January 8, 2010

Real Estate Sales Expected to Pick up in Spring

Pending Home Sales Down from Surge but Higher than a Year Ago

Washington, January 05, 2010

Contract activity for pending home sales fell after a surge of activity in preceding months to beat the original deadline for the first-time home buyer tax credit but remains comfortably above a year ago, according to the National Association of Realtors®.

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 16.0 percent to 96.0 from an upwardly revised 114.3 in October, but is 15.5 percent higher than November 2008 when it was 83.1.

Lawrence Yun, NAR chief economist, said a drop was expected. “It will be at least early spring before we see notable gains in sales activity as home buyers respond to the recently extended and expanded tax credit,” he said. “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own. We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”

Buyers who have a contract in place to purchase a primary residence by April 30, 2010, have until June 30, 2010, to finalize the transaction to qualify for the tax credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

The PHSI in the Northeast dropped 25.7 percent to 74.4 in November but is 14.7 percent above a year ago. In the Midwest the index fell 25.7 percent to 82.0 but is 9.2 percent higher than November 2008. Pending home sales in the South fell 15.0 percent to an index of 97.8, but are 14.7 percent higher than a year ago. In the West the index declined 2.7 percent to 124.6 but is 21.4 percent above November 2008.

Yun projects an additional 900,000 first-time buyers will qualify for the extended tax credit in addition to about 2 million who have already purchased; 1.5 million repeat buyers also are expected to benefit from the credit.

“Many trade-up buyers, who have historically timed their purchase based on school-year considerations, will have to accelerate their buying plans if they need the tax credit to make a trade,” Yun said. Repeat buyers do not have to sell their existing home to qualify for the credit, but they must occupy the home they buy as their primary residence.

Yun added that mortgage interest rates cannot remain at rock-bottom levels for a sustained period and will likely inch higher in 2010. But the tax credit impact in the first half of the year and expected job growth impact in the second half will support home buying activity and absorb enough inventory to bring a rough balance between buyers and sellers. Home prices are expected to stabilize or even modestly rise as a result in 2010.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 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 from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.

An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Existing-home sales for December will be reported January 25 and the next Pending Home Sales Index will be on February 2; release times are 10 a.m. EST.

Now is a great time to buy a home in Bend Oregon. If you are considering buying a home in Bend you should sign up for Jim’s New Listing Notification Service. You can contact Jim with any real estate questions you may have at 541-389-4511 or send him an e-mail. Jim Johnson is licensed as the Principal Broker of Bend Oregon Real Estate Expert by the State of Oregon. WEB SITE

Comments (0)

January 1, 2010

Bend Oregon Realtors See Big Changes

Filed under: Bend Oregon Real Estate Sales, Bend Oregon real estate agents — Tags: Bend Oregon, Bend Oregon Home Sales, Buying a home on line, Home marketing changes, National Home Sales — number @ 8:57 pm

Realtors® See a Decade of Dramatic Developments

WASHINGTON, December 30, 2009

At the beginning of the 21st century, most home buyers had never viewed a home online; the three top home sale marketing methods were yard signs, newspaper ads and open houses; and nearly nine out of 10 buyers financed their purchase with a fixed-rate, 30-year mortgage. What a difference a decade makes.

“The real estate industry has seen tremendous change and evolution over the past decade,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “As the first, best source for real estate information, Realtors® have not only anticipated and adapted to the evolving needs of their clients and customers, but also have influenced industry trends and innovations that will carry us into the future.”

In 1999, buyers who went online in search for a home were in the minority – only 37 percent of buyers used the Internet in their home search, according to data from the NAR Profile of Home Buyers and Sellers. Today, 90 percent of buyers are searching online, and the real estate industry has responded. Sites like REALTOR.com, which attracts nearly 12 million total visits every month, have evolved to gives today’s buyers what they want – not just property listings, but multiple photos, online videos, mapping features, and comprehensive neighborhood information, as well.

Median home values over the past decade have increased more than 25 percent, from $137,600 in November 1999 to $172,600 in November 2009 (the most recent existing-home data available). Fewer people are buying detached, single family homes – 82 percent in 1999 compared to 78 percent in 2009 – but more people are buying homes in suburban neighborhoods – 46 percent in 1999 compared to 54 percent today.

