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Market Trends Newsletter

Central Oregon Real Estate News and Market Update August 2018

Happy August Everyone!
This Summer is moving along very quickly. It's hard to believe that at this time next month the kids will be back in school, most family vacations will be over, and for the most part life will start getting back to a more normal routine. The inventory level of homes has increased in most central Oregon areas making it a much better environment for people looking to buy a new home. Certain price ranges continue to remain very tight however with the truly affordable homes still selling very quickly.
If there is anything I can do to help you or someone you know, please let me know. I am here to help!
The comments below are provided by Beacon Appraisal Group. If you have any questions, please let me know.
There was a slight increase in housing supply last month in both Bend and Redmond.  The actual numbers are a 3.07 month supply in Bend and a 3.48 month supply in Redmond.  It appears that the housing supply is trending upward based on the June and July 2018 numbers.

Last month, Bend Single Family Residential median sale price reached an all time high, but caution must be taken on the month-to-month movement of median sale price presented in The Beacon Report.  This report best provides a trend over time (the long run) and price trends have been increasing since 2014.  In July of 2014, the median sale price in Bend was $317,000.  Last month, the median sale price was $437,000.  Taking into account the time value of money, the annual increase in SFR median price trend in Bend is about 8.36% per year. 

No doubt that Central Oregon is experiencing strong demand and low inventory, but there is some evidence of the market softening a bit as inventory levels have been slightly trending upwards, well…at least for the last several months. 

A link to the recent Beacon Report is below.

Link to Beacon Report.

Information received from the Central Oregon MLS and Beacon Appraisal Group, is deemed reliable, but not guaranteed.

US Real Estate Overview

Note: June 2018 data below are the most recent from the National Association of Realtors

According to the most recent data from the National Association of Realtors® (June), sales of existing homes dropped for a third consecutive month in June. The South and West saw dips that outstripped sales advances in the Northeast and Midwest. Sales price hit a new all-time high due to the continuing supply and demand imbalance in most of the nation.

NAR Housing Snapshot August 2018Total existing-home sales (completed transactions for single-family homes, townhomes, condominiums and co-ops), fell 0.6% to 5.38 million in June from 5.41 million in May. After last month’s decline, sales now sit 2.2% below a year ago.

NAR's chief economist, Lawrence Yun, indicated that closings slipped backwards in June and dropped on an annual basis for the fourth straight month. “There continues to be a mismatch since the spring between the growing level of homebuyer demand in most of the country in relation to the actual pace of home sales, which are declining,” Yun said. He added, “The root cause is without a doubt the severe housing shortage that is not releasing its grip on the nation’s housing market. What is for sale in most areas is going under contract very fast and in many cases, has multiple offers. This dynamic is keeping home price growth elevated, pricing out would-be buyers and ultimately slowing sales.”

The national median price for existing homes (all housing types) in June was $276,900, representing a new all-time high and up 5.2% from June 2017 ($263,300). June’s price increase marks the 76th consecutive month of year-over-year gains.

U.S. total housing inventory by June's end grew 4.3% to 1.95 million existing homes available for sale, and sits 0.5% above last year (1.94 million) – the first year-over-year increase since June 2015.

Properties typically stayed on the U.S. market for 26 days in June, unchanged from the last three months and down from 28 days a year ago. Fifty-eight percent of homes sold in June were on the market under a month.

The average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.57% in June from 4.59% in May according to Freddie Mac. The average commitment rate for all 2017 was 3.99%

First-time buyers drove 31% of June's sales nationally, down from 32% a year ago. The annual share of first-time buyers in 2017 was 34%.

Make your Offer Count

Before making an offer on a home in today's competitive housing market, it is more important than ever for home buyers get their financial house in order when applying for a loan.

While there are online resources available that can provide a sense of one's overall financial position, be sure to review your credit report in person with your mortgage professional and get pre-approved for a loan before making an offer on a home.

A little preparation goes a long way and can make a big difference when it comes to closing on your dream home. Contact us today to get the right loan for your current needs!

Tips for Sellers

When preparing your home for sale, a number of simple cosmetic changes often provide the biggest return on investment. Here are three tips to upgrade your house without breaking the bank:

  • Bring in the light. The right light creates the right mood. Adding lights to dark rooms can make your home feel warm and inviting. Bring outdoor light inside by opening curtains and installing economical suntubes.
  • Create Space. Many of today's buyers are looking for open rooms. Consider removing unwanted walls to make your home feel more spacious. Buyers will often pay a premium to get a bit of extra room.
  • Replace Flooring. Get rid of that old carpet in the den and replace it with today's newer hardwoods and laminates. You don't have to spend a lot to make a big impression!

These simple tips can help you sell your home and take advantage of today's market. Please contact us if you have any questions about selling your home. We are here to help!