Bend Oregon and Metropolitan Home Prices Rising

The average home price of homes sold in Bend Oregon for the first quarter of 2013 is up 27% from the first quarter of 2012.   The National Association of Realtors reports metropolitan area median home prices continued to rise in the first quarter, with the national gain showing the best year-over-year performance in over seven years.  A companion breakout of income requirements to purchase a median-priced home on a metro basis shows the typical buyer earns roughly double the income needed to buy a home in his or her area.

The median existing single-family home price rose in 133 out of 150 metropolitan statistical areas (MSAs) based on closings in the first quarter of 2013 compared with first quarter last year, while 17 areas had price declines.  In the fourth quarter of 2012, a comparable 133 areas showed price increases from a year earlier, greatly improved from the first quarter of 2012 when prices in only 74 metros were up.

Lawrence Yun, NAR chief economist, said many areas are experiencing a seller’s market.  “The supply/demand balance is clearly tilted toward sellers in a good portion of the country,” he said.  “Inventory conditions are expected to remain fairly constrained this year, so overall price increases should be well above the historic gain of one-to-two percentage points above the rate of inflation.  If home builders can continue to ramp up production, then home price growth is expected to moderate in 2014.”

At the end of the first quarter there were 1.93 million existing homes available for sale, which is 16.8 percent below the close of the first quarter of 2012, when 2.32 million homes were on the market.

The national median existing single-family home price was $176,600 in the first quarter, up 11.3 percent from $158,600 in the first quarter of 2012.  This is the strongest year-over-year price increase since the fourth quarter of 2005 when the median price jumped 13.6 percent.  In the fourth quarter of 2012 the median price rose 10.0 percent from a year earlier.

 “Some of the previously hard-hit markets like Phoenix, Sacramento and Miami continue to experience a dramatic turnaround, while a new set of areas like Atlanta, Minneapolis and Seattle have begun to show strong signs of upward momentum,” Yun said.

The median price is where half of the homes sold for more and half sold for less.  However, some of the elevated median prices reflect a shrinking market share of lower priced homes and greater activity in upper priced transactions.  Distressed homes – foreclosures and short sales generally sold at discounts of up to 20 percent – accounted for 23 percent of first quarter sales, down from 32 percent a year ago.

Total existing-home sales, including single-family and condo, edged up 0.8 percent to a seasonally adjusted annual rate of 4.94 million in the first quarter from 4.90 million in the fourth quarter, and were 9.8 percent above the 4.50 million pace during the first quarter of 2012.  Sales were at the highest level since the fourth quarter of 2009, when they reached 4.95 million as buyers responded to tax incentives.

According to Freddie Mac, the national commitment rate on a 30-year conventional fixed-rate mortgage averaged 3.50 percent in the first quarter, up from a record low 3.36 percent in the fourth quarter; it was 3.92 percent in the first quarter of 2012.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said conditions remain favorable for buyers.  “Even with rising home prices, there is still plenty of buying power in the market,” he said.  “Historically low mortgage interest rates and home prices that remain well below their peak mean most buyers can purchase well within their means, assuming they meet ongoing stringent credit standards.”

A separate breakout of qualifying incomes to purchase a median-priced existing single-family home on a metropolitan area basis demonstrates ample buying power in the current market.  Income requirements are determined using several scenarios on down-payment percentages and assume 25 percent of gross income devoted to mortgage principal and interest at a mortgage interest rate of 3.5 percent.

The national median family income was $62,200 in the first quarter.  However, to purchase a home at the national median price, a buyer making a 5 percent down-payment would only need an income of $36,500.  With a 10 percent down-payment the required income would be $34,600, while with 20 percent down, the necessary income is $30,700.

In the condo sector, metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $172,400 in the first quarter, up 10.4 percent from the first quarter of 2012.  Thirty-nine metros showed increases in their median condo price from a year ago and 15 areas had declines.

