My Weekly Central Oregon Real Estate Blog

The home you buy is one of the most significant financial decisions you will make, and it's about more than just the purchase price. Determining the actual cost of a home you are considering, and whether it will meet your needs within your budget, requires looking at both the one time costs and the ongoing expenses.

We would love to help you find homes for sale in Bend that meet both your needs and your budget. Contact us any time to learn more, and keep these factors in mind to help yourself make an informed and confident decision.

One Time Costs

Some of the one-time costs associated with buying a home will be obvious to you: the purchase price of the home and the down payment, closing costs, and fees you pay to your lender.

However, there are also plenty of other one-time costs that you should consider, which will vary somewhat between the different homes you are considering.

Renovations

As you look at a home, make note of any renovations you will want to do right away. This might be as minimal as repainting or replacing some hardware, or it may be much more extensive.

In some cases, your renovation expenses can be delayed or spread out for years to come, but some homes will require immediate attention after moving in. To be sure you are getting an accurate idea of the cost, make a thorough list of what the house needs right away and then talk with a local contractor or two to get an estimate of the expense.

Furniture

When calculating the cost of buying a home, many people neglect to consider the furniture they will buy right away. Of course, you can expect that you will want to buy some furniture over time, but there may be some things you purchase immediately. For example, your dining table may not fit in the new house, or perhaps the bedrooms will require you to purchase bunk beds or a different storage solution.

Landscaping

There are ongoing landscaping maintenance costs to keep in mind, and then there are one time expenses to also take into account. Don't forget to consider the property the home is on, thinking about what would need to be done to it once and on an ongoing basis. Two houses with identical purchases price and virtually identical size and features can still present a radically different cost depending on the yard.

Appliances

If you are comparing two homes, consider the status of all of the appliances. Does one of the homes require you to immediately purchase a new refrigerator or anticipate replacing the furnace in the immediate future? The cost of updating appliances should be factored in as you consider which is the more affordable choice.

Ongoing Expenses

After you have settled into your home and the significant one-time costs have been covered, the ongoing maintenance expenses set in. This is just as important, even if the costs seem much lower in comparison because these ongoing expenses can make or break your regular budget.

HOA Dues

Find out as much as you can about the HOA if the home you are considering is in a neighborhood with one. In addition to finding out what the dues are, inquire about how the HOA handles unexpected expenses and what kind of cash reserves they keep on hand to manage emergencies and major projects.

Utilities

When you are comparing two similarly priced homes, the amount you spend on utilities may distinguish the two. While you will not be able to get an exact number to reflect the titles you will pay in either home, you can likely estimate which will cost more. Take into account the size of the home and the age, in addition to how new and energy efficient the windows and appliances are.

Lawn Care

Look into the cost to care for the lawn and landscaping at the home. Whether you plan to hire professionals to provide this service or handle it yourself, there will be costs associated. If there is a large lawn, you may need to pay to get a better lawn mower and increase the amount you spend watering the lawn. Other outdoor features may also require seasonal maintenance that you should take into account.

Housekeeping

If you plan to hire someone to handle the housekeeping in the home, this is something to factor in while you are considering the home. Some housekeepers will charge more for two stories, or perhaps charge by the number of bathrooms. Get an estimate from your current housekeeper, or from a few local choices if you are new to the area.

Ready to begin looking for your new home in Central Oregon? We can help. Contact us any time to get started.

Real estate activity in Deschutes County for single-family homes remains strong, with seventy-eight pending sales and seventy-seven closed weekly transactions. More importantly, the active listings only increased by twenty-five to 787, twenty-two less than this week last year. The year-over-year weekly difference in inventory may be small, but the available homes for sale continued to rise last year and peaked at 972 on August 10. Rising inventory is likely for a few more weeks, but it is increasingly unlikely that we will see the same surge in available homes for sale as last year. Home sales are down by 737 compared to 2022 totaling 1431 year-to-date. I do not expect our yearly sales of 2023 to surpass last year's lofty 4,129, although the year-over-year comparisons should narrow considerably. The biggest unknown will be the impact of higher mortgage rates on buyers, which so far in 2022 has been less of an issue than many expected. The steady influx of new residents coming to Central Oregon seemingly offsets any slowdown due to tighter credit.

