Bend Oregon Real Estate Investments

Bend Oregon has seen some of the fastest growth in the nation in the last few years. The real estate market has cooled down some now but there are still some opportunities out there for the smart investor. The days of buying a house, condo or land and then "flipping" it are over.

In my mind the good investments are going to be centered around the City of Bend's new Juniper Ridge development in North Bend. They are planning on a mixed use zoning and have already annexed 500 acres into the city limits. Most of this first phase will be light industrial (IL) zoning and research and Development. But the second phase will have a new four year college campus, some commercial and residential.

This land is all owned by the city of Bend but there are several hundred acres of private property around the development that are for sale now or will be on the market shortly. These are the properties that a smart investor can make some money on.

Most of this land is currently zoned for low density use. However, the city is in the process of rezoning most of this property and bringing it into the city limits. A new sewer main is proposed to border the south end of Juniper Ridge and run east to the sewer plant.

The city is supposed to make their proposed changes public on March 26, 2007. This is two years later than what was supposed to happen. So this date is not etched in stone. However, it should be made public soon.

The smart investor could be buying some of the surrounding property now and possibly doubling their money in a couple of years.

Now is the Time to Buy

There are a lot of good buys on the market today! River front properties, new homes and used homes that people have to sell. Some sellers won't negotiate much but some will. Time to start writing offers.

Bend Home Prices are Falling

Prices of Bend area homes have actually been falling for the past several months. It's just taken the "median priced" statistic method a while to start showing it. There are several factors that have falsely shown prices to remain high. One is that new homes are larger square footages. Another is that there have been fewer less expensive homes (glut) selling. So that shows a higher median priced home. Prices will continue to fall this spring so it's a good time to be shopping around for a good buy. Here's a great buy on Bend's Westside on 2.5 acres.

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Bend Oregon Real Estate

Investments near Juniper Ridge

The City of Bend is supposed to come forth with their proposed move of the Urban Growth Boundry (UGB) and the city limits on March 26, 2007. At the same time they will be proposing zone changes for the new properties along with their Juniper Ridge project.

I have several properties listed now that should be brought into the city with the zoning change. Most of these properties are listed around $250,000 an acre. One property abuts the new Juniper Ridge project. The proposed sewer main is to be installed within 660 ft. of this property. Looks like a great investment to me!

There are some great investment opportunities for the astute invester or developer. This would be a geat place to put some 1031 money for 1-3 years.

Prices still rising!

I did a market analysis yesterday. I compared the median sales prices for January 2007 vs. January 2006. Prices per square foot were up just under 10%. It looks like there are going to be a good number of homes coming on the market this spring. Looks like a good time to buy.

Bend Oregon Real Estate - A Buyer's Market

Real estate prices in Bend have been going up steadily over the last five years. According to statistics from the Multiple Listing Service of Central Oregon home prices have almost doubled in the last four years. The MLS shows that the number of sales of homes in the third quarter of 2006 was down 19.32%. However the average sales price was up 25.09% during the same period. These statistics can be misleading because of the lag time of the new home sales and the final closing date.

Some new homes are put under contact before the foundation is poured. This can leave 6 to 12 months before the home is completed and closed. All statistics from the MLS are based on the "Sold" date. Therefore these statistics are skewed. The sale is not reflected properly.

Prices are actually coming down this fall and probably will continue through the winter as the inventory continues to build. It is taking longer for homes to sell and there are more homes for buyers to choose from.

The real estate markets in California, Arizona, Florida and other key states are leading indicators on how the market in Bend will do. In1989 real estate values in Bend jumped 35%. Out of state buyers from California, Florida, Arizona, Washington State and other hot markets were selling their homes for large profits and moving to Bend to buy larger homes. 1990 and 1991 saw the out of state markets dry up with prices falling. The Bend market followed these markets before it picked up again.

This winter is the time to buy real estate in Bend. There are homes on the market now that have been substantially reduced with seller's willing to take any reasonable offer. Some homes are vacant and can be bought with a lease-purchase. We look for the market and prices to pick back up next spring.

A report recently released by the Federal Deposit Insurance Corp., or FDIC reported that Bend is the 35th fastest growing job market in the country for the second quarter of 2006, wit a job growth rate of 4 percent during that period. The FDIC reported sales activity in Oregon fell 12 percent in the same quarter.

Building permits for single family homes have been constantly falling but the pace of building takes a while to slow down from the torrid pace of 2005. Builders have to develop the lots, get permits and start the construction. Construction of the average homes takes about six months. There are still new homes coming on the market today that were in the planning stages in 2005.

Some builders are also starting to offer more incentives if you buy one of their homes. Upgrades in appliances, floor coverings, wood work, landscaping and other aspects of construction are now free. Some builders are also willing to pay points in order to help buyers qualify for lower payments on their loans.

The National Association of Realtor's chief economist, David Lereah, predicted that sales through the rest of 2006 will be lower than earlier predicted. "This year, sales are slowing, homes are plentiful and sellers are negotiating," Lereah said. "Under these conditions, we will probably see prices dip temporarily below year-ago levels as the market works through a buildup in housing inventory."

The Central Oregon Association of Realtors is the best place to track the home sale statistics in Bend and Central Oregon. You can find these statistics on their web site. Keep in mind that these statistics include many new homes that were put in escrow months before the official closing date.

If you are a real statistics buff you can go to the web site of the Office of Federal Housing Enterprise Oversight. It has a housing price index for all states individually, a house price calculator and other useful tools. However, keep in mind that these reports lag behind reality somewhat. Real estate prices in Bend are falling now and will continue through the winter.

Interest rates are still low and gas prices are falling, all good signs that the real estate market in Bend will be picking up next spring. If you have ever thought about buying real estate in Bend Oregon now may be the best opportunity you will have in a long time. There are some good buys in today's market. Look for prices to start going up this spring.