Regionally, existing-home sales in the Northeast rose 4.4 percent in the first quarter and are 9.1 percent above the first quarter of 2012.  The median existing single-family home price in the Northeast rose 2.9 percent to $234,000 in the first quarter from a year ago.

In the Midwest, existing-home sales increased 1.2 percent in the first quarter and are 15.0 percent higher than a year ago.  The median existing single-family home price in the Midwest increased 8.2 percent to $135,100 in the first quarter from the same quarter last year.

Existing-home sales in the South edged up 0.7 percent in the first quarter and are 13.3 percent above the first quarter of 2012.  The regional median existing single-family home price was $156,800 in the first quarter, up 9.3 percent from a year earlier.

In the West, which is the region most impacted by limited housing supplies, existing-home sales slipped 1.1 percent in the first quarter but are 0.6 percent above a year ago.  The median existing single-family home price in the West jumped 24.4 percent to $247,800 in the first quarter from the first quarter of 2012.

Bend Oregon real estate continues to be a great investment with rising prices and low interest rates.

 

Bank Foreclosures and Short Sales

Bank foreclosures in Bend Oregon are becoming a thing of the past.  As of this posting there is one bank owned residential property for sale in Bend.  It’s priced at $1,650,000.  There have been 223 sales in the last year and there are currently 17 pending foreclosure sales.

However, there are 13 short sales currently on the market and 108 pending sales.  All of these pending sales will not close as some lenders will not approve the sale at the current price.  Although the banks are now working on approving short sales much easier than they did a few years ago.  They have learned it’s much easier to approve a short sale than it is to foreclose.  There have been 365 sales within the last year.  That's one short sale every day.

Prices of homes in Bend are steadily climbing and interest rates are at an all time low.  It looks like our market bottomed out about 18 months ago.  Now is still a good time to buy before prices rise even further.  Contact Jim or Matt today for help in finding your new home in Bend.  We have been living, working and raising our families in Bend since 1981.

 

Home Sales Still Increasing

Pending sales of Bend Oregon real estate (home sales) increased in March and remain above year-ago levels, but contract activity in recent months shows only modest movement, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 1.5 percent to 105.7 in March from a downwardly revised 104.1 in February, and is 7.0 percent above March 2012 when it was 98.8. Pending sales have been above year-ago levels for the past 23 months; the data reflect contracts but not closings.

Lawrence Yun , NAR chief economist, said the market appears to be leveling off. "Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply. Little movement is expected in near-term sales closings, but they should edge up modestly as the year progresses," he said. "Job additions and rising household wealth will continue to support housing demand."

The Pending Home Sales Index in the Northeast was unchanged at 82.8 in March and is 6.3 percent higher than March 2012. In the Midwest the index increased 0.3 percent to 103.8 in March and is 13.7 percent above a year ago. Pending home sales in the South rose 2.7 percent to an index of 120.0 in March and are 10.4 percent higher than March 2012. In the West the index increased 1.5 percent in March to 102.9 but is 4.3 percent below a year ago.

Total existing-home sales are projected to increase 6.5 to 7 percent over 2012 to nearly 5 million sales this year, while the national median existing-home price is forecast to rise about 7.5 percent.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months. 

There would be more pending sales in Bend if the inventory was higher.  Prices are rising and short sales and bank foreclosures are starting to disapear from the market.  Bend Oregon real estate is a great investment!

Home Inventory Is Falling as Prices Rise

Existing-home sales eased in March from inventory constraints, which continued to pressure home prices, according to the National Association of Realtors.  Bend Oregon home inventory is lower with rising prices.  Bank foreclosures are almost non-existent in today's market.

Total existing-home sales, which are completed transactions that include single-family homes, town homes, condominiums and co-ops, declined 0.6 percent to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February, but remain 10.3 percent higher than the 4.46 million-unit pace in March 2012.

Sales have been above year-ago levels for 21 consecutive months, while prices show 13 consecutive months of year-over-year price increases.