While the inventory of homes in Deschutes County has slowed, in Crook and Jefferson Counties, available homes have reversed, with fourteen fewer than last week in Crook and three fewer in Jefferson than the previous week. Sales and median sale prices are down in Crook and Jefferson County, but decreased homes for sale should increase prices through the second half of 2023, barring a slowdown in the current sales pace. 

The next Fed meeting doesn't take place for another month, scheduled for July 25-26, but expect another 25 basis point hike in the overnight rate at that meeting. Mortgage News Daily reported the 30-year fixed-rate national average for a conventional mortgage at 6.92% yesterday afternoon, and with 50 basis points in hikes by the Fed expected by year-end, it seems obvious mortgage rates will surpass the 7% threshold in the coming months. Rising rates have taken some wild volatility from the mortgage markets and replaced that with stable and high. I expect rates to continue recent trends until the next Fed meeting, so keep in close contact with your lender to avoid being caught off guard. I strongly encourage anyone considering a purchase in the remainder of 2023 to get pre-approved now.

In most cases, a pre-approval is good for six months, and while you might not be able to lock in rates for that long, a completed pre-approval allows your lender to run accurate numbers based on the daily rate. Most importantly, your lender can respond immediately with a pre-approval letter if you want to make an offer. Not every property is subject to multiple offers and single days on the market before securing a pending sale, but our market is still moving quickly. Scrambling to provide financial documents at the last minute is an inconvenient hassle, and in a multiple-offer scenario, a strong offer should include your financing approval. The better prepared you are, the better your chance of getting your desired home! Anyone who has made multiple offers that didn't work out knows what a draining experience it can be. Losing out on a great property after searching for months is never fun. Please let me know if you have any questions about a strategy for your specific needs. There are myriad ways of presenting an offer with a strong chance of being accepted, and in many cases, it isn't necessarily all about price. 

I regularly sort through all available homes in our MLS on behalf of my clients and have been surprised by some of the recent pending sales. Identifying a property as overpriced or undesirable and seeing it under-contract days later happens constantly. I remind myself that every buyer is different; one person's unwanted home is another's castle. For properties that have been on the market for a while and do not have buyers circling, you might have the time to contemplate and enter into negotiations. However, most reasonably priced homes (relative to the neighborhood, etc.) will move, and in many cases, when you least expect it. 

Our supply-constrained market creates a sense of urgency for today's buyers. While I spend considerable time opining about quick sales and the competitive conditions, 2023 is on pace to be the first year since 2013 where sales do not exceed 4000+ homes. For reference, 2020 and 2021 exceeded 5000+ sales. A doubling of the 1431 year-to-date sales of single-family homes in Deschutes County would be the lowest sales volume since 2009 when sales totaled 2,844. In the catastrophic collapse in 2008, the sales volume was 2,043. Sales volume in 2007 was 2,703, in contrast to 5,369 sales in 2005 and 4,002 sales in 2006. 

Looking at sales volume from years passed provides little relevance to today's market because of population growth and migration from large west coast cities to places like Central Oregon. But, here is an interesting metric; The median sold price in 2009 was 199k compared to today's median year-to-date median sale price of $637,500. That is an increase of over 220% in fifteen years! It isn't easy to imagine another 200% increase in home prices over the next fifteen years. Still, home prices are unlikely to decline, with an expected Deschutes County population growth of thirty-five thousand people by 2030. 

I am always available to discuss market conditions if you like to examine the data. But if you want to buy or sell your home and don't like getting deep into the statistics, I am happy to assist without nerding out on numbers! Whether you are considering improvements before a sale or renovations to a home you might want to purchase, I know how to help you plan the best approach. I can also provide local contractors to give you specific timelines and cost breakdowns when ready—my years of experience in housing are at your disposal. 

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A home inspection can provide major peace of mind, or reveal major red flags, during the escrow process. Take this process seriously to make sure you can move forward confidently with your home buying process. A home inspection may feel like a formality if the home you are considering buying is relatively new or has been advertised to be recently renovated, but understanding the condition of the home you are about to take on is essential.

Are you still in search of right home for sale in Bend? We would love to help you find homes for sale in Central Oregon that meet your needs. Contact us any time to learn more.

To take full advantage of the benefit of a home inspection report, this is what you need to know.

What is a home inspection report?

After your offer is accepted for a home, you will enter the escrow period. During this period your lender is making sure that your funding is cleared to go through and that the home is worth what you are about to pay for it. Part of this process is the home inspection.

