Bend Oregon Real Estate News

Priced at $299,000 - 2181 Northeast Castle Avenue, Bend, OR 97701

2016-03-16T14:29:00.001-07:00

April Home Prices Continue Slow Advance

2014-05-07T11:42:00.000-07:00

Monthly Median Sale Price Increases 6.5%

Median sale price increased to $279,000 in April, up from $262,000 a year ago.

After hitting bottom during the first quarter of 2012, home prices in Bend increased rapidly before settling in to a slow, steady march over the last year or so.

Median Quarterly Sale Price Last 10 Years

Many people are pleased to discover how much their property's value has increased in the last 2 years. If you haven't had yours checked in a while, please don't hesitate to call me for a free, no obligation value estimate.

541.410.9060

Help For High End Home Buyers

2013-11-08T15:47:00.001-08:00

Required Down Payment For Jumbo Loans Lowered

Check out this article from the Wall Street Journal

http://m.us.wsj.com/articles/SB10001424052702303936904579177643725556078?mg=reno64-wsj

This is great news for higher end home buyers. .... and sellers!

Higher Interest Rates Affecting Home Prices In Bend

2013-10-22T13:00:00.000-07:00

Interest Rates Increase

After touching a low in the mid-3% range, the interest rate for a 30 year mortgage loan spiked above 4.5% this summer on speculation that the Federal Reserve would announce at its September meeting a tapering of its purchases of long-term US Treasuries and mortgage-backed bonds.

After retreating a bit following news that the Fed's bond buying would continue, the rate settled in the 4.5% range. And while that's still low historically (see rate history below), the relatively higher rate has begun to impact home prices in the Bend area.

Price Paid Per Square Foot Falls

Buyers paid a median price of $150.02 per square foot for a house in the Bend area in September, down from $156.98/sf in August. And the median price per square foot paid last month was lower than the $152.67/sf paid in the 3rd quarter overall, and the $151.15/sf paid in Q2.

Higher Cost Of Money

Think of interest rates as the cost of money. Like any other product or service, as the price increases, fewer people are willing or able to afford it.

To put this in perspective, the principal and interest payment on a $250,000 30 year loan at 3.5% is about $1123 per month. But at 4.5%, the monthly payment increases to about $1267. That $144 monthly increase is the difference between some potential buyer's willingness or ability to purchase a home.

Silver lining for home sellers

It's not all bad news though. The good news for those thinking of selling? The median sale price in the 3rd quarter ($293,438) was 19.5% higher than a year earlier ($245,550). And the dollar per square foot price increased even more. At $152.67/sf, the Q3 median price per foot increased 20.2% from Q3 2012 ($127.03/sf). For the owner of a 2000 square foot house, that's an increase in equity of more than $51,000!

As always, please forward, post and share this message. And please let me know your thoughts by posting your comments below.

2012 Bend Home Sales Near 2006 Levels

2013-01-18T11:59:00.004-08:00

After plateauing in 2011 following two years of notable improvement, the number of homes sold in Bend increased significantly last year, approaching levels not seen since the delirious days of 2006.

After peaking at 2,884 sales in 2005, 2,088 homes were sold in 2006 as the market began to teeter over the 2nd half of that year. Home sales dropped precipitously in the following years, hitting a low of 1,121 in 2008. But in 2009 buyers began to take advantage of prices that were about 40% lower than they had been at the market's peak, and sales rebounded to 1,556 that year. Sales volume increased again in 2010, but at a much slower rate, to 1,681 homes sold.

But despite the number of sales in 2006 and 2012 being somewhat similar, that's where any real resemblance between the two years ends. In 2006, the median sale price was $187.98/sf, or $350,581 for a 1865 square foot house. Last year, that number was $118.91/sf ($222,000 for 1867sf). That's a discount of 36.7%! And let's not forget that the average interest rate for a 30 year fixed rate mortgage in 2006 was 6.41%, compared with 3.66% last year! Now that's a breathtaking increase in purchasing power!

