| Real estate prices in Bend have been going up steadily | | | | Building permits for single family homes have been |
| over the last five years. According to statistics from | | | | constantly falling but the pace of building takes a while |
| the Multiple Listing Service of Central Oregon home | | | | to slow down from the torrid pace of 2005. Builders |
| prices have almost doubled in the last four years. The | | | | have to develop the lots, get permits and start the |
| MLS shows that the number of sales of homes in the | | | | construction. Construction of the average homes |
| third quarter of 2006 was down 19.32%. However the | | | | takes about six months. There are still new homes |
| average sales price was up 25.09% during the same | | | | coming on the market today that were in the planning |
| period. These statistics can be misleading because of | | | | stages in 2005. |
| the lag time of the new home sales and the final | | | | Some builders are also starting to offer more |
| closing date. | | | | incentives if you buy one of their homes. Upgrades in |
| Some new homes are put under contract before the | | | | appliances, floor coverings, wood work, landscaping |
| foundation is poured. This can leave 6 to 12 months | | | | and other aspects of construction are now free. |
| before the home is completed and closed. All statistics | | | | Some builders are also willing to pay points in order to |
| from the MLS are based on the "Sold" date. Therefore | | | | help buyers qualify for lower payments on their loans. |
| these statistics are skewed. The sale is not reflected | | | | The National Association of Realtor's chief economist, |
| properly. | | | | David Lereah, predicted that sales through the rest of |
| Prices are actually coming down this fall and probably | | | | 2006 will be lower than earlier predicted. "This year, |
| will continue through the winter as the inventory | | | | sales are slowing, homes are plentiful and sellers are |
| continues to build. It is taking longer for homes to sell | | | | negotiating," Lereah said. "Under these conditions, we |
| and there are more homes for buyers to choose from. | | | | will probably see prices dip temporarily below year-ago |
| The real estate markets in California, Arizona, Florida | | | | levels as the market works through a buildup in housing |
| and other key states are leading indicators on how the | | | | inventory." |
| market in Bend will do. In1989 real estate values in | | | | The Central Oregon Association of Realtors is the |
| Bend jumped 35%. Out of state buyers from | | | | best place to track the home sale statistics in Bend |
| California, Florida, Arizona, Washington State and other | | | | and Central Oregon. You can find these statistics on |
| hot markets were selling their homes for large profits | | | | their web site. Keep in mind that these statistics include |
| and moving to Bend to buy larger homes. 1990 and | | | | many new homes that were put in escrow months |
| 1991 saw the out of state markets dry up with prices | | | | before the official closing date. |
| falling. The Bend market followed these markets | | | | If you are a real statistics buff you can go to the web |
| before it picked up again. | | | | site of the Office of Federal Housing Enterprise |
| This winter is the time to buy real estate in Bend. | | | | Oversight. It has a housing price index for all states |
| There are homes on the market now that have been | | | | individually, a house price calculator and other useful |
| substantially reduced with seller's willing to take any | | | | tools. However, keep in mind that these reports lag |
| reasonable offer. Some homes are vacant and can | | | | behind reality somewhat. Real estate prices in Bend |
| be bought with a lease-purchase. We look for the | | | | are falling now and will continue through the winter. |
| market and prices to pick back up next spring. | | | | Interest rates are still low and gas prices are falling, all |
| A report recently released by the Federal Deposit | | | | good signs that the real estate market in Bend will be |
| Insurance Corp., or FDIC reported that Bend is the 35th | | | | picking up next spring. If you have ever thought about |
| fastest growing job market in the country for the | | | | buying real estate in Bend Oregon now may be the |
| second quarter of 2006, wit a job growth rate of 4 | | | | best opportunity you will have in a long time. There are |
| percent during that period. The FDIC reported sales | | | | some good buys in today's market. Look for prices to |
| activity in Oregon fell 12 percent in the same quarter. | | | | start going up this spring. |