More Good News in Bend Housing Market

We love being able to post about good, happy, sunshine-y things - like improvements across the board in Bend, Oregon real estate! That's right, we're happy to report that things are still strengthening around here. In fact, year-to-date measurements taken at the beginning of May show continued higher sale numbers and prices for homes in the Bend area. The inventory of available homes is still below last year’s levels, bringing increased competition for desirable listings.

New construction continues to demonstrate strength. New homes represented 11% of all residential sales in Bend Oregon so far this year, up from 8% in 2011. The new construction segment posted a 52% increase in the number of homes sold over the same period last year. This rise is indicative of a matching rise in building permits in April, which was the second best month for value (129 permits valued at $27.9 million) in a four-year survey compiled from county records by Amerititle. 

The Bend Oregon neighborhood of NorthWest Crossing continues to define itself as a strong sub-market with an average sale price 56% above Bend as a whole. Builders are active in the neighborhood but steady sales are keeping inventories low.

Figures below were derived from Central Oregon Multiple Listing Service numbers for homes on less that one acre in the Bend area stretching from Tumalo to Alfalfa. 

Bend area residential                         2012                2011                Pct.

(Year to date, except as noted)

Active residential listings 5/1/12         432                  509                  -15.1%

Number of residential sales                583                  535                  +9.0%

New construction sales                       67                    44                   +52.3%

Average sale price                             $236,232         $225,771         +4.6%

Average price per sq ft                       119                  114                  +4.4%

NorthWest Crossing                           2012                2011                Pct.

(Year to date, except as noted)

Active residential listings 5/1/12          30                    52                    -42.3%

Number of residential sales                 31                    19                    +63.2%

New construction sales                       17                    13                    +30.8%

Average sale price                              $368,564         $406,502         -9.3%

Average price per sq ft                       195                  198                  -1.5%

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Good News For Bend, Oregon Real Estate

If you didn't get a chance to review our eNewsletter, which went out earlier this week - then you'll certainly be interested in this article. With inventories declining, the Bend, Oregon real estate market shows some interesting numbers for 2011 - especially for the neighborhood of NorthWest Crossing.

A look at the Bend Oregon residential real estate market at the beginning of January shows inventories continue to decrease as distressed properties are wrung out of the system. The number of active listings fell 4.4% from 2010 and 11.25% between Nov. 3, when we published a similar table, and Jan. 3.

“This is one case where lower numbers indicate market strength,” observed Sandy Garner, CEO of The Garner Group. “It also suggests a demand for more new construction, as it is harder for buyers to find the homes they want when there are fewer choices. New home sales increased 14% in Bend and 38% in NorthWest Crossing, where much new construction has been situated. This is a strong indicator that there would be more sales if we had more homes to sell. I also think we are poised for property values to increase,” she said.

Active listing figures are a snapshot of the date indicated as the number of MLS listings changes daily. Other comparisons below are for the 12 months of 2011 and 2010. Average sale prices dropped less than 3% in 2011 compared with 2010, while the number of sales was essentially flat. Statistics were developed from Central Oregon Multiple Listing Service data and represent homes on less than one acre.

Bend, Oregon
Active residential listings

• 1/3/12: 497 
• 2010:   520 
• Percentage Change: -4.4%

Number of residential sales

• 2011: 1,681
• 2010: 1,690 
• Percentage Change:  -0.5%

New construction sales

• 2011:  146
• 2010:  128  
• Percentage Change:    +14.1%

Average sale price

• 2011:   $238,256
• 2010:   $244,680
• Percentage Change: -2.6%

NorthWest Crossing continues to identify itself as a separate market, demonstrating the appeal of this planned, environmentally-conscious Bend, Oregon neighborhood on the west side. Comparative figures in the table below show gains across the board, some of them substantial. The gap between values in NorthWest Crossing and Bend as a whole continues to widen. The average sale price in NWX last year was 60% higher than the Bend figure, up from 54% in 2010.

