Bend Oregon Real Estate Blog

Bend Real Estate Blog

We provide you with the latest Bend Oregon Real Estate updates as well as general information on Bend and other real estate in Central Oregon.

April 18, 2016

Investment Real Estate

Characteristics of Investment-Home Purchases

The typical investment-home buyer in 2015 had a median household income of $95,800 ($87,680 in 2014) and bought a detached single-family home (62 percent) that was a median distance of 22 miles from their primary residence (24 miles in 2014).

Investment buyers last year purchased property for a variety of reasons, with an increasing share from 2014 citing rental income as the primary reason (42 percent; 37 percent in 2014), followed by low prices and the buyer found a good deal (16 percent), and for potential price appreciation (14 percent).

Likely reflecting growing demand towards renting in the city, investment purchases in urban areas increased to 29 percent (26 percent in 2014). Purchased properties from investment buyers were more likely to be in the South (37 percent) and in a suburban area (41 percent).

Perhaps encouraged by rising housing demand and home prices, over 80 percent of both vacation buyers and investment buyers believe that now is a good time to purchase real estate.     

NAR's 2016 Investment and Vacation Home Buyers Survey, conducted in March 2016, surveyed a sample of households that had purchased any type of residential real estate during 2015. The survey sample was drawn from a representative panel of U.S. adults monitored and maintained by an established survey research firm. A total of 2,053 qualified adults responded to the survey. Respondents were sampled to meet age and income quotas representative of all home buyers drawn from the NAR 2015 Profile of Home Buyers and Sellers.

Investment in homes in Bend Oregon continue to accelerate.  

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Feb. 22, 2016

Bend Oregon Realtors support VA Home Loans

Bend Oregon Realtors Support Vet Loans 

The National Association of Realtors® strongly supports the Veterans Affairs Department’s Home Loan Guaranty Program and Specially Adapted Housing Grants and looks forward to working with the VA on further initiatives to ensure home ownership remains in reach for America’s veterans.

That was the message NAR 2016 Vice President Sherri Meadows delivered today before the U.S. House Veterans’ Affairs Subcommittee on Economic Opportunity.

“Veterans deserve the very best we have to offer as thanks for their service and sacrifice,” said Meadows. “NAR applauds the good work that the VA is doing to assist veterans who want to purchase a home, and we’re excited to work with them and improve those programs. There’s a real opportunity ahead to strengthen existing benefits and help more veterans achieve the dream of  The National Association of Realtors® strongly supports the Veterans Affairs Department’s Home Loan Guaranty Program and Specially Adapted Housing Grants and looks forward to working with the VA on further initiatives to ensure homeownership remains in reach for America’s veterans.

That was the message NAR 2016 Vice President Sherri Meadows delivered today before the U.S. House Veterans’ Affairs Subcommittee on Economic Opportunity.

“Veterans deserve the very best we have to offer as thanks for their service and sacrifice,” said Meadows. “NAR applauds the good work that the VA is doing to assist veterans who want to purchase a home, and we’re excited to work with them and improve those programs. There’s a real opportunity ahead to strengthen existing benefits and help more veterans achieve the dream of homeownership.”

Speaking about the VA’s Home Loan Guaranty Program, Meadows told the committee that NAR supports an increase in VA loan limits. Such a move would recognize the challenge posed by purchasing a home in certain high-cost areas and give veterans greater flexibility in their purchasing decisions.

In addition, Meadows advocated changes to current rules about the fees that can be charged to veterans during the home purchase transaction. NAR strongly supports VA’s efforts to shield veterans from excessive fees, but Meadows noted these rules can have unintended consequences and put veterans on an uneven playing field. NAR supports allowing veterans to negotiate the payment of certain fees, just as non-VA borrowers do, so they can compete fairly with other buyers.

In her testimony, Meadows also reiterated NAR’s support for the creation of a Veterans Renovation Pilot Program, similar to the Federal Housing Administration’s 203(k) program. The VA already has the authority to create such a program, which would allow veterans to purchase a home in need of a renovation while still enjoying the benefits of the VA guaranty.

Similarly, Meadows spoke in favor of fully funding and staffing the Specially Adapted Housing Program, which offers grants allowing disabled veterans to find or remodel housing to accommodate special needs.

Veterans face a number of unique challenges when purchasing a home, and many Realtors® have built an expertise in this area.

Meadows shared that many Realtors® are veterans themselves and noted NAR’s commitment to educating more Realtors® about working with current and former military service members through its “Military Relocation Professional Certificate” program..”