Buyers themselves have also changed. A smaller proportion of married couples are buying homes these days; while married couples comprised 68 percent of all home purchases at the beginning of this century, they represent 60 percent of all buyers today. Single men and women have made up the difference – single men purchased 10 percent of all homes last year, compared to only 7 percent 10 years ago. Single women now represent more than one-fifth of all home buyers – 21 percent, up from 15 percent in 1999.

Other things haven’t changed. The median age for home buyers last year was 39, just as it was in 1999. Neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future.

“Realtors® have been around for more than 100 years, but one constant during that time has been the persistence of home ownership as the American Dream,” said Golder. “As the first decade of this century comes to a close, NAR stands ready to meet the many challenges and opportunities that lie ahead by helping our Realtor® members better serve their clients and communities and ensuring that those dreams of home ownership remain possible for all who want to achieve it.”

Comments (0)

December 22, 2009

Home Sales Climbing

Filed under: Bend Oregon Real Estate, Bend Oregon Real Estate Sales — Tags: Bend Oregon, Bend Oregon Home Sales, National Home Sales — number @ 3:38 pm

Another Big Gain in Existing-Home Sales as Buyers Respond to Tax Credit

Washington, December 22, 2009

Existing-home sales rose again in November as first-time buyers rushed to close sales before the original November 30 deadline for the recently extended and expanded tax credit, according to the National Association of Realtors®.

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate¹ of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.

Lawrence Yun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”

An NAR practitioner survey² shows first-time buyers purchased 51 percent of homes in November, compared with an upwardly revised 50 percent of transactions in October.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88 percent in November from 4.95 percent in October; the rate was 6.09 percent in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81 percent in April 2009.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said conditions are optimal for buyers in the current market. “Inventories have steadily declined and are closer to balanced levels, which indicate home prices in many areas are either stabilizing or could soon stabilize and return to normal appreciation patterns,” she said. “This means buyers still have good choices but are purchasing near the bottom of the price cycle with historically low mortgage interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers with secure jobs and long-term ownership plans.”

Total housing inventory at the end of November declined 1.3 percent to 3.52 million existing homes available for sale, which represents a 6.5-month supply³ at the current sales pace, down from an 7.0-month supply in October.

Raw unsold inventory figures are 15.5 percent below a year ago. The last time there was a lower supply of homes on the market was April 2006 when it was at a 6.1-month supply.

“Nearly all markets experienced a solid sales gain from one year ago,” Yun said. “The only markets with measurably lower sales were in San Diego, Riverside, and Sacramento, where inventory shortages for lower priced homes are limiting sales.”

For the second month in a row, sales have risen in all price classes from a year earlier. Prior to October, the only consistent gains were in the lower price ranges.

The national median existing-home price⁴ for all housing types was $172,600 in November, which is 4.3 percent below November 2008. Distressed properties, which accounted for 33 percent of sales in November, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales jumped 8.5 percent to a seasonally adjusted annual rate of 5.77 million in November from a level of 5.32 million in October, and are 42.1 percent above the pace of 4.06 million in November 2008. The median existing single-family home price was $171,900 in November, down 4.4 percent from a year ago.

Existing condominium and co-op sales in November were unchanged from a seasonally adjusted annual rate of 770,000 in October, but are 60.1 percent above the 481,000-unit pace a year ago. The median existing condo price⁵ was $178,000 in November, which is 3.1 percent below November 2008.

Regionally, existing-home sales in the Northeast rose 6.6 percent to an annual level of 1.13 million in November, and are 52.7 percent higher than November 2008. The median price in the Northeast was $223,400, down 13.1 percent from a year ago.

Existing-home sales in the Midwest increased 8.4 percent in November to a pace of 1.55 million and are 53.5 percent above a year ago. The median price in the Midwest was $140,800, a decline of 0.4 percent from November 2008.

In the South, existing-home sales rose 4.8 percent to an annual level of 2.39 million in November and are 44.8 percent higher than a year ago. The median price in the South was $151,400, down 1.4 percent from November 2008.

Existing-home sales in the West increased 10.6 percent to an annual rate of 1.46 million in November and are 28.1 percent above November 2008. The median price in the West was $231,100, which is 4.1 percent below a year ago.

