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Market Trends Newsletter

Central Oregon Real Estate News and Market Update June 2019

Happy June Everyone!

Let me start by saying Happy Father's Day to all the dads out there. I hope you all have a fantastic day!

Summer is finally here. The sun is out, the reservoirs are full, and my first grand daughter Jasmine graduated from High School last week! I am so proud of her. She wants to become a Physical Therapist, and is off to Washington State University in August. As a tried and true Duck fan having two sons graduate from U of O, secretly I will have to start rooting for WSU as well knowing that a special member of the family is attending school there and will be somewhere in the crowd cheering on her Cougars.

The Real Estate market in general has tapered off somewhat with all the graduation ceremonies and family vacations now underway. The inventory levels of available homes to look at has gone from 2 months supply to 3, and average market times are now around 3 months. When dealing with averages though, there are a lot of variables involved. One such variable is the price of the home that is for sale. To put this into perspective, per local MLS information, in May a home in Redmond priced under $225,000 had an average days on the market of 38 days and there was a 3 months supply of available homes. On the other side of the coin, a home priced above $525,000 saw an average days on the market of 178 days and a 5.3 months supply of available homes. That's a pretty wide swing.

On a positive note, the economy remains strong and interest rates are still favorable for the home buyer. Please let me know if you have any questions. I'm here to help you when you need it!

The comments below are from Donnie at Beacon Appraisal Group after which you will find a link to the most recent Beacon Report. The Beacon Report offers market data about real estate activity over the entire central Oregon area. Let me know if you have any questions or need any assistance. I am ready to help when you need it!
 
Increasing median sale prices and inventory.

The SFR (Single Family Residential) median sale price in Bend edged up to $466k in May and now has increased at record high levels for two months in a row. Redmond SFR median sale price also increased for the second month in a row, above prior record level. Interestingly, the SFR inventory level in Bend and Redmond increased slightly to around a three month supply. Perhaps a push back on prices???  Only time will tell.

Given the $325,000 median sale price in Bend in May of 2015, the annual increase over time is approximately 9% per year, (taking into account time value of money). In Redmond over the same time period, the annual increase is approximately 8% per year.

Average marketing time in Bend and Redmond remains below 3 months.

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: April 2019 data below are the most recent released by the National Association of Realtors.

Existing-home sales saw a minor decline in April, continuing March’s drop in sales, according to the National Association of Realtors®. Two of the four major U.S. regions saw a slight dip in sales, while the West saw growth and the Midwest essentially bore no changes last month.

Total existing-home sales (transactions including single-family homes, townhomes, condominiums and co-ops) fell 0.4% from March to a seasonally adjusted annual rate of 5.19 million in April. Total sales are down 4.4% from a year ago (5.43 million in April 2018).


National Association of Realtors April 2019 DataNAR's chief economist, Lawrence Yun, said he is not overly concerned about the 0.4% dip in sales and expects moderate growth very soon. “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” he said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”

 

The median existing-home price for all housing types in April was $267,300, up 3.6% from April 2018 ($257,900). April’s price increase marks the 86th straight month of year-over-year gains.

Total housing inventory at the end of April increased to 1.83 million, up from 1.67 million existing homes available for sale in March and a 1.7% increase from 1.80 million a year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, up from 3.8 months in March and up from 4.0 months in April 2018.

Properties remained on the market for an average of 24 days in April, down from 36 days in March and down from 26 days a year ago. Fifty-three percent of homes sold in April were on the market for less than a month.

Per Freddie Mac data, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.14% in April from 4.27% in March. The average commitment rate across all of 2018 was 4.54%.

First-time buyers were responsible for 32% of sales in April, down from the 33% reported last month and one year ago.

The Best Homes Sell Fast and Summer Selling Opportunites!

 

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.

Summer Selling Opportunities