Real Estate Market

Market Trends Newsletter

Central Oregon Real Estate News and Market Update Feb 2018

Happy February everyone. I have decided to change the format for my monthly newsletter. Instead of doing the Trends Reports, I will be sending you a link to what is called the Beacon Report. This report is put together by a local appraisal company, Beacon Appraisal Group, and will offer you a greater amount of information for you to review and will include more local communities as well. Also as you will see below, Donnie, who prepares this report, offers some additional perspectives on the area, which I believe you may also find useful.

Read below and then click on the link for the Beacon Report. Let me know if you have any comments or questions regarding this new format. And as always, let me know if you or anyone you know needs professional real estate assistance. I'm here to help. Thanks!

Spring is here?

Many people in Central Oregon likely remember the big snow fall in the winter of 1992-93.  As I remember it, there was good amount of fallen snow in the winter of 1993-94 also.  This fall, I predicted that this winter would follow the same pattern as the winters of 1992-93 and 1993-94. At this point, it appears that hypothesis is false.    

The snow fall last year had an impact on the SFR (single family residential) market.  Actually, when the snow hit everything seemed to slow down. There was a decline in the number of sales in January 2018 with no correlation to snowfall.  

This January, the number of sales in Bend and Redmond declined, but to normal levels when compared to the month of January of prior years. Median sale price appears to be holding close to the last quarter of 2017 figures.

The February 2017 Beacon Report shows that most sales in Bend were in the $250k-$300k price range.  As of January 2018, most SFR sales in Bend were in the $300-$350 range and the number of sales in the $350-$400 range were a close second.  The number of $1 Mill and over sales were significantly higher in January 2018 than in January 2017. 

Most of the sales in Redmond changed from the $200k-$250k price range in January 2017 to $250k $300k last month.

The inventory level remains around 2 months in Bend and Redmond.
 
Link to Beacon Report.

Information contained herein comes from the Central Oregon Multiple Listing Service, and the Beacon Appraisal Group, is deemed reliable but is not guaranteed.

National Market Update

Note December data below is the most recent published by the National Association of Realtors®.

National Association of Realtors® (NAR) data shows that sales of existing homes relaxed in most of the U.S. in December, but for all of 2017 sales grew 1.1%  -- in fact 2017 turned out to be the best year for sales in 11 years. December's existing-home sales slipped 3.6 percent to a seasonally adjusted annual rate of 5.57 million from a 5.78 million in November.
 Existing Home Sales By Region

NAR's chief economist, Lawrence Yun, said the housing market performed well in 2017, with notable wealth gains for homeowners and historically low distressed property sales. “Existing sales concluded the year on a softer note, but they were guided higher these last 12 months by a multi-year streak of exceptional job growth, which ignited buyer demand,” Yun said. He added, “At the same time, market conditions were far from perfect. New listings struggled to keep up with what was sold very quickly, and buying became less affordable in a large swath of the country. These two factors ultimately muted what should have been a stronger sales pace.”

Housing Data Takeaways

  • December's median existing-home price for all housing types in was $246,800, up 5.8% from December 2016 ($233,300). December’s price increase marks the 70 consecutive months of year-over-year gains.
  • Total housing inventory at the end of December fell 11.4% to 1.48 million existing homes available for sale; this is 10.3% lower than a year ago (1.65 million) and has dipped year-over-year for 31 straight months. Unsold inventory offers a 3.2-month supply at the current sales pace, down from 3.6 months one year ago -- the lowest level since NAR started tracking in 1999.
  • First-time buyers drove 32% of U.S. sales in December, up from 29% in November and the same as a year ago. For all of 2017, first-time buyers drove 34% of sales.
  • According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage inched higher for a third straight month to 3.95% in December from 3.92% in November. For all of 2017, the rate was 3.99%.

Regarding first-time buyers, NAR's economist Lawrence Yun suggested that, “Rising wages and the expanding economy should lay the foundation for 2018 being the turning point towards an uptick in sales to first-time buyers,” adding that “...if inventory conditions fail to improve, higher mortgage rates and prices will further eat into affordability and prevent many renters from becoming homeowners.”

The Best Homes Sell Fast!

 

Smart sellers understand that a proactive selling strategy can go a long way in getting their home sold quickly, and for top dollar. Here are three tips for today’s sellers:

  1. Make your home shine. Buyers like to envision a home they can move right into. Clean carpets, fresh paint, and a nicely landscaped yard can go a long way to make perspective buyers feel at home.
     
  2. Anticipate the selling season. Many sellers wait for the market to pick up before they place their home for sale, but smart sellers anticipate these seasonal adjustments and list their homes early in the sales cycle. Give yourself the best opportunity by placing your home on the market before everyone else does!
     
  3. Price your home right. Markets change, so don't be influenced by last year's selling activity and home prices. We will evaluate your home based on the most recent sales data and price it to sell for the most money in the shortest amount of time.

Whether you're looking to sell today or are thinking of selling tomorrow, please feel free to call and ask for an analysis of our recent market activity. We would be more than happy answer any questions you might have.

Make Your Offer Count!