Let me know your thoughts on where you think the Bend real estate market is headed in 2013 and beyond by writing your comments below. And please be sure to call me at 541.410.9060 for any real estate help or advice you, your family or friends may need.

Bend Housing Market Robust

2012-10-05T12:35:00.000-07:00

To quickly answer your question why it's been nearly seven and a half months since I last posted.....no, I didn't die....or retire....or find another career. In fact, the answer is quite the opposite. 2012 has been one of the busiest years in a long time for me, and quite honestly, I haven't been very effective at carving out the time to put the numbers together and share my thoughts here about the real estate market in Bend (I suppose that's obvious!). Anyway, as you'll see below, the market in Bend has been cranking this year too.....so let's jump right in and have a look!

This past Sunday marked the end of the 3rd quarter, providing a good time to look back over 2012 and compare it to where we were at this time last year. Through September, the number of closed sales is up 17.1%....and the median sales price to date is 12.3% higher. Even on a dollar-per-square-foot basis (which I think is more useful than the median price of recently sold homes when comparing the overall change in market value), the price per square foot paid for stick built houses on one acre or less in Bend so far this year has increased from $106.00/sf to $116.42/sf , 9.4%% higher.

The 3rd quarter was no exception.....in fact, the pace of sales and the rate at which prices rose accelerated over the past 3 months. The number of houses sold increased 25.2% from the same period last year, from 425 homes sold to 532. The median price increased to $235k from $205k (14.6%) and the price paid per square foot jumped 10%, from $112.89/sf to $124.21/sf in Q3 this year.

The amount of time it took to sell a home in the 3rd quarter remained essentially the same from last year, averaging about 4 to 4.5 months from the time a home is listed for sale until a sale is closed.

Please call or email me with any questions you may have, or to talk specifics about buying a home in Central Oregon or selling one you currently own in the area.

Bend Housing Market Remains Splintered

2012-02-20T11:54:00.000-08:00

The real estate market in Bend continues to fracture along various price points. Consider the sales activity outlined below for houses priced up to $250k, between $250k and $400k and above $400k.

Many houses below $250k are receiving multiple offers, or selling quickly (there are currently 145 for sale in this price range, with 77 closed sales last month; a 2 month supply, indicating a seller’s market).

In the mid-range ($250k to $400k), 26 sold last month and 144 are currently listed for sale (5 to 6 months of inventory – typically considered a balanced market)

Above $400k, 157 houses are currently for sale, with only 14 sold last month (11 months of supply – definitely a buyer’s market).

If you're curious to know what your house would sell for, or are interested in possibly buying a new home (the rental market is very good right now), please call me at 541.410.9060.

Cash Sales Increase 11% In 2011

2012-01-24T15:33:00.000-08:00

The number of houses purchased in Bend last year by buyers paying cash increased 11% from a year earlier, and accounted for more than 1 of every 4 closed sales.

452 of the 1688 stick built houses on less than an acre sold in the area in 2011 were cash deals. This was up from 406 in 2010, when cash sales made up 24% of 1690 closed transactions.

Distressed Properties Continued To Drive Market In 2011

2012-01-13T13:51:00.000-08:00

Distressed properties (short sales and foreclosures) accounted for a large portion of sales in Bend last year, continuing a trend we've witnessed over the last few years. 52.4% of all sales of stick built, single family houses on lots of one acre are less were either short sales or foreclosures in 2011. In 2010, distressed property sales represented just over 51% of total sales. What changed last year however was the mix of those distressed sales.

Short Sales Outnumber Foreclosures

While the term "short sale" has become ubiquitous in Central Oregon since the market crash, last year's total reached a new high water mark. 465 short sales were closed last year, making up 27.6% of all sales. This represents a 20.5% increase from 2010, when 386 properties sold were short sales (22.8% of all home sales).

And while too many houses are still being foreclosed on, there's a glimmer of hope that the worst may be behind us. Foreclosure went from representing 34.2% of all sales in 2010, to just under 24.8% last year. And the picture improved even more over the 2nd half of the year, when foreclosure sales made up just 18.7% of the total. The overall number of bank-owned properties sold in 2011 decreased by nearly 28% from a year earlier, from 579 to 418.