NorthWest Crossing

Active residential listings

• 1/3/12: 40 
• 2010:   30
• Percentage Change:  +17.6%

Number of residential sales

• 2011: 70
• 2010: 57
• Percentage Change:  +22.8%

New construction sales

• 2011:   43
• 2010:   31
• Percentage Change:   +38.7% 

Average sale price

• 2011:   $382,058
• 2010:   $375,979
• Percentage Change:     +1.6%

The large jump in the number of homes listed and sold last year in NorthWest Crossing was due in part to a shortage of new homes available in 2010. Builders responded aggressively in 2011 and more new homes were listed, shown and sold.

Risk Vs. Reward: Bend, Oregon Real Estate Values...Final Installment

We're wrapping up our article series on risk vs. reward for home buyers this week...the full article originally appeared last month in The Bulletin, Bend, Oregon's daily newspaper. Picking up where we left off...

“While some potential home buyers are trying to time the bottom of the housing market, it is equally important--and sometimes more important--to time the bottom of the interest rate market,” pointed out Larry Wallace, loan officer with the Bank of Oregon, a Bend-based mortgage brokerage.

“On a $280,000 loan, a one per cent increase in interest rates--which can easily happen--will cost an extra $168 per month. That totals $20,251 over 10 years and $60,754 over 30 years. It’s an expensive lesson for waiting too long,” Wallace continued.

With underwriting guidelines becoming tighter, buyers who wait for the “perfect moment” could find they no longer qualify, he said. “That has been an ongoing problem in the past few years.”

A tight rental market in Bend has dropped vacancy rates to around three per cent, Wallace noted, leading to rent increases. “This tips the balance toward home ownership when monthly mortgage payments are equal to or less than rent.”

Wallace observed that strong demand at the lower end of Bend’s housing market is likely to forestall further price decreases. “Good deals are attracting multiple buyers and bringing about bidding wars.”

In fact, Bend, Oregon residential prices are beginning to firm up. The Bratton Report, produced by Bratton Appraisal Group, slices MLS statistics into monthly increments. After tumbling along a bottom point between December and February, the median price zigzagged upward to $210,000 in June, roughly where it was a year ago.

Optimism has governed Sandy Garner’s [owner of The Garner Group] career in real estate. “You have to be an optimist to succeed in this business. You have to dig in when times are tough. It’s an axiom that some 10 per cent of the Realtors in any given market make 90 per cent of the sales.”

The Garner Group became an independent real estate agency in January, 2008. “From a market perspective, it was an uphill climb, but we have increased business every year and are one of the most productive per-agent brokerages in Bend,” she concluded.

So what do you think? Feel like it might be time to buy Bend, Oregon real estate? 

COBA Tour of Homes in Bend, Oregon

With the first weekend of the 2011 Central Oregon Builders Association Tour of Homes under our belts, we're looking forward to next weekend in the Bend, Oregon real estate market! Our agents are in homes all around Bend, including NorthWest Crossing, ready to show you what our beautiful town has to offer. 


Check out our website to see all the homes that are open during the tour. In Bend, Oregon's NorthWest Crossing neighborhood alone, you'll want to make sure to check out these great family homes:

2330 NW Lolo Drive, Bend

2498 NW Drouillard Avenue, Bend
















And many more - including several in NorthWest Crossing alone. Let our Bend, Oregon real estate experts help you find your dream home! We're excited to see what this weekend has to bring. COBA Tour starts Friday at noon!

Front Porches in Bend, Oregon's NorthWest Crossing

Ever thought the front porches you see on nearly every home in Bend, Oregon's NorthWest Crossing were an accident? Think again! Front porches are rising swiftly on homebuyers' wish lists - in fact a recent study by the National Association of Home Builders found that a front porch ranked higher that patio and rear porch in a report titled The New Home 2015. Since 1997, the number of homes with front porches has risen dramatically - more than 50%.

Why? Not only do front porches raise the value of the home (it is what home buyers are looking for), but people with front porches find that they have other benefits as well as indicated in a recent article from the Chicago Tribune. One front porch owner said that her front porch changed the "tempo and pace" of her life - being out on the porch encourages relationships with neighbors. "When a neighbor needs help, we galvanize."

A designer said that while the front porch gives definite curb appeal, it also provides a warm and inviting feel. The porch adds to the "architectural appeal of the house."

In Bend, Oregon, we're lucky enough to have a few neighborhoods that feature front porches. None more though than NorthWest Crossing on Bend's west side, where we are lucky enough to work every day (that's where our office is!).