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