Average Time To Complete Short Sale Improves

It seems everyone has heard at least one horror story about the special challenges of short sales, including often having to wait weeks, and sometimes even months, for an answer. But there's positive news on this front as well.

While short sales continued to take longer to close than other types of home sales last year (162 days versus 110 days), on average, short sales took 51 fewer days to close in 2011 than they did in 2010. That's almost 2 months faster!

But, if you or someone you know is considering a short sale, don't assume that any agent can handle your transaction. I've been recognized as a Certified Distressed Property Expert (CDPE) by the Distressed Property Institute and have extensive experience in handling short sales and foreclosures. I offer free, confidential consultations. Please call me at 541.410.9060 to arrange a time discuss your options.

2011 Sees Bend Real Estate Market Hold Steady

2012-01-10T18:37:00.000-08:00

1683 stick-built, single family homes were sold in Bend last year, 7 fewer than the total reported for the year 2010, but offering another indication that the area housing market has stabilized following the implosion of a few years ago.

After hitting a low of just 1120 closed transactions in 2008, sales rebounded to 1561 closings in 2009 and rose again the following year to 1690. Though I still meet people everyday who mistakenly believe "houses aren't selling in Bend," the number of closed sales over the past few years is comparable to the "pre-boom" years, such as 2002, when 1526 houses were sold (in my opinion, the "boom" began in the 2nd half of 2003 when 1021 sales were recorded in the last 6 months of the year).

Prices, when measured on both a median sale price and price per square foot basis, were nearly identical from a year earlier. The median price paid for houses sold in 2011 was $190,000, versus $190,500 in 2010. While the median sale price was down slightly last year, the average price per square foot paid in 2011 actually rose to $104.91/sf, from $104.38/sf in 2010.

If you're curious to find out what your home is worth today, please call me at 541.410.9060.

Bend Named #1 Housing Market Over The Next 5 Years!

2011-12-08T16:10:00.001-08:00

Business Insider used data from Fiserv Case Shiller to choose good old Bend, Oregon as the best housing market for the next 5 years!

If you haven't looked at home prices in a while, call me to find out just how good some of the deals are in today's market!

When One Door Of Happiness Closes, Another Opens

2011-10-29T16:36:00.000-07:00

Have you heard?

Steve Scott, one of the most highly-respected brokers in the Central Oregon real estate community and principal broker of Steve Scott Realtors, has announced that he will retire later this year after nearly four decades of service.

While his plans were announced to the public just last week, Steve and the agents at Steve Scott Realtors have been planning the transition for months. And after considering several options, most of my fellow brokers at Steve Scott Realtors and I have decided to team up with another leading real estate firm. Over the next month, I will be joining the group of outstanding brokers at RE/MAX Key Properties in a newly expanded, state-of-the-art office in downtown Bend!

Combining the power of the internationally-recognized RE/MAX brand with the unprecedented local knowledge and experience of Steve Scott Realtors will create a dynamic, fun-filled and prosperous experience for my clients and I can't wait to get started!

I thank Steve for his years of leadership and friendship and wish him good health and much happiness in the future.

3rd Quarter Sales Show Stability In Bend Housing Market

2011-10-11T15:54:00.000-07:00

The median price of homes sold in the 3rd quarter increased 5.1% from a year earlier, while sales volume was nearly identical. Prices also climbed 3.3% on a square foot basis.

The median sale price for homes sold in the July through September period was $205,000, up from $195,000 for the same period a year ago. And the median price paid per square foot was $112.95 in Q3, compared to $109.30 in 2010.

422 houses were reported sold in the 3rd quarter, almost the equivalent of the 421 sold a year ago.

Through the first 9 months of the year, sales volume in Bend is up 1.8%. Prices are down slightly; the median price paid in 2011 to date is $192.5K ($106/sf) compared to $195k (107.62/sf) over the same period in 2010.

