| The real estate market in Bend Oregon continues | | | | percent in the same quarter. This indicates |
| to slump. It is now a buyer's market. | | | | demand for homes in will continue. |
| Prices are coming down and will continue to fall | | | | Some builders are starting to offer more |
| through the winter as the inventory continues to | | | | incentives if you buy one of their homes. |
| build. It is taking longer for homes to sell and | | | | Upgrades in appliances, floor coverings, wood |
| there are more homes for buyers to choose | | | | work, landscaping and other aspects of |
| from. | | | | construction are now free. Some builders are also |
| The real estate markets in California, Arizona, | | | | willing to pay points in order to help buyers qualify |
| Florida and other key states are leading indicators | | | | for lower payments on their loans. |
| on how the market in Bend will do. In1989 real | | | | The National Association of Realtor's chief |
| estate values in Bend jumped 35%. | | | | economist, David Lereah, predicted that sales |
| Out of state buyers from California, Florida, | | | | through the rest of 2006 will be lower than earlier |
| Arizona, Washington State and other hot markets | | | | predicted. "This year, sales are slowing, homes are |
| were selling their homes for large profits in 1989 | | | | plentiful and sellers are negotiating," Lereah said. |
| and moving to Bend to buy larger homes. 1990 | | | | "Under these conditions, we will probably see |
| and 1991 saw the out of state markets dry up | | | | prices dip temporarily below year-ago levels as |
| with prices falling. The Bend market followed | | | | the market works through a buildup in housing |
| these markets before it picked up again. | | | | inventory." |
| Today's market looks very similar to the | | | | There are still many home for sale in Bend that |
| 1989-1991 market. 102 single-family homes on | | | | are over priced for today's' market. But there are |
| less than one acre in Bend closed in October 2006 | | | | also a good variety of homes that are for sale |
| according to the Multiple Listing Service of Central | | | | that are very good buys. Sellers that have to sell |
| Oregon. That is a decrease of 59 percent from | | | | are forced to lower their prices and offer to pay |
| the active market in October 2005. | | | | closing costs, include appliances in the sale and |
| The median sales price was down slightly but that | | | | replace carpets prior to close and many other |
| does not include homes that have been on the | | | | "freebees" in order to sell their homes. |
| market for almost a year and haven't sold. There | | | | New home developers and builders were able to |
| are homes that have been listed with one Realtor | | | | sell homes in the past few years before they |
| for six months and then listed with another. Many | | | | broke ground. They had buyers waiting in the |
| of these homes still have not sold. | | | | wings to purchase these homes as soon as the |
| One newer home that was listed in December | | | | lots were developed and the builder priced the |
| 2005 at $399,500 is still on the market. The seller | | | | homes. The buyers chose their finish materials |
| refused an offer of $379,500 the first month it | | | | and waited for construction to be finished. |
| was listed. That home is now listed with another | | | | Today large builders particularly cannot afford to |
| Realtor at $329,500 and that is just the asking | | | | sit on their vacant homes during the winter and |
| price. The owner would now entertain any offer. | | | | pay interest, taxes, insurance and utilities. These |
| This winter is the time to buy real estate in Bend. | | | | builders are offering "free" perks to sell their new |
| There are homes on the market now that have | | | | homes today. Prices are being lowered |
| been substantially reduced with seller's willing to | | | | substantially. |
| take any reasonable offer. Some homes are | | | | Interest rates are still low, the economy is good |
| vacant and can be bought with a lease-purchase. | | | | and gas prices are stable or falling, all good signs |
| We look for the market and prices to pick back | | | | that the real estate market in Bend will be picking |
| up next spring. | | | | up next spring. If you have ever thought about |
| A report recently released by the Federal Deposit | | | | buying real estate in Bend Oregon now may be |
| Insurance Corp., or FDIC reported that Bend is | | | | the best opportunity you will have in a long time. |
| the 35th fastest growing job market in the | | | | Prices are falling. Interest rates are low and there |
| country for the second quarter of 2006, wit a | | | | are some good buys in today's market. Look for |
| job growth rate of 4 percent during that period. | | | | prices to start going up this spring. |
| The FDIC reported sales activity in Oregon fell 12 | | | | |