The housing market in Bend and nationwide is showing increased home sale volume, but low inventory levels. A recent article on national existing home sales and housing inventory showed that sales nationally have increased by about 600,000 between 2012 and 2015 while housing inventory has been flat or has decreased. Nationally, existing home sales are 5 percent higher for the first half of 2016 and at the highest level since 2007, but housing inventory was 130,000 fewer units as compared to June 2015.
Housing transactions are typically double-ended, which means most homebuyers are selling existing homes and buying new homes, so the sale also adds to inventory. The increase in first time homebuyers and investors purchasing real estate increases the sales volume, but because these buyers do not have to sell another property prior to purchasing, they are adding to sales volume, but not to inventory. This is a significant reason for the inventory shortage, coupled with other reasons such as the current state of the economy, tighter lending standards, and the fact that many homeowners cannot yet afford to sell their current homes and purchase a new home because they do not yet have enough equity to make such a move. This is often an overlooked area with regard to analyzing the inventory levels.
The lower end of our local market is very tight and these homes are typically purchased by first time homebuyers. I have noticed how the prices for the low end of the market have steadily increased over the past few months. The national sales data is showing there is a stronger presence of first time homebuyers, and this is likely to continue for a while. This will keep inventory levels low and—coupled with lower interest rates—will translate to continued rising home prices.
1658 NE Cackler Lane, Bend, OR 97701
3 beds, 2 baths, 1239 square feet, .16 acre lot | Built in 1987
Listed by RE/MAX Key Properties
62033 Quail Run Pl., Bend, OR 97701
4 beds, 2.5 baths, 2383 square feet,
.13 acre lot | Built in 2007
Listed by John L Scott Bend
3230 NW Horizon, Bend, OR 97701
4 beds, 4.5 baths, 5078 square feet,
.58 acre lot | Built in 2003
Listed by Coldwell Banker Morris Real Estate
Photos and listing info from Central Oregon Multiple Listing Service