Speaking about the VA’s Home Loan Guaranty Program, Meadows told the committee that NAR supports an increase in VA loan limits. Such a move would recognize the challenge posed by purchasing a home in certain high-cost areas and give veterans greater flexibility in their purchasing decisions.

In addition, Meadows advocated changes to current rules about the fees that can be charged to veterans during the home purchase transaction. NAR strongly supports VA’s efforts to shield veterans from excessive fees, but Meadows noted these rules can have unintended consequences and put veterans on an uneven playing field. NAR supports allowing veterans to negotiate the payment of certain fees, just as non-VA borrowers do, so they can compete fairly with other buyers.

In her testimony, Meadows also reiterated NAR’s support for the creation of a Veterans Renovation Pilot Program, similar to the Federal Housing Administration’s 203(k) program. The VA already has the authority to create such a program, which would allow veterans to purchase a home in need of a renovation while still enjoying the benefits of the VA guaranty.

Similarly, Meadows spoke in favor of fully funding and staffing the Specially Adapted Housing Program, which offers grants allowing disabled veterans to find or remodel housing to accommodate special needs.

Veterans face a number of unique challenges when purchasing a home, and many Realtors® have built an expertise in this area.

Meadows shared that many Realtors® are veterans themselves and noted NAR’s commitment to educating more Realtors about working with current and former military service members through its “Military Relocation Professional Certificate” program.

Veterans looking for Bend Oregon Real Estate can search the MLS with this link!

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Feb. 15, 2016

Homes Real Estate Prices Accelerating

 Home Prices Rising

A moderating pace of sales had little impact on the trajectory of home prices during the final three months of the year, which picked up speed and showed continued growth in most of the U.S., according to the latest quarterly report by the National Association of Realtors®.

The median existing single-family home price increased in 81 percent of measured markets, with 145 out of 179 metropolitan statistical areas (MSAs) showing gains based on closings in the fourth quarter compared with the fourth quarter of 2014. Thirty-four areas (19 percent) recorded lower median prices from a year earlier.

There were slightly fewer rising markets in the fourth quarter compared to the third quarter, when price gains were recorded in 87 percent of metro areas. Thirty metro areas in the fourth quarter (17 percent) experienced double-digit increases, a jump from the 20 metro areas in the third quarter. Twenty-two metro areas (12 percent) experienced double-digit increases in the fourth quarter of 2014.

For all of 2015, an average of 89 percent of measured metro areas saw increasing home prices, up from the averages in 2014 (83 percent) and 2013 (88 percent).

Lawrence Yun, NAR chief economist, says faster price growth reawakened in the final months of 2015 despite the pace of sales slowing from earlier in the year. "Even with slightly cooling demand, the unshakable trend of inadequate supply in relation to the overall pool of prospective buyers inflicted upward pressure on home prices in several metro areas," he said. "As a result, home ownership continues to be out of reach for a number of qualified buyers in the top job producing, but costliest, parts of the country – especially on the West Coast and parts of the South."

The national median existing single-family home price in the fourth quarter was $222,700, up 6.9 percent from the fourth quarter of 2014 ($208,400). The median price during the third quarter of 2015 increased 5.4 percent from the third quarter of 2014.  

Total existing-home sales, including single family and condo, declined 5.4 percent to a seasonally adjusted annual rate of 5.18 million in the fourth quarter from 5.48 million in the third quarter, but are 2.4 percent higher than the 5.06 million pace during the fourth quarter of 2014.

"Without a significant ramp-up in new home construction and more homeowners listing their homes for sale, buyers are likely to see little relief in the form of slowing price growth in the months ahead," adds Yun. 

Rising home prices, despite lower mortgage rates and an increase in the national family median income ($68,034), caused affordability to fall in the fourth quarter compared to the fourth quarter of last year. To purchase a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $49,535, a 10 percent down payment would require an income of $46,928, and $41,714 would be needed for a 20 percent down payment.

"Recent employment data is starting to show some pick-up in wage growth as the labor market edges near full employment," adds Yun. "With price appreciation likely to continue at the same pace – and even higher in some markets – incomes need to rise even more to keep affordability conditions from declining further."

The five most expensive housing markets in the fourth quarter were the San Jose, Calif., metro area, where the median existing single-family price was $940,000; San Francisco, $781,600; Honolulu, $716,600; Anaheim-Santa Ana, Calif., $708,700; and San Diego, $546,800.

The five lowest-cost metro areas in the fourth quarter were Youngstown-Warren-Boardman, Ohio, $81,200; Cumberland, Md., $86,100; Rockford, Ill., $87,600; Decatur, Ill., $90,000; and Wichita Falls, Texas, $101,900.

Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $209,200 in the fourth quarter, up 3.6 percent from the fourth quarter of 2014 ($202,000). Forty-four metro areas (72 percent) showed gains in their median condo price from a year ago; 17 areas had declines.

At the end of the fourth quarter, there were 1.79 million existing homes available for sale, which was below the 1.86 million homes for sale at the end of the fourth quarter in 2014. The average supply during the fourth quarter was 4.6 months – down from 4.9 months a year ago.

NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida, says the main challenge for buyers so far in 2016 continues to be insufficient supply. "With the exception of some metro areas with jobs heavily reliant in the energy sector, Realtors® say demand has held steady during the winter months," he said. "Serious buyers should be prepared to act fast, and remain in close communication with a Realtor® to deploy a negotiation strategy that fits their budget. Even in these typically slower winter months, listings in affordable price ranges are going under contract quickly."  Bend Oregon Real Estate

 

Regional Breakdown

 

Total existing-home sales in the Northeast increased 1.9 percent in the fourth quarter and are 7.3 percent above the fourth quarter of 2014. The median existing single-family home price in the Northeast was $254,500 in the fourth quarter, up 3.7 percent from a year ago.

In the Midwest, existing-home sales decreased 6.9 percent in the fourth quarter but are 5.2 percent higher than a year ago. The median existing single-family home price in the Midwest increased 6.0 percent to $171,600 in the fourth quarter from the same quarter a year ago.

Existing-home sales in the South declined 4.1 percent in the fourth quarter and are 0.6 percent below the fourth quarter of 2014. The median existing single-family home price in the South was $195,400 in the fourth quarter, 6.6 percent above a year earlier.

In the West, existing-home sales fell 10.4 percent in the fourth quarter but are 2.1 percent above a year ago. The median existing single-family home price in the West increased 8.4 percent to $323,600 in the fourth quarter from the fourth quarter of 2014.

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Jan. 31, 2016

Bend Home Sales Steady December 2015

Home Sales Steady - Bend Oregon Homes

Pending home sales were mostly unchanged in December, but inched forward slightly, fueled by a large increase in the Northeast that outpaced declines in the other three major regions, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, crawled 0.1 percent to 106.8 in December from a downward trend revised 106.7 in November and is now 4.2 percent above December 2014 (102.5). The index has increased year-over-year for 16 consecutive months.

Lawrence Yun, NAR chief economist, says contract activity closed out the year on stable footing but lost some momentum, except for in the Northeast. "Warmer than average weather and more favorable inventory conditions compared to other parts of the country encouraged more households in the Northeast to make the decision to buy last month," he said. "Overall, while sustained job creation is spurring more activity compared to a year ago, the ability to find available homes in affordable price ranges is difficult for buyers in many job creating areas. With homebuilding still grossly inadequate, steady price appreciation and tight supply conditions aren't going away any time soon."

According to Yun, although healthy labor market conditions will persuade more households to buy, it's possible overall demand could be somewhat curtailed in coming months. The stock market's sizeable losses since the start of the year and the effect slowing manufacturing activity is having in some areas — especially in the energy sector — could cause some to hold off on buying.

"The silver lining from the market turmoil in recent weeks is the fact that mortgage rates have slightly declined," says Yun. "Buyers looking to close on a home before the spring buying season begins may be rewarded with a mortgage rate at or below 4 percent."

Existing-homes sales this year are forecast to be around 5.34 million, an increase of 1.5 percent from 2015. The national median existing-home price for all of this year is expected to increase between 4 and 5 percent. In 2015, existing-home sales increased 6.5 percent and prices rose 6.8 percent.

Rents — which have far outpaced wages in recent years — are expected to slightly slow to 3.3 percent growth in 2016 from 3.6 percent a year ago. Multifamily housing starts are expected to reach 420,000 units this year, the highest level since 1987.  Rents in Bend, OR remain high.

The PHSI in the Northeast increased 6.1 percent to 97.8 in December, and is now 15.3 percent above a year ago. In the Midwest the index decreased 1.1 percent to 103.6 in December, but is still 3.6 percent above December 2014.

Pending home sales in the South declined 0.5 percent to an index of 119.3 in December but are 1.0 percent higher than last December. The index in the West decreased 2.1 percent in December to 97.5, but remains 3.4 percent above a year ago.

Search Bend Oregon Homes and Real Estate

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Dec. 26, 2015

Real Estate Homes Sales Slowing

Bend Oregon Real Estate Sales

Existing-home sales dropped off considerably in November to the slowest pace in 19 months, but some of the decrease was likely because of an apparent rise in closing time frames that may have pushed some transactions into December, according to the National Association of Realtors. All four major regions saw sales declines in November.

