The 4th quarter of 2010 marked the most affordable time period for buying a home in the Bend region since the area was first included as a Metropolitan Statistical Area (MSA) at the beginning of 2006, according to an index released quarterly by the National Association of Home Builders and Wells Fargo.
The Housing Opportunity Index (HOI) showed that 78.2% of new and existing houses sold in the Bend area in the last quarter of 2010 were affordable to families earning the median income of $63,200. It marked just the third time (and 3rd straight quarter) that the index was above 70%.
Prior to the first quarter of 2009, the affordability index had never reached higher that 40.1% locally, and hit an all time low of 14.7% in Q1 2007, when the median sale price was $310,000, according to data from the association.
The Bend area was ranked the 133 most affordable MSA in the 4th quarter, out of 223 nationally. This is by far the highest ranking for our area since being designated as a MSA in 2006. To put this in perspective, we were ranked 199, 209, 211 and 207 in 2008, and never higher than 140, way back in the first quarter of 2006.
With interest rates on mortgage loans trending upward, now really is a fantastic time to buy a home. Call me today to get started!
Thursday, February 17, 2011
Wednesday, February 16, 2011
Foreclosures Drag Bend Home Prices Lower
The median price per square foot paid in Bend last year for stick built houses on less than one acre was $104.66. But this figure differs dramatically depending on the type of sale.
While the overall median price per square foot paid in 2010 was down 6.6% from a year earlier, the price per square foot for all "traditional" sales (not a foreclosure or short sale) decreased by less than half that, down just 3% from 2009.
And short sales, besides seeing a jump of more than 20% in the number of successful deals last year, had a 6.2% lower median price per square foot than those from a year earlier.
So where does this leave foreclosures? The median price per square foot paid for "bank owned" properties plunged 11.1% last year. At $87.32 per square foot, foreclosed houses sold for a whopping 30.9% discount from traditional sales!
While I'll agree that there is more perceived risk in buying a foreclosure (seller's are exempt from disclosing to a buyer any defects affecting the property, for example) and that many need at least minor repairs (paint and carpet, etc.), a discount of 31% seems a bit extreme.
As a result, and as many buyers and investors are discovering, foreclosures are providing some truly fantastic buys, even in today's choppy market.
Let me know your thoughts by posting your comments below.
While the overall median price per square foot paid in 2010 was down 6.6% from a year earlier, the price per square foot for all "traditional" sales (not a foreclosure or short sale) decreased by less than half that, down just 3% from 2009.
And short sales, besides seeing a jump of more than 20% in the number of successful deals last year, had a 6.2% lower median price per square foot than those from a year earlier.
So where does this leave foreclosures? The median price per square foot paid for "bank owned" properties plunged 11.1% last year. At $87.32 per square foot, foreclosed houses sold for a whopping 30.9% discount from traditional sales!
While I'll agree that there is more perceived risk in buying a foreclosure (seller's are exempt from disclosing to a buyer any defects affecting the property, for example) and that many need at least minor repairs (paint and carpet, etc.), a discount of 31% seems a bit extreme.
As a result, and as many buyers and investors are discovering, foreclosures are providing some truly fantastic buys, even in today's choppy market.
Let me know your thoughts by posting your comments below.
Tuesday, February 8, 2011
Bend January Home Sales Highest Since 2007
125 stick-built houses on less than one acre closed escrow last month, the highest total for January since 135 were sold in 2007.
Sales increased more than 21% from a year earlier, and nearly doubled the anemic volumes of both January 2009 and 2008, when just 69 and 75 houses were reported sold respectively.
The increase in sales is directly related to the decrease in prices. January's median sale price was $191,000, or $104.66 per square foot. This is down 6.6% from a year earlier and more than 41.5% from January 2007, when the median sale price for the month was $327,900, or $178.98 per square foot.
Combined with interest rates still near historical lows (the rate on a 30 year fixed is around 5%), now really is a fantastic time to buy property in Bend and throughout Central Oregon. Call me today to find out how you can take advantage of the great opportunities in today's market.
Sales increased more than 21% from a year earlier, and nearly doubled the anemic volumes of both January 2009 and 2008, when just 69 and 75 houses were reported sold respectively.
The increase in sales is directly related to the decrease in prices. January's median sale price was $191,000, or $104.66 per square foot. This is down 6.6% from a year earlier and more than 41.5% from January 2007, when the median sale price for the month was $327,900, or $178.98 per square foot.
Combined with interest rates still near historical lows (the rate on a 30 year fixed is around 5%), now really is a fantastic time to buy property in Bend and throughout Central Oregon. Call me today to find out how you can take advantage of the great opportunities in today's market.
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