Lawrence Yun , NAR chief economist, said there is more demand than supply in the current market. "Buyer traffic is 25 percent above a year ago when we were already seeing notable gains in shopping activity," he said. "In the same time frame housing inventories have trended much lower, which is continuing to pressure home prices. The good news is home construction is rising and low mortgage rates are continuing to keep affordability conditions at historically favorable levels. The bad news is that underwriting standards remain excessively tight, while renters are getting squeezed by higher rents."

Total housing inventory at the end of March increased 1.6 percent to 1.93 million existing homes available for sale, which represents a 4.7-month supply at the current sales pace, up from 4.6 months in February. Listed inventory remains 16.8 percent below a year ago when there was a 6.2-month supply.

"The inventory improvement last month results from a seasonal gain, but conditions continue to broadly favor sellers. We need a housing supply of over 6 months to have a generally balanced market between home buyers and sellers, but it's unlikely we'll get there without greater increases in housing construction," Yun said.

The national median existing-home price for all housing types was $184,300 in March, which is 11.8 percent higher than March 2012. The March increase is the strongest since November 2005 when it rose 12.9 percent from a year earlier, and the last time there were 13 consecutive months of year-over-year price increases was from May 2005 to May 2006.

Distressed homes - foreclosures and short sales - accounted for 21 percent of March sales, down from 25 percent in February and 29 percent in March 2012. Thirteen percent of March sales were foreclosures, and 8 percent were short sales. Foreclosures sold for an average discount of 15 percent below market value in March, while short sales were discounted 13 percent.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage increased to 3.57 percent in March from 3.53 percent in February; it was 3.95 percent in March 2012.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said homes are selling much faster. "The typical home sold in March was on the market for one month less than it took to sell a year ago," he said. "Multiple bidding is becoming more common, and more homes are selling above the asking price, so buyers need to move quickly and follow their Realtor®'s advice for contingencies when making contract offers."

The median time on market for all homes was 62 days in March, down from 74 days in February and is 32 percent below 91 days in March 2012. Short sales were on the market for a median of 81 days, while foreclosures typically sold in 46 days and non-distressed homes took 66 days. Thirty-seven percent of all homes sold in March were on the market for less than a month.

First-time buyers accounted for 30 percent of purchases in March, unchanged from February; they were 33 percent in March 2012.

All-cash sales were at 30 percent of transactions in March, down from 32 percent in February; they were 32 percent in March 2012. Individual investors, who account for most cash sales, purchased 19 percent of homes in March, down from 22 percent in February; they were 21 percent in March 2012.

Single-family home sales slipped 0.2 percent to a seasonally adjusted annual rate of 4.32 million in March from 4.33 million in February, but are 9.1 percent above the 3.96 million-unit level in March 2012. The median existing single-family home price was $185,100 in March, up 12.1 percent from a year ago.

Existing condominium and co-op sales fell 3.2 percent to an annualized rate of 600,000 units in March from 620,000 in February, but are 20.0 percent higher than the 500,000-unit pace a year ago. The median existing condo price was $178,900 in March, which is 10.4 percent above March 2012.

Regionally, existing-home sales in the Northeast were unchanged at an annual rate of 630,000 in March and are 6.8 percent above March 2012. The median price in the Northeast was $237,000, up 3.0 percent from a year ago.

Existing-home sales in the Midwest rose 1.8 percent in March to a pace of 1.16 million and are 14.9 percent above a year ago. The median price in the Midwest was $141,800, up 7.8 percent from March 2012.

In the South, existing-home sales slipped 1.5 percent to an annual level of 1.95 million in March but are 12.7 percent above March 2012. The median price in the South was $161,700, which is 10.4 percent above a year ago.

Existing-home sales in the West declined 1.7 percent to a pace of 1.18 million in March but are 4.4 percent above a year ago. With notably constrained inventory conditions, the median price in the West rose to $258,100, up 26.1 percent from March 2012.

Prices are going up and inventory is going down.  Now is the time to buy Bend Oregon real estate.  Sales of new homes are also picking up as inventory decreases.