Existing-home sales in the West dropped 13.9 percent to an annual rate of 990,000 in November, and are now 4.8 percent lower than a year ago. The median price in the West was $319,700, which is 8.3 percent above November 2014.

Total existing-home sales, which are completed transactions that include single-family homes, town homes, condominiums and co-ops, fell 10.5 percent to a seasonally adjusted annual rate of 4.76 million in November (lowest since April 2014 at 4.75 million) from a downward revised 5.32 million in October. After last month's decline (largest since July 2010 at 22.5 percent), sales are now 3.8 percent below a year ago — the first year-over-year decrease since September 2014.

Lawrence Yun, NAR chief economist, says multiple factors led to November's sales decline, but the primary reason could be an anomaly as the industry adjusts to the new Know Before You Owe rule. "Sparse inventory and affordability issues continue to impede a large pool of buyers' ability to buy, which is holding back sales," he said. "However, signed contracts have remained mostly steady in recent months, and properties sold faster in November. Therefore it's highly possible the stark sales decline wasn't because of sudden, withering demand."

According to Yun, although Realtors are adjusting accordingly to the Know Before You Owe initiative, the main takeaway so far has been the need for longer closing times. According to NAR's Realtors® Confidence Index, 47 percent of respondents in November reported that they are experiencing a longer time to close compared to a year ago, up from 37 percent in October.

"It's possible the longer time frames pushed a latter portion of would-be November transactions into December," says Yun. "As long as closing time frames don't rise even further, it's likely more sales will register to this month's total, and November's large dip will be more."

The median existing-home price for all housing types in November was $220,300, which is 6.3 percent above November 2014 ($207,200). November's price increase marks the 45th consecutive month of year-over-year gains.

Total housing inventory at the end of November decreased 3.3 percent to 2.04 million existing homes available for sale, and is now 1.9 percent lower than a year ago (2.08 million). Unsold inventory is at a 5.1-month supply at the current sales pace, up from 4.8 months in October.

"Realtors® worked hard to prepare for Know Before You Owe, and we knew there would be some near-term challenges as the industry continues to adapt," says NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida. "Nonetheless, an early trend of longer lead times to closings is cause for concern. As Realtors® report issues with their transactions, we will continue to work with the Consumer Financial Protection Bureau to ensure as little disruption as possible to the business of real estate."

Properties typically stayed on the market for 54 days in November, a decrease from 57 days in October and below the 65 days in November 2014. Short sales were on the market the longest at a median of 91 days in November, while foreclosures sold in 47 days and non-distressed homes took 54 days. Thirty-seven percent of homes sold in November were on the market for less than a month.

The percent share of first-time buyers was at 30 percent in November, down from 31 percent both in October and a year ago. Despite first-time buyers' continued absence from the market, NAR's inaugural quarterly Housing Opportunities and Market Experience survey —released earlier this month — found that an overwhelming majority of current renters who are 34 years of age or younger want to own a home in the future (94 percent). The top reason given by renters for not currently owning was the inability to afford to buy.

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage hovered below 4 percent for the fourth consecutive month but increased in November to 3.94 from 3.80 percent in October. A year ago, the average commitment rate was 4.00 percent.

"The Federal Reserve's decision this month to raise short-term rates is the first of many increases over the next couple of years," says Yun. "Although this first move will likely have minimal impact on mortgage rates, additional hikes will push borrowing costs to around 4.50 percent by the end of next year. With home prices expected to continue rising, wages and new home construction need to start increasing substantially to preserve affordability."

Matching the highest share since January, all-cash sales rose to 27 percent of transactions in November (24 percent in October) and are also up from 25 percent a year ago. Individual investors, who account for many cash sales, purchased 16 percent of homes in November (also the highest since January), up both from 13 percent in October and 15 percent a year ago. Sixty-four percent of investors paid cash in November.

Distressed sales — foreclosures and short sales — climbed to 9 percent in November, up from 6 percent in October but unchanged from a year ago. Seven percent of November sales were foreclosures and 2 percent were short sales. Foreclosures sold for an average discount of 15 percent below market value in November (18 percent in October), while short sales were discounted 15 percent (8 percent in October).

Single-family and Condo/Co-op Sales

Single-family home sales dropped 12.1 percent to a seasonally adjusted annual rate of 4.15 million in November from 4.72 million in October, and are now 4.6 percent lower than the 4.35 million pace a year ago. The median existing single-family home price was $221,600 in November, up 6.6 percent from November 2014.

Existing condominium and co-op sales increased 1.7 percent to a seasonally adjusted annual rate of 610,000 units in November from 600,000 in October, and are now 1.7 percent above November 2014 (600,000 units). The median existing condo price was $211,400 in November, which is 4.7 percent above a year ago.

