Bend, Oregon Residential Real Estate Trends for June 2010

Here is my take on the Bend, Oregon real estate market at early summer. Currently there is more interest from buyers from out of the area than folks that live here. People who live here are still nervous about the lack of jobs and the uncertainty of what the future will bring, many are waiting for more pain to come. Buyers from out of the area see this market as a great opportunity and generally come from areas with a rosier outlook on the economy. They are buying properties as rentals, retirement homes or second homes. The better properties that are priced well are moving quickly to these people.

Overall the market is stronger than a year ago but is by no means healthy. The properties that are being purchased are usually very good deals but not necessarily distressed. Inventories of homes is down to an 8.8 month supply, one year ago we had 14.4 month supply. We have been in the 8 month range since March of this year. The stats break out that 21.21% of the homes sold the last three months are short sales, 34.38% are REO's and the remaining 44.41% are traditional sales. The traditional sales are closing at a rate of 95.93% list price to sales price, short sales are at 98.13% and REO's are at 96.47%. Here is a scary number that most folks do not consider, the original list price versus the sales price, the number has improved from last year's 79% and is now at 85%. We have been in the mid 80% range since December of last year; I would expect that number to improve as people lower their expectations for what their home is worth.

To sum it up the lower end of the market $225,000 and under, there will not be much more downward movement. The $225,000 through $425,000 has all sorts of properties and pricing strategies. While most properties are priced reasonably there will be some more movement downward. Most brokers realize the value in having correct pricing but sellers can be quite headstrong on the original pricing wanting to give the higher price a shot before succumbing to reality. The $425,000 and up market has the most room for more downward pressure.

Charted below are the trend numbers for the past three months. To view in a full screen click on the box in the lower right.