You will hire a licensed home inspector to review the condition of the home, looking at the major systems of the home and providing a report. The home inspection report provides valuable information about the condition of the property and can help you make informed decisions during the escrow period.

What should I look for on the home inspection report?

Take the time to thoroughly review the report and ask follow up questions if you have any. Pay particular attention to any issues regarding the safety or integrity of the home, including:

• Evidence of a renovation not being conducted up to code
• Termite damage or other pest infestation issues
• Plumbing leaks or other issues
• Problems with the electrical system
• Poorly functioning water heater, air conditioning, or furnace
• Any signs of water damage
• Presence of outdated or banned materials, like lead pipes or asbestos
• Hazardous materials, like radon
• Mold
• Cracks or damage in the foundation

What happens if something is wrong on the home inspection report?

In an ideal scenario, your home inspection report will come back with little to no concerns and you can move forward with a confident purchase. But what happens if this is not the case? If you see something on the report that gives you pause, there are a few things you can do.

First of all, make sure you are working with a real estate agent you can trust, who can provide you with professional advice to navigate the situation and negotiate to your advantage.

There are a few options available to you if you have concerns about something on the home inspection report:

• If you have a home inspection contingency in the offer, you can opt out of the purchase without penalty. In some cases, this is going to be your best move to avoid a major issue that is simply more than you want to worry about.
• Some problems can be easily repaired or replaced before you close on the home. You can negotiate with the seller to have the issue resolved before you close, sometimes agreeing on a later closing date.
• If you would like to hire your own contractors or do the work yourself, you might negotiate differently. You can either ask for a lower purchase price to accommodate for the condition of the home, or ask for a credit at closing to cover the cost of repairs. Many sellers in today's market are happy to provide this credit from their equity, as it requires no cash out of their pocket and can allow them to let go of a home with a problem.

To learn more about living in Bend, contact us any time.

Before I pulled the MLS data this morning, I prepared to write about cracks beginning to appear in the housing market based on stubbornly high mortgage interest rates. My speculation about a slowing market originated from an early week spike in inventory and my incorrect assumption that buyers would not step up to absorb all of the new homes. Normally I do not get caught up in the data between my Wednesday reports since so much can happen in seven days. I've found that analyzing the data once per week gives a better representation of the market than getting into the weeds daily, even though I am looking at new listings all week long. There is a reason I do not pre-write these reports, and this morning's data is a perfect illustration of why preconceived notions cloud reality.

There are twenty-three more listings today in Deschutes County single-family homes than last Wednesday, totaling 762. However, pending sales were eighty-nine, and closed sales were seventy-four, both highs for 2023. The median pending sale price is up from this week last year by 5k to 700k, and the closed price is up 15k to 665k. There were twenty-six more pending sales this week than this week in 2022. Inventory of available homes dropped four from this week in 2022. Considering that I have been calling for an inversion in the year-over-year data, this development should not have surprised me. With some doom-and-gloom reporting in the national outlets, I was shocked by how robust our buyer demand is in Deschutes County.

Crook County inventory increased by thirteen to 146, with seven pending sales at a median of $476,500, while Jefferson County inventory only increased by one to seventy-one single-family homes. Jefferson County also had seven pending sales, with a median of $399,900. However, of the five sold homes, one in Camp Sherman listed for 499k sold for 670k! Camp Sherman is wonderful, sought-after, and only has one active listing, making for a competitive market. But, these scenarios play out all over Central Oregon for extraordinary properties and show that it is hard to know what a home will sell for in some cases. My reports are a great weekly snapshot of the overall market, but they do not replace individual analyses of homes and neighborhoods.

Where do we go from here? Since last week, the national average for a 30-year fixed-rate mortgage dropped slightly to 6.87%, and anything below 7% appears to be providing very little (if any) drag on buyer demand. Just one month ago, rates were 7.05%, exactly when many of the sales reported today would have gone under contract, with rates comparable to today ~six weeks ago. Further, twenty-five of the seventy-four sales in Deschutes County were cash, from 400k to $2.5M. While the volume of cash sales is significant, 25% of sales coming from cash buyers is not out of the norm. The financed sales included conventional, FHA, VA, and USDA loans. 

While the Fed has intimated that another 50 basis points in rate hikes are likely before the end of the year, markets seem to be looking past that towards easier credit ahead. Although, there is still a chance that market conditions will prevent more rate increases. Also, the fear of even higher rates may pull some buyers forward. Although, it is safe to say the bulk of rate increases are in the rearview mirror. Seven percent rates have brought a significant affordability crunch to many potential buyers, even if the Central Oregon housing market seems to be shrugging that off. 

