Bend Real Estate Blog | Homes for Sale| Bend Oregon We provide you with Bend and Central Oregon real estate updates as well as general information on Bend and other towns in Central Oregon. Nov. 29, 2014 Pending Bend Oregon real estate sales continue a steady pace while nationally, pending home sales declined in October but remained at a healthy level of activity and are above year-over-year levels for the second straight month, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contract signings, decreased 1.1 percent to 104.1 in October from an upwardly-revised 105.3 in September, but is 2.2 percent higher than October 2013 (101.9). The index is above 100considered an average level of contract activityfor the sixth consecutive month. Lawrence Yun, NAR chief economist, says despite Octobers modest decline, contract signings have remained at a healthy pace now for six straight months. In addition to low interest rates, buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying in cash, he said. Demand is holding steady but would be more robust if it werent for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents. The median existing-home price for all housing types in October was $208,300, which is 5.5 percent above October 2013. Monthly median price growth has averaged 5.8 percent in 2014 (through October) after averaging 11.5 percent last year. The increase in median prices for existing-homes has leveled off, representing a healthier pace that has kept affordability in-check for buyers in many parts of the country while giving more previously stuck homeowners with little or no equity the ability to sell, says Yun. Yun says evidence of rising home prices allowing more willing homeowners the ability to sell can be found in NARs annual survey released earlier this month, which revealed that the typical seller over the past year was in their home for 10 years before sellingan all-time survey high for tenure of home. NAR also recently released its economic and housing forecast for 2015 and 2016. Yun is forecasting existing-home sales this year to fall slightly below 2013 (5.1 million) to 4.9 million, and then increase to 5.3 million next year and 5.4 million in 2016. Yun expects the national median existing-home price to rise 4 percent both next year and in 2016. The PHSI in the Northeast inched 0.5 percent to 87.9 in October, and is now 3.4 percent above a year ago. In the Midwest the index slightly declined 0.6 percent to 100.6 in October, and is now 3.0 percent below October 2013. Pending home sales in the South decreased 1.0 percent to an index of 118.3 in October, but is still 3.9 percent above last October. The index in the West fell 3.2 percent in October to 98.1, but remains 4.1 percent above a year ago. Nov. 29, 2014 The Bend Oregon commercial real estate market keeps plugging along. Nationally, despite a slowing global economy, forward economic momentum in the U.S. should keep commercial real estate activity on firmer footing, according to the National Association of Realtors quarterly commercial real estate forecast. Lawrence Yun, NAR chief economist, says commercial activity should progress at a gradual pace heading into 2015. Solid economic growth in the third quarter proved that the second quarter wasnt an anomaly, as business spending increased, commercial construction rose and the labor market continued to make positive strides, he said. Job growth is the catalyst to improved demand for commercial real estate leasing and new construction projects. However, Yun does caution that softening in the global economy will likely widen the trade deficit in the U.S. and could trigger some weakening in the overall economy. GDP growth in the fourth quarter will be sluggish at around 2 percent behind stalling exports. Although GDP will likely climb to near 3 percent in 2015, the current pace of job growth could slow and ultimately impact commercial real estate activity if sluggishness in the global economy persists, he said. National office vacancy rates are forecast to decrease 0.5 percent over the coming year due to job growth exceeding inventory coming onto the market. Improved manufacturing activity should lead to a declining vacancy rate for industrial space (0.4 percent), while retail space is forecast to decline 0.2 percent behind a boost in consumer spending from personal income gains and lower gas prices. Low housing inventory and the sizable demand for rentals will continue to spur multifamily construction as well as keep rents rising above inflation through next year, says Yun. NARs latest Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas is provided by REIS Inc. a source of commercial real estate performance information. Office Markets Office vacancy rates are forecast to slightly decline from 15.7 percent in the fourth quarter to 15.6 percent