Bend Oregon Market Trends...

Despite all the doom and gloom we keep hearing about the housing market Bend's inventory keeps shrinking. It has been increasingly difficult to find the types of properties our clients are looking for throughout the Bend market. The current market is a great window of opportunity for traditional sellers with a great home that they can have reasonably priced.


Reaching a peak last August of 695 active listings for homes Bend, the inventory has now shrunk to 411 active listings. The result is more competition and multiple offers for the good homes that are well priced. Buyers who still feel that they are in the driver’s seat and are unwilling to make competitive offers are missing out.

There are many theories as to why the inventory has shrunk; one would be the recent legal rulings that have slowed the process for lenders to foreclose on financially distressed properties. This has resulted in a lower number of bank owned properties entering the market with some actually being pulled from the market. Previously the number of bank owned listings had hovered between the mid-sixties to low nineties that number has dropped to 29 active listings in March.

Interestingly enough the lenders legal issues may be what has spurred a renewed effort by these same lenders to be more accommodating toward borrowers choosing to short sale their homes. This is reflected in the increase in short sale listings which are up seven percent from February. Further proof would be the amount of short sales that have made it to the finish line with a fifty percent increase in completed transactions over February of this year. As long as the lenders remain willing to work with their borrowers short sales should remain a viable option for folks in financial difficulty and provide better than average price opportunities for the buyer who can wait out the process which continues to be refined and faster.

One should not wait though, already the sands are shifting once again, lenders are figuring out how to deal with their legal issues. Last week the Deschutes County Clerk’s Office had around 100 refilling of “notices of defaults” in one day. This could lead to an increase in inventory toward the summer months but the process still is cumbersome and takes ninety days at best to reach the point of an auction. Short sales and loan modifications will slow or cause postponements of many of these auction dates. Of the properties that do make it to market, I would imagine that the lenders will maintain their previous levels of inventory and not further erode property values by flooding the market.

As folks find they want to get on with their lives, they will choose not wait for the return to previous market values. They will adjust their expectations and find a market that is starting to see pricing that is leveling out. Buyers on the other hand are going to find more competition for the best bargains and will need to well prepared to secure the property.

Click here to check out the market trend numbers for yourself.

Do not hesitate to contact me if you need assistance in navigating today's market.

November Market Trend Reports for Bend, Oregon now available....

Just in time for the holiday's the numbers for last month are now available at shopbendhome.com .


The under $225,000 remains the hottest portion of our market with investors and first time home buyers leading the way. Those who have hesitated in putting their offers on these homes are finding themselves on the outside looking in and are learning to bring strong offers to the table quickly. For the month the under $225,000 range there were 81 homes in a pending sales status and 69 homes sold. This makes the third month in a row the inventory for homes in this range has held to under a three month supply.

The rest of the market has slowed with a little more strength showing up in the $325,000 to $425,000 range with rise in the number of pending status for sales while actual sales have dropped off slightly.

In the overall market the list price to sales price ratio has flattened out to a 2% difference, showing that sellers and buyers are getting closer in their expectations for what a property should sell.

For winter buyers there are great values being brought to the table by sellers who are in the $325,000 and up price range. Their homes have been on the market a bit longer and they tend to have had the most room to give a little in their pricing expectations and have adjusted accordingly. With interest rates continuing their slow climb upwards this winter could present some of the best opportunities for those looking to move up in the level of home they could purchase.

Enjoy dissecting the numbers and have a fabulous holiday season!!!

Mortgage Help for some of the Hardest Hit…

As most of us know the recession has hit Oregon especially hard. Oregon is hardly unique in this suffering and is one of 17 states to receive assistance from the U.S. Treasury Department to help those in need.


Coming December 10th the Oregon Homeownership Stabilization Initiative (OHSI) is going to be offering a Mortgage Payment Assistance program. This will be the first of several assistance programs to be offered through OHSI. The program is intended to help financially troubled homeowners avoid foreclosure. In Oregon it is anticipated that 5,000 unemployed or financially distressed homeowners will receive assistance by covering their mortgage payments for one year or up to $20,000 whichever comes first.

Visit http://www.oregonhomeownerhelp.org/ to get more information and take the eligibility test for the program. To stay informed on OHSI offerings make sure that you sign up for their newsletter.

A great reminder…to block that call...

This is kind of funny coming from a sales guy but for those of us who do not care for being bothered by sales calls from telemarketers, registering on the “National Do Not Call List” is a great idea. One thing not known to many is that cell phones become fair game starting this month. For most of us that means getting billed for those unwanted incoming calls.


If you register now it will take 31 days before telemarketers are to cease calling. So just after the New Year you should be free of most annoying calls, at least from telemarketers.

There are a couple of ways to register your phones; the easiest is to call 888-382-1222 from the phone that you would like have registered. The other is to go to the National Do Not Call Registry website, there you can register you can register numerous phone numbers.

Once your number is registered it will not expire. Telephone numbers placed on the National Do Not Call Registry will remain on it permanently due to the Do-Not-Call Improvement Act of 2007, which became law in February 2008.

The November Bratton Market Report for Central Oregon Real Estate is Here!

The Bratton group presents their numbers for October highlighting the real estate market trends in Central Oregon. The Bratton Real Estate Trends Report, Duke Warner Realty Real Estate Trends Report and The Bratton Notice of Default report are all available on shopbendhomes.com under area information – Market Trends Reports


These reports are great for the numbers junkies that can’t get enough information. You can use these numbers to distill your own ideas of where you think the market is heading. If this is too much information you can give me a call or email me and we can sit down and go over the pros and cons of today’s market conditions.

