Median sales price continues rise, but is a ceiling near?

By Jason Boone

The median sales price of homes in Bend has increased every month this year.

The median sales price of homes in Bend has increased every month this year.

The median price of homes sold in Bend, Oregon, in May was the second-highest in the last 10 years, but there are signs that prices might be nearing or at a peak.

At $374,000, the median sales price in May 2016 trailed only that of May 2007 ($396,250) in the time span covered by the Skjersaa Group’s data, which dates to the start of 2007. May’s figures represent an increase of 2.8 percent from April’s median and marked the fourth month in a row the median sales price has increased.

May’s sales data pushed the year-to-date median sales price to $349,500.

Of the 243 homes sold in May, nearly one-fourth (60) were priced at $525,100 or more, which contributed to the rise in the median price. The percentage of May’s home sales priced in that range was similar to the rate in May 2007 (31 of 118 homes, 26 percent) and was a high for 2016.

Housing inventory in May declined from a record-low 2.1 months in April still further, to 1.7 months, even as active listings rose to 462 homes, a high for 2016. Months of inventory estimates how long it would take to sell all of the homes for sale if no new properties went to market. Six months is commonly used as the boundary separating a seller’s market and a buyer’s market.

Among the other figures from May:

• The number of pending sales at the end of the month numbered 266 homes, fewer than the previous two months.

• The average days on market was 114 days, the lowest since the 109 days in October 2015.

• Nearly one-fourth of the active listings in May had a price reduction. That is the most for any month this year.

In the last three years, the number of homes sold in June was no lower than the second-most of any month that calendar year. The robust number of pending sales and the low inventory at the end of May 2016 indicate another busy month probably lies ahead.

Still, the reductions in price last month indicate the market might be reaching a zenith with pricing. Current conditions make it imperative for sellers entering the market to price their homes exceptionally well to garner the attention of buyers as competition becomes greater.

My experience in the Bend market can help you market your home in our current conditions, or if you are looking to buy a home, I can help you find the right home at the right price.

To learn more about Bend home prices, get started with listing your Bend home, or to view area homes, contact me at (541) 383-1426, or Bend Property Search to connect with me through my website.

Inventory down, median price up in April

By Jason Boone

An already tight housing market in Bend, Oregon, got tighter in April.

Through the end of April, the inventory of houses for sale in the Bend market was 2.1 months, according to data compiled by the Skjersaa Group. The inventory of 2.1 months is the lowest in the time period covered by the Skjersaa Group’s data, which dates to the start of 2007.

Months of inventory estimates how long it would take to sell all of the homes for sale if no new properties went to market. Six months is commonly used as the dividing line between a seller’s market and a buyer’s market.

April’s 2.1 months of inventory is a decline from 2.3 months in March, which tied June 2013 for the lowest inventory in the Skjersaa Group’s data set. In April of the previous year, the Bend market had an inventory of 3.1 months.

Pending sales headed into May indicate another busy month of home sales in the Bend area.

Pending sales headed into May indicate another busy month of home sales in the Bend area.

Pending home sales in April 2016 also reflect the tightening market. Last month had 323 pending sales, which exceeds any other month for which we have data. The only other months since the start of 2007 in which pending sales exceeded 300 were April 2015 (301) and May 2015 (310). The number of pending sales in April 2016 promises continued robust sales figures for this month.

The dwindling inventory apparently played a hand in the rise of the median price of sold homes. April’s median sales price in the Bend market was $363,650. That’s the third-highest median sales price in the data set, and the highest since May 2007, when the median price was $396,250. The inventory in May 2007, however, was 15.2 months, more than seven times as great as the April 2016 inventory.

Comparison to the previous month and the previous year demonstrate how the market has moved. April’s median sales price is 5.1 percent higher than the median in March of this year ($346,000) and 17.3 percent higher than in April 2015 ($309,990).

By volume of sales, April was the busiest month of this calendar year with 205 closed sales. That’s barely more than were sold in April 2015, when 203 home sales closed. But the number of homes for sale last month in the Bend market was 360, compared with 424 in April 215. Expressed another way, two more homes were sold last month than in April 2015, even though 15 percent fewer homes were on the market in April 2016 compared with a year ago.

As of May 1, 407 homes in the Bend market were for sale, the most for any month this year.

A data point that aligns with the increase in the median sales price is the number of homes sold for more than $425,100. There were 69 such sales last month, the most since 72 in that price range were sold in September 2015. As a percentage of all home sales, 34 percent of April’s sales were in this price range, whereas 32 percent of the sales last September were for $425,100 or more.

And, not unexpectedly based on the above statistic, fewer houses in the range of $225,100 to $325,000 were sold in April. Thirty-three percent of April 2016’s sales were in that range. That’s down a little from March of this year (37 percent) and down more from April 2015 (46 percent).

The aggregated data from a month of sales and listings, of course, can’t determine the needs of an individual buyer or seller. I can help navigate the market and find the perfect Bend home, or market your home in this environment.

To learn more about Bend home prices, get started with listing your Bend home, or to view area homes, contact me at (541) 383-1426, or visit Bend Property Search to connect with me through my website.

January another strong month for Bend home sales

Bend Oregon Home Price information

By Jason Boone

So much for freezing the Bend real estate market this winter. In fact, the local market pretty much started 2016 in the same way it ended 2015: with a record-breaking month.

According to data recently compiled by the Skjersaa Group, 155 homes were sold through January. That might not sound like much, but it is actually a remarkable number for this time of year. Looking at data that goes back to January 2007, the previous high for the first month of the year came in 2015, when 120 homes were sold. Otherwise, only one other January in the last 10 years has topped 100 homes sold.

The January report offers other evidence that the Bend real estate market remains robust. A healthy 170 sales were pending to begin February, which is up from 139 to end December. And 178 new listings were posted in January, up from 135 in December and 164 in January 2015.

Jan 2016 graphic

Meanwhile, the months of inventory on the market has remained well below four months.

Some interesting data from the Skjersaa Group’s January report:

  • The January median sales price — the midpoint in which half the homes in Bend sold for more and half for less — landed at $317,450. That is down from $325,275 in December, and a typical drop from December to January.
  • In January, there were 395 active listings, down from 461 in December.
  • January’s 3.4 months of inventory is up from 3.1 months in December. Roughly six months of inventory is considered a balanced market between sellers and buyers.
  • There were only 58 price reductions in January, which is the lowest in a January since 2013.
  • The average number of days homes spent on the market in January was 138 days, the lowest January since at least 2006.
  • Homes priced between $425,100-$525,000 spent just 101 days on the market, the shortest of any price range.
  • Homes priced between $325,100-$424,000 accounted for 74 of the 155 homes sold in January.

This all comes on the heels of summer-like performance of 214 homes sold in December, which was far and away the best year-ending month in at least 10 years. That put a cap on what was a truly remarkable year in the Bend real estate market.

Something else to ponder is what this means for the rest of the year. Like most areas that enjoy all four seasons, the pace of the Bend market tends to follow the weather. That means summer typically brings the hottest sales. For instance, June 2015 saw 259 sales alone, the highest tally in a month in more than a decade.

The January numbers of relatively low inventory and high demand suggests that Bend will remain a seller’s market for the time being. And that will likely lead to continued upward pressure on home values.

If the brisk pace shown the last two months portends to a similarly hot summer, 2016 could very well bring another banner year in Bend.

But let’s not put the cart before the horse just yet.

Knowing how the data applies to each buyer or seller takes expertise. I can help navigate the market and find the perfect Bend, Oregon home.

To learn more about Bend home prices, get started with listing your Bend home, or to view area homes contact me call (541) 383-1426, or visit Bend Property Search to connect with me through my website.

2015 ends with a banner month of home sales in Bend

mortgage interest ratesBy Jason Boone

What was already an impressive year in 2015 ended on a particular high note in December. In fact, an almost shocking number of homes were sold during the last month of 2015, pushing the year into record-breaking territory.

How good of a month was it?

Through the month of December 214 homes were sold, significantly more than the 141 homes that sold in November and the 169 homes that sold in December 2014, according to data recently compiled by the Skjersaa Group. The December pace was closer to the busy months surrounding summer (from May through September monthly sales landed between 225 homes to 259 months) than a typical winter month.

The strong December might actually portend to another big year in 2016, even if there are hunches the end of the year might bring a moderation of the market.

One key piece of data from the report is that the year ended with just 3.1 months of inventory, which is well down from the 5.2 months that were live in November. The tally is the lowest since just 2.4 months of inventory sat on the market in June 2015 and more than a full month less of inventory than in December 2014.

The median price, the midpoint in which half the homes in Bend sold for more and half for less, was $325,275 in December. That is up from $321,275 in November and $290,000 in December 2014. And the sales price of each home was on average 99 percent of listing price, suggesting pricing power for sellers.

Some of the December spike might be explained by the Federal Reserve’s decision to hike interests rates, which may have pushed some potential buyers off the fence. The rental market remains tight. And Bend remains a desirable choice for relocation, making it among the fastest-growing metropolitan areas in the nation.

Regardless of the explanation, it appears that Bend’s real estate market remains strong as we begin 2016.

Some more interesting year-end data from the Skjersaa Group report:

  • In 2015, there were 2,370 homes sold in Bend, the most since at least 2006. To compare, 2,145 homes sold in 2014 and 2,171 sold in 2013.
  • The annual median price was $327,500. That is up from $290,000 in 2014.
  • The average days on market in 2015 was 122 days, which is down from 130 days in 2014 and 127 days in 2013.
  • The average inventory was just three months in 2015, which is down significantly from five months in 2014 and four months in 2013. In fact, only twice (February and November) did the monthly inventory rise above four months.
  • In all, an average of 198 homes sold per month in Bend, which is up from 179 homes a month in 2014 and 151 in 2013.

Knowing how the data applies to each buyer or seller takes expertise. I can help navigate the market and find the perfect Bend, Oregon home.

To learn more about Bend home prices, get started with listing your Bend home, or to view area homes contact me call (541) 383-1426, or visit Bend Property Search to connect with me through my website.

Why Should You Stage Your Bend Oregon Home Before listing it?

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By Jason Boone

So you’re planning on selling your Bend Oregon Home, but are you planning on staging it before you sell it?

In this post I will share with three reasons why staging your Bend Oregon home is vital to the success of getting your home sold.

Reason 1 – Staging Prepares Your Home for Sale

Although many people will sell their homes “as is”, the reality is that you can sell your Bend Oregon Home for up to $40,000 more than your asking price if you stage your home before selling it.

Staging your home will help you to prepare it as a “product” for sale and best of all enable you to remove the personal association you may have created with your home over the years.

Reason 2 – Staging Helps You to De-Clutter Your Home

One of the biggest problems many homeowners face when they list their homes is that clutter can actually turn off a home buyer and cause them to lose interest in a home, no matter if it would be the right home for them or not.

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By staging your home for sale you will have to deal with cleaning up the clutter because the goal with staging is also to create more space since that’s what buyers are searching for.

Reason 3 – Staging Will Help Your Realtor Sell Your Bend Oregon Home

Last of all, but most important, when you stage your Bend Oregon Home for sale you will be doing your part to help your Bend Oregon Real Estate agent sell our home since your agent won’t have to make any excuses or explanations for the shape that your home is in.

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For more tips on how to sell your Bend Oregon Home, or to view the latest listings, contact me, Jason Boone, Principal Broker with Duke Warner Realty | Skjersaa Group by CLICKING HERE or calling me at (541) 383-1426.

Stated Income Is Back and This Makes NOW A Perfect Time to Buy A Home

stated income home loan

By Jason Boone

If you remember the early 2000’s, a stated income mortgage loan was commonplace as many people in Bend and across the United States were able to get mortgage loans based on their stated income alone and now stated income mortgage loans are finally back.

Stated Income Mortgage Loan Definition

Stated income is defined by Wikipedia as: “A mortgage where the lender does not verify the borrower’s income by looking at their pay stubs, W-2 (employee income) forms, income tax returns, or other records. Instead, borrowers are simply asked to state their income, and taken at their word.”

How to Qualify For a Stated Income Loan

To qualify for a stated income loan you must be able to show that you have enough money in the bank to pay between six and twelve mortgage payments plus you will also be required to show 12 months-worth of bank statements, paycheck stubs and other documentation which verifies that you have the ability to repay your mortgage loan.

You can come in with a credit score of 620 when you apply for a stated income loan but a credit score of 700 or higher is always recommended.

It’s also important to know that with a stated income mortgage loan you will also be paying up to three quarters of a percentage point more for your mortgage loan than you would with a traditional mortgage loan.

Buy In Bend

To get started with buying a Bend Oregon home contact me, Jason Boone, Principal Broker with the Skjersaa Group | Duke Warner Realty by calling me at (541) 383-1426 or by clicking here to connect with me through my website.

The Skjersaa Group pledges at least 1% of revenue to the preservation and restoration of the natural environment