BEND OREGON REAL ESTATE MARKET RAMPS UP POSTING THE HIGHEST MONTHLY RESIDENTIAL MEDIAN SALES PRICE IN HISTORY
For those of you that follow the local news, it is probably no surprise that we saw incredibly strong real estate market results in January. Median sales for residential properties eclipsed the $450K mark for the first time…ever! The other headline…..when looking specifically at single family homes (not including town homes, condos, or duplexes) inventory was down to 2 months supply.
This is great news for home Owners and maybe a bit disheartening for Buyers but like I mentioned in my 2018 recap I still really think that early spring will be the prime time for Buyers this year. This is all due to interest rates which are still trending at about 4.6% for good qualified Buyers. If you talk to finance professionals, most are hedging that rates will rise this year, especially if we see resolution around China and trade, and we continue to see positive economic news. To put this into perspective if rates go back up 1/2 a point to 5% (which is where they were 3 months ago), the monthly increase on a $300K loan would be about about $90, or approximately $20,000 in purchasing power at 4.5%
What was not mentioned in most local articles is that inventories came in slightly up compared to January 2018, and sales velocities hit the brakes. Pending homes dropped 29%. This makes me believe that we may see inventories rise. If rates continue to stay low we may see this rebound but as of now it looks like in the next few months we may see an increase in supply which may lead to longer days on market and possibly a slowing of appreciation as we roll into the summer. Take advantage of the low rates and aim to list early spring while inventory is relatively tight. Also keep in mind that early spring listings represent sales in the months of May/June which are typically where Central Oregon sees strong appreciation gains.
Bend area’s median price came in at $450K in January, up 11% to last year! That is some solid and rather unexpected growth as we enter spring. Keep in mind this is a one-month snapshot in time and not something I would consider a market trend at the moment.
Just as important as that epic median sales number is the fact that the number of units pending in January was dramatically down, nearly 29% below what we saw a year ago. This combined with inventories slightly up paints a potential picture of rising inventory over the next few months.
Months of inventory for ALL residential properties (town homes, condos, manufactured homes, and traditional single family) is up to 4.1 Months on closed sales. Once again a sign that inventory may be on the rise.
New listings to market were also down about 15%, fairly on track with where we have been.
BEND AREA REAL ESTATE HEADLINES
- Bend-La Pine Schools Announces New Elementary School Boundaries: This fall will be the grand opening of a new elementary school located at the intersection of O.B. Riley and Cooley Rd. The new school will service communities North of Summit Drive on Awbrey Butte, East of Shevlin Park Road, and West of Hwy 97. More information can be found HERE.
- Investors seek tax advantage in 3 “Opportunity Zones: in Bend: Since the federal tax overhaul, three areas of town (census tracts) are getting extra special attention from investors. Why, because part of the most recent overhaul gave States the ability to identify low income census tracts where investors can purchase property and defer capitol gains on their investments. More information on these tax advantages and locations of these census tracts can be found HERE.
- State Senate Passes Bill 608 Statewide Rent Control Bill: The bill now heads to the House were it is expected to pass. Some of the impacts if passed include banning no-cause evictions for long term tenants over 1 year, cap rental rate increases at 7%+the 12 month average change in the Consumer Price Index for urban area where the property is located. Click Here to view the bill.
COMING SOON! TURN-KEY EXCEPTIONAL VALUE IN NW BEND OFFERED AT $434,900
Charming craftsman nestled in an excellent pocket neighborhood on Bend’s NW side. Functional open floor plan loaded with tasteful finishes including slab granite counters, hardwood & tile throughout the main floor, beautiful kitchen backsplash with under cabinet lighting, air conditioning & 3 car garage. Oversize corner lot on a dead-end street provides additional privacy. One block from Harvest Park, & just minutes to Cascade Village retail shops, Deschutes River, Sawyer Park, & Riley Ranch Nature Reserve.
Truly a unique property and one well worth a visit.
- 3 Beds all on second level
- 2.5 Baths
- 1843 Square Feet
- Bonus Room/Loft
- Sold surface counter tops.
- .17 Acre corner lot
- Air conditioning
- 3 car garage