Bend Real Estate Prices Jump

Home prices in Bend Oregon jumped last year.  A report released by the Federal Housing Finance Agency ranked the Bend-Redmond Metropolitan Statistical Area fourth in the nation for yearly home price increases.

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This report covers all of Deschutes County and reported the median price of homes sold increased 16.73 percent in the second quarter of the year compared with the second quarter of 2012.  The Federal Housing Finance Agency's quarterly house price index track median home price gains in each of the nearly 400 metropolitan areas in the United States.

Only three areas in the country had a higher year over year appre3ciation rate, Stockton California, Phoenix Arizona and Las Vegas Nevada.

Prices are still much lower than they were at the peak of the real estate bubble in 2006.  These reports are always in the past and don't necessarily predict the future.  I do see a bright future in the Bend real estate market but the activity from potential buyers has decrease about 25% in the last few months. 

My website averaged around 200 hits per day a couple of months ago and is now averaging around 150 hits.  That's a decrease in 25% in the interest from buyers nation wide.  Now is a good time to buy a home in Bend because our prices are still good and interest rates are near all time lows.  I look for prices to continue to increase as sales in other areas bring buyers to Central Oregon.

Home Prices and Sales Continute to Rise in Bend

Existing-home sales nationally rose in April but remain below underlying demand because of limited inventory and tight credit, according to the National Association of Realtors.  All regions are showing strong price gains from a year ago.  BEND OREGON HOMES FOR SALE

Existing-home sales in the West increased 1.7 percent to a pace of 1.20 million in April and are 4.3 percent above a year ago.  Given limited choices and multiple bidding, the median price in the West was $263,600, up 17.5 percent from April 2012.


Total existing-home sales, which are completed transactions that include single-family homes, town homes, condominiums and co-ops, increased 0.6 percent to a seasonally adjusted annual rate of 4.97 million in April from an upwardly revised 4.94 million in March.  Resale activity is 9.7 percent above the 4.53 million-unit level in April 2012.

Lawrence Yun, NAR chief economist, said the market is solidly recovering.  “The robust housing market recovery is occurring in spite of tight access to credit and limited inventory.  Without these frictions, existing-home sales easily would be well above the 5-million unit pace,” he said.  “Buyer traffic is 31 percent stronger than a year ago, but sales are running only about 10 percent higher.  It’s become quite clear that the only way to tame price growth to a manageable, healthy pace is higher levels of new home construction.”

Existing-home sales are at the highest pace since November 2009 when the market spiked to 5.44 million in response to the home buyer tax credit.  Total sales have been above year-ago levels for 22 consecutive months, while prices show 14 consecutive months of year-over-year price increases.

Total housing inventory at the end of April rose 11.9 percent, a seasonal increase to 2.16 million existing homes available for sale, which represents a 5.2-month supply at the current sales pace, compared with 4.7 months in March.  Listed inventory is 13.6 percent below a year ago, when there was a 6.6-month supply, with current availability tighter in the lower price ranges.

The national median existing-home price for all housing types was $192,800 in April, up 11.0 percent from April 2012.  The last time there were 14 consecutive months of year-over-year price increases was from April 2005 to May 2006.

Distressed homes – foreclosures and short sales – accounted for 18 percent of April sales, down from 21 percent in March and 28 percent in April 2012.  Eleven percent of April sales were foreclosures, and 7 percent were short sales.  Foreclosures sold for an average discount of 16 percent below market value in April, while short sales were discounted 14 percent.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 3.45 percent in April from 3.57 percent in March; it was 3.91 percent in April 2012.

The median time on market for all homes was 46 days in April, down sharply from 62 days in March, and is 45 percent faster than the 83 days on market in April 2012.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said market conditions have flipped in the past year.  “With homes selling in half the time it took to sell a year ago, buyers must be both decisive and prudent,” he said.  “Advice with contract terms and negotiations is where the expertise of a Realtor shines for both buyers and sellers.”

Short sales were on the market for a median of 73 days, while foreclosures typically sold in 43 days and non-distressed homes took 44 days.  Forty-four percent of all homes sold in April were on the market for less than a month, while only 8 percent were on the market for a year or longer.

First-time buyers accounted for 29 percent of purchases in April, compared with 30 percent in March and 35 percent in April 2012.

All-cash sales were at 32 percent of transactions in April, up from 30 percent in March; they were 29 percent in April 2012.  Individual investors, who account for most cash sales, purchased 19 percent of homes in April, unchanged from March; they were 20 percent in April 2012.

Single-family home sales rose 1.2 percent to a seasonally adjusted annual rate of 4.38 million in April from 4.33 million in March, and are 9.0 percent above the 4.02 million-unit level in April 2012.  The median existing single-family home price was $193,300 in April, which is 11.0 percent above a year ago.

Existing condominium and co-op sales declined 3.3 percent to an annualized rate of 590,000 units in April from 610,000 in March, but are 15.7 percent above the 510,000-unit pace a year ago.  The median existing condo price was $189,500 in April, up 11.3 percent from April 2012.

Regionally, existing-home sales in the Northeast rose 1.6 percent to an annual rate of 640,000 in April and are 4.9 percent above April 2012.  The median price in the Northeast was $245,100, up 5.1 percent from a year ago.

Existing-home sales in the Midwest fell 3.4 percent in April to a pace of 1.12 million but are 9.8 percent above a year ago.  The median price in the Midwest was $149,300, up 6.7 percent from April 2012.

In the South, existing-home sales rose 2.0 percent to an annual level of 2.01 million in April and are 14.9 percent above April 2012.  The median price in the South was $168,700, which is 10.6 percent above a year ago.

