John & Susan Gray - McKenzie River Valley Real Estate

Lane County overall has a current market inventory of 8.8 months. Days on market has dropped steadily since January, now at 78, an increase of 12 days over a year ago.

The McKenzie Valley average days on market is 132 – properties are taking longer to sell than much of Lane County. 25 sales have closed this year at an average price of $357K. Pending sales are at 26, down 11.1% over a year ago. There are 104 total listings on the market. Prices have not changed dramatically in the valley: down essentially 1% since 2007. Pending sales are down 39.5% over 2007. Those numbers tell a story: sellers are not dropping prices as the current market conditions warrant, so pending sales are down.

This data is from July 2008 – August data isn’t available yet. We’ll post another update as soon as we get the data!

Buyers: properties are available; it’s a buyers market for well-qualified buyers; sellers can’t expect to get full listing price in today’s market unless it is priced right for the market (and most are still priced too high).

Sellers: buyers are looking, and some are ready to buy at the right price. Our buyer traffic is definitely up over a month or two ago. If you want to attract buyers, you have to price for the market and differentiate your listing from everything else out there. Differentiating can be on the basis of condition, concessions, incentives, or terms. The overall rule still holds: price right and it will sell.

Thanks for reading our update - check back in a week or so for the latest market data!

Demographics & Geography

Lane County is the second largest county in western Oregon by area, stretching from the Oregon Coast to the Cascade Mountains. The Eugene/Springfield metro area is the second largest metropolitan area in the state (after the Portland metro area). State population is near 3.7 million, with just under 10% of that population in Lane County, concentrated in the Eugene/Springfield area. Eugene, the county seat and largest city, is centrally located, roughly an hour from the Pacific Coast or the Cascade Mountains.

Green on Green

The overwhelming impression one first gets of Lane County is that it is very, very green. More than 75% of county land is forested. About 50% of the forestland is under USFS management. The rest is metropolitan or, within the Willamette Valley, farmland. It is also one of the most green-conscious (translate eco-conscious) areas in the US.

The Coast

The Oregon coast is nothing short of spectacular. Massive sand dunes, miles of pristine beaches, the majestic Pacific Ocean, numerous lakes, picturesque towns, commercial and sport-fishing fleets, and unforgettable coastal vistas - an hour from Eugene. Whales migrate annually up and down the Oregon coast, and are easily spotted during peak migrations.

The Mountains

The white-capped Cascade Mountains lie just over an hour to the east of Eugene, with downhill and cross-country skiing, hundreds of miles of wilderness trails, many lakes, two major rivers, and miles upon miles of wilderness. Recreation and scenery reign in east Lane County: hiking, backcountry camping, mountain biking, rafting, kayaking, and fishing. Incomparable views of mountains, forests, lakes, rivers, waterfalls and lava fields abound. Wildlife also abounds, with deer, elk, coyote, bear and cougar populations (bears and cougars rarely seen).

The Rivers

The Willamette river is the centerpiece of the Willamette Valley, flowing through the city of Eugene. Several large waterfront parks adorn the city. The McKenzie River flows from Clear Lake in the Cascade Mountain into the Willamette river at Eugene. The McKenzie is a world-famous fly-fishing destination, home of the now world-famous McKenzie Drift Boat. The McKenzie's water is as pure as can be found anywhere on the planet. Native redside trout also abound, for catch-and-release fishing only.

The Weather

Now we come to some of the "not so great" about Lane County. Winters are wet and dreary - not suited for veteran desert-dwellers. Rain and snow in the mountains, rain in the valley, and rain and wind on the coast give meaning to the University of Oregon moniker "ducks". The rain extends from November into May or June, literally half of the year. It's not raining every day, of course, but there is a LOT of rain in winter and spring. On the other hand, that's what keeps the place verdant green all year. Mid-summer through fall are paradise in Lane County (July through October). Warm, sunny days from the mountains to the coast are a welcome relief from the wet winter and spring.

Visitor Info

For a more complete pictorial and informational view of Lane, please visit the Convention and Visitors Association of Lane County website.

For Real Estate and McKenzie Valley information, please visit us online!

Thurston, Oregon is east of Springfield heading up the McKenzie River Valley, a little higher end market area than Springfield. Here are some of the essentials for the period Feb 2007 through Feb 2008, according to RMLS residential data.

Of 572 total units listed, 282 sold, at an average sale price of $234.4K against an average list price of $258.3K. 290 unis remained on the market. Average days on market generally increased across the one year period, from 60 in Feb 2007, to 106 in Feb 2008, averaging 75 days for the year.

Thurston is a growing market, as the new PeaceHealth hospital starts hiring, and the Springfield area becomes a home for new call center facilities. It is also the Willamette Valley gateway to the beautiful McKenzie Valley. Despite all the reports of doom and gloom in the US real estate market, this area, along with the entire Eugene/Springfield area, continues to be a very active market, with homes priced right and marketed effectively still selling!

John & Susan Gray, McKenzie Valley Realtors

For those interested in buying or selling a home or land in the McKenzie River Valley, here's what has happened from February 2007 to February 2008. Some clear messages emerge. According to RMLS data, $26M of residential inventory sold in the valley in that one year period against a listed inventory of $102M, at an average sales price of $422K, against an average list price of $496K. Average days on market was at 36 in February of 2007, 100+ from March through July, and is back down to 68 in February 2008, for an average of 91 days. Of 207 residences listed, 63 sold, and 144 remain on the market.

A total of 9 parcels of land sold against 52 listed at an average selling price of $205K, against an average listing price of $443K. Average days on market for the year was 113, now standing at 89. 43 parcels remain on the market.

The messages: It is clearly a buyers' market, and significant opportunities exist for buyers who are not afraid to jump in. For sellers: aggressive pricing is absolutely critical to move properties, whether residential or land. That's not what sellers want to hear, but if you really want to serve sellers with integrity, and move properties, that's what they need to know. Agents who "buy" listings will see them stagnate on the market.

The good news - the market is improving! In October, November and December 2007, total units sold exceeded July, August, September total units for both residences and land. Winter in the McKenzie Valley typically just shuts down real estate - especially this winter with record snow levels. In January 2008 that was true, but not October through December. Average days on the market for listings is currently coming down.

The upper McKenzie River valley is being rapidly transformed into a higher end recreational area, with new riverfront condos, the new Log Cabin Inn construction in progress, lodge and business facelifts, and new businesses emerging. It's a great time to invest in the future!

For more McKenzie Valley information, please check out our mckenziehomesandland website.