The Good
Bend home sales continued their upward trend in April, with 105 stick built houses on less than an acre of land reported sold for the month. This marks an increase of nearly 13% from the same month a year earlier, when 93 homes were sold.
Sales activity is up more than 5% through the first four months of this year over the same time period last year.
Time on the market also continues to shorten, with the median time from listing to closing for April sales reported to be 116 days, down 20 days (or nearly 15%) from a year earlier.
The Bad
6 of every 10 homes sold in April were distressed properties, with bank owned houses accounting for 43% of sales and short sales making up another 17%.
While short sales held fairly steady at around 17% of all sales, bank owned property sales increased in April from the first quarter of the year, when they made up roughly 32% of residential sales. This is even more astonishing when considering that bank owned properties account for only about 6.9% of all houses currently listed for sale in Bend.
The Ugly
Home prices continued their decline in April. The median price of homes sold last month was down more than 27.5% from a year earlier, and down 11.8% from the first quarter of this year. The median price of April sales was $195,000, down from $270,000 in May 2008 and $221,000 in the January through March period of 2009.
Opportunity
While it's become common knowledge that home sellers must be realistic in pricing their houses to sell, the current market has created some tremendous opportunities for today's home buyers.
With interest rates on 30 year fixed rate loans right around 5%, the federal government offering "first time buyers" an $8,000 tax credit (defined as someone who has not owned a primary residence in the last 3 years) and prices in Bend down to where they were in about 2004, a buyer can put just 3.5% down using a 30 year fixed rate FHA loan and have a principal and interest payment of only $1,023 per month for the purchase of a home priced at April's median of $195,000.
If you or someone you know is thinking of buying or selling, please give me a call. I'd be happy to discuss the opportunities available to you in today's market.
Thursday, May 7, 2009
Monday, March 2, 2009
February Homes Sales Up
Sales of single family stick built houses on less than one acre in Bend increased in February from a year earlier, according to information reported to the MLS of Central Oregon.
61 sales have been reported so far and I expect this number will be even higher as more closed sales from late February are added this week. But even without any additional sales, the 61 posted so far represents an improvement of nearly 20% from a year earlier, when only 51 sales were closed.
What's Selling?
Nearly 60% of the February closings were distressed sales, with 21 bank-owned houses and 16 "short sale" properties sold during the month.
The volume of distressed sales is leading to lower overall prices, with the median sale price of February sales at $215,000 for 1962sf, or $109.6/sf. A year ago, the median price was $320,000 for 2008sf, or $159.4/sf.
While the fall off in prices does indicate continued weakness, the uptick in sales shows that more people are ready, willing and able to purchase a home in today's market.
If you or someone you know is considering selling or buying a home, feel free to get in touch to find out just what you can expect in today's ever changing market.
61 sales have been reported so far and I expect this number will be even higher as more closed sales from late February are added this week. But even without any additional sales, the 61 posted so far represents an improvement of nearly 20% from a year earlier, when only 51 sales were closed.
What's Selling?
Nearly 60% of the February closings were distressed sales, with 21 bank-owned houses and 16 "short sale" properties sold during the month.
The volume of distressed sales is leading to lower overall prices, with the median sale price of February sales at $215,000 for 1962sf, or $109.6/sf. A year ago, the median price was $320,000 for 2008sf, or $159.4/sf.
While the fall off in prices does indicate continued weakness, the uptick in sales shows that more people are ready, willing and able to purchase a home in today's market.
If you or someone you know is considering selling or buying a home, feel free to get in touch to find out just what you can expect in today's ever changing market.
Thursday, February 19, 2009
"Distressed" Properties Account For 1 In 4 Houses For Sale
There are currently 1167 stick built houses on less than one acre of land in the Bend area listed for sale in the MLS of Central Oregon. Of these, over 25% are showing as distress sales, meaning either a "short sale" or "bank owned" property.
A transaction is considered a "short sale" when net sale proceeds (sale price less transaction fees) yield less than what is currently owed on the property. In order to close the sale, the property owner must either pay the difference between the net sale proceeds and what is owed or get the lien holder(s) to accept less than the amount owed. There are 196 stick built houses currently listed as a "short sale," accounting for nearly 17% of the available inventory of houses for sale.
In addition, there are 99 houses in Bend owned by a lender and listed for sale. This represents 8.5% of stick built houses currently listed for sale in the area. In most cases, the lender has come in to possession of the property following a foreclosure proceeding.
Of the 66 closed sales of stick built houses on less than one acre in the Bend area in January, 29 (or 43.9%) were reported as distress sales.
A transaction is considered a "short sale" when net sale proceeds (sale price less transaction fees) yield less than what is currently owed on the property. In order to close the sale, the property owner must either pay the difference between the net sale proceeds and what is owed or get the lien holder(s) to accept less than the amount owed. There are 196 stick built houses currently listed as a "short sale," accounting for nearly 17% of the available inventory of houses for sale.
In addition, there are 99 houses in Bend owned by a lender and listed for sale. This represents 8.5% of stick built houses currently listed for sale in the area. In most cases, the lender has come in to possession of the property following a foreclosure proceeding.
Of the 66 closed sales of stick built houses on less than one acre in the Bend area in January, 29 (or 43.9%) were reported as distress sales.
Friday, February 13, 2009
Banks Announce Foreclosure Freeze
3 of the largest banks in the U.S. announced earlier today that they will suspend foreclosure actions on principal residences for at least a few weeks while Congress and the Obama administration work on crafting a plan to stabilize the financial system.
