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Category: Bend Oregon Real Estate

Bend Home Prices Are Back To Pre-Recession Levels

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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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Will more Bend Oregon homeowners sell after this winter?

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There’s no denying the winter of 2017 will be one of the toughest winters on record and like the winter of 1993 many people are wondering if some Bend Oregon homeowners will decide to sell their homes this year once spring arrives.

The answer to this question depends on whom you ask but the general consensus among some long time residents and Real Estate agents is that we may see more listings this spring.

More Inventory Coming Soon?

Old hands in real estate say that historic winter of 1993 pushed many people to pack up and leave, and they expect that the phenomenon will repeat this year.

“I do remember one of my sellers leaving a message when they were finally able to get out of their driveway,” said Carolyn Bostwick, president of the Central Oregon Association of Realtors and managing principal broker at Windermere Central Oregon Real Estate. “‘The key’s under the mat. We’ll call you when we get back to California.’”

Kevin Cole, who moved here in the fall from Salem, has heard similar stories from his co-workers at Mid Oregon Credit Union, where he is chief financial officer. The notion of more homes hitting the market is encouraging to him because he’ll be shopping for a house in the spring, and he knows the competition will be intense.

But there’s no way to verify the oft-repeated wisdom that more homes hit the market after a harsh winter.

The Central Oregon Association of Realtors doesn’t keep listings of data going back to the 1990s. The association does show the number of homes sold jumped 21 percent, from 662 in 1992 to 801 in 1993. That was likely because of an increase in new construction, plus a big wave of migration from California, said Josh Lehner, economist with the Oregon Office of Economic Analysis.

“The demand to live in Bend and Oregon more broadly is very strong,” Lehner said. “The soon-to-be listed homes will sell.”

Bend could use some snow-fatigued sellers to bump up its housing inventory. In December, Bend had a two-month supply of single-family home listings, according to inventory data compiled by Beacon Appraisal Group owner Donnie Montagner. Inventory levels are usually at their lowest in winter, but Bend had less than a three-month supply throughout 2016. The highest point was 2.8 months from August through October.

A veteran of the moving business in Bend, Nancy Lynch, owner of Bend Storage & Transfer, said she “absolutely” expects an influx of calls for outbound moves this spring. That was the pattern in 1993, she recalled.

“As soon as the snow stopped, all the for-sale signs were up,” she said. “It was a busy, busy spring the following spring.”

Dana Bratton, owner of Bratton Appraisal Group, said home builders also changed their behavior after the winter of 1993. Previously there was no rush to make sure buildings were enclosed before winter, and construction continued throughout the season.

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To learn more about the Bend Oregon Real Estate market, 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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Bend Oregon Real Estate Market – What To Expect For 2017

 

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By The Deb Tebbs Group

BEND, Ore. – Planning on buying or selling a home in the Bend Oregon Real Estate Market during 2017? If so, you’ve come to the right place! In this article we will share with you several things you can expect from the local Real Estate market this year that will affect you if you’ve been thinking of buying or selling a home.

Rapid Growth Predicted For The 2017 Bend Oregon Real Estate Market

Over the last year we’ve seen rapid growth in the Bend Oregon Real Estate Market because more people continues to move to Bend from other cities in Oregon and the United States. When you factor in the new arrivals combined with a shortage of homes in Bend, home prices have continued increasing especially in the lower end of the real estate market where properties that are priced at $200,000 or below will get purchased very quickly.

Due to the rapid growth of the Bend Oregon Real Estate Market, many towns in the surrounding Deschutes County area have seen their home prices experience rapid growth as well, especially Redmond, Prineville, Sisters and La Pine where prices increased by 15 percent or more between 2015 and 2016.

Still Affordable When Compared To Seattle And San Francisco

The median home price in Bend reached $385,000 in September 2016, homes here are still affordable when compared to other cities, especially Seattle and San Francisco where the median home prices in those cities are $612,400 and $1,132,300.

Although some economists feel that we could see a slowdown in the Bend Oregon Real Estate market in 2017 due to higher mortgage interest rates, those rate increases could be offset by fast wage growth this year.

While a number of nonresidential projects have broken ground in Bend, Fratzke said most of them are government buildings or hotels. The only large-scale office building going up in Bend is Crane Shed Commons, a 50,000-square-foot building containing a mix of flexible office and creative space. The building, on SW Industrial Way, is slated to be completed in 2017. Howard Friedman, partner and principal broker at Compass Commercial, said the majority of space in the building is already under lease, and added that the building is leasing at around $2.25 per foot. – Source 

Hire A Bend Oregon Realtor®

To get started with buying or selling a home in the Bend Oregon Real Estate Market contact the Deb Tebbs Group by calling us at (541) 323-4823 or click here to connect with us online.

 

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