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Bend Home Prices Are Back To Pre-Recession Levels

bend oregon home prices

 

BEND, Ore. – There’s no denying that the recent housing market collapse was difficult for everyone, especially homeowners in Bend Oregon but thankfully home prices here are now back to pre-recession levels, making now the absolute perfect time for any homeowner to sell thanks to the huge demand for homes in Bend from pre-approved home buyers.

Short Supply and High Demand Has Driven Prices

Home prices in Bend are now on par, at least in nominal terms, with the previous peak in 2007.

The median home price reached $396,000 in March, according to the Beacon Report, produced by Donnie Montagner of Beacon Appraisal Group in Redmond. The Beacon Report looks at single-family homes on 1-acre or smaller lots and includes Tumalo and Alfalfa in the Bend market. The median price of $396,000 hadn’t been posted since May 2007, before the collapse of a speculative bubble and the Great Recession eroded values by 58 percent.

The median price trough of $166,000 came in November 2011.

Economists and real estate professionals point out the current market conditions are nothing like a decade ago, but reaching that high-water mark nevertheless begs the question: Where does Bend real estate go from here?

“I don’t have any reason to believe the previous peak represents a barrier, that there’s something magical about hitting that previous peak that prevents it from going further,” University of Oregon economics professor Tim Duy said. Duy is also the author of the Central Oregon Business Index.

The recent median price doesn’t account for 10 years of inflation, Duy said. The real, or inflation-adjusted, home price index for the Bend-Redmond area is still about 18 percent below its previous peak, which came in fourth quarter 2006, he said. The home-price index tracks same-property sales over time, so it’s more accurate than Realtor-generated data, he said.

“What is most likely to derail the housing market is when we get a recession,” Duy said. “That is most likely to stifle or slow the in-migration of new residents.”

The current market is driven by short supply, as builders have yet to catch up with Oregon’s population growth, plus strong demand from buyers who are either earning enough money to afford a house, or have sold one in a more expensive market, said Josh Lehner, economist for the Oregon Office of Economic Analysis.

The upward trend in prices won’t change until supply increases or demand slacks off, economists said. The pace of construction in both houses and apartments is picking up, which makes the outlook “somewhat bright,” Lehner said. – Click here to read more!

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250-home subdivision planned in southeast Bend

Bend Oregon Real Estate

With the spring home buying season in full swing many home buyers in Bend Oregon and Deschutes County are faced with the tough realty that lack of home inventory means fewer options for them to choose from thankfully, the lack of home inventory could change in the near future if a proposal to build a 250-home subdivision is approved for southeast Bend.

The Right Time For More Development

The J L Ward Co., a Bend development firm behind a number of large subdivisions, plans to build a new neighborhood near 15th Street, according to city documents. The company has put together a master plan, which is a detailed, long-term plan that shows exactly what will be built and how it will affect surrounding neighborhoods, sewers and roads.

During Wednesday’s city council meeting, Bend residents will have a chance to weigh in on the proposed development. The city council will also have the option to make initial approval on the plan, which kick-starts the development process, according to city documents.

“We do recognize there’s a need for housing especially in this part of town,” said Dean Wise, project manager for the J L Ward Co. “And we’re doing our best to meet that need.”

The plan calls for up to 250 residential lots, one commercial lot as well as neighborhood parks and trail networks on 48 acres off of Country Club Road. Wise said the development will most likely be built in phases — about 30 to 35 homes at a time.

But before that can happen, the J L Ward Co. will have to build sewers, waterlines and roads to service the new homes. The company will prioritize which phases to build first depending on where it would be the easiest and cheapest to build infrastructure, said Wise.

Although Wise and his team are itching to start moving dirt, it could take several years to build out the entire 250 homes, said Wise.

“We’re kind of in a holding pattern until we have an absolute from the city,” said Wise.

After the plan is approved by councilors, the J L Ward Co. will have to submit building plans, a process that could take months, said Colin Stephens, a Bend city planner.

The J L Ward Co.’s plan to build a new neighborhood comes as the state recently approved the city’s plan to expand by 2,380 acres, which means developers can eventually build houses and businesses on currently rural properties. The J L Ward Co. is one of only several developers who plan to build new neighborhoods and business centers in the near future.

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Deshutes County Is Among Nations Fastest Growing Counties

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Thanks to a recent article from bendbullentin.com and data from the U.S. Census Bureau we know that Deschutes and Crook Counties are among some of the fastest growing counties in the United States.

The growth that we’ve experienced here over the last two years can be attributed to affordable home prices (when compared to California), low mortgage interest rates and the better quality of life that cities like Bend, Redmond and the surrounding area offers residents when compared to Portland.

Encouraging Statistics

Deschutes and Crook counties are among the fastest-growing communities in the nation, according to new population estimates released Thursday by the U.S. Census Bureau.

The Bend-Redmond metropolitan area, consisting of Deschutes County, is listed as the third-fastest-growing Metropolitan Statistical Area from July 1, 2015, to July 1, 2016. The local area’s population grew from an estimated 174,942 to 181,307, a 3.6 percent increase.

Only The Villages in Florida and the Myrtle Beach area in South and North Carolina grew faster.

Crook County ranks eighth among the fastest-growing counties in the country with a population of at least 10,000. The county saw its population increase from an estimated 21,647 in July 2015 to 22,570 in July 2016, a 4.26 percent increase.

Redmond Mayor George Endicott said the census data is consistent with the type of growth he sees in his city.

In 2016, Redmond approved 10 new housing developments, which will create almost a thousand new homes. The developments range from subdivisions with single-family lots to apartment complexes with multifamily units.

“It’s growing. We are seeing it,” Endicott said. “The builders wouldn’t be building if the demand wasn’t there.”

Endicott credits the city’s planning over the years to make more land available.

“Redmond is really well-postured for growth. All this land is here and approved,” Endicott said. “We do have land, and I think that is some of the reason our houses end up being less expensive than Bend, by comparison.”

Bend City Manager Eric King said he is not surprised by the census data, especially with the city experiencing its own amount of building activity each year.

King said the city is working toward returning to prerecession growth. Before 2006, King said, the city was processing about 2,400 single-family building permits each year. The city processed about 1,000 last year.

“We have always been in somewhat of a growth mode,” King said. “We are not at that frenzied pace we were in 2006.”

Click here to learn more about growth in Deschutes County!

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To get started with searching for homes in Deschutes County, or to get started with selling your home, contact the Deb Tebbs Group today by calling us at (541) 323-4823 or click here to connect with us online. 

 

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