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May House Trends Show a Lag for Available Inventory, Yet Remain Strong For Sales Numbers

May House Trends Show a Lag for Available Inventory, Yet Remain Strong For Sales Numbers

As Spring slowly moves into early summer, house buyers hit the pavement looking for available homes in Bend, Oregon. Normally during this time of year, sellers will be cleaning out homes and packing things away as they will be slamming the market with available residential real estate. This trend has been the norm for years, and has been come to seen as the traditional mindset for sellers who want to get their properties noticed on the listings.

Yet surprisingly, this tradition isn’t the case this year. The Duke Warner Realty May Trend Report shows that instead of our inventory growing from February into May, it has been decreasing over several different price ranges. There has been a significant increase in buyer demand, but there simply aren’t enough listings to fill this demand. This decrease in available inventory has been consistent over the last 4 months.

Highest Price Category Has the Most Inventory

Interestingly enough, it is the highest price category of $625,100 and up that has seen the most inventory enter the Bend real estate market in May. To date, there were 154 active listings recorded on May 1st as it is up from the 120 active listings featured during the month of April. With such a large amount of inventory hitting this market segment, sellers should be careful with their pricing and pay close attention to the market to get their homes noticed and sold without having the property sit for too long.

When reviewing the active listings for the same time period, the price category of $325,100 to $425,000 has the second most active inventory of 82 listings. This figure has decreased from the April 1st to April 30th time period where there were 85 active listings.

The remaining price categories show similar lower inventory trends: 72 active listings for $225,100 to $325,000 price range; 51 active listings for $425,100 to $525,00 price range; 47 active listings for $525,100 to $625,000 price range; and 1 active listing for $125,000 to $225,000 range. While there was an increase in new listings, this increase has not had a significant impact on inventory.

Strong Sales Still Dominate in Bend

Yet the Bend, Oregon real estate market is still going on strong, which remains the dominate trend. The most desired price range for home buyers — in the $325k to $425k category — has shown incredible, overall strong pending sales throughout April. There are 86 pending sales in this price range. Taking a look at the overall totals, there were 323 pending sales when combining all price categories, as April outpaced every other month for the previous 10 years.

Final Analysis

The current May real estate trends are not typical for this time of year. We wouldn’t normally see such low inventory and high sales so early in the year as we would expect this to happen in the near future. Yet, overall, we continue to have a robust market activity that could change in the following weeks if more sellers decide to place their properties out on the market.

To keep track of the current real estate trends that are happening in Bend, Oregon, turn to Duke Warner Realty as we compile comprehensive market data that is available to home sellers and buyers. Find out what we can do for you when you are interested in buying or selling real estate by visiting dukewarner.com, browsing our Facebook page, or calling us at (541) 382-8262.

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Why It is Better to Invest in Real Estate Than Gold

Why It is Better to Invest in Real Estate Than Gold

The facts don’t lie. Most Americans believe that real estate is a better long-term investment than gold.
This may come as a shock to some people who have placed their money into gold investments. Since buying gold is a money investment, people invest in it when hedging their portfolios whenever they expect the devaluation of the dollar based on negative economic impacts. Yet a recent Gallup Poll has shown that 35% of Americans believe real estate is the better investment to gold, as only 17% of people believe gold is the top investment to make in 2016.

Why Real Estate is Hot Right Now

Since the time of the housing market collapse in 2007 to 2009, home prices have rebounded significantly. From 2011 to 2016, the home sales have raised about $100,000, as people are rushing to get into this long-term investment. During the same time period, gold investments have significantly plummeted per ounce, causing people to abandon this investment avenue and look for other better opportunities. People are regaining their faith in real estate as the stock market’s volatility is forcing investors to be concerned.

Why Investing in Real Estate is the Better Move

There are also other immediate reasons on why investing in real estate is more appealing than gold when it comes to investment opportunities. When you purchase gold, there isn’t a discount as you pay the current price for it. On the flip side, a person only needs a small percentage, such as 10%, as a deposit for real estate property as you can skip the down payment for a single-family home purchase.

Many people also by real estate as an income property when renting. The potential cash flow can pay off the mortgage and allow a person to bring in significant earnings over a period a time. Then, in time, a person can sell the property or use the rental income to make additional real estate purchases.

Another aspect to consider is inflation when it comes to real estate versus gold investments. Gold values go up when paper money values decline, as the gain seen is usually nominal. When real estate values rise, it can be a significant gain as investors can reap in the earnings.

Invest Where it Makes Sense

As an investor, you have to understand your own portfolio, your income, and how you want to diversify to make the right choice for your investments. There are many reasons to consider real estate as the ideal area of where to place your money instead of buying into gold. One of the best things you can do if you are a first-time investor is to consider all the aspects of your financial situation and research the market as well as past trends. You may find that real estate investments have done well in the past. Back in 2002, 50% of people named real estate as a top investment. That figure is something to think about when it comes to making your money grow to your advantage.

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Know About the Neighborhood Features that Increase Property Values

Know About the Neighborhood Features that Increase Property Values

When looking to buy a home for yourself or dip your feet into the real estate world to become an investor, you will begin searching for the homes that have the best bang for your buck. Immediately, you will notice neighborhoods that stand out based on their property values that are situated next to other neighborhoods with similar homes that may have lower values. So you are left to scratch your head on what makes the one neighborhood different from the other.

Certain Neighborhood Features Affect Real Estate Prices

When purchasing real estate, there are many factors that influence the value of the home. The square footage and interior amenities will usually attract buyers, yet the neighborhood features will also have an impact on the pricing. Curb appeal, local schools and other amenities can instantly raise — or lower — values, which will end up affecting how much you pay for the property now as well as the future resale value when you place the home back on the market. Here are several neighborhood features that can control home prices:

Walkability and Public Transportation

Walkability in a neighborhood has become very appealing for potential home buyers. They want to live in a neighborhood where they can go out during the summer and walk a short distance to the park, local store, or restaurants. Even when desired conveniences are a little way off, having transportation other than their own vehicle is often desired by a wide range of people such as college students going to nearby classes and seniors going to social events or to the bank.

Great Schools

Families jump on purchasing homes in a great school district, especially when it is only a few miles away. Schools will instantly have a factor in home values, and have an influence on the type of demographic that are in the region. This circumstance is also something to keep in mind if you are renovating or building a new home that will eventually be sold in a few years. By appealing to families who want to send their children to the nearby school during the construction of the house’s interior features, you may have a greater chance of selling the property at the price you desire.

Neighborhood Amenities

Is there a public park or swimming pool nearby? Does it have entertainment venues, shopping plazas, movie theaters or grocery stores? Are there career opportunities in the area? All of these factors play in the types of property values in neighborhoods. While you may see a boost in prices, you also shouldn’t be surprised if there is a decrease in the home values based on the condition and age of the community amenities. It’s great to have access to a shopping plaza, yet neighborhood property values won’t rise if businesses aren’t interested in renting space there because the plaza hasn’t been maintained well.

There are many things throughout the neighborhood that has an influence on how property values increase, including the types of homes in the location, crime rates and education. Researching the characteristics of the neighborhood can allow you to have a greater understanding of real estate values in certain communities where you plan to purchase or sell a home.