at around $214 million per biennium, a massive amount of money during a recession. While the facility still has many powerful supporters, including Governor Kulongosky and Senate President Courtney, detractors are worried that the increased operating cost from the new hospital will drain money from Oregon’s community based system of mental health care.
The doubts that have been cast on the facility’s construction comes at a bad time for Junction City’s local economy. In early 2009 Junction City’s booming RV industry took a dive, with several RV makers in Junction City being forced to either cease production temporarily, lay off large amounts of staff or shut down permanently. With many RV manufacturers being forced to choose the third option, the Junction City economy has been needing a large source of jobs that the mental hospital could provide. For house prices to recover in Junction City, the area needs more jobs, in my opinion.
According to a new study, foreclosure and short sale’s remain high in Lane County. Nearly a third of all recent home sales in Lane County were either short sales or foreclosures. The majority of these foreclosures are occurring because of loss of income, which has equally affected both the rich and poor. Because houses that are foreclosed upon or short sold sell for about 15% less than other houses, the entire market has become depressed. The situation here is similar to that of the rest of the nation, as a whole, with around 31% of sales in the US being foreclosed or short sold.
This housing development that I wrote about earlier in the year is finally in the process of being completed. Despite being repossessed, developer Hayden Homes is on track to build 100 home sites, with the first one, the model home, being completed around July 17th. The first phase of the development, consisting of about 10 homes, will be completed in around August or September. Reservations are being taken for the 10 initial homes, with an opening price of around 140K. There are seven home plans, ranging in size from 1,041 square feet for a 2 bed, 1 bath to 2,192 square feet for a four bed, 2.5 bath home.