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For Sale: $169,900

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Market Trends Newsletter

Central Oregon Real Estate News and Market Update July 2018

Summer has arrived!
School is out and vacation mode seems to be in full swing. This actually works better for home buyers as our housing inventory has started to increase slightly allowing for more options to consider. It's the perfect time for families to get moved here, get their kids enrolled for starting school in September, and still some time available to adjust to the enjoyable life style here on the high desert. There are concerts happening, plenty of water sports and golf courses close by, the Deschutes County Fair is coming up soon, and there is still plenty of fresh air for all of us to breath! I realize those are some tough things to  have to get used to, but as they say, "someones gotta do it". It might as well be you!
Let me know if there is anything you need. I am here to help!
Click on the link below to see the latest Beacon Appraisal Report. This information includes market statistics for all of the smaller market areas as well as the larger ones here in central Oregon. If you have any questions, please don't hesitate to give me a call.
Thanks and Enjoy your Summer!

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

National Real Estate Overview

Note: May 2018 data below are the most recent released by the National Association of Realtors.

Data from the National Association of Realtors® shows that existing-home sales dipped in May for the second straight month, with only the Northeast region seeing sales growth.

Total existing-home sales (transactions including single-family homes, townhomes, condominiums and co-ops) fell 0.4% to 5.43 million in May from 5.45 million in April. With this dip, sales now sit 3.0% under a year ago and have dropped for three straight months.

National Association of Realtors May 2018 DataNAR's chief economist, Lawrence Yun, said a healthy economy and job market should be leading to a brisker sales pace than we've seen in 2018. “Closings were down in a majority of the country last month and declined on an annual basis in each major region,” Yun said. The longtime NAR economist added, “Incredibly low supply continues to be the primary impediment to more sales, but there’s no question the combination of higher prices and mortgage rates are pinching the budgets of prospective buyers, and ultimately keeping some from reaching the market.”

The median existing-home price in the U.S. in May was $264,800, a record high and 4.9% higher than May 2017 ($252,500). May’s price increase represents the 75th straight month of year-over-year gains.

Total U.S. housing inventory at May's end grew 2.8% to 1.85 million existing homes available for sale, but remains 6.1% below than last year (1.97 million) and inventory nationwide has fallen for 36 straight months.

Individual markets vary, but properties nationwide remained on the market for 26 days in May, unchanged from April but a day lower than 27 days on market for all of 2017.

Per Freddie Mac data, the average commitment rate for a 30-year, conventional, fixed-rate mortgage bumped up for the seventh consecutive month to 4.59% in May from 4.47% in April. The average commitment rate for all of 2017 was 3.99%

First-time buyers drove 31% of May's sales, down from 33% both last month and a year ago.

The Price Is Right...Or Is It?

If you are planning to put your home on the market -- especially if you live in a place where prices are rising and buyers are competing for homes -- it can be tempting to list your property at a high price hoping that you'll actually get it. After all, it can work with cars, why not with homes?

You may want to think twice -- the resale of homes and automobiles are very different things.

Experienced Realtors who have been through dozens, scores, or even hundreds of transactions, will advise you to price your home appropriately from the outset because it's pivotal to seeing the home sold quickly and at the best price. Research backs up what experienced Realtors already know: overpricing your home and then lowering the price a few times most often leads to a final sales price significantly below what you originally should have asked for it.

And, to make matters worse, the longer a home remains on the market, the deeper the discount is likely to be off the original price. Ouch!

How to price your home correctly

Many homeowners seek to price their home based on factors like the price they paid for it, the balance that they currently owe, or simply on the profit they need to buy another house or to meet their financial goals. These motivations are perfectly understandable but in reality the value of your home is what the market will bear. Here's the problem: If a property is overpriced, some potential buyers will avoid looking at it at all (and having no one show up to see it is a pretty clear message from the market). Others may view the home but walk away without making an offer.

So, what can you do? Choose a Realtor who can provide you with the best comparative market analysis (CMA) and who understands your local area intimately. Some agents may attempt to woo you with an inflated price -- it probably happens every day somewhere -- but in the end the market will speak clearly, and choosing an experienced Realtor who understands the importance of market-driven pricing will end up being a choice you won't regret.

Your Realtor's CMA should include sales prices for similar properties nearby that have sold recently, prices for currently listed homes (these will be your competition), and prices of homes that were taken off the market because they didn’t sell. Look for a Realtor with demonstrated experience who can factor in a range of local market issues to produce that all-important first price.

If the price is right from the beginning, it usually means not only a faster sale, it typically means more money in your pocket.

Investing in Real Estate

Today's low interest rates and stabilized home prices have created some great investment opportunities! Investing in real estate has unique advantages over other types of investments:

  • Interest in mortgage loans are tax-deductible.  Investors can lower their tax liability while increasing their equity.
  • Renters pay down your mortgage loan.  Investors reap the benefits of rental income, which offsets your mortgage cost and build equity.
  • Real Estate values increase over the long term.  Real Estate is limited and will always be in demand. 
  • 1031 exchanges are available to defer taxable income when you are ready to sell.

Many investors are taking advantage of these great market conditions. Have questions? Give us a call. We are happy to help!