through the fourth quarter of 2015. The markets with the lowest office vacancy rates in the fourth quarter are Washington, D.C. at 9.3 percent New York City, 9.6 percent Little Rock, Ark. 11.6 percent San Francisco, 12.2 percent and Seattle, at 12.8 percent. Office rents are projected to increase 2.4 percent in 2014 and 3.3 percent next year. Net absorption of office space in the U.S. which includes the leasing of new space coming on the market as well as space in existing properties, is likely to total 35.6 million square feet this year and 48.8 million in 2015. Industrial Markets Industrial vacancy rates are expected to fall from 8.8 percent in the fourth quarter to 8.4 percent in the fourth quarter of 2015. The areas with the lowest industrial vacancy rates currently are Orange County, Calif. with a vacancy rate of 3.6 percent Los Angeles, 3.7 percent Seattle, 5.8 percent Miami, 6.0 and Palm Beach, Fla. at 6.5 percent. Annual industrial rents should rise 2.4 percent this year and 2.9 percent in 2015. Net absorption of industrial space nationally is expected to total 110.7 million square feet in 2014 and 102.5 million square feet next year. Retail Markets Vacancy rates in the retail market are expected to decline from 9.7 percent currently to 9.5 percent in the fourth quarter of 2015. Currently, the markets with the lowest retail vacancy rates include San Francisco, at 3.5 percent Fairfield County, Conn. 3.9 percent San Jose, Calif. 4.6 percent Orange County, Calif. 5.2 percent and Long Island, N.Y. at 5.3 percent. Average retail rents are forecast to rise 2.0 percent in 2014 and 2.5 percent next year. Net absorption of retail space is likely to total 11.4 million square feet this year and jump to 18.9 million in 2015. Multifamily Markets The apartment rental market multifamily housing should see vacancy rates slightly increase from 4.0 percent currently to 4.3 percent in the fourth quarter of 2015. Vacancy rates below 5 percent are generally considered a landlords market, with demand justifying higher rent. Areas with the lowest multifamily vacancy rates currently are Orange County, Calif. and Sacramento, Calif. at 2.2 percent Providence, R.I. and New Haven, Conn. at 2.3 percent and Hartford, Conn. at 2.5 percent. Average apartment rents are projected to rise 4.0 this year and 3.9 percent in 2015. Multifamily net absorption is expected to total 216,300 units in 2014 and 171,200 next year. Nov. 29, 2014 Bend Oregon real estate sales continue at a brisk pace while existing-home sales in the West declined 5.0 percent to an annual rate of 1.14 million in October, and remain 3.4 percent below a year ago. The median price in the West was $296,800, which is 5.0 percent above October 2013. Nationally, existing-home sales rose in October for the second straight month and are now above year-over-year levels for the first time in a year, according to the National Association of Realtors. Total existing-home sales, which are completed transactions that include single-family homes, town homes, condominiums and co-ops, rose 1.5 percent to a seasonally adjusted annual rate of 5.26 million in October from an upwardly-revised 5.18 million in September. Sales are at their highest annual pace since September 2013 (also 5.26 million) and are now above year-over-year levels (2.5 percent from last October) for the first time since last October. Lawrence Yun, National Association of Realtors chief economist, says the housing market this year has been a tale of two halves. Sales activity in October reached its highest annual pace of the year as buyers continue to be encouraged by interest rates at lows not seen since last summer, improving levels of inventory and stabilizing price growth, he said. Furthermore, the job market has shown continued strength in the past six months. This bodes well for solid demand to close out the year and the likelihood of additional months of year-over-year sales increases. The median existing-home price for all housing types in October was $208,300, which is 5.5 percent above October 2013. This marks the 32 nd consecutive month of year-over-year price gains. Total housing inventory at the end of October fell 2.6 percent to 2.22 million existing homes available for sale, which represents a 5.1-month supply at the current sales pace the lowest since March (also 5.1 months). Unsold inventory is now 5.2 percent higher than a year ago, when there were 2.11 million existing homes available for sale. The growth in housing supply this year will likely prevent the drastic sales slowdown and coinciding spike in home prices we saw last winter due to low inventory, says Yun. However, more housing starts are needed to increase supply, meet current demand and keep price growth in check. All-cash sales were 27 percent of transactions in October, up from 24 percent in September but down from 31 percent in October of last year. Individual investors, who account for many cash sales, purchased 15 percent of homes in October, up from 14 percent last month but below October 2013 (19 percent). Sixty-five percent of investors paid cash in October. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage in October dropped to 4.03 percent, its lowest level since June 2013 (4.07 percent), and down from 4.16 percent in September. The percent share of first-time buyers in October remained at 29 percent for the fourth consecutive month first-time buyers have represented less than 30 percent of all buyers in 18 of the past 19 months. A separate NAR survey released earlier this month revealed that the annual share of first-time buyers fell to its lowest level in nearly three decades. Distressed homes were in the single-digits for the third month this year, decreasing to 9 percent in October from 10 percent in September they were 14 percent a year ago. Seven percent of October sales were foreclosures and 2 percent were short sales. Foreclosures sold for an average discount of 15 percent below market value in October (14 percent in September), while short sales were discounted 10 percent (14 percent in September). Although distressed sales are trending downward, there are still areas (such as judicial states Florida, Maryland and New York) plagued by foreclosures, and homeowners faced with the awful choice between a tax bill they are unable to pay and losing their home, says NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark. Realtors urge the U.S. House to schedule a vote on The Mortgage Forgiveness Tax Relief Act, as soon as possible. This bipartisan legislation would extend an expired provision that has helped millions of distressed American families by allowing tax relief when lenders forgive a portion of the mortgage debt they owe. Properties typically stayed on the market in October longer (63 days) than last month (56 days) and a year ago (54 days). Short sales were on the market for a median of 150 days in October, while foreclosures sold in 68 days and non-distressed homes took 61 days. Thirty-three percent of homes sold in October were on the market for less than a month. Single-family home sales increased 1.3 percent to a seasonally adjusted annual rate of 4.63 million in October from 4.57 million in September, and are now 2.9 percent above the 4.50 million pace a year ago. The median existing single-family home price was $208,700 in October, up 5.6 percent from October 2013. Existing condominium and co-op sales increased 3.3 percent to a seasonally adjusted annual rate of 630,000 units in October from 610,000 in September, unchanged from the 630,000 unit pace a year ago. The median existing condo price was $205,400 in October, which is 4.5 percent higher than a year ago. Regionally, October existing-home sales in the Northeast climbed 2.9 percent to an annual rate of 710,000, and are 4.4 percent above a year ago. The median price in the Northeast was $246,900, which is 1.2 percent above a year ago. In the Midwest, existing-home sales jumped 5.1 percent to an annual level of 1.24 million in October, and are 2.5 percent higher than October 2013. The median price in the Midwest was $164,100, up 6.8 percent from a year ago. Existing-home sales in the South increased 2.8 percent to an annual rate of 2.17 million in October, and are now 5.3 percent above October 2013. The median price in the South was $178,000, up 5.1 percent from a year ago. Nov. 21, 2014 What does energy efficiency mean? You might say, solar panels. Your neighbor might say, low utility bills. Youre both right. Energy efficiency means something different to everyone, said Nate Ellis, director of education for the Contra Costa Association of REALTORS , who spoke at Fridays Marketing New and Energy-Efficient Homes session. And that means you need to customize your message. To do so, Ellis said, you need to first understand your market. Start by tapping the big data available through such sites as the REALTORS Property Resource, an NAR-owned, members-only, searchable property database that overlays property tax records with MLS data, where available. In RPRs commercial section, you can find demographic reports and maps, such as which areas are dominated by wine drinkers and which by beer drinkers. Information like this gives you financial insights, because wine drinkers tend to have higher incomes. Another source of demographic data: Nielsens My Best Segments, which will serve up the top-five profiles of people who live in a particular ZIP code. How do you come up with concepts for multiple pieces of marketing? Take a phrase like energy efficiency and free associate 20 related words, such as saving money, comfort, and utilities. Do the same exercise for each of those 20 