Bend Home Inventory Falling

February pending home sales flattened with limited buyer choices, but remained at the second highest level in nearly three years, according to the National Association of Realtors.  Bend Oregon real estate prices and sales continue to increase.  Inventory of bank foreclosures in almost none existent.  Give us a call if you are interesting in obtaining a bank owned home.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, slipped 0.4 percent to 104.8 in February from a downwardly revised 105.2 in January, but is 8.4 percent higher than February 2012 when it was 96.6. Contract activity has been above year-ago levels for the past 22 months; the data reflect contracts but not closings.

Before January, the last time the index showed a higher reading was in April 2010 when it was 110.9, shortly before the deadline for the home buyer tax credit.

Lawrence Yun , NAR chief economist, said limited inventory is holding back the market in many areas. "Only new home construction can genuinely help relieve the inventory shortage, and housing starts need to rise at least 50 percent from current levels," he said. "Most local home builders are small businesses and simply don't have access to capital on Wall Street. Clearer regulatory rules, applied to construction loans for smaller community banks and credit unions, could bring many small-sized builders back into the market."

The Pending Home Sales Index in the Northeast declined 2.5 percent to 82.8 in February but is 6.8 percent above February 2012. In the Midwest the index rose 0.4 percent to 103.6 in February and is 13.2 percent higher than a year ago. Pending home sales in the South slipped 0.3 percent to an index of 118.8 in February but are 12.1 percent above February 2012. In the West the index increased 0.1 percent in February to 101.4 but is 0.8 percent below a year ago.

Yun projects existing-home sales to rise about 7 percent in 2013 to approximately 5 million sales, which is near the current level of activity. "The volume of home sales appears to be leveling off with the constrained inventory conditions, and the leveling of the index means little change is likely in the pace of sales over the next couple months," he said.

The national median existing-home price is forecast to rise nearly 7 percent this year, while mortgage interest rates should remain historically low, but trend up slowly and reach 4 percent in the fourth quarter.

Sales of homes in Bend continue to be brisk as inventories are falling.  New home construction is starting to pick up with new construction becoming a good buy again. 

Home Sales and Prices Continue to Climb

The number of existing home sales in Bend, Oregon was about the same in February 2012 vs. 2013.  However,  the average sales price was up 20% and the average sales price per square for was up from $121 to $143. (18%)

February existing-home sales and prices affirm a healthy recovery is underway in the housing sector, according to the National Association of Realtors. Sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases.

Total existing-home sales, which are completed transactions that include single-family homes, town homes, condominiums and co-ops, increased 0.8 percent to a seasonally adjusted annual rate of 4.98 million in February from an upwardly revised 4.94 million in January, and are 10.2 percent above the 4.52 million-unit level seen in February 2012. February sales were at the highest level since the tax credit period of November 2009.

Lawrence Yun , NAR chief economist, said conditions for continued housing improvement are at play. "Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise. Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable," he said. "The only headwinds are limited housing inventory, which varies greatly around the country, and credit conditions that remain too restrictive."

Total housing inventory at the end of February rose 9.6 percent to 1.94 million existing homes available for sale, which represents a 4.7-month supply at the current sales pace, up from 4.3 months in January, which was the lowest supply since May 2005. Listed inventory is 19.2 percent below a year ago when there was a 6.4-month supply.

The national median existing-home price for all housing types was $173,600 in February, up 11.6 percent from February 2012. The last time there were 12 consecutive months of year-over-year price increases was from June 2005 to May 2006. The February gain is the strongest since November 2005 when it was 12.9 percent above a year earlier.

"A strong rise in home values is contributing to housing wealth recovery, which has risen by $1.4 trillion in the past year and looks to top that increase this year," Yun said. "The extra consumer spending arising from growth in housing wealth is expected to be $70 billion to $110 billion this year."

