Bouncing Along the Bottom in Bend, Oregon... Real Estate Market Trends for October

Before you get into the holiday season you may want to check out the latest market trend reports. This is a great time to pick up property in Central Oregon.


Our local data belays what we often hear in the daily news, from the data in the reports it appears that we have stabilized for the moment. The amount of homes actively listed on the market hit a high in August and September and now is slipping back down as we head toward winter. Distressed homes have retreated as well during this period and now comprise 45% of the market with short sales being about 60% of the distressed category. As we slip back down in inventory for the winter months the overall trend has been fewer homes on the market. We are currently down sixty to one hundred actively listed homes from previous years.

Driving this stabilization trend is the continued strong interest from investors and first time home buyers in the under $250,000 class of properties. This has led to sellers receiving multiple offers on properties that represent good values and has them selling quickly. It has also been surprising to see so many cash buyers. With the tightened underwriting rules for financing properties many capable buyers are by passing today’s amazingly low interest rates and bringing cash to the table.

The investors we see coming into the market are looking at the super low vacancy rates for rental properties in the Bend area and calculating solid returns for the next few years. The other attraction is the remarkably low prices and good values on many properties. This has occurred as sellers have come back to reality of what their property is worth today and will be worth over the next few years.

The biggest hold up in the having the real estate market continue to grow is the lack of confidence that the local job market will improve and the national economy’s lingering stagnation. With the upcoming Presidential election the opportunity that our economic turmoil will turn around is slim. With housing being such a huge component of the national economy it would not be surprising to see continued new programs and new road blocks offered up by both parties to help sway voter confidence thus adding to the lack of confidence.

My take is that the market will stay the same undulating course over the next 18 months. Eventually Bend will see slight gains at first but as confidence returns so will Bends popularity. All of the things people from outside of Bend loved before are still here waiting for them and it is just a matter of time before those who hold the dream to move here act. When those who lust for Bend act on their dreams expect to see return to predictable positive gains in real estate.

Have a great Thanksgiving!!

Cheers,

Bill