Regional Breakdown

November existing-home sales in the Northeast declined 9.2 percent to an annual rate of 690,000, but are still 1.5 percent above a year ago. The median price in the Northeast was $254,800, which is 3.2 percent above November 2014.

In the Midwest, existing-home sales descended 15.4 percent to an annual rate of 1.10 million in November, and are now 2.7 percent below November 2014. The median price in the Midwest was $169,300, up 5.3 percent from a year ago.

Existing-home sales in the South decreased 6.2 percent to an annual rate of 1.98 million in November, and are now 5.7 percent below November 2014. The median price in the South was $189,400, up 6.3 percent from a year ago.

Bend Oregon Homes Sales

 

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Dec. 20, 2015

Home Buying Survery

 

Desire to Buy Homes in Bend Oregon and U.S. Strong

Although only half of surveyed households believe the economy is currently improving, nearly all young renters eventually want to buy a home, and a convincing majority still view homeownership as part of their American Dream, according to a new quarterly consumer survey released today by the National Association of Realtors. Additionally, a newly-introduced index tracking the financial outlook of households found that compared to earlier this year an increasing share believes their personal financial situation will improve in the months ahead.  None of the surverys were conducted on Bend Oregon Real Estate.

NAR's inaugural quarterly household survey, Housing Opportunities and Market Experience(HOME), tracks topical real estate trends, including current renters and homeowners' views and aspirations regarding homeownership, whether or not it's a good time to buy or sell a home, and expectations and experiences in the mortgage market. New questions may be added to the survey each quarter to reflect timely topics impacting real estate.

The HOME survey data reveals that an overwhelming majority of current renters who are 34 years of age or younger want to own a home in the future (94 percent). Overall, 83 percent of polled renters have a desire to own, and 77 percent believe homeownership is part of their American Dream.

Lawrence Yun, NAR chief economist, says the survey's findings debunk the notion that young adults aren't interested in buying a home. "Despite entering the workforce during or immediately after the worst of the financial and housing crisis, the desire to become a homeowner appears to be a personal goal for a convincing majority of young renters," he said. "Furthermore, there appears to be sizeable, pent-up demand for buying that currently remains untapped because of a variety of economic and personal reasons impacting many households."

The top two reasons given by renters for not currently owning was the inability to afford to buy (53 percent) and needing the flexibility of renting rather than owning (19 percent). When asked what would likely be the main reason for buying in the future, renters cited lifestyle considerations such as getting married, starting a family or retiring (33 percent) and an improvement in their financial situation (26 percent).

"A combination of factors such as rising rents and home prices, limited supply, repaying student debt, and getting married and having children later in life has more to do with the currently underperforming share of first-time buyers than the idea that buying a home is not as desirable as it used to be," adds Yun.

Households lukewarm about the ??U.S. economy

Among all households (renters and homeowners) in the survey, the results highlight a split between those who agree the U.S. economy is on the right track and those who disagree. Only half of respondents believe the economy is currently improving, and 44 percent think the economy is actually in a recession.

Renters were only slightly more optimistic about current economic conditions, with 57 percent believing the economy is improving. Regardless of their confidence in the U.S. economy today, over three-quarters (76 percent) of those who don't think the economy is improving still want to eventually buy a home.

"The promising stretch of job creation in several parts of the country in recent years has the housing market in 2015 on track for its best year of sales since the downturn," says Yun. "However, that only half of surveyed households believe the economy is improving can be attributed to the fact that some areas have been slow to recover and wages have yet to grow in a meaningful way for far too many families."

Adds Yun, "With roughly 26 million more people in the U.S. compared to the peak year of home sales in 2005 (7.08 million), the pace of existing sales would likely be more robust if not for the economy's subpar growth since the downturn and wage gains that have failed to keep pace with rents and home prices."  The economy is booming in Bend, OR.

Homeownership remains good financi?al decision, part of American Dream

Despite uncertainty about the economy's current performance, at least 84 percent of all households within all surveyed age groups and education levels believe owning a home is a good financial decision. When asked if they believe this strongly or moderately, 76 percent who believe it's a good decision feel strongly about it.

Additionally, at least 85 percent of surveyed households in each age category as well as across all education levels believe homeownership is part of their personal American Dream. The most appealing aspects of homeownership cited by those with this feeling include a place to raise a family (36 percent), owning their own place (26 percent) and a nest egg for retirement (14 percent).

