Second quarter real estate stats for Bend, Oregon

The statistics are now in for home sale activity for the Bend and Central Oregon real estate activity for the month of June 2010. It is not surprising that home sales posted a gain over the same period in 2009. At the end of June 2010 the Total Residential Sold was 816 compared with 587 last year at this time. In addition, the number of short sales this year is 183 versus 102 last year over the same period, while the number of bank owned sales are reported to be 295 for the end of June versus 214 last year.

Adding both short sales and bank owned sales together, distressed properties accounted for 59% of the total sold through the end of June, with 41% being “traditional” or “regular sales.”

The average sales amount in the second quarter of 2010 was $248,384, down from $257,935 in 2009, while the median sales amount was $193,750 versus $215,000 last year.

For more perspective, by the second quarter of 2006 there were 1,146 total sales with an average sales amount of $399,543 and median sales amount of $343,950. So sellers, listen up! If you are asking if prices are ever going to come back to 2006 levels, the answer might be yes, but definitely “not any time soon.

Here’s why. It was an unsustainable market based on all sort of misinformation, loose lending policies and a financial plan that was doomed at the get-go. No one wanted to believe it and prices and multiple offers just fueled the excitement that swept many buyers into decisions that they later regret. Buyers made decision on “unrealized equity” that was just “on paper”

The real estate market is very similar to the stock market—you need to do all the research and make as good a decision based on the facts that “ARE”, not “hope to be.” No one can really forecast all of the forces that came together to create a Recession. The market is the market.

It is important to rebuild confidence in the market and create as positive attitude in an environment which many of us have never had to adjust to. Make a financial plan, step by step, maintain what you have as best you can and re-evaluate your budget for the necessities of life. In Central Oregon we are indeed blessed to have so many outdoor FREE activities including the rivers, trails, walking paths, camping, day and overnight parks (not free but not expensive.) Plan your summer activities and enjoy a “staycation”—you might discover the time to enjoy board games with your kids and the “old fashioned” conversations that our family enjoyed around the supper table so many evenings.

For those of you who plan to buy and take advantage of a real opportunity—it remains a great market for buyers! Interest rates continue to be at historic low levels. This trend should continue into the near future as well. Look for home inventories to go on the rise again putting even further pressure on home prices. Upper end home sales continue to lag well behind the sub $200,000 market and this trend will most likely continue as well. Appraisals continue to be a problem. This is common in a market with declining home prices and puts an additional strain on values. There are certainly many “micromarkets” in Bend and Central Oregon which are doing better than others—that is why certain web sites such as realtor.com and zillow must be taken lightly and not verbatim.

Let me help you interpret what your real value is! Call me at 541.815.8300. To see all my real estate listings in Bend, Oregon visit Hendrick.com.

Martha Hendrick is a real estate expert in Bend, Oregon, specializing in the neighborhoods of Northwest Crossing, Awbrey Butte, Awbrey Glen, the Parks, and Broken Top. For property listings and information about Bend visit hendrick.com.