J.P. Morgan Chase, Citigroup and Bank of America, each of which have recently received billions of dollars from the federal government's TARP plan, issued separate announcements Friday disclosing their plans to institute temporary moratoriums on new foreclosure activity.
Read the article from the Wall Street Journal here: http://online.wsj.com/article/SB123454524404184109.html?mod=rss_whats_news_us_business
J.P. Morgan Chase, Citigroup and Bank of America, each of which have recently received billions of dollars from the federal government's TARP plan, issued separate announcements Friday disclosing their plans to institute temporary moratoriums on new foreclosure activity.
Read the article from the Wall Street Journal here: http://online.wsj.com/article/SB123454524404184109.html?mod=rss_whats_news_us_business
Saturday, January 17, 2009
New Listing in Gated Community of Mtn. High, Bend
This single level home features 3 bedrooms, a den/office, 2 bathrooms, a large dining/breakfast area in the kitchen plus a formal dining room. The quiet, impeccably landscaped .60 acre setting is on a quiet cul-de-sac and features majestic ponderosa pines, a large rear deck and hot tub. Three car garage and new roof and water heater in 2008. Mountain High features 9 hole golf, a pool and tennis courts. Really a terrific buy at only $399,000. Call me today to see this beautiful home
Thursday, January 8, 2009
Citi Endores Cramdowns
Citgroup agreed earlier today to support legislation being pushed by some Senators to allow bankruptcy judges to require lenders to restructure mortgages.
In a process referred to as a "cramdown," the judges could lower the principal amount of a mortgage loan so that it equals the current market value of the property. In addition to lowering principal, the bill being considered also would allow judges to lower a loan's interest rate, extend the term of the loan or use a combination of all three actions.
Up to this point, the financial services industry has resisted such legislation, claiming that it would force them to raise interest rates to offset revenue lost from such restructurings.
But after the government pumped $45 billion in new capital into Citi last year as well as agreeing to stand behind hundreds of billions in potential losses from the company's risky assets, the new congress has much more leverage with which to push through such legislation.
Stay tuned!
In a process referred to as a "cramdown," the judges could lower the principal amount of a mortgage loan so that it equals the current market value of the property. In addition to lowering principal, the bill being considered also would allow judges to lower a loan's interest rate, extend the term of the loan or use a combination of all three actions.
Up to this point, the financial services industry has resisted such legislation, claiming that it would force them to raise interest rates to offset revenue lost from such restructurings.
But after the government pumped $45 billion in new capital into Citi last year as well as agreeing to stand behind hundreds of billions in potential losses from the company's risky assets, the new congress has much more leverage with which to push through such legislation.
Stay tuned!
Wednesday, January 7, 2009
Sales Stall While Re-Fi's Boom
Despite record low interest rates, home sales in the Bend area continued to stagger along in December.
Just 69 closed sales of single family, stick built houses on less than one acre in Bend have been reported to MLS for the month, compared to 81 in December 2007 and 70 in November.
There are currently more than 1000 completed houses for sale in Bend. Based on the rate of sales over the last couple of months, the absorption rate is over 14 months. A market is generally considered balanced when there is about 5 to 6 months of inventory. Obviously we have a ways to go before we get back close to equilibrium.
Prices also continue to slump. The median sale price for December closings of stick built houses on less than 1 acre was $224,900, with a median dollar per square foot of $126.2/sf. A year ago, the median $/sf number was $160.6/sf.
One bright spot is loan refinancings. A friend of mine owns a local mortgage company and says they are swamped, with re-fi applications making up about 90% of his current business. And it's no wonder; with rates now near 5%, refinancing a $300,000 loan from a 6.5% interest rate will cut the monthly payment by about $300!
So contrary to many rumors flying around, lenders are still making loans. With an adequate debt-to-income ratio, a good credit score and income that can be documented (with a W-2, for example), a buyer can get an FHA loan with as little as 3% down and an interest rate around 5%. At Bend's recent median price of approximately $225,000, that's only $6750 down and a monthly payment of around $1175 per month.
Please feel free to call or email me for more information about Bend real estate matters or to talk about buying or selling real estate throughout Central Oregon.
Just 69 closed sales of single family, stick built houses on less than one acre in Bend have been reported to MLS for the month, compared to 81 in December 2007 and 70 in November.
There are currently more than 1000 completed houses for sale in Bend. Based on the rate of sales over the last couple of months, the absorption rate is over 14 months. A market is generally considered balanced when there is about 5 to 6 months of inventory. Obviously we have a ways to go before we get back close to equilibrium.
Prices also continue to slump. The median sale price for December closings of stick built houses on less than 1 acre was $224,900, with a median dollar per square foot of $126.2/sf. A year ago, the median $/sf number was $160.6/sf.
One bright spot is loan refinancings. A friend of mine owns a local mortgage company and says they are swamped, with re-fi applications making up about 90% of his current business. And it's no wonder; with rates now near 5%, refinancing a $300,000 loan from a 6.5% interest rate will cut the monthly payment by about $300!
So contrary to many rumors flying around, lenders are still making loans. With an adequate debt-to-income ratio, a good credit score and income that can be documented (with a W-2, for example), a buyer can get an FHA loan with as little as 3% down and an interest rate around 5%. At Bend's recent median price of approximately $225,000, that's only $6750 down and a monthly payment of around $1175 per month.
Please feel free to call or email me for more information about Bend real estate matters or to talk about buying or selling real estate throughout Central Oregon.
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