Joseph Kendall Bend Real Estate

Well summer has seen considerable real estate activity as bargain hunters have decended on Bend to take advantage of the spectacular bargains available across every price point. Sales of low end REO (bank owned) and short sale properties have been brisk with some homes that are incredible values getting multiple offers and selling in a week. Luxury properties have not been immune to price cuts as we have seen some $1.6M  homes sell in the $800K to $900k range. There are bank owned houses in ever price point as the recession has hit Bend hard. People who always wanted to live here but couldn't afford it now can. Buyers that work from home or are retiring have come to Bend to shop the values. Inventory is down from the peak in spite of continued foreclosures.

If you have been to Bend you already know what a great recreational town this is with golf, skiing, fishing, boating, hiking, music venues, shopping and dining and much more. Its just until now it was a pretty expensive place to live compared to other parts of the country but always less than California and Washington major metropolitian areas. Now prices have been rolled back to levels seen in 2004. This won't last forever as Bend is still the great town it always has been.

If you haven't seen it, there was a recent article that stated Bend will be the 2nd highest appreciating city in the U.S. by 2014. Send me an email and I will send you the article. Bend has been at the top of lists of cities to retire to for years and that hasn't changed. So if you have ever contemplated moving here or getting that Oregon second home, now's the time. For what you can sell a Mill Valley tear down or Seattle split level for you can buy a lavish 4000 SF custom with all the bells and whistles and Cascade mountain or expansive city views. Come see for yourself, and I will show you what great houses money can buy here now. Call or email me to set up some showings.

Joe

It was bound to happen. It's surprising how swiftly the bargain hunters swooped into Bend in the last of Summer. I have been told that news of the great buys in Bend has spread to Seattle, Portland, and Eugene. It must have because suddenly homes have started to sell again in Bend. Particularly the lower priced inventory of bank owned and short sale houses that first time buyers find easy to purchase and investors find make good rentals. Prices have bottomed and started back up as evidenced on several sales charts. Average days on the market is getting shorter. Sensing this no doubt, many bargain hunters have snapped up many of the tempting inventory. More houses are going into foreclosure still but as they come on the market there seem to be ready buyers.

The low ball offers are now being rejected by the banks on occasion and in the case of some houses that are really great bargains multiple offers are coming in and the prices are being driven up over asking prices. The higher end houses like shown on this web site are being discounted down to prices that are amazing. Out of state buyers that come into my office are astonished at what incredible values are to be had in Bend for grand lavish homes with the finest features, views, river frontage, etc. Check out Bend's Best on the menu bar to see what some have been discounted down to. So far the rush to buy has not found the higher end houses but some are selling. Anyone looking to buy a spectacular second home or re-locate to our great area will find that now is the time to jump on the bargains. Prices for the town have declined on the average 42% but some houses have been dicounted even more. You could call me with practically any desire in a luxury home and I will know of a few that fit your description. There are some really incredible homes selling for unbelievable prices. It won't be long before the bargain hunter discover them too.

Joe

This has been an active summer and its not over yet. The buying activity has picked up considerably as buyers of all kinds have come into the area seeking to scoop up bargains. There have been a large number of forclosures in the area and investors and other buyers have moved in to scoop them up for rentals, vacation homes, and great deals on primary residences. Buyers who were turned away two years ago by the high prices in the area have come back to shop the steeply discounted prices compared to 2006-2007. The median price of homes in Bend and the average price of homes is now down over 38% from the peak. Bend has been hit hard by the recession but this has provided a spectacular buying opportunity for many people who have loved the area but been reluctant to buy. I have seen whole subdivisions that have been forclosed on by the bank and a dozen new houses put on the market and all sold in two months. We are also seeing multiple bids on some properties now that are great deals attracting several buyers in a short time.

 As I have said in other blogs, Bend is still Bend, one of the few areas with two recreational seasons. We have all the wonderful rivers, lakes, golf courses, and mountains to visit in the summer and Mt. Bachelor and the Cascades for winter recreation. This great playground hasn't changed, it just got vastly less expensive.