Good time to buy, but skep?tical about ability to obtain a mortgage

NAR's survey found that more homeowners (82 percent) than renters (68 percent) during the polling period believe that it's a good time to buy a home. Furthermore, of those who thought it was a good time to buy, 64 percent felt strongly about buying. Among current owners, 61 percent believe it is a good time to sell a home, of which 53 percent felt strongly that it was a good time to sell.

According to the survey, roughly two-thirds (65 percent) think it would be very or somewhat difficult to obtain a mortgage. Furthermore, there are differences among income brackets. Renter households making between $30,000 and $40,000 were the most likely to be declined a mortgage (10 percent), while 51 percent of those who make more than $50,000 a year have not tried but feel confident they would succeed in getting a mortgage. Overall, five percent of renters have recently tried and failed to obtain financing for a home.

By nearly double the amount of other responses, the most common reason homeowners purchased a home was for lifestyle changes such as getting married, starting a family or retiring (35 percent). Eighteen percent said the desire to settle down in one location influenced their decision to buy, and 15 percent cited an improvement in their financial situation.

Direction of home prices, financial outlook on the rise

Reflecting the ongoing recovery of home values throughout most of the country, 89 percent of respondents said home prices in their communities have either risen or stayed the same in the past year. Looking ahead toward the next six months, 91 percent of respondents believe home prices in their community will increase or stay the same.

The HOME survey also calculates a monthly Personal Financial Outlook Index measured by household type, age, income and type of location. Since tracking began in March, the index representing all households has slowly trended upward to its highest current reading in December – reflecting stronger confidence that respondents' financial situation will be better in six months. Currently, renters, younger households and those living in urban areas are more optimistic about their future financial situation.

"Young adults, who make up the majority of all renter households, are typically more optimistic about their future," adds Yun. "As more of them settle down and begin plans to start a family, the allure of owning their own home as well as the long-term financial stability homeownership provides will drive their emergence into the housing market. However, the extent to how fast this occurs will greatly depend on more entry-level housing supply coming onto the market and needed improvements in affordability conditions."  

About NAR's HOME survey

In March through early December 2015, a sample of U.S. households was surveyed via random-digit dial, including half via cell phones and the other half via land lines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report and a total of 9,034 household responses are represented.

The National Association of Realtors, "The Voice for Real Estate," is America's largest trade association, representing over 1.1 million members involved in all aspects of the residential and commercial real estate industries.

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Oct. 11, 2015

Internet Used to Find Bend Oregon Real Estate

Bend Oregon Real Estate On Line

Finding the perfect home to buy in Bend Oregon is made easy by signing up for an account on this web site to search the MLS for the perfect home!  Bend Oregon Homes for Sale

Once you have found the perfect home then it's time to decide how to make an offer.  That's where my 40 years of real estate experience comes into play.  I can save you thousands of dollars by negotiating a good price on you new home.  Feel free to call, text or email today. 

Even though more consumers are using the Internet as a tool during their home search, buyers are increasingly utilizing the knowledge and expertise of a real estate agent,  according to the National Association of Realtors Real Estate in a Digital Age report.

"Consumers have the ability to do more home buying research online and be more connected during the home search process than ever before, but research proves they are still seeing the value a Realtor brings to the transaction, from the initial search to well after the closing," said NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Arkansas. "Realtors bring great value to buyers from every generation, demographic and location as well as in every financial and familial situation. So while consumers have more technological tools available at their fingertips, Realtors® are now more than ever a part of the home buying and selling equation."

The report found that finding the right property was ranked as the most difficult step in the home buying process. Since the Internet is now the first place many people go for information, it's not surprising that 4 in 10 buyers looked for properties online as a first step in the home buying process (up from 36 percent in 2010). However, 88 percent of buyers in 2014 purchased their home with assistance from a real estate agent, up from 83 percent in 2010.

While 94 percent of millennials and 84 percent of baby boomers used online websites in their home search, only 65 percent of the Silent Generation - those ages 69 to 89 years - did the same. Older boomers, those aged 60 to 68 years, used a mobile device to search for properties at less than half the rate of millennials (30 percent versus 66 percent).

When it comes to website listing features, photos and online property information were more important to millennials, while virtual tours and direct contact with a real estate agent were more important to baby boomers. Despite visual content growing in popularity and importance, older homebuyers found virtual tours more useful than younger buyers (45 percent among the Silent Generation and baby boomers compared to 36 percent among millennials).

As for the length of time it takes for consumers to find a home, millennials typically looked for about 11 weeks, while baby boomers and members of the Silent Generation searched for 8 weeks. Internet use also impacted the length of a home search; those who used the Internet to search homes visited more homes and searched for longer, looking at 10 homes over a 10-week period (versus four homes in four weeks for those not looking on the web). 

