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Multiple Offers?

What happens when your dream home appears to be someone else’s too?

Being involved in multiple offers doesn’t have to be a losing battle.

So, you’ve researched the neighborhood, the schools, the access to shopping. And you’ve just submitted a solid offer on the home of your dreams. Congratula–…wait, what? There’s another offer on the table already? And TWO others on the way? Holy cow! Now what?

In Central Oregon, multiple offers on the same listing is not unusual. But suddenly last spring, the inventory of homes shrunk dramatically. Then, quite unexpectedly, a huge influx of buyers joined the market in June, leaving the real estate market in Bend is as competitive as it’s ever been. Some homes are selling within minutes of being listed.

Under these extreme and intimidating seller’s market circumstances, your best chance of securing a popular home in a multiple-offer situation is to be prepared…and very, very nimble.

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Suburbia or bust!

Desire to exit cities fuels strongest June home sales since the housing boom or 2005.

The sudden recession earlier this year caused a sharp decline in the real estate market. But increasing consumer confidence, along with an emerging demand for modern houses with the amenities for working off sight and home schooling outside of congested cities made for a rousing recovery in June.

According to a monthly survey by John Burns Real Estate Consulting (JRBC), purchases of newly built homes jumped 55% in June over last year. That was the largest annual gain since homebuilding began again following the massive housing crash just over a decade ago. It’s also the highest pace for sales since the height of the unprecedented housing boom in 2005, which of course, was spurred on by negligent lending in the subprime mortgage market.

“Sales in the distant commuter areas are the most robust,” said John Burns, founder and CEO of JBRC. “A lot of computer-oriented people have proven to their co-workers that they can be productive from home, and have sensed, or officially been given the green light to work from home at least a significant portion of the time.”


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When it comes to Return on Investment, there’s still no place like home.

Real Estate Tops Best Investment for Seventh Year Running

Anyone who has some money in the stock market these days has a pretty good idea of what it feels like to be rollercoaster mechanic. Up big time one day and down even lower the next.

If you’ve been losing sleep over your investment portfolio lately, you can take comfort in knowing that year after year, your best performing investment is actually right where your pillow and bed happen to be:  your home.

Every year, Gallup surveys thousands of Americans to reveal their choice for the best long-term investment from among stocks/mutual funds, gold, savings accounts/CDs, or bonds, real estate. For the seventh year in a row, real estate has come out on top.

According to Gallup:

 “Real estate remains the most favored investment to Americans, as has been the case since 2013, when the housing market was on the rebound. More than a third of Americans have named real estate as the top investment since 2016.”

This year’s results indicated 35% of Americans chose real estate, followed by stocks at 21%. The full results covering the last decade are shown in the chart below:

Bottom Line

Despite the many challenges and uncertainties our economy faces today, one thing is for sure. The belief of the American people in the stability of housing as a long-term investment remains stronger than ever.

For more information contact Duke Warner Realty and speak with one of our experienced real estate agents in Bend Oregon.

 

 

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Would You Buy a Home Without Stepping Foot Inside?

Technology is Helping Buyers Navigate the Home Search Process

Whether it’s out of necessity or out of convenience, more home buyers these days are taking advantage of technological developments to advance the homebuying process. While there is still no substitute for touring a home in person, a recent realtor.com survey revealed that today’s technological alternatives have improved to the point where many would consider purchasing the home in certain circumstances without seeing it in person.

Younger demographics and renters feel more comfortable moving sight unseen

While the majority of people still want to see a home in person before making a purchase, that sentiment is shifting. With access to accurate listing data, detailed photos, virtual and live video tours, 24% of people say they would be willing to buy a home without seeing it in person and 30% would be willing to rent one. With younger demographics generally being more active with video, those numbers rise to 29% willing to buy and 34% willing to rent

With increasing limitations around social interactions and open houses, buying and selling homes is becoming more difficult and agents are needing to adjust. According to Nate Johnson, CMO at realtor.com:

“As real estate agents and consumers seek out ways to safely complete these transactions, we believe that technology will become an even more imperative part of how we search for, buy and sell homes moving forward.”

Of course, accurate and detailed information about the listing and the neighborhood, and high-quality photos are always important to potential homebuyers. But when deciding on a new home without seeing it, 61% said they would insist on taking a virtual tour of the home, while 39% said they would settle for having the agent or landlord walk them through the property via video chat.

No matter how you look at it, times are changing rapidly in the real estate industry and realtors are adjusting quickly to the new order.

Some information provided by PRNewswire — Realtor.com, April 16, 2020.

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U.S. Home Ownership Rate Rises to Highest Point in Eight Years

The great American dream of home ownership is alive and well. The latest results of the Housing Vacancy Survey (HVS) provided by the U.S. Census Bureau shows how Americans place immense value in homeownership, and it is continuing to grow in the United States.

After declining to a 25-year low of 63.5% in 2016, the results indicate that the U.S. Homeownership rate increased to 65.3% for the first quarter of 2020, a level last seen in 2012.

With current social conditions, Homeownership will most likely reflect a whole new way of life that has puts a premium on spending time at home and having the security that comes that comes with having a safe place for our families to live. Add to that some of the most attractive home mortgage rates of all time, and it’s easy to see why the numbers should continue to grow for the foreseeable future. Yet they still have a long way to reach this century’s high point of 69.1% in late 2004

The Bottom Line

If you’re considering buying a home, there’s no better time to connect with a professional at Duke Warner Realty to set a plan that can help you get one step closer to achieving your dream.

Why is the rate increasing? The National Association of Home Builders (NAHB) explained:

“Strong owner household formation with around 2.7 million homeowners added in the first quarter has driven up the homeownership rate, especially under the decreasing mortgage interest rates and strong new home sales and existing home sales in the first two months before the COVID-19 pandemic hit the economy.”

The NAHB also emphasizes the year-over-year increase in each generational group:

“The homeownership rates among all age groups increased in the first quarter 2020. Households under 35, mostly first-time homebuyers, registered the largest gains, with the homeownership rate up 1.9 percentage points from a year ago. Households ages 35-44 experienced a 1.2 percentage points gain, followed by the 55-64 age group (a 0.9 percentage point increase), the 45-54 age group (a 0.8 percentage point gain), and the 65+ group age (up by 0.2 percentage point).” (See chart below):