Home prices in Bend continue to rise as inventory continues to fall. The good news for buyers is that interest rates are still at all time lows.  Now is definitely time to buy real estate in Bend Oregon. Call us today and we will help you find your new home in Bend.

Bend Metro Home Prices Climbing

Median  home prices are rising in more metropolitan areas, but a lack of inventory – notably in lower price ranges – is limiting buyer choices in an increasing number of markets around the country, according to the latest quarterly report by the National Association of Realtors.  Listing inventory in the Bend Oregon Multiple Listing service is also down.

The median existing single-family home price rose in 110 out of 147 metropolitan statistical areas1 (MSAs) based on closings in the second quarter in comparison with same quarter in 2011; three areas were unchanged and 34 had price declines.  In the first quarter of 2012 there were 74 areas showing price gains from a year earlier, while in the second quarter of 2011 only 41 metros were up.

A separate breakout of income requirements to buy a home on a metro basis shows a wide range of conditions, but most buyers had ample income in the second quarter assuming they could meet mortgage credit standards.

Lawrence Yun, NAR chief economist, said home prices are set to rise in even more markets during upcoming quarters.  “It’s most encouraging to see a growing number of metro areas with rising median prices, which is improving the equity position of existing homeowners.  Inventory has been trending down and home builders are still under-producing in relation to growing demand,” he said.  “Some of the improvement in prices is due to a smaller share of sales in low price ranges where inventory is tight.”

The national median existing single-family home price was $181,500 in the second quarter, up 7.3 percent from $169,100 in the second quarter of 2011.  This is the strongest year-over-year increase since the first quarter of 2006 when the median price rose 9.4 percent, but even with the gain the current price is 20.1 percent below the record set in 2006.

The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed higher by a relatively small share of upper-end transactions.

Distressed homes accounted for 26 percent of second quarter sales, down from 33 percent a year ago.

Total existing-home sales,3 including single-family and condo, slipped 0.7 percent to a seasonally adjusted annual rate of 4.54 million in the second quarter from 4.57 million in the first quarter, but were 8.6 percent above the 4.18 million pace during the second quarter of 2011.

At the end of the second quarter there were 2.39 million existing homes available for sale, which is 24.4 percent below the close of the second quarter of 2011 when there were 3.16 million homes on the market.  There has been a steady downtrend since inventories set a record of 4.04 million in the summer of 2007.

According to Freddie Mac, the national commitment rate on a 30-year conventional fixed-rate mortgage averaged a record low 3.80 percent in the second quarter, down from 3.92 percent in the first quarter and 4.66 percent in the second quarter of 2011.

NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami, said buying power is historically high.  “Home buyers today can stay well within their means.  Record low mortgage interest rates and an over-correction in home prices have opened the door to many potential buyers,” he said.

“What we need now is additional inventory in the lower price ranges, so we hope banks will be releasing more foreclosure inventory into the market.  With gains apparent in all of the price measures, banks also should have more confidence in expanding mortgage credit to home buyers using safe but sensible standards,” Veissi said.

A breakout of incomes needed to purchase a median-priced existing single-family home by metro area shows the typical buyer has ample income.  Required income amounts are determined using several downpayment percentages, assuming a mortgage interest rate of 4 percent and 25 percent of gross income devoted to mortgage principal and interest.

The national median family income4 was $61,000 in the second quarter.  However, to purchase a home at the national median price, a buyer making a 5 percent downpayment would only need an income of $39,900.  With a 10 percent downpayment the required income is $37,800, while with 20 percent down the necessary income is $33,600.

 “Because the income required to buy to a typical home is very manageable by historical standards, any further decline in mortgage interest rates will have little effect.  Changes in underwriting guidelines would have a far greater impact,” Yun said.

In the condo sector, metro area condominium and cooperative prices – covering changes in 53 metro areas – showed the national median existing-condo price was $178,000 in the second quarter, up 7.5 percent from the second quarter of 2011.  Twenty-nine metros showed increases in their median condo price from a year ago and 24 areas had declines.

First-time buyers purchased 34 percent of all homes in the second quarter, compared with 33 percent in the first quarter and 35 percent in the second quarter of 2011.  Historically they are close to 40 percent of the market.

The share of all-cash home purchases was 29 percent in the second quarter, down from 32 percent in the first quarter; it was 30 percent in the second quarter of 2011.  Investors, who make up the bulk of cash purchasers and compete with first-time buyers, accounted for 19 percent of all transactions in the second quarter, down from 22 percent in the first quarter; they were 19 percent a year ago.

Regionally, existing-home sales in the Northeast slipped 0.6 percent in the second quarter but are 10.6 percent above the second quarter of 2011.  The median existing single-family home price in the Northeast declined 1.6 percent to $241,300 in the second quarter from a year ago.

In the Midwest, existing-home sales rose 1.3 percent in the second quarter and are 16.2 percent higher than a year ago.  The median existing single-family home price in the Midwest rose 7.5 percent to $149,400 in the second quarter from the same quarter in 2011.

Existing-home sales in the South increased 1.3 percent in the second quarter and are 7.7 percent above the second quarter of 2011.  The regional median existing single-family home price increased 7.4 percent to $163,200 in the second quarter from a year earlier.




It looks like the Bend Oregon real estate market is bottoming out and prices are starting to rise.  The median price was up 15% from July 2011 through July 2012.

 With tight inventory, existing-home sales in the West fell 5.3 percent in the second quarter but are 3.0 percent higher than a year ago.  The median existing single-family home price in the West jumped 13.4 percent to $234,000 in the second quarter from the second quarter of 2011.  “Inventory is pretty tight in all prices ranges in most of the West except for the upper end, which accounts for the sharp price gain,” Yun noted.

To search the Bend Oregon real estate market for the home of your dreams go to Bend Homes for Sale.