While not all consumers use the Internet in their home search, a growing number are first finding their future home online. Forty-three percent of buyers first found the home they ended up purchasing on the web; that number was just 8 percent in 2001. In 2001, nearly half (48 percent) of buyers found the home they purchased from a real estate agent; today that number is 33 percent.                         

The Real Estate in a Digital Age report also found greater technology use by Realtors® and real estate firms to better meet the needs of clients. Realtors® prefer to communicate with their clients via email (at 93 percent) as well as text messages (85 percent) and instant messaging (31 percent).  

Social media is also popular with Realtors, though 70 percent of female Realtors® are active on social media compared to only 58 percent of male Realtors. Some social media platforms are more popular than others among Realtors®: Facebook and LinkedIn are most utilized by Realtors® (at 80 percent and 71 percent). Realtors® that are active on social media do so for visibility/exposure/marketing (81 percent), building relationships and networking (66 percent), advertising (59 percent) and promoting listings (51 percent).

Realtors and firms know that they must adapt to technology to better work with and understand their clients; however, it is not always an easy feat. In fact, 46 percent of all real estate firms cite keeping up with technology as one of the biggest challenges they face over the next two years. That number is even higher for commercial real estate firms, at 53 percent.

"Realtors constantly strive to find ways to make the home buying and selling process easier for and more accessible to their clients," Polychron said. "There is nothing more important than helping people find and land their dream home, and since technology helps Realtors® do that, it will continue to be a priority."

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.

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Oct. 8, 2015

Bend Oregon Home Sales Slow

BEND OREGON HOME SALES SLOW

Home sales in Bend, OR and nation wide slowed following three straight months of gains, existing–home sales dipped in August despite slowing price growth and a positive turnaround in the share of sales to first–time buyers, according to the National Association of Realtors®. None of the four major regions experienced sales increases in August.

Total existing–home sales, which are completed transactions that include single–family homes, town homes, condominiums and co–ops, fell 4.8 percent to a seasonally adjusted annual rate of 5.31 million in August from a slight downward revision of 5.58 million in July. Despite last month's decline, sales have risen year–over–year for 11 consecutive months and are 6.2 percent above a year ago (5.00 million).

Lawrence Yun, NAR chief economist, says home sales in August lost some momentum to close out the summer. "Sales activity was down in many parts of the country last month — especially in the South and West — as the persistent summer theme of tight inventory levels likely deterred some buyers," he said. "The good news for the housing market is that price appreciation the last two months has started to moderate from the unhealthier rate of growth seen earlier this year."

The median existing–home price for all housing types in August was $228,700, which is 4.7 percent above August 2014 ($218,400). August's price increase marks the 42nd consecutive month of year–over–year gains.

Total housing inventory at the end of August rose 1.3 percent to 2.29 million existing homes available for sale, but is 1.7 percent lower than a year ago (2.33 million). Unsold inventory is at a 5.2–month supply at the current sales pace, up from 4.9 months in July.

"With sales and overall demand higher than a year ago and supply mostly unchanged, low inventories will likely continue to limit options for those looking to buy this fall even with the overall pool of buyers shrinking because of seasonal factors," adds Yun.

The percent share of first–time buyers rebounded to 32 percent in August, up from 28 percent in July and matching the highest share of the year set in May. A year ago, first–time buyers represented 29 percent of all buyers.

According to Freddie Mac, the average commitment rate for a 30–year, conventional, fixed–rate mortgage declined to 3.91 percent in August after climbing above 4 percent in July (4.05 percent) for the first time since November 2014 (4.00 percent).

"When the Federal Reserve decides to lift short–term rates — likely later this year — the impact on mortgage rates and overall housing demand will likely not be pronounced," says Yun. "With job growth holding steady, prospective buyers can handle any gradual rise in mortgage rates — especially if today's stronger labor market finally leads to a boost in wages and homebuilding accelerates to alleviate supply shortages and slow price growth in some markets."

NAR released a study earlier this month that examined new home construction in relation to job gains. The findings revealed that home building activity is currently insufficient in a majority of metro areas and is contributing to the ongoing housing shortages and unhealthy price growth in many markets.

Properties typically stayed on the market for 47 days in August, an increase from 42 days in July but below the 53 days in August 2014. Short sales were on the market the longest at a median of 124 days in August, while foreclosures sold in 66 days and non–distressed homes took 45 days. Forty percent of homes sold in August were on the market for less than a month.

All–cash sales decreased slightly to 22 percent of transactions in August (23 percent in July) and are down from 23 percent a year ago. Individual investors, who account for many cash sales, purchased 12 percent of homes in August, down from 13 percent in July and unchanged from a year ago. Sixty percent of investors paid cash in August.

