May Real Estate Forecast shows first time homebuyers driving pricing
Pricing in the Central Oregon real estate market is reaching record numbers, numbers we haven’t seen since the crash of the market. Pricing is growing each month, and several people are curious if we’re entering another housing bubble.
Housing bubbles are typically reached with faulty lending and speculation in the real estate market, amongst other things. The reason we know we’re not entering a bubble, is that the housing prices in Central Oregon are being driven up by sheer demand and competitive pricing.
First Time Homebuyers
With a high number of first time homebuyers, consisting of mostly millennials, affordable starter homes are selling quickly. Because we’re still experiencing a seller’s market, there aren’t as many available properties on the market, so when starter homes do become available, multiple offers are often received.
Given the low inventory, sellers are able to list their properties for higher prices. The market has sped up because of this. The time that properties are sitting on the market is decreasing. With offers being made quickly- properties are moving very fast.
Bend is a desirable place to live. Last summer we experienced lower than 1 percent vacancy in rental units, and our housing market is experiencing something similar to this at the moment. Typically, properties stay listed for a few months before a serious offer is made. This time has drastically decreased. The number of available properties has stayed consistent from spring, only growing from 308 in April to 337 in May and 442 as of June 1st.
Lower interest rates
While pricing may be high, interest rates on mortgages are at low. Average interest rates for a 30-year mortgages have dropped to 3.95 percent, which is an all-time calendar low. So even though pricing may be high, buyers are still feeling confident in the lower mortgage rates available, and offers are still being made.
National Real Estate Forecast
Nationally there has been a predicted rise in home prices of up to 4.9 percent. This figure doesn’t represent towns that are growing as rapidly as Bend. There’s a possibility that prices may increase in Bend, even more than the national average predicts.
If you’re looking to list a property in Central Oregon, or need help making a competitive offer, Duke Warner Realty is ready to help. Visit us today at dukewarner.com, browse our Facebook page, or call us at (541) 382-8262.