Comments (0)

August 12, 2009

Bend Oregon Home Sales Climbing

Filed under: Bend Oregon, Bend Oregon Real Estate Sales — Tags: Bend Oregon, Bend Oregon Home Sales, Bend Oregon Real Estate Sales — number @ 8:16 am

The number of July home sales in Bend Oregon was up 10.1% from June and up a whopping 40.7 percent from July 2008. However the average price per square foot was $109 , down 3.5 percent from June and 40.7 percent from July of last year.

What does this mean. It means it’s time to buy real estate in Bend Oregon. The bottom line is that people are starting to come off the sidelines and buy homes. Prices should remain good for the next year or so but interest rates are any one’s guess.

If you’re thinking about buying a home in Bend you should sign up for Jim’s free New Listing Notification Service or call or e-mail today. Jim Johnson is a Certified Residential Specialist and has been selling quality homes in Bend Oregon since 1981. Call 541-389-4511 or see his web site to search the MLS - Bend Oregon Real Estate. Jim is licensed by the State of Oregon as the Principal Broker for Bend Oregon Real Estate Expert. E-MAIL

If you have questions about Bend or Bend Oregon real estate just type in the subject of your question in the search box in the right hand column and click search. You can use this blog as your search engine for Bend Oregon real estate.

Comments (0)

August 9, 2009

Professionals are Moving to Bend Oregon

Filed under: Bend Oregon Homes for Sale — Tags: Bend Oregon, Bend Oregon Home Sales, Professionals Moving to Bend Oregon — number @ 8:40 pm

There are many professionals who are taking advantage of our low prices and moving to Bend Oregon. I’ve recently been involved with two airline pilots, two doctors, two nurses, a retired government employee, a city manager in Palo Alto, a retired school teacher and the list goes on.

Our attractive prices and low interest rates are allowing many people from all over the world move to Bend. The farthermost purchase was a school teacher from France. These good prices won’t last forever and I feel now is the time to buy.

Comments (0)

June 12, 2009

More Signs of Recovery In Bend Oregon

Filed under: Bend Oregon Bank Foreclosures, Bend Oregon Real Estate, Bend Oregon Real Estate Sales — Tags: Bend Oregon Bank Foreclosures, Bend Oregon Home Sales, Bend Oregon Recovery — number @ 11:41 am

Another sign of recovery for the Bend Oregon economy is the fact that personal income was up nation wide in April. That is the first rise in personal income this year. We are seeing more and more out of state buyers moving to Bend.

I continue to see increased activity in the Bend Oregon real estate market. Out of the last eight offers I have recently written three had multiple offers. Two homes sold after being on the market for 2 days. These homes were priced right and sold quickly.

I currently have seven sales in escrow. Four of these sales are bank foreclosures.
Approximately 2 bank owned homes are selling in Bend each day. One of my foreclosure sales is a new 4,000 square foot home on Awbrey Butte. The other is a nice 3 bedroom 2 bath home that sold for $125,000.

If you’re thinking about buying Bend Oregon real estate you should sign up for Jim’s free New Listing Notification Service or call or e-mail today.

Jim Johnson is a Certified Residential Specialist and has been selling quality homes in Bend Oregon since 1981. Call 541-389-4511 or see his web site to search the MLS - Bend Oregon Real Estate.

Jim is licensed by the State of Oregon as the Principal Broker for Bend Oregon Real Estate Expert. E-MAIL

Comments (0)

June 7, 2009

Home Sales Rising

Filed under: Bend Oregon Bank Foreclosures, Bend Oregon Real Estate, Bend Oregon Real Estate Sales — Tags: Bend Oregon, Bend Oregon Bank Foreclosures, Bend Oregon Home Sales — number @ 6:32 am

Below is an article just released by the National Association of Realtors.

Pending Home Sales Up for Third Month in A Row

WASHINGTON, June 02, 2009

Record low mortgage interest rates boosted pending home sales for the third consecutive month, with some benefit now from the first-time buyer tax credit, according to the National Association of Realtors^®.

The Pending Home Sales Index,¹ a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.