From where I sit the market in Central Oregon continues to stabilize with Notice of Defaults falling and homes in the $350,000 and under having the best strength. The lead in sales and the inventory has consistently been shrinking. In Bend there is currently 3.5 or less months of housing inventory in most categories under $350,000. The upper reaches of the market remain soft with more compromises on sales prices coming.

Redmond and the outlying markets have been slower to recover but have seen similar strength in the same price ranges. Our regions rural properties are bringing up the rear and remain relatively stagnant with money for financing being difficult to come by for these properties.

With interest rates remaining historically low many are finding this market prime with opportunity. These interest rates combined with the value in properties under $350,000 is helping lead the market to the low inventory numbers. It is hard to say how long we will see these low interest rates. Many feel the Feds decision to purchase $600 billion in long term treasury bonds last week may led to inflation hence driving the interest rates up. For now they remain low and should for the next few months.

If the rates head upwards it will be interesting to see if those who have been on the fence about buying in today’s market decide to make their move and jump in before they miss out.

Real Estate Trends Report for October is Ready!!

Many are finding that in Bend it is getting harder to find the house they want at a price they can accept. October has brought the lowest inventory of Bend homes for this year. With the lower inventory we are seeing houses that are well priced with nice amenities and a desirable location being snapped up off the market quickly. We have found that buyers who think that Bend has abundance of great homes at super cheap prices are astounded by how difficult it is to find the home that they want at a price they are willing to pay.


Many of the well priced homes are seeing multiple offers, which is a welcome change for sellers. That trend is especially pronounced in the lower price range of the market with only a 2.8 month supply of homes available under $225,000 and a 3.2 month supply of priced between $225,000 and $325,000. In categories below $625,000 there is currently less than an eight month supply of homes.

The average price for a home sold in Bend for the month was $259,474 down 12% from 2009. Of those homes sold this past month traditional sales made up the bulk of the sales at 44.7%. Bank owned homes fell in behind the traditional sales at 32.1% and short sales brought up the rear 23%.

Short sales remain a headache for all involved in the process. To illustrate how frustrating the short sale process can be there are 133 in a contingent sales status compared to 6 traditional home sales and 1 bank owned. In the contingent sales status most are waiting for approval of the third party lender/investor which can take months. Recently I have been told by certain lenders that they are attempting to complete the short sales transaction in a thirty day window, I have yet to see a lender accomplish that timeline.

The bank owned properties have been the primary recipients of multiple offers with their aggressive pricing; these homes have sold 99.1% of the list price at the time of the sale. Short sales have had the next best results with a ratio of 97.8% and traditional sales seeing the larger concession in prices at 95.1%.

For a different perspective on pricing, homes continue to sell in the mid 80% range of their original list price, this trend has held true since December of 2009. What I see in this last number is that sellers are still adjusting to the realization that their properties will not fetch the price of even just a year ago.

These trends will likely continue through the winter months and into the first part of the spring season. It appears that for the lower range of the market we have stumbled to the bottom of the market. I think we will remain there for the near future and into the next year while we wait for the rest of the market to catch up and the economy continue its recovery.

Click the following link to see this month’s market trends report.

Home Sweet Home

First time home owners are you looking for your first “Home Sweet Home”? The Oregon Bankers Association in conjunction with the Oregon Association of Realtors® has put together a program to assist first time home buyers in obtaining their first “Home Sweet Home”. The program is focused on providing homeownership opportunities for low and moderate income Oregonians earning less than or equal to 100% of the area median income.


To get started the first time home buyer must be working with a lender who is a member of the Oregon Bankers Association and a Realtor® who is a member of the Oregon Association of Realtors®. To help the first time home buyer your lender can make available to you a $2,000 grant for your down payment and/or closing costs, along with matching assistance from your lender or other qualified sources valued at a minimum of $500.


ELIGIBLE BORROWERS

To be eligible for a $2,000 grant you must:

• Be qualified as a first‐time homebuyer.

• Occupy the property you purchase as your principle residence.

• Not have household income over 100% of the area median income in the county where you purchase your home. Median income varies by county, so ask your lender for information on specific limits.

• Have no major credit obstacles.

• Have no more than $10,000 in liquid assets left after loan closing.

• Successfully complete an approved homebuyer education course.

• Be a legal Oregon resident or be pursuing permanent residency.


ELIGIBLE PROPERTIES

Eligible properties include any new or existing single‐family residences located in the State of Oregon, including site‐built homes, condominiums, townhouses and manufactured homes. Properties must meet quality standards required to qualify for a mortgage loan.


TYPES OF LOANS

The following types of loans may be used in conjunction with a HOME Sweet Home

Program grant: 􀁹 FHA 􀁹 Conventional

State Bond 􀁹 Rural Development 􀁹 VA


AMOUNT OF ASSISTANCE

In addition to the $2,000 grant, your lender will help you determine the type and amount of additional assistance from other sources that fits your needs and budget.


HOMEBUYER EDUCATION

Successful completion of an approved homebuyer education course is required to be eligible for assistance through this program. If you have not completed such a program, please contact your lender or visit www.oregonbond.us/OHCS/SFF_Homebuying_First_Time_Homebuyer_Training.shtml to learn about upcoming classes in your area.


ELIGIBLE LENDERS

All banks in Oregon that are members of the Oregon Bankers Association are considered
eligible lenders. A list of OBA member institutions can be found at http://www.oregonbankers.com/members/bank‐members/list/ . Qualified homebuyers must obtain financing through an eligible bank in order to access the HOME Sweet Home funds and must be a working with a REALTOR® in good standing.


Visit your bank to inquire about accessing the HOME Sweet Home Program.