With historically low interest rates (around 4.125% for a 30 year fixed rate loan) and a relatively tight rental market (good, clean rentals aren't available for very long), I expect this stability to continue in to the foreseeable future.

If you're curious to know what your house is currently worth, or want to find out exactly what you can afford to buy in today's low rate environment, please give me a call at 541.410.9060.

August Home Sales In Bend Highest In 5 Years

2011-09-15T11:24:00.000-07:00

The 161 closed home sales in Bend last month was the highest number sold in the month of August since 2006, when 215 houses were sold in the midst of the housing market frenzy. Sales volume increased nearly 30% from a year earlier, when just 124 sales were reported sold.

Prices also jumped from year ago levels. The median sale price in August was $209,900, up 19.9% from August 2010 ($175k). In fact, both the median sale price and the median price paid per square foot ($111.71/sf) nearly matched the levels from August 2009 ($210,000 and $112.72/sf respectively).

The combination of lower prices and historically low interest rates has lead to increased activity across the board. Investors are buying houses to rent and earning relatively healthy returns, renters are coming to the conclusion that it makes more sense to buy a home and many families are "upsizing" in to bigger homes and taking advantage of the unprecendented opportunities in today's market.

I think you'll be surprised to find out just how much home you can comfortably afford to buy with today's low rates and prices. Call me to find out.....541.410.9060.

Bend Home Sales Slow, Prices Mixed

2011-07-20T14:34:00.000-07:00

Single family home sales in Bend slowed from a year earlier in June, while prices continued to show some stability. 139 closed sales were reported to the MLS of Central Oregon last month, compared to 152 a year ago. The median sale price was $210,000, down 3.21% from June 2010. On a square foot basis however, prices increased 6.21% to $116.67/sf.

The number of closed short sales increased 23.33% and were more common last month than bank-owned foreclosure sales, which declined 32.5% from a year earlier. Short Sales accounted for 26.6% of all stick-built, single family homes in Bend last month, while foreclosures made up 19.4%.

May Sales Show More Stability In Bend Real Estate Market

2011-06-01T12:50:00.000-07:00

After dipping in April, home sales in Bend rebounded in May, increasing 8.7% from a year earlier. In addition, prices were nearly identical to May 2010.

162 home sales were reported to have closed last month, according to data from the MLS of Central Oregon. A year earlier, 149 houses were sold. In April, only 133 closed sales were reported.

The median sale price in May was $185,000 ($100.16/sf) versus $186,000 ($100.92/sf) for the same period in 2010. Though the price paid per square foot for May sales is down from April's $107.65/sf, it is slightly higher than the average paid through the first 4 months of the year, when the price per square foot was $99.06/sf.

Contact me today to find out what your house is worth in today's market or to get started on your search for a new home.

Would $20,000 Motivate You To Do A Short Sale?

2011-05-24T21:21:00.000-07:00

J.P. Morgan Chase has begun offering qualified homeowners tens of thousands of dollars as an incentive to short sell their homes. While details of the program are still murky, I've done quite a bit of research and talked with other agents I know around the country who also do a lot of short sales and here is what I've found to be consistent:

The loan in default was originally made by Washington Mutual (WAMU);
The loan is an "option ARM," "pick-a-payment," negative amortization loan;
The amounts offered vary from $10,000 to $35,000, apparently depending on the size of the loan;
Chase will send you a letter if you qualify; it's not something you can ask for;
The borrower/homeowner is paid the amount stated in the letter when the property sells and escrow closes.

All the letters I've seen are identical to the one below, except that the dollar amount changes.

It's hard to believe this is real, I know, but it is actually happening!

If you or someone you know receives one of these letters, don't throw it out, thinking there must be some catch. Call me! I'm specially trained at negotiating and handling short sales and can help you take advantage of this incredible opportunity!

Cold Weather Put A Chill In April Home Sales....Or Did It?