Distressed homes - foreclosures and short sales - accounted for 25 percent of February sales, up from 23 percent in January but down from 34 percent in February 2012. Fifteen percent of February sales were foreclosures, and 10 percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in February, while short sales were discounted 15 percent.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.53 percent in February from 3.41 percent in January; it was 3.89 percent in February 2012.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said interest rates remain extraordinarily low. "In the history of mortgage interest rates since 1971, the 30-year fixed rate has been below 4 percent in only 15 months, and those have all been in the past 15 months," he said. "Even with rising home prices, affordability remains historically favorable because home prices over-corrected during the downturn. This means there is still great value for buyers in the current market."

The median time on market for all homes was 74 days in February, which is 24 percent below 97 days in February 2012. Short sales were on the market for a median of 101 days, while foreclosures typically sold in 52 days and non-distressed homes took 77 days. One out of three homes sold in February was on the market for less than a month.

First-time buyers accounted for 30 percent of purchases in February, unchanged from January; they were 32 percent in February 2012.

All-cash sales were at 32 percent of transactions in February, up from 28 percent in January; they were 33 percent in February 2012. Investors, who account for most cash sales, purchased 22 percent of homes in February, up from 19 percent in January; they were 23 percent in February 2012.

"There was an upward bump in the shares of investor and all-cash closed purchases in February. These sales result from purchase offers during the holidays when shopping activity by traditional home buyers slows, but investors, who typically pay cash, remained active," Yun said. "This is a seasonal pattern, but we're now seeing a general increase in buyer traffic, which is 25 percent above a year ago."

Single-family home sales slipped 0.2 percent to a seasonally adjusted annual rate of 4.36 million in February from an upwardly revised 4.37 million in January, but are 8.7 percent above the 4.01 million-unit pace in February 2012. The median existing single-family home price was $173,800 in February, which is 11.3 percent higher than a year ago.

Existing condominium and co-op sales rose 8.8 percent to an annualized rate of 620,000 in February from 570,000 in January, and are 21.6 percent above the 510,000-unit level a year ago. The median existing condo price was $172,500 in February, up 13.9 percent from February 2012.

Regionally, existing-home sales in the Northeast fell 3.1 percent to an annual rate of 630,000 in February but are 8.6 percent above February 2012. The median price in the Northeast was $238,800, which is 7.6 percent above a year ago.

Existing-home sales in the Midwest slipped 1.7 in February to a pace of 1.14 million but are 12.9 percent above a year ago. The median price in the Midwest was $129,900, up 7.7 percent from February 2012.

In the South, existing-home sales increased 2.6 percent to an annual level of 2.01 million in February and are 14.9 percent above February 2012. The median price in the South was $150,500, up 9.3 percent from a year ago.

Existing-home sales in the West rose 2.6 percent to a pace of 1.20 million in February and are 1.7 percent above a year ago. With limited choices and multiple bidding, the median price in the West rose to $237,700, which is 22.7 percent above February 2012.

Bend Oregon real estate continues to be a good buy.  Now is the time! 

Real Estate Inventory Down in Bend

Bend Oregon real estate inventory of homes for sale is down but prices are up.  Below is a report on pending home sales in the United States.  Here's a link to search all Bend Oregon real estate currently for sale.

Pending home sales rose in January, and have been above year-ago levels for the past 21 months, according to the National Association of Realtors. There were healthy monthly gains in all regions but the West, which is constrained by limited inventory but was slightly improved.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 4.5 percent to 105.9 in January from a downwardly revised 101.3 in December and is 9.5 percent above January 2012 when it was 96.7. The data reflect contracts but not closings.

The January index is the highest reading since April 2010 when it hit 110.9, just before the deadline for the home buyer tax credit. Aside from spikes induced by the tax credits, the last time there was a higher reading was in February 2007 when it reached 107.9.

Lawrence Yun, NAR chief economist, said inventory is the key to this year's housing market. "Favorable affordability conditions and job growth have unleashed a pent-up demand. Most areas are drawing down housing inventory, which has shifted the supply/demand balance to sellers in much of the country. It's also why we're experiencing the strongest price growth in more than seven years," he said.

