The Market in Bend
The real estate market in Bend Oregon continues to slump. It is a buyer's market.
Prices are coming down and will continue to fall through the summer, fall and winter as the inventory continues to build. It is taking longer for homes to sell and there are more homes for buyers to choose from. The real estate markets in California, Arizona, Florida and other key states are leading indicators on how the market in Bend will do. In 1989 real estate values in Bend jumped 35%. Out of state buyers from California, Florida, Arizona, Washington State and other hot real estate markets were selling their homes for large profits in 1989 and moving to Bend to buy larger homes. 1990 and 1991 saw the out of state markets dry up with prices falling. The Bend real estate market followed these markets before it picked up again. Today's market looks very similar to the 1989-1991 market but with the inventory up and gas prices also up it looks like the trend will continue down for the rest of this year. There are also many bank repossessions reported from key states. We are still seeing buyers from California. The last three sales I have made have been to California buyers and I have a Florida buyer coming to buy the last weekend of June. The median sales price is down but that does not include homes that have been on the market for almost a year and haven't sold. There are homes that have been listed with one Realtor for six months and then listed with another. Many of these homes still have not sold. This year could be the time to buy real estate in Bend. There are homes on the market now that have been substantially reduced with seller's willing to take any reasonable offer. Some homes are vacant and can be bought with a lease-purchase.
We look for the market and prices to pick back up next spring. The Bend Oregon real estate market is seeing more bank foreclosures. Delinquencies continue to climb so there will be more Repos for sale this winter. Some builders are starting to offer more incentives if you buy one of their homes. Upgrades in appliances, floor coverings, wood work, landscaping and other aspects of construction are now free. Some builders are also willing to pay points in order to help buyers qualify for lower payments on their loans. There are still many homes for sale in Bend that are over priced for today's' market. But there are also a good variety of homes that are for sale that are very good buys. Sellers that have to sell are forced to lower their prices and offer to pay closing costs, include appliances in the sale and replace carpets prior to close and many other "freebees" in order to sell their homes. New home developers and builders were able to sell homes in the past few years before they broke ground. They had buyers waiting in the wings to purchase these homes as soon as the lots were developed and the builder priced the homes. The buyers chose their finish materials and waited for construction to be finished. Today large builders particularly cannot afford to sit on their vacant and pay interest, taxes, insurance and utilities. These builders are offering "free" perks to sell their new homes today. Prices are being lowered substantially.
There are a few developers that have filed bankruptcy and probably more to follow. I have noticed a few builders selling completed homes that are "short sales". They owe the bank more than they can sell them for. Interest rates are still low and the real estate market in Bend should be picking up next spring.
If you have ever thought about buying real estate in Bend Oregon now may be the best opportunity you will have in a long time. Prices are falling. Interest rates are low and there are some good buys in today's market. Look for prices to start going up next spring. Bend Oregon real estate is still a good investment and will continue to appreciate in the long term. Bend is a great place to live.
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