May Market Trends Report

Once again I am tardy with the last month’s market trend reports from both Duke Warner Realty and the Bratton Report. Please accept my humble apologies.

Summer has brought a predictable uptick in the inventory around town for properties in the middle price range of the market. Finding good homes under $125,000 remains a challenge as most good ones are snapped up within days of being listed on the market.

Lenders are now feeling more confident about their abilities to foreclose on properties without legal consequences. With this new found confidence we saw a spike in re-filings of Notices of Default in April and May. It will most likely be late September before we see those homes hit the market as bank owned properties. Some of those homeowners have chosen not to wait and have entered their properties into the market as short sales. Right now short sales are providing some of the best opportunities in the Bend market for those who are patient.

If a friend or you need to buy or sell, short sale or traditional sale, rural or urban property or just need some information give me a call. I am ready and waiting to assist you in achieving your goals.

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.

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.

Stepping Up To A New Web Site...

I have been feeling kind of bad for negecting my blogging duties of late but I have been working on the content in my new web site, shopbendhomes.com. A consuming task, which will be a work in progress for some time to come.  

My web site allows you find the latest properties available in Central Oregon with its powerful map based search engine. This search feature allows you to visit the properties location virtually. While viewing the property you will have all the listing information for the property presented at the same time. The web site allows you to set up your own account to keep track of all the properties you like and to be alerted to any changes in the properties status.  

My web site also contains pages and links to help guide you through the maze of real estate solutions. Take the time to visit my site I will be curious to hear your feedback and suggestions. 

Visit shopbendhomes.com to find your next Central Oregon property!

They just keep dropping...

In case you have not heard Freddie Mac reports that long-term mortgage rates have moved down again.


This week interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago. For those of you in position to take out a 15-year mortgage, they have hit a huge low dropping to 3.95 percent, down from 4 percent last week and 4.63 percent a year ago. Five-year adjustable-rate mortgages also reached a historic new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago.

For those who have been on the fence about purchasing a home or refinancing these rates should prove enticing. It is unlikely that interest rates will soar anytime soon but why take chances. You would hate to be the one who says man I should have moved quicker on those rates.

These historic rates and the dramatic home bargains available allows one to buy much more home for the dollar than any time in the last ten years.

Interest rates and opportunity...

If you were in Bend the last time we saw the housing market take a tumble, you would have witnessed scene reminiscent of today’s struggles. Many watched as the homes they purchased in the late 1970’s and early 80’s fall in value by as much as 40%. Such a dramatic drop in values presented those with the means the opportunity for some incredible bargains, which they turned into huge profits in later years. Most folks who wanted to purchase these bargains found them unobtainable as interest rates soared into double digits preventing most from taking advantage of what was at that time the “opportunity of a lifetime”.


As history has repeated itself and “opportunities of a lifetime” are once again plentiful. Your advantage in this go around, interest rates! What once crippled the housing industry has swung the other direction to a point so low one would not have imagined it possible just a few short years ago. Since late April interest rates are at historic lows and hover below 5%. As this week comes to a close rates have remained steady with a thirty year fix rate loan coming in at 4.72%. While under writing standards are as tough as they have ever been, we are seeing folks take advantage of today’s market to seize what will be tomorrows “I wish I would have bought that…” moment.

Many industry experts had anticipated a rise in rates this past spring, yet with the stumbling of the European financial markets our bond markets have remained a strong value for investors to invest their money. Common sense would say that as the markets stabilize interest will slowly begin to climb. As the rates climb the window of affordability for buying will shrink, the ability to snap up properties at a great value may slip away.

Will you be one of those that follow past cries saying “I could have bought that property five years ago for…”? While our market will not see rapid appreciation any time soon, now is the time to buy low so in five years you will be the one selling high.

Bend, Oregon Real Estate Trends April 2010

Residential
Price Range	Number Active		Number New	Number Pending	Number Reduced		Number Sold			Avg SP/LP		Avg DOM	Months of Inventory
$125,000 - $225,000	227		95	108	86		71			99%		133	3.2
$225,100 - $325,000	131		49	43	31		27			98%		166	4.9
$325,100 - $425,000	103		37	25	17		14			96%		257	7.4
$425,100 - $525,000	58		13	9	20		6			95%		350	9.7
$525,100 - $625,000	35		9	7	18		2			54%		270	17.5
$625,100 & up	98		21	5	22		8			90%		201	12.3
Total/ Average	652		224	197	194		128			89%		230	9
	Active		$125-$225	$225-$325	$325-$425		$425-$525			$525- $625		$625 & up	Total
	5/1/10		227	132	105		58			35		98	655
Residential with Acreage
Price Range	Number Active		Number New	Number Pending	Number Reduced		Number Sold			Avg SP/LP		Avg DOM	Months of Inventory
$125,000 - $225,000	36		7	9	15		6			94%		221	6
$225,100 - $325,000	31		5	3	8		0
$325,100 - $425,000	25		6	1	3		2			97%		103	12.5
$425,100 - $525,000	21		5	2	7		0
$525,100 - $625,000	11		1	0	4		3			93%		209	3.7
$625,100 & up	63		9	0	9		0
Total/ Average	187		33	15	46		11			95%		178	7
	Active		$125-$225	$225-$325	$325-$425		$425-$525			$525- $625		$625 & up	Total
	5/1/10		36	31	25		21			11		63	187
Bare Land
Price Range	Number Active		Number New	Number Pending	Number Reduced		Number Sold			Avg SP/LP		Avg DOM	Months of Inventory
$125,000 - $225,000	115		20	23	25		12			91%		177	9.6
$225,100 - $325,000	80		7	1	14		3			90%		117	26.7
$325,100 - $425,000	66		1	1	7		1			100%		254	66
$425,100 - $525,000	28		3	0	1		0
$525,100 - $625,000	10		1	0	1		0
$625,100 & up	19		0	0	1		0
Total/ Average	318		32	25	49		16			94%		183	34
	Active		$125-$225	$225-$325	$325-$425		$425-$525			$525- $625		$625 & up	Total
	5/1/10		117	81	66		28			10		19	321

This report came out a little jumbled as I am still learning the in and outs of moving information into my blog page. If you have any questions about this report or would like the full version sent to you in a PDF format, call or email me. I would be glad to send one over to you.

Incentive extended to lure buyers to distressed Fannie Mae properties...

In an effort to reduce their distressed property inventory Fannie Mae announced today that it will be extending its buyer incentive program. The program offers a 3.5% rebate to those who purchase and close on a Fannie Mae owned home by June 30th. The rebate may be used toward the closing costs of the transaction, select Whirlpool appliances or a combination of the two. The program which was launched this past January was designed to help spur the sale of distressed properties reacquired by Fannie Mae. The program is offered to both first time and move up home buyers who will need to be owner occupants to qualify.
In the Bend there are currently 25 homes listed by Fannie Mae for sale, with more to come. Prices on these homes range from $39,900 to $355,000. Many of these homes will also qualify for HomePath mortgage financing or renovation financing. The HomePath mortgage program allows for down payments as low as 3 without having to incur mortgage insurance. You may use gifts, grants, loans from employers, the government or non profits to fund your down payment. Offered with reduced credit guidelines both owner occupied and investors may qualify for the mortgages but only owner occupied homes will qualify for the purchase incentive program. Fixed rate, adjustable rate and interest only loans are available through the mortgage program. Mortgage financing which includes funds for light renovation is available with the same guidelines and benefits to those properties which will be owner occupied.

This is a great opportunity if the program fits your needs and you do not procrastinate on selecting a home.