"Over the near term, rising contract activity means higher home sales, but total sales for the year are expected to rise less than in 2012, while home prices are projected to rise more strongly because of inventory shortages," Yun said.

The Pending Homes Sales Index in the Northeast rose 8.2 percent to 84.8 in January and is 10.5 percent higher than January 2012. In the Midwest the index increased 4.5 percent to 105.0 in January and is 17.7 percent above a year ago. Pending home sales in the South rose 5.9 percent to an index of 119.3 in January and are 11.3 percent higher January 2012. In the West the index edged up 0.1 percent in January to 102.1 but is 1.5 percent below a year ago.

Yun expects approximately 5.0 million existing-home sales this year. However, price growth could exceed a 7 percent gain projected for 2013 if inventory supplies remain low. Previously, NAR had expected 5.1 million existing-home sales in 2013, while prices were forecast to rise 5.5 to 6.0 percent.

Even though inventory is down there are still some really good buys available in Bend.  Call us today and let us help you find your new home.

 

Bend Oregon Sellers Market Developing

The Bend Oregon real estate market is turning into a seller's market.  Inventory is decreasing and prices are increasing. There were only 4 bank foreclosures for sale in Bend as of this posting.  Search the MLS for Homes for Sale.

Existing-home sales edged up in January, while a seller's market is developing and home prices continue to rise steadily above year-ago levels, according to the National Association of Realtors. Sales rose in every region but the West, which is the region most constrained by limited inventory.

Total existing-home sales, which are completed transactions that include single-family homes, town homes, condominiums and co-ops, increased 0.4 percent to a seasonally adjusted annual rate of 4.92 million in January from a downwardly revised 4.90 million in December, and are 9.1 percent above the 4.51 million-unit pace in January 2012.

Lawrence Yun , NAR chief economist, said tight inventory is a major factor in the market. "Buyer traffic is continuing to pick up, while seller traffic is holding steady," he said. "In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We've transitioned into a seller's market in much of the country."

Total housing inventory at the end of January fell 4.9 percent to 1.74 million existing homes available for sale, which represents a 4.2-month supply at the current sales pace, down from 4.5 months in December, and is the lowest housing supply since April 2005 when it was also 4.2 months.

Listed inventory is 25.3 percent below a year ago when there was a 6.2-month supply. Raw unsold inventory is at the lowest level since December 1999 when there were 1.71 million homes on the market.

"We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth," Yun explained.

The national median existing-home price for all housing types was $173,600 in January, up 12.3 percent from January 2012, which is the 11th consecutive month of year-over-year price increases; that last occurred from July 2005 to May 2006. The January gain is the strongest since November 2005 when it was 12.9 percent above a year earlier.

Distressed homes - foreclosures and short sales - accounted for 23 percent of January sales, down from 24 percent in December and 35 percent in January 2012. Fourteen percent of January sales were foreclosures and 9 percent were short sales. Foreclosures sold for an average discount of 20 percent below market value in January, while short sales were discounted 12 percent.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.41 percent in January from a record low 3.35 percent in December; it was 3.92 percent in January 2012.

NAR President Gary Thomas , broker-owner of Evergreen Realty in Villa Park, Calif., said homes are selling faster. "The typical home is selling nearly four weeks faster than it did a year ago," he said. "In this environment, Realtors can help buyers strike a balance between moving quickly and protecting their interests, such as making offers contingent upon a satisfactory home inspection and obtaining a loan; of course, a loan pre-qualification may help too."

The median time on market for all homes was 71 days in January, down from 73 days in December and is 28.3 percent below 99 days in January 2012. Short sales were on the market for a median of 94 days, while foreclosures typically sold in 47 days and non-distressed homes took 75 days; 31 percent of all homes sold in January were on the market for less than a month.

First-time buyers accounted for 30 percent of purchases in January, unchanged from December; they were 33 percent in January 2012.

All-cash sales were at 28 percent of transactions in January, down from 29 percent in December and 31 percent in January 2012. Investors, who account for most cash sales, purchased 19 percent of homes in January, down from 21 percent in December and 23 percent in January 2012.

