The South Oregon real estate market has been hit hard and late by the still strong economic downturn in the United States. Although South Oregon was not the first part of the nation to suffer ill effects as a result of the collapse of the sub-prime mortgage crisis, it has nonetheless been struck by the recession's ills. As a possible result of the effects of the crisis being put off temporarily, the South Oregon real estate market is now one of the hardest hit regions of the country. South Oregon continues to have issues with a number of problems, especially in the areas of foreclosures and short sales, although a select number of signs in South Oregon and the remainder of the state seem to point toward a possible recovery.
According to a July 16, 2009 article in the Christian Science Monitor, the United States foreclosure crisis has been spreading quickly, and to a number of new states. “The recession can explain some of this shift. Oregon, which saw foreclosures climb 56 percent during the same period, is struggling with the highest unemployment rate of any state except Michigan.” The number of so-called short sales have also been increasing in South Oregon, which is unsurprising since they are usually correlated with foreclosures. This has also artificially inflated the number of sales in South Oregon, further confusing the relevant statistics.
According to a July 21, 2009 article in the Portland Business Journal, “Foreclosure activity rose 15 percent in the first half of 2009 compared to a year ago. Oregon, which has the nation's third highest unemployment rate, ranked No. 11 for foreclosure activity in the first six year months, with 19,053 foreclosures, or one for every 84 homes.” KGW, a news channel broadcasting in Oregon, found that sale prices in Southern Oregon continue to decline, although a number of realtors claim that the bottom of the market may be in sight. In a somewhat contradictory development, although prices continue to decline, and foreclosures rise, new home construction surged a great deal in June of 2009, signaling some hope for further development and a long-term recovery.