From the charts I access on MLS we can now see that the sales numbers have bottomed and turned up. There are still good inventories in all price ranges but buyers can not undercut every price without losing some properties to other buyers. Sellers have woken up to the pricing realities but they are still often shocked to find their sales fall through when their home does not appraise for what the sale was negotiated for. This can cause the banks, if lending on the properties, to not lend enough to complete the sale. Also the buyers are reluctant to make up the difference if the house does not appraise for what they agreed to pay on contract. Sellers need to be prepared that their house may not appraise for the value they want. Lenders are wanting 20% down and prefer 25% although some better loans are available.

All of this still says it is a buyer's market with prices very depressed, spectacular values, good inventory, and good rates available. But the bottom is in the past and the charts have all turned up. Don't be the last to board this train to values if you are interested in Bend real estate. I have seen some luxury properties that were on the market a year ago for $1.1M now selling for $600 or less. This is an absolute fact that there are great bargains on beautiful large houses with great amenities and views as will as starter and potential rental houses. This particular market will not last forever so don't miss it. Call me and I will search for properties that fit your particular needs and criteria. If you are  coming from CA, WA, or other states you will be amazed at what money buys here now.

Joe

The median home price in Bend ended the 2008 year at $226,000 down from a peak of $386,000 in September of '06. This is a drop of 41.5%. Of course this is a huge hit to property owners and with more properties coming on the market the inventory is still 13 months of unsold homes starting the new year. Interestingly enough, bulding permits in the Bend area have fallen from a peak of 220 in March of '05 to a low of 7 in December '08. This indicates hardly any new homes coming on the market until things change. Another interesting factor is that the 1199 single family homes currently listed would represent only five months inventory at a rate of typical sales in a normal year prior to boom and bust.

115 homes over $650K in the Bend Area sold in 2008 but there are currently 210 homes listed over $650K. All this means that as prices have fallen and inventory risen the opportunities for anyone wishing to move to the Bend Area and get a fabulous home at incredible prices are spectacular. I am seeing homes that would have been listed at $1.2 to 1.4 million now listed in the $800s. Compared to how much house you can buy in other areas of the west these homes are sensational. One great home that sold for $849,900 in '05 and listed for $974,000 in '06 is now $779,000. This house has a guest cottage, 4 bedrooms, cascade and river views, stone front and timber beams. It is French Country style and beautiful.

If you saw CNN today, January 26, the existing home sales for the nation took a jump up by 6.5% unexpectedly. Here is the article:

NEW YORK (CNNMoney.com) -- The number of existing homes sold in December rose 6.5% from the previous month, according to a report released Monday, as bargain hunters took advantage of plummeting prices.

The National Association of Realtors said that home sales increased to a seasonally-adjusted, annualized rate of 4.74 million units. That's up from a revised pace of 4.45 million units sold in November and more than the rate of 4.4 million units projected by a consensus of industry analysts as reported by Briefing.com.

"We have some months to go before we are out of the woods on the housing front," said Robert Dye, senior economist at PNC financial services group. Especially considering "weak consumer confidence and ongoing rapid deterioration in labor markets."

Still, December's existing home sales are down 3.5% compared with December of 2007, when the seasonally-adjusted, annual sales rate was 4.91 million. Existing homes include single family homes, townhomes, condominiums and co-ops.

For all of 2008, there were 4,912,000 homes sold, which was the lowest volume since 1997, when there were 4,371,000 homes sold. Sales volume in 2008 was down 13.1% from the 5,652,000 existing homes sold in 2007.

Bargain hunters: Bargain prices are bringing buyers back into the market. The median existing home price was down 15.3% to $175,400 from December 2007, when the median price was $207,000. The median price measures where half of the homes sold for more and half sold for less.

"Americans love a bargain, and the housing market is no exception," said Mike Larson, real estate and interest rate analyst for Weiss Research in a written statement.

 So my point here is if you are paralized by the news of layoffs and downturn there are quite a few people who see this as the buying opportunity of the last forty years. What about you?

Joe