Single-family home sales increased 0.2 percent to a seasonally adjusted annual rate of 4.34 million in January from 4.33 million in December, and are 8.5 percent above the 4.00 million-unit level in January 2012. The median existing single-family home price was $174,100 in January, up 12.6 percent from a year ago.

Existing condominium and co-op sales rose 1.8 percent to an annualized pace of 580,000 in January from 570,000 in December, and are 13.7 percent higher than the 510,000-unit level a year ago. The median existing condo price was $169,600 in January, up 9.4 percent from January 2012.

Regionally, existing-home sales in the Northeast increased 4.8 percent to an annual rate of 650,000 in January and are 12.1 percent above January 2012. The median price in the Northeast was $230,500, up 2.4 percent from a year ago.

Existing-home sales in the Midwest rose 3.6 percent in January to a pace of 1.16 million and are 17.2 percent higher than a year ago. The median price in the Midwest was $131,800, which is 8.6 percent above January 2012.

In the South, existing-home sales increased 1.0 percent to an annual level of 1.96 million in January and are 14.0 percent above January 2012. The median price in the South was $152,100, up 13.4 percent from a year ago.

Existing-home sales in the West fell 5.7 percent to a pace of 1.15 million in January and are 5.7 percent below a year ago. The median price in the West was $239,800, which is 26.6 percent above January 2012.

There are still really good buys in the Bend market but they sell fast if they are priced right.  Call us today and let us help you find your new home.  We have lived in Bend since 1981.  We are a family owned business with world wide marketing.  Contact us today!

2012 Fourth Quarter Home Prices Jump

A growing number of metropolitan areas had higher median home prices in the fourth quarter, with the national price showing the strongest year-over-year increase in seven years, according to the latest quarterly report by the National Association of Realtors. A companion report shows record high housing affordability conditions for metro areas in 2012.  The average price of homes sold in Bend Oregon rose 17%.

The median existing single-family home price rose in 133 out of 152 metropolitan statistical areas based on closings in the fourth quarter compared with same quarter in 2011, while 19 areas had price declines. In the third quarter 120 areas showed increases from a year earlier, while in the fourth quarter of 2011 only 29 metros were up.

Lawrence Yun , NAR chief economist, said all the conditions for strong price growth are at play. "Home sales are on a sustained uptrend, mortgage interest rates are hovering near record lows and unsold inventory is at the lowest level in 12 years," he said. "Home sales are being fueled by a pent-up demand and job creation, along with still favorable affordability conditions and rents rising at faster rates. Our population has been growing faster than overall housing stock, so supply and demand dynamics are very much at play." Yun added that more housing construction is needed to relieve some of the pressure in the market and keep home prices from overheating.

The national median existing single-family home price was $178,900 in the fourth quarter, up 10.0 percent from $162,600 in the fourth quarter of 2011, which is the strongest year-over-year price increase since the fourth quarter of 2005 when the median price jumped 13.6 percent. In the third quarter the price rose 8.8 percent from a year earlier.

The median price is where half of the homes sold for more and half sold for less; medians are more typical than average prices, which are skewed higher by a relatively small share of upper-end transactions.

A shrinking market share of lower priced homes continues to account for some of the price growth. Distressed homes - foreclosures and short sales generally sold at deep discounts - accounted for 23 percent of fourth quarter sales, down from 30 percent a year ago.

Total existing-home sales, including single-family and condo, rose 5.0 percent to a seasonally adjusted annual rate of 4.90 million in the fourth quarter from 4.66 million in the third quarter, and were 12.1 percent above the 4.37 million pace during the fourth quarter of 2011. Sales in the last quarter were at the highest level since the fourth quarter of 2009 when they reached 4.95 million.

At the end of the fourth quarter there were 1.82 million existing homes available for sale, which is 21.6 percent below the close of the fourth quarter of 2011 when 2.32 million homes were on the market. Unsold inventory is at the lowest level since January 2001 when there were 1.78 million homes for sale.

