Market Conditions
The housing market is recovering with home prices approaching those before the recession and the 2016 housing market is expected to grow at a moderate pace.
According to Lawrence Yun, chief economist of the National Association of Realtors, the growth that broke out in 2015 was fueled by job growth and the rising prices of homes. Job growth translates into new households being formed, which increases demand. Coupled with low inventory, we have higher prices fueled by that demand and supply situation. The rising prices of homes encourages existing homeowners to sell as they realize they have enough equity for a new home. This has been the main source of the growth and is expected to continue in 2016.
Nationally, growth for 2016 is expected to only be moderate because new housing starts are not expected to keep up with the rate of creation of new households. The other challenges to growth and home ownership include the forecast of rising interest rates, inflationary pressures, and rising rents which are outpacing income growth, making it more difficult to save for a down payment. This makes it very challenging for first time homebuyers to enter the market, particularly millennials who often have student debt that can keep them from qualifying for a loan.
Nationally, growth is expected to rise around 6 percent for 2015 and 5 percent for 2016. The growth for Bend has been about double the national rate and we can all feel it.
Home Price Round-up
LOW
104 SE 3rd St.
Bend, OR 97701
2 beds, 1 bath, 748 square feet, .07 acre lot
Built in 1925
$110,000
Listed by Kozak Company
MID
63399 Lamoine Ln.
Bend, OR 97701
3 beds, 2.5 baths, 2229 square feet, .10 acre lot
Built in 2015
$339,000
Listed by Keller Williams Realty
HIGH
2033 NW Vicksburg Ave.
Bend, OR 97701
4 beds, 3 baths, square feet, .31 acre lot
Built in 1976
$829,000
Listed by The Broker Network of Central Oregon