words. For instance, from utilities, you might come up with terms like solar. Brainstorm three questions consumers might ask about solar, such as How much is it? How much will I save? and Should I lease or buy solar panels? By doing this exercise for each term, youll end up with hundreds of marketing messages that you can apply based on demographics. These ideas also double as good topics for blog posts. Tip: Avoid energy-efficiency jargon in your marketing. You might know that FSC stands for the Forest Stewardship Council, which denotes sustainably harvested wood, but consumers wont. If youre wondering how you can possibly find the time and money to create all this marketing, Ellis has an answer. He recommends online tools like Canva, which let you easily design flyers and other collateral online using templates and fonts. With Canva, you can use your own imagery or choose from the services library. Finally, what are some ways to convince people to invest in energy efficiency, especially when your listing is competing with a less expensive property? Try a little healthy competition. Ellis cited an American Council for an Energy Efficient Economy study that found the most effective way to get people to change their habits is to get them to compete with their neighbors. Some energy companies do that by including information in utility bills comparing your consumption with that of your neighbors. Complete the Appraisal Institutes Residential Green and Energy Efficient Addendum (Form 820.04, which you can find here) to list all the relevant energy-efficient features of the home from insulation to HVAC. And provide that to the appraiser who wont be able to see things like the fact that the R-value of the insulation is higher than other homes in the area. Keep a record of the homes utility bills. But make sure to establish a baseline for consumption, because a family four with two infants will have different energy use than a family of four with two teenagers. Nov. 5, 2014 Now is a good time to refinance your Bend Oregon real estate. Rates are still near an all time low. The National Association of Realtors recently report that ecent reductions in the 30-year fixed-rate mortgage could net the population of borrowers big savings if they would refinance, according to Black Knight Financial Services latest Mortgage Monitor Report. The Refinancing Picture Fannie: Where Are All the Refis? HARP Is Not a Scam, FHFA Director Says Former Chairman of the Federal Reserve Cant Refinance His Mortgage Before the most recent reductions in the average 30-year mortgage interest rate, approximately 6 million borrowers met broad-based refinancibility criteria, says Trey Barnes, Black Knights senior vice president of Loan Data Products. These criteria assume loan-to-value ratios of 80 percent or below, good credit, non-delinquent loan status, and current interest rates high enough that borrowers have an incentive to refinance. In light of where rates are today, and looking at borrowers with current notes at 4.5 percent and above, that population has now swelled to 7.4 million almost a 25 percent increase. This is a relatively conservative assessment, though, as those with current rates of 4.25 percent to 4.5 percent could arguably benefit from refinancing as well. That group adds another 1.7 million borrowers to the population. A separate study by the National Bureau of Economic Research found in an analysis of 1 million fixed-rate mortgages that 20 percent of Americans who failed to refinance could have saved more than $45,000 in payments over the life of their loan. At the time of the study, average interest rates were around 4.3 percent. In recent weeks, the 30-year fixed-rate mortgage dipped below 4 percent, sinking to the lowest levels in more than a year, according to Freddie Mac. However, some home owners are struggling to refinance as their home values continue to recover from the housing crisis. But Black Knight also found in its report that the equity picture has greatly improved. It found that 28 consecutive months of home appreciation since 2012 has caused the share of borrowers with negative equity to drop below 8 percent as of July, its lowest level since 2007. In 2011, the percentage of borrowers with negative equity stood at 33 percent. Whats more, an additional 8.5 percent of borrowers are in near-negative equity positions, with less than 10 percent equity in their homes. More than half of all borrowers have 30 percent or more equity, a level not seen in nearly eight years, Barnes notes. Homes in Bend continue to increase in value giving owners more equity and allowing a refinance at a lower rate. If you prefer to sell your home check out our Bend Oregon real estate expert marketing.
Posted on: Tue, 16 Dec 2014 23:25:05 +0000
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