According to Freddie Mac, the national commitment rate on a 30-year conventional fixed-rate mortgage averaged a record low 3.36 percent in the fourth quarter, down from 3.54 percent in the third quarter and 4.01 percent in the fourth quarter of 2011.

NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif., said favorable affordability conditions dominate the landscape. "In reality, home prices over-corrected on the downside and homes in most of the country were selling for less than replacement construction costs, which means they were undervalued," he said. "At the same time we've had record low mortgage interest rates and slow but steady improvements in median family income. Combined, these factors boosted housing affordability conditions to the highest on record in 2012."

NAR's national annual Housing Affordability Index, with breakouts for metropolitan areas, rose to a record high 193.5 in 2012 from 186.4 in 2011. The index is calculated on the relationship between median home price, median family income and average effective mortgage interest rate. The higher the index, the stronger household purchasing power; record keeping began in 1970.

An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent down payment and 25 percent of gross income devoted to mortgage principal and interest payments. For first-time buyers making small down payments, the affordability levels are relatively lower.

"The housing affordability index shows that the national median income of families was almost double the income needed to buy a median-priced home in 2012, so most buyers are able to stay well within their means," Yun said. "Even with rising home prices, conditions are expected to stay very favorable with the index averaging 161 in 2013, which would be the third best on record."

Metro areas with the greatest housing affordability conditions in 2012 include the Detroit-Warren-Livonia area of Michigan, with an index of 571.1; Decatur, Ill., at 419.5; and Lansing-East Lansing, Mich., at 397.0. There were 145 out of 156 metros that set records for housing affordability in 2012.

In the condo sector, metro area condominium and cooperative prices - covering changes in 56 metro areas - showed the national median existing-condo price was $179,900 in the fourth quarter, up 12.2 percent from the fourth quarter of 2011. Forty-seven metros showed increases in their median condo price from a year ago, one was unchanged and eight areas had declines.

Regionally, existing-home sales in the Northeast increased 2.2 percent in the fourth quarter and are 12.9 percent above the fourth quarter of 2011. The median existing single-family home price in the Northeast rose 0.7 percent to $228,400 in the fourth quarter from a year ago.

In the Midwest, existing-home sales rose 5.6 percent in the fourth quarter and are 18.3 percent higher than a year ago. The median existing single-family home price in the Midwest increased 9.2 percent to $143,800 in the fourth quarter from the same quarter in 2011.

Existing-home sales in the South rose 5.0 percent in the fourth quarter and are 13.2 percent above the fourth quarter of 2011. The regional median existing single-family home price was $160,100 in the fourth quarter, up 9.1 percent from a year earlier.

In the West, which is the region most impacted by limited housing supplies, existing-home sales increased 5.9 percent in the fourth quarter, and are 5.0 percent higher than a year ago. The median existing single-family home price in the West jumped 20.1 percent to $245,200 in the fourth quarter from the fourth quarter of 2011.

The average sales price of existing homes in Bend Oregon jumped 17% in the fourth quarter of 2012 from the fourth quarter of 2011.  Note this is the average sales price and not the median sales price.  The median sales price would be higher yet.  Feel free to contact us with any real estate questions at Bend Oregon Real Estate Expert.

Northwest Crossing Expansion

The owners of Bend's NorthWest Crossing are planning an expansion that would bring 60 new single-family home lots onto the market near Skyliners Road and Northwest 17th Street.  NorthWest Crossing is one of Bend's most popular neighborhoods located on the west side. 

Sales of new homes in NorthWest Crossing have led the construction industry in Bend out of the recession.  The developers have been working with builders by providing financing for the construction of new homes as well as providing the lots.  This helps the developers sell lots as well as helping builders build spec homes in a high demand neighborhood.

Here's a link to all homes currently for sale in NorthWest Crossing.  This link is updated daily.  If you would like to take a look at one of these homes please give us a call.