The market trends for real estate in South Oregon embodies the greater trends of the U.S. housing market. The area, since the beginning of the financial crisis that has been plaguing the country, has seen drops in existing and new home values and sales as the nation trudges along trying to work its way out of the recession.

However, activity has been up in recent months, giving positive indications that perhaps South Oregon real estate is beginning to swing to the up side. During the period of the months of August, September and October of this year, according to the Southern Oregon Multiple Listing Service, sales volume has increased quite a bit, from 2008’s clip of 394 to 501.

Coinciding with this increase in sales activity is a decline in the average number of days homes for sale in South Oregon have spent on the market before selling. In 2008 during this period it was 104; this year, it fell to 80. Much of the increase in sales volume can be attributed to the government’s stimulus program to provide tax incentives to first-time home buyers. The program was recently extended by Congress in the hopes of continuing to buoy the real estate market.

Though sales activity is up in South Oregon, home values have still not recovered to their pre-crash levels. In 2008, the median sale price for a home was $237,500 during the August-October period; this year, the price was just $185,000, even lower than 2004’s median price of under $215,000, and enough for a 13.9% drop over the five-year period. New homes, too, have seen a decline in value, from just under $240,000 in 2004 to 2009’s $200,000. It remains to be seen whether those highs of recent years will be met again.