2011-05-04T11:56:00.000-07:00

Colder-than-average temperatures last month put a damper on annual garden blooms in Central Oregon. And at first glance, the chilly weather seems to have affected the pace of local home sales as well.

Data from the MLS of Central Oregon shows 133 homes on less than one acre of land were sold in April, down from 156 a year earlier. But was the weather the actual reason sales declined nearly 15%?

Another factor to consider is that the inventory of homes for sale is down about 25% from a year earlier. With more than 200 fewer houses on the market, the absorption rate went from about 19.4% a year ago to about 25% last month. In other words, while there was about 5 months worth of available housing inventory at this time last year, today there is only about 4 months.

My guess is that the weather won't be the only thing warming up; watch for price stability and, dare I say, maybe even price increases in some market segments, this summer!

Home Sales Up Over 9% In Bend

2011-04-05T12:08:00.000-07:00

Sales of stick-built houses on less than an acre were up more than 9% in Bend over the first three months of the year compared to a year earlier.

394 houses were reported sold to the MLS of Central Oregon in the first quarter. This is an increase of 33 from 2010.

The median price per square foot paid over the first 3 months of the year was $97.61, down from $102.04 from the same period a year ago. March saw a slight uptick in the price paid per square foot however, to $98.75/sf.

What Do Cash Sales Say About The Market?

2011-03-07T16:28:00.000-08:00

A blog I follow by Seth Godin recently had a post in which he asks

"Is something important because you measure it, or is it measured because it's important?" (click here to read Mr. Godin's blog)

The timing of his post was ironic since I've just begun tracking the number of houses in Bend selling for all cash. So is measuring cash sales and the percentage of the market they represent important?

My thought on breaking out the cash sales is that it would seem to indicate two things:

the ease or difficulty with which buyers are able to obtain purchase money loans and,
the level of interest among investors for buying properties in Bend.

And comparing the results by quarter over the last several years shows a big change.

For instance, in the 2nd quarter of 2007, near the peak of the market, just 8% of sales were for all cash. Contrast that with the first three months of 2010, when getting a loan was much more difficult; more than 1 in every 4 sales in the 1st quarter of last year was made to a buyer paying all cash (26.3%).

The percentage of deals being made by investors is more difficult to measure but my gut, and my own business experiences, seem to indicate that investors are taking advantage of today's prices, especially at the lower end of the market.

Take for example a $150,000 house with 3 bedrooms, 2.5 baths and 1767 square feet (the median size for a house at this price over the last 3 months). Figuring a net annual rental income of $10,500 ($1150 monthly rent less yearly taxes of $2800 and insurance of $500) yields an annual return of 7%, a great return in today's low interest rate environment.

However the cash buyer segment of the market breaks down (cash investors versus home buyers unable to qualify for a mortgage loan), the increase as a percentage of the overall market shows that more people are convinced that now is the time to buy real estate in the Bend area.

Let me know what you think the growth in cash sales indicates in the comments section below.

Cash Sales Account For Nearly 1 In 3 Home Sales In Bend

2011-03-04T11:40:00.000-08:00

The MLS of Central Oregon now provides data on the financing terms used for all closed sales, thanks to the efforts of yours truly. I had requested this search feature be added because of a perceived increase in all cash sales. And those perceptions proved true in February, though not necessarily by as much as I'd expected.

36 of the 111 sales of stick built houses on less than an acre in Bend last month were bought for all cash. I would think 32% of the total sales selling for cash would represent a big increase from a year ago. But data in the MLS shows that 30 of the 111 sold in February a year ago were also purchased with all cash (27%). Nevertheless, the additional 6 cash sales does represent a 20% increase from 2010.

I'll make it a point to regularly track cash sales and share the results here with you. Let me know if there are any other trends you'd be interested in and I'll try to provide them to you.

Does The Bend Housing Market Now Favor Sellers?

2011-03-02T12:31:00.000-08:00

The sales pace in February for single family homes on less than an acre would seem to indicate that sellers are now calling the shots in the Bend housing market.

