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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