Market statistics, in Bend and elsewhere, are pointing decidedly UP. The San Diego Union-Tribune on June 15 stated that their home prices, which had been falling at double-digit rates a year ago are now rising rapidly as upper end buyers find great bargains and investors re-enter the market attracted by value.
The Bend market is no exception. Over the past 6 months, the percentage of our market that is short sales and bank owned properties has dropped 17%. That sector now represents less than half of the market. Bank owned homes are usually priced well, but there is stiff competition among buyers. The number of sales of all homes 2010 over 2009 has increased an average of 51.65% since January.
The median sales price (half the market above, half below) of a residence in January of this year was $212,000 for seller owned and $177,500 for bank owned & short sales, but in June it had risen to $254,500 and decreased slightly to $175,000 for bank owned. In 2009 those figures were $233,750 in January, and it had dropped to $219,000 by June.
So we are heading in the right direction. With interest rates at well under 5%, it is an attractive market indeed. And don’t forget to ask me about those zero to 3% down loans.
Another interesting way to look at the market is that if you look at a chart of prices from 1997 to date and you figure a steady 3% appreciation it matches almost exactly the price increase from that purchase in 1997. In real estate investing over the long term, the only way to lose money is if you must sell. Adding in those tax benefits of home ownership, it’s an excellent investment long term.