Fall Mailbag

Q: Why do real estate agents and lenders always seem to think now is a good time to buy or sell?

A: I have gotten several similar questions around this topic, and ask a question back (sorry): When was a good time to buy? I ask, because it seems obvious when asked this way, and is like the question of when is the best time to plant a shade tree? Ten years ago.

Looking back to 2013 things were kind of scary, the economy was still struggling, coming out of a massive recession, jobs were still somewhat hard to come by, rates were pretty good, but appeared to be heading up and people able to qualify for mortgages were much, much lower with tightened lending standards.

I tried to touch on this topic a bit in my last article, but the reality is the real estate market is complex and there are many pieces to consider when talking about “the market” in general. I don’t have a crystal ball, nor am I able to accurately forecast the national or global economy. To be honest, I was very concerned for all my clients who bought late in 2019, or early 2020 as COVID started showing up. I was wrong; the market did the opposite of what I would have predicted.

If you’re of the type who thinks that the increased interest rates we have seen over the last 18 months will eventually lead to a housing market collapse, then I would not recommend purchasing a home now (got lots of emails around the inevitable collapse of the market). Count me among those who doubt we will have another massive housing recession like 2008 with prices falling drastically (>25%) in the short term. Could that change? Sure. Just like interest rates could continue to climb over the next few years, and prices could continue to grow. Remember, real estate prices, and interest rates are not inversely related.

I will end this simply: If you have the financial capacity to purchase a home that you like, it is worth having a conversation with trusted professionals. If now is not the best time for you, or you don’t think it is the best time, you are right!

Q: How will the governor’s plan to address our housing shortage work?

A: For those who may be unfamiliar with the governor’s plan, on her first day in office Gov. Tina Kotek signed Executive Order 23-04, which set a housing production goal of 36,000 homes per year and established the Housing Production Advisory Council, a collection of experts charged with developing a set of construction goals. This goal of 36,000 “housing units at all levels of affordability across the state represents an 80% increase over current construction trends,” according to the state’s website. I don’t want to speculate about how this will exactly work, as the council is still working through a number of considerations currently, but on Nov. 3 and 17, the housing production council will host a virtual webinar for those wanting more information or to get involved.

Q: When will the city of Bend outlaw short-term rentals and AirBnB?

A: I am unaware of any such plans currently. I would highly doubt that would happen, as Bend is largely still a tourism-based economy. Recently, the City further restricted STRs in residentially zoned areas, moving from a 250-foot to 500-foot buffer requirement between permitted STR units.

Thanks to everyone who reached out with a question, feel free to email me at jkeane29@gmail.com!

This article appears in Source Weekly November 2, 2023.