There were 109 houses sold in February in Bend and 414 finished homes are currently listed for sale, resulting in less than 3.8 months of available inventory. A market has typically been considered "balanced," favoring neither buyers nor sellers, when there are about 6 months of inventory available. But with so many distressed properties and a double digit unemployment rate, how can this be true in Bend today?

One explanation I have is that banks are being very careful in controlling the number of foreclosed homes they list for sale in an effort to avoid flooding the market and driving prices even lower. And a quick analysis seems to bear that out.

As I write this, only 46 of the 414 currently active single family home listings in Bend are shown to be foreclosures. That's 11.1% of the market. But similar bank-owned properties accounted for 43% of homes sold last month!

So while only about 1 in 10 houses for sale in Bend are foreclosures, more than 4 of every 10 sold are bank-owned. Can and will this trend continue? Let me know your thoughts by replying in the comments section below.

Bend Housing Affordability Reaches Record High

2011-02-17T16:27:00.000-08:00

The 4th quarter of 2010 marked the most affordable time period for buying a home in the Bend region since the area was first included as a Metropolitan Statistical Area (MSA) at the beginning of 2006, according to an index released quarterly by the National Association of Home Builders and Wells Fargo.

The Housing Opportunity Index (HOI) showed that 78.2% of new and existing houses sold in the Bend area in the last quarter of 2010 were affordable to families earning the median income of $63,200. It marked just the third time (and 3rd straight quarter) that the index was above 70%.

Prior to the first quarter of 2009, the affordability index had never reached higher that 40.1% locally, and hit an all time low of 14.7% in Q1 2007, when the median sale price was $310,000, according to data from the association.

The Bend area was ranked the 133 most affordable MSA in the 4th quarter, out of 223 nationally. This is by far the highest ranking for our area since being designated as a MSA in 2006. To put this in perspective, we were ranked 199, 209, 211 and 207 in 2008, and never higher than 140, way back in the first quarter of 2006.

With interest rates on mortgage loans trending upward, now really is a fantastic time to buy a home. Call me today to get started!

Foreclosures Drag Bend Home Prices Lower

2011-02-16T15:58:00.000-08:00

The median price per square foot paid in Bend last year for stick built houses on less than one acre was $104.66. But this figure differs dramatically depending on the type of sale.

While the overall median price per square foot paid in 2010 was down 6.6% from a year earlier, the price per square foot for all "traditional" sales (not a foreclosure or short sale) decreased by less than half that, down just 3% from 2009.

And short sales, besides seeing a jump of more than 20% in the number of successful deals last year, had a 6.2% lower median price per square foot than those from a year earlier.

So where does this leave foreclosures? The median price per square foot paid for "bank owned" properties plunged 11.1% last year. At $87.32 per square foot, foreclosed houses sold for a whopping 30.9% discount from traditional sales!

While I'll agree that there is more perceived risk in buying a foreclosure (seller's are exempt from disclosing to a buyer any defects affecting the property, for example) and that many need at least minor repairs (paint and carpet, etc.), a discount of 31% seems a bit extreme.

As a result, and as many buyers and investors are discovering, foreclosures are providing some truly fantastic buys, even in today's choppy market.

Let me know your thoughts by posting your comments below.

Bend January Home Sales Highest Since 2007

2011-02-08T17:26:00.000-08:00

125 stick-built houses on less than one acre closed escrow last month, the highest total for January since 135 were sold in 2007.

Sales increased more than 21% from a year earlier, and nearly doubled the anemic volumes of both January 2009 and 2008, when just 69 and 75 houses were reported sold respectively.

The increase in sales is directly related to the decrease in prices. January's median sale price was $191,000, or $104.66 per square foot. This is down 6.6% from a year earlier and more than 41.5% from January 2007, when the median sale price for the month was $327,900, or $178.98 per square foot.

Combined with interest rates still near historical lows (the rate on a 30 year fixed is around 5%), now really is a fantastic time to buy property in Bend and throughout Central Oregon. Call me today to find out how you can take advantage of the great opportunities in today's market.