Lawrence Yun, NAR chief economist, said buyers are responding to very favorable market conditions. “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he said. “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

The Pending Home Sales Index in the Northeast shot up 32.6 percent to 78.9 in April and is 0.8 percent above a year ago. In the Midwest the index rose 9.8 percent to 90.4 and is 11.1 percent above April 2008. The index in the South slipped 0.2 percent to 93.0 in April but is 3.5 percent higher than a year ago. In the West the index rose 1.8 percent to 94.8 but is 2.9 percent below April 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said there are numerous buyer assistance programs around the country. “Some states are offering bridge loans that allow first-time buyers to use the tax credit for down payment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,” he said.

“Just last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger down payment. Buyers who are wondering about their options should contact a Realtor^®, who can advise consumers on the housing assistance programs and resources available in a given area.”

NAR’s Housing Affordability Index² is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, and was the second highest monthly reading on record after peaking at 176.9 in January of this year. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income; tracking began in 1970.

A median-income family, earning $60,900, could afford a home costing $296,800 in April with a 20 percent down payment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small down payments are roughly 80 percent of that amount. The affordable price was well above the median existing single-family home price in April, which was $169,800.

Yun cautions that the reporting sample for pending home sales is smaller than that of existing-home sales, so it is subject to greater variability. “In addition, the relationship between contracts on pending home sales and closings on existing-home sales is taking longer than in the past for several reasons,” he said. “Mortgage processing time has increased, it is taking many months to close on those homes requiring short sales with lender approval, and some sales are falling through at the last moment.”

The total number of existing-home sales is expected to improve but with dramatic local market variation in the timing of recovery. “The market has already bottomed in some areas, but this is an unusual housing cycle with some areas improving rapidly while others languish or decline,” Yun said.
________________________________________________________________

Home sales are rising in Bend Oregon as well. A large percentage of these sales are bank foreclosures. If you’re thinking about buying Bend Oregon real estate you should sign up for Jim’s free New Listing Notification Service or call or e-mail today.

Jim Johnson is a Certified Residential Specialist and has been selling quality homes in Bend Oregon since 1981. Call 541-389-4511 or see his web site to search the MLS - Bend Oregon Real Estate. Jim is licensed by the State of Oregon as the Principal Broker for Bend Oregon Real Estate Expert. E-MAIL

Comments (0)

February 26, 2009

AP- January Home Sales Surge in the West

Filed under: Bend Oregon Bank Foreclosures, Bend Oregon Real Estate — Tags: Bend Oregon Bank Foreclosures, Bend Oregon Home Sales, Bend Oregon Real Estate — number @ 8:37 am

Below is an article ran today by the Associated Press. California home sales are a leading indicator of Bend Oregon home sales. This tells me our real estate market may see the bottom this spring or summer. I showed property last weekend to two different cash buyers and they both wrote offers on Bank Foreclosures in Bend.

AP – “ Home sales in the Western U.S. surged in January as first-time home buyers, real estate investors and others seized on bargain-priced foreclosed homes in California, Nevada and Arizona, according to two reports released Wednesday.

A total of 74,000 existing homes and condos were sold in January in the 13-state region. Sales were up 32.1 percent from the same month in 2008, without adjusting for seasonal factors, according to the National Association of Realtors.

As has been the trend since last summer, distressed sales continued to fuel sales in the West, and that helped drag down median home prices in the region by almost 26 percent from the prior year to $220,000, the association said.

Nationally, existing home sales dropped 7.6 percent from January last year, while the U.S. median home price slid almost 15 percent to $170,300.

Las Vegas, Los Angeles, Phoenix, San Diego and San Francisco made up the top five major metro areas in the country to register an increase in home sales last month, according to the Associated Press-Re/Max Monthly Housing Report, released Wednesday. The data includes all home sales recorded in the metropolitan statical areas by all local agents, regardless of company affiliation.

Those Western cities ranked among the top 10 U.S. metros to post the sharpest median price declines last month, with San Francisco and Phoenix behind only Detroit.

Elsewhere in the West, sales declined in Honolulu, Billings, Mont., Seattle, Portland, Ore., Boise, Idaho, Albuquerque, N.M., Denver and Anchorage, Alaska, according to the AP-Re/Max report.

Of those metros, only Anchorage posted an increase in its median sales price, climbing 6.9 percent to $239,000.

