Thursday, October 11, 2012

Central Oregon Market Is On It's Way UP ↑

Central Oregon Market Is On It's Way UP

Multiple factors are pointing to an upward trend for the Central Oregon residential real estate market. Both the number of units sold and the average price per unit are increasing. Over the last five to eight months this increase has remained steady. Compared to this time last year the prices in Bend are up almost 11 % and sales are up 16.5% (per Oregon MLS). In August 2012 the median price for residential properties in Bend was $261,000 which is a 29.9% increase from prices in September 2010. When comparing the average price per square foot across all of Central Oregon (Deschutes, Jefferson, and Crook counties) there was an increase. From September 2010 to August 2012 there was a 14.8% increase.
Housing is currently very affordable due to historic lows. While credit requirements have increased there is still plenty of money to loan, buyers are simply required to provide more documentation of credit worthiness. Further signs that demonstrate recovery are the number of traditional sales. There are less foreclosures and more traditional sales in which there is a willing seller and a willing buyer.
Now is an opportune time for sellers as inventory is low. In Central Oregon there was a 27.6% decline in residential units that were listed for sale from September 2010 to August 2012. Bend alone has seen a 33% drop in that same time period. This decrease has resulted in competition amongst buyers. It is not unusual to see a home with four or five offers, nor is it unusual to see a home sell within a couple days of going on the market.
The tight competition has given buyers with cash the upper hand. Approximately a quarter of home sales in Bend were cash sales over the past nine months. When there are multiple offers on a property cash often wins. This is due to the fact that in order for lenders to approve a loan they require an appraisal that ensures the financing is an accurate reflection of the market value of the property. If a buyer has cash an appraisal is not required which can expedite the process.
Combining all of these factors seems to indicate that the Central Oregon real estate market is on a steady uphill path.
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Ruben Garmyn & Jim Birtola
Team Birtola - Garmyn, Oregon's #1 Real Estate TeamPrudential High Desert Realty 
Bend, OR
Office: 541-312-9449

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