Central Oregon real estate has seen quite a change in its real estate landscape in the past year. In 2013, we saw home values increase by 16.2% from 2012 and the median sales price was $269,000. Historically low interest rates and increased consumer optimism created a frenzy for homes in the first half of 2013, causing multiple offers on well-priced homes (especially in the lower price ranges) and what some were calling “a high bounce off of the bottom”.
Bank owned and short sale inventory dropped sharply over the course of 2013 as the buzz of economic recovery seemed to be on the lips of most Central Oregonians.
A rise of interest rates, disappointing job growth, and the government shutdown slowed the frenzy down for us in the latter half of 2013. But alas, we experienced a normal holiday/winter reduction in real estate activity in November and December.
We are finding in the first quarter that we have very low inventory of homes in Central Oregon, creating pent up demand. Many buyers are saying they would buy if they could find what they are seeking. Many sellers are waiting on the sidelines to see what happens in spring. Will there be another big jump in appreciation?
My prediction is that this spring, we will see a leveling off of prices, due to a large number of new construction homes that will flood the market in addition to an influx of listings stemming from those market-watching sellers. However, prices will start to rise again once our economy starts to experience the positive impacts of Oregon State University's new Cascades campus, slated to be finished in 2015.
If you are considering buying or selling, I’d love to assist you through the process.
From Anna's desk