Recession fears and rising unemployment kept many would-be buyers on the sidelines, but others were lured out by cheap prices and low interest rates — which briefly dipped below 5 percent last month.

“That’s what’s driving the first-time buyer,” said Marty Rodriguez, a Century 21 broker-owner in Glendora, a Los Angeles suburb.

Home sales in the Los Angeles metro area more than doubled from a year ago while foreclosures helped push the median sales price in the metro area down more than 37 percent to $250,000.

One such first-time buyer, Bonnie Magallon, scooped up a two-bedroom, 2.5-bath tri-level town home in Rancho Cucamonga, about 42 miles east of Los Angeles.

Magallon, 25, wasn’t in a rush, figuring she would buy something by the end of this year. But shortly after getting prequalified for a loan, she saw the condo and went for it.

“It just worked out perfectly, just everything has aligned where I could afford it, it’s a great area, (and) I love the condo,” said Magallon, a senior secretary, who expects to close escrow on the $205,000 condo Friday.

She plans to keep the unit between three to five years and isn’t worried about the possibility she could end up owing more than her home is worth if the housing downturn drags on beyond this year.

“For me, it was more (about) taking advantage of the market,” she said. “I’m not scared about it because with my lifestyle and what I make, I’m fine with the payments.”

Like many home buyers these days, Magallon financed her purchase with a loan backed by the Federal Housing Administration, which requires a down payment of 3.5 percent.

Magallon also got a half-percent cut on her 5 percent interest rate for the first year that shaves off $120 a month from her monthly payment.

Another first-time buyer, Michi Crone, closed on her four-bedroom, 2.5-bath home in the Queen Creek suburb of Phoenix last month.

Crone, 33, had looked into buying a home four years ago, but the medical office worker didn’t find anything she liked in her price range, which back then topped at $175,000.

The 2,400 square-foot home last sold for $213,000 during the boom. She bought it in a distressed sale for $110,000 and the bank paid the closing costs, Crone said.

“We really fell in love with this house,” she said, noting that her monthly payment is $100 less than her rent was. “The market wasn’t really a factor in making our decision.”

Sales climbed about 68 percent in the Phoenix metro area, a hotbed of foreclosures that saw speculation-driven price increases during the housing boom. The median home price dropped about 42 percent to $129,900, according to the AP-Re/Max report.

The San Francisco metro area saw the steepest drop in median price in the West, a decline of more than 44 percent to $330,000. Sales jumped by nearly 57 percent, according to the AP-Re/Max report.

Ben Coleman, broker-owner of Century 21 Hartford Properties in San Francisco, saw a 50 percent increase from a year ago in closed transactions, he said.

“It was a great month and we’d love to see that continue on,” he said, crediting first-time buyers for the largest slice of business, followed closely by investors.

“The properties that are moving the fastest are the ones that are priced probably in the $250,000 range and less,” Coleman said.

Many of the homes selling in that range were distressed properties, although Coleman says he’s seeing fewer foreclosures on the market.

“The asset managers that we’ve talked to are saying they don’t have anything in the hopper for us,” Coleman said.

In Las Vegas, sales more than doubled versus January 2008 and the median sales price sank more than 36 percent to $149,900.

Many buyers shopping for bank-owned homes continue to face multiple competing offers, said Brad Snyder of ZipRealty, whose transactions in January were entirely made up of distressed home sales.

Snyder’s business last month easily eclipsed that of January 2008, with first-time home buyers making up about 40 percent of transactions.

“They’re coming out in droves,” said Snyder. “You can get a mortgage right now for less than you pay in rent.”

Still, investors, an overwhelming majority of them paying cash and hailing from states like California, outpaced first-time buyers last month, he said, adding that February looks to easily beat his year-ago sales.”

If you’re serious about buying Bend Oregon real estate you should sign up for Jim’s free New Listing Notification Service or call or e-mail Jim today. Jim Johnson is a Certified Residential Specialist and has been selling quality homes in Bend Oregon since 1981. Call 541-389-4511 or see his web site to search the MLS - Bend Oregon Real Estate Expert. Jim is licensed by the State of Oregon as the Principal Broker for Bend Oregon Real Estate Expert.

Comments (1)