Without significantly rising inventory and growing days on the market, there are unlikely to be any meaningful price reductions. And, considering the days listed for pending sales in Deschutes County last week was ten, down from twelve this week in 2022, our market appears to be heating up, not cooling down. I've heard of some properties not appraising to the contract price, which is not unheard of in a hot, supply-constrained market. High contract prices not appraising could indicate multiple offers bidding above the list price or a lack of comps. Either way, those scenarios are best addressed case-by-case and do not indicate collapsing prices. 

Whether you are looking for multi-family investments, single-family homes, vacant land, or horse property, I regularly research these properties for clients. I am knowledgeable about Central Oregon and eager to help you achieve your goals! Please feel free to reach out to me anytime. 

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Even as the market settles down a bit with an increase in interest rates, many homeowners selling a home in Bend are receiving multiple offers shortly after listing. With the right marketing strategy and proper pricing, you can reasonably expect to see a lot of interest in your home within a short period of time. To find out what you need to know before listing your home, contact us any time.

If you end up in a situation with multiple offers for your home, here's what you should keep in mind when choosing the offer to accept. It comes down to more than just the offered purchase price.

Purchase Price

This is the simplest criterion for determining which offer to choose. The highest offer is likely to catch you attention, but remember the actual purchase price is only one of the financial factors you should consider. Also keep in mind whether they are asking you to include any furniture or other features of the home, asking for you to cover some of the closing costs, or have any other special requests that may offset the higher purchase price.

Buyer Funding

Even if the amount the buyers offer is the same, the strength of their funding may lead you to prefer one over the other. A buyer that is offering all cash is much more secure than a first time buyer with a 3% down payment. It is not always the case, but consider a situation like this: you accept an offer for $800,000, but the home appraises for $750,000. A buyer who is offering all cash is able to move forward anyway, but the buyer putting just 3% down must either drastically increase their down payment or lower the purchase price.

Sometimes, your buyers' funding scenarios will not be so drastically different, but take a look and consider whether one seems to be coming from a stronger financial position.

Contingencies

Most offers will come with at least some contingencies. They might include:

• An appraisal contingency, which is usually required by lenders to prove that the value of the home is comparable to the price being offered. This protects the buyer (or their lender) from ending up upside down on a property.
• Inspection contingency, allows the buyer to back out of the contract without penalty if the home inspection reveals a problem with the home that they do not want to deal with.
• Seller's contingency, saying they can only secure funding or move forward with the purchase if they are able to sell their current home first.

Timeline

The timeline of the sale may end up being even more significant than the purchase price or another financial factor. Finding a buyer that can work with your timeline means not having to deal with rent backs, storage units, and other inconveniences.

Take a look at when each buyer is able to close. Depending on your situation, you may prefer a shorter or longer escrow period, so one is not necessarily better than the other. After determining when you want to move out, take a look at the offers and rule out any that won't work with your desired moving timetable.

Miscellaneous Factors

Finally, you need to consider unique extra factors that may matter to you. In some cases, the criteria listed above may not lead you to an obvious choice. The purchase price, contingencies, and timeline may all be pretty similar and leave you feeling torn.

This is when you should take a look at other factors. This might include:

• An escalation clause, where a buyer is willing to outbid competing offers up to a certain point.
• An offer to cover some of your closing costs
• Being willing (and able, based on funding) to waive an appraisal
• Offering a rent back without charging you rent

Ready to learn more about how to sell your house in Bend? We can help you prepare the home to put its best foot forward, pricing it well to sell quickly and attract your ideal buyer. Contact us any time to learn more.

The lack of homes for sale in Central Oregon is no more apparent than in the less populated counties of Crook and Jefferson, where the inventory of single-family homes this week are 133 and seventy, respectively, an increase of one for each county over last week. With so few homes available, it isn't surprising that of the three homes sold in Crook County, the days on the market were one, two, and seven, with all three homes selling at the list price. Three of the six closings in Jefferson County sold for less than full price at a median reduction of -6.38%. Available homes for sale in Crook and Jefferson Counties are nearly identical to this time last year.

In Deschutes County, there are 739 single-family homes listed, up seventeen from last week. This week in 2022, there were 705 