Matching the lowest share since NAR began tracking in October 2008, distressed sales4 — foreclosures and short sales — remained at 7 percent in August for the second consecutive month; they were 8 percent a year ago. Five percent of August sales were foreclosures and 2 percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in August (17 percent in July), while short sales were discounted 12 percent (unchanged from July).

NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark., says Realtors® worked hard over the summer to prepare for the Oct. 3 implementation of Know Before You Owe, also known as the TILA–RESPA Integrated Disclosure rule. "A large majority of Realtors® have taken some form of training5 to prepare for the new disclosure requirements," he said. "As the ruling goes into effect next month, communication is crucial between all parties involved in a real estate transaction to ensure consumers get to closing seamlessly and without delay. NAR will monitor the progress of the rule in the weeks ahead and will share any concerns that arise as part of our continued partnership with the Consumer Financial Protection Bureau."

Single Family Home and Condo Sales

Single–family home sales declined 5.3 percent to a seasonally adjusted annual rate of 4.69 million in August from 4.95 million in July, but are still 6.1 percent above the 4.42 million pace a year ago. The median existing single–family home price was $230,200 in August, up 5.1 percent from August 2014.

Existing condominium and co–op sales declined 1.6 percent to a seasonally adjusted annual rate of 620,000 units in August from 630,000 units in July, but are still up 6.9 percent from August 2014 (580,000 units). The median existing condo price was $217,400 in August, which is 2.2 percent above a year ago.

Regional Breakdown

August existing–home sales in the Northeast were at an annual rate of 700,000, unchanged from July and 6.1 percent above a year ago. The median price in the Northeast was $271,600, which is 2.4 percent above August 2014.

In the Midwest, existing–home sales declined 1.5 percent to an annual rate of 1.28 million in August, but remain 5.8 percent above August 2014. The median price in the Midwest was $181,100, up 4.0 percent from a year ago.

Existing–home sales in the South fell 6.6 percent to an annual rate of 2.14 million in August, but are still 5.9 percent above August 2014. The median price in the South was $196,300, up 6.0 percent from a year ago.

Existing–home sales in the West dropped 7.8 percent to an annual rate of 1.19 million in August, but remain 7.2 percent above a year ago. The median price in the West was $321,300, which is 7.1 percent above August 2014.

There are many factors that cause sales to slow in Bend.  You can search BEND OREGON REAL ESTATE here.

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Aug. 12, 2015

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Nov. 29, 2014

More Bend Oregon Real Estate Statistics

Real Estate Statics

Pending Bend Oregon real estate sales continue a steady pace while nationally, pending home sales declined in October but remained at a healthy level of activity and are above year-over-year levels for the second straight month, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 1.1 percent to 104.1 in October from an upwardly-revised 105.3 in September, but is 2.2 percent higher than October 2013 (101.9). The index is above 100—considered an average level of contract activity—for the sixth consecutive month.

Lawrence Yun, NAR chief economist, says despite October's modest decline, contract signings have remained at a healthy pace now for six straight months. "In addition to low interest rates, buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying in cash," he said. "Demand is holding steady but would be more robust if it weren't for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents."

The median existing-home price for all housing types in October was $208,300, which is 5.5 percent above October 2013. Monthly median price growth has averaged 5.8 percent in 2014 (through October) after averaging 11.5 percent last year.

"The increase in median prices for existing-homes has leveled off, representing a healthier pace that has kept affordability in-check for buyers in many parts of the country while giving more previously stuck homeowners with little or no equity the ability to sell," says Yun.

Yun says evidence of rising home prices allowing more willing homeowners the ability to sell can be found in NAR's annual survey released earlier this month, which revealed that the typical seller over the past year was in their home for 10 years before selling—an all-time survey high for tenure of home.

NAR also recently released its economic and housing forecast for 2015 and 2016. Yun is forecasting existing-home sales this year to fall slightly below 2013 (5.1 million) to 4.9 million, and then increase to 5.3 million next year and 5.4 million in 2016. Yun expects the national median existing-home price to rise 4 percent both next year and in 2016.

The PHSI in the Northeast inched 0.5 percent to 87.9 in October, and is now 3.4 percent above a year ago. In the Midwest the index slightly declined 0.6 percent to 100.6 in October, and is now 3.0 percent below October 2013.

Pending home sales in the South decreased 1.0 percent to an index of 118.3 in October, but is still 3.9 percent above last October. The index in the West fell 3.2 percent in October to 98.1, but remains 4.1 percent above a year ago.

Click this link to view homes currently for sale in NorthWest Crossing.

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