4 minute read
Real Estate
The Possible Return to a Normal Market
Advertisement
No need to panic; things are still hot in this recently magma-hot market
The elephant in the room in real estate right now is and has been for a few weeks: interest rates! Yes, the rates have gone up recently, so what is going on in the market? Lots of things are changing and evolving, but right now demand is still high and inventory is low, so most properties are still moving quickly. We are seeing fewer “stampedes” of buyers trying to get into new listings, and the number of offers is down slightly. This was bound to happen at some point; a slowdown was inevitable. The point that I am making is that the real estate market cooling down a bit is not a sign of impending financial crisis—rather just a typical cycle, moving out of one of the hottest times in real estate history.
Kind of like standing on the summit of a mountain, there is only one direction one can go: down—much like the real estate market shifting from “magma hot” to “hot.” Please do not make the mistake of inferring that because we have shifted from maybe the hottest real estate market ever toward a “more typical” real estate market that the “bubble” has popped. The rise in rates has priced some buyers out of this market, but relatively, that is a small percentage of the overall demand in Bend. Many of the folks priced out of Bend with the rate increase will have to look elsewhere in the region: Redmond, La Pine, Prineville, Madras, Terrebonne, etc. Prices will not be plummeting over the next few months to try to entice buyers to buy now; rather, prices will remain steady and homes may just spend a little longer on the market before accepting an offer.
Just a few years ago, in say, 2018, the real estate market was considered “hot” and homes sat on the market for weeks and months at a time. The last couple of years were an anomaly, so the idea that one can put their home on the market and sell it over asking in a couple of hours is likely a thing of the past. Sellers will have to become more patient as it may take slightly longer to sell their home than it did just a few months ago, but this is just a shift from an extreme sellers’ market to just a normal sellers’ market. If you’re looking to sell your home this spring and summer, it may take a little longer, but that doesn’t mean your home is overpriced, undesirable or your agent isn’t working hard; just that market forces are changing the landscape a bit.
If one takes a step back and evaluates the current real estate market, we can see that despite the increase in rates, the market is still strong. People who are buying homes right now are still being underwritten to a very high standard. The coming years will likely see lower appreciation than the last few years, but that was expected. Things had to slow down, and just because things are not as frantic, does not mean we are headed toward impending doom. Rather, it’s now just a typical real estate market.
HOME PRICE ROUNDUP
Photos and listing info from Central Oregon Multiple Listing Service
MID >>
1220 NE 6th St. Bend OR 97701 $925,000 4 bedrooms, 2 bathrooms 1,598 sq ft, 0.16 acres lot (6,970 sq ft) Built in 1956 Listed by Brice McMorris of Windermere Central Oregon RE
<< LOW
3321 NE Palmer Drive Bend OR 97701 $525,000 3 bedrooms, 2 bathrooms 1,320 sq ft, 0.14 acres lot (6,098 sq ft) Built in 2000 Listed by Scott Smith of Windermere Central Oregon RE
<< HIGH
56821 Dancing Rock Loop Bend OR 97707 $1,995,000 4 bedroom, 4.5 bathrooms, 3,024 sq ft, 0.35 acres lot (15,246 sq ft). Built in 2012 Listed by Robyn Tuttle of Cascade Sotheby’s International RE
Residental • Commercial • Farm & Public Lands
Office 541-205-5764 cell 541-331-2404
gopherbusters@live.com Moles, Voles, Gophers and Squirrels TRAPPING • GASSING • RESULTS
Shopping for the Best Deals?
Check out: BENDPROPERTIES.LIVE
MARY GEMBA
Call Mary Gemba
Broker/Owner Deschutes Realty
541-330-1700
To reach your Buying Broker, Call 541-771-8947
Get Noticed in our Real Estate Section
contact
advertise@bendsource.com 541-383-0800
Summer Guide Source Weekly’s Get ready for your Central Oregon Summer!all-out guide to This will be the place to fi nd it ALL!
Music, Events, Shopping, Outdoor Rec, Beer Gardens, Great Food/Drinks and more!
Nothing can beat the summer in Central Oregon – You don’t want to miss this one. Reserve your space in the SUMMER GUIDE!
