Brisk sales in March lead to tighter market in Bend

Home AppreciationBy Jason Boone

Buyers are off to a brisk start to the year apparently, leaving an almost historically tight market for single-family homes in Bend.

How tight is the market you ask? Through the month of March, the Bend market offered up about 2.3 months of inventory, according to data recently compiled by the Skjersaa Group. That is tied for the lowest mark in at least the last 10 years, equaling the 2.3 month of inventory in June 2013.

Part of the reason why the market is tight is that buyers appear to be getting a jump on the buying season. Bend saw 185 sales in March, up from 125 in February and 164 in March 2015. But sellers are moving a bit slower, though. In March, there were 383 active listings, the exact number as in February and down from 401 active listings in March 2015.

The math is relatively simple: a brisk sales pace coupled with fewer active listings equals a tighter market. And a tight market, not surprisingly, generally means an uptick in prices.

March sales

True to form, March delivered.

The March median sales price — the midpoint in which half the homes in Bend sold for more and half for less — landed at $346,000. That is up from $331,660 in February. Through the first three months, the year-to-date median stands at $333,045, up from $322,800 in the first quarter of 2015.

And as the weather warms, there appears no end in sight to the fast pace. March ended with 276 sales pending, which is on par with the 278 pending sales in March 2015. Only one other March in the last 10 years has topped more than 200 pending sales (209 in March 2013).

Some more interesting data from the Skjersaa Group’s March report:

  • Interestingly, and perhaps counterintuitively, the average sales price was 95 percent of the average list price. That is the lowest average sales-price-to-list-price ratio since 2011 and breaks a four-month streak of a ratio of 99 percent. Most likely that is statistical noise, but it is worth watching in the coming months.
  • Buyers in the market for a homes priced at $625,000 or higher should find a nice array of choices. That price range offered up 120 active listings on April 1, the most of any price range. Predictably, the next heftiest market is with homes priced between $325,000 and $425,000. That range began April with 85 active listings.
  • The average days on market for a home was 130 days, a drop from 142 days in February. The average days on market was in line with March 2015, which boasted an average of 132 days.
  • Homes priced between $225,100 and $325,000 represented 69 of March’s 185 sales, easily the highest-selling price range. Forty-four homes sold between $325,100 and $425,000, the second-highest range.
  • The market for homes priced at $225,000 or less in Bend is almost nonexistent. In March, there were just eight homes sold in that range, and the month brought just five new listings in that price bracket.

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.

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.

BEND OREGON REAL ESTATE – FIRST TIME HOME BUYER TIPS

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By Jason Boone

In the Real Estate world, May 1st typically is symbolic of the start of the Spring Season since more people will be thinking about buying Bend Oregon Real Estate, or selling.

If you plan on buying a home in Bend Oregon here is an “action plan”, or things you need to do if you’re a first time home buyer.

#1 – Check Your Credit Score

Before visiting a mortgage lender it’s a good idea for you to check your credit score since this will enable you to know without a doubt if your credit score is ready for you to apply for a mortgage loan or not.

Tip – When checking your credit score you might find old bills which went to collections on your credit report, or items that are just downright false; it’s best to deal with these items BEFORE you apply for a mortgage loan since this will help you to boost your credit score and get the mortgage loan you deserve.

#2 – Get Pre-Approved For a Mortgage Loan

Instead of getting pre-qualified for a mortgage loan (like everyone else), it’s best to get pre-approved for a mortgage since pre-approval means you will know the exact amount of money you can spend and this will help your agent find a home within your budget.

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#3 – Decide How Much Money You Want To Spend Monthly on a Home

Home ownership doesn’t just encompass your monthly mortgage payment, you have to also think about your principal amount, interest, property taxes and homeowners insurance which you may have to pay.

Besides the regular expenses with owning a home, you will still also have to pay your bills and cost of living so it’s best to think about what you can REALLY afford before you begin shopping for a home.

Buy Bend Oregon Real Estate

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

Home Prices Continue Rising in Bend Oregon

jason boone bend oregon realtor

The Bend Oregon Real Estate Market has been having a great year and home values continue to rise to their highest levels that they’ve reached in the last five years.

As of September 2013 the median home price in Bend was $298,000 and that’s up $33,000 from $265,000 in the month of August.

These numbers are encouraging because the last time we saw a rise in home values like this it was June 2008 but what’s even better than that is that home values have risen month-over-month, for the last five months and this pattern of growth hasn’t been seen since 2006.

What Is Your Home Pricing Strategy?

If you plan on selling your Bend Oregon home soon, have you decided on a home pricing strategy yet?

Price At Market Value – Let’s say that your home is valued at $250,000, one of the best ways to price your home is to price it at its current market value because, this will enable you to find out quickly if it’s overpriced based on the feedback and offers from potential home buyers.

Price Below Market Value – One effective way to price your Bend Oregon home is to price it slightly below market value. For example: if your home is worth $250,000 you could price it at $219,000. This strategy will enable you to let the market determine just what its worth and potentially get you multiple offers.

Price Above Market Value – Sometimes sellers may be inclined to price their homes above market value. For example: Your home is worth $250,000, but you decide to price it at $270,000, or higher. Although this strategy might work during a sellers-market, it might not always work especially when we are in a buyers’ market.

Time To Sell Now Or Wait?

Even though it’s Fall 2014 and winter is right around the corner in Bend there’s never a better time than now to sell your home since homeowners traditionally will hold off on listing their homes during the fall months and this means less competition from other homeowners in Bend who are looking to sell their homes.

For more information about the Bend Oregon Real Estate market, or to view the latest homes for sale in the area, contact me today by calling (541) 383-1426.

Freddie Mac and Fannie Mae News

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This summer when the Federal Government announced that they were no longer going to buy mortgage backed securities that shot up mortgage interest rates and sent the Real Estate market into a temporary state of shock until the Fed backed off on their plans.

Last week the Federal Government announced that Freddie Mac and Fannie Mae loan limits are not going to be reduced for at least another six months and that any reduction that the Fed makes in loan limits won’t occur until they announce it at least six months in advance, so the Real Estate and financial markets will have at least six months to prepare.

Badly Needed

Everyone knows that the only real way the Bend Oregon Real Estate, and Nationwide Real Estate can truly recover is if the Federal Government begins to wean itself from involvement with Fannie Mae and Freddie Mac, but the Federal Housing Finance Agency (FHFA) also knows that it’s not something that cannot be done overnight, especially if the Government wants to avoid any economic disruption like the disruption that occurred this summer.

Proceeding with Caution

Edward DeMarco, the Acting Director of the Federal Housing Finance Agency said “While it will get more time to prepare for any changes, a decision on whether to lower the limits, and by how much, would still be made in late November”.

As of October 2013 Fannie Mae and Freddie Mac can’t back loans greater than $417,000 across the United States although in some markets they can back loans as high as $625,500, especially in wealthier parts of the United States like: Hawaii, California, New York and Washington DC.

Mixed Reaction

Since mid-2008 when the mortgage caps were raised, to keep our mortgage market going across the United States, more people were able to own a piece of the Bend Oregon Real Estate Market and a larger number of Americans than in the last 40 years have been able to buy homes because, mortgage interest rates and home values have been so affordable but once the caps are lowered many investors and economists in the USA are concerned that some homebuyers will be pushed out of the Real Estate market since rising mortgage costs might make it unaffordable for many home buyers to buy homes.

What are your thoughts on this news? Feel free to leave me a comment below.

For more information on what to expect in the Bend Oregon Real Estate market in the next 12 months or to view the latest Bend Oregon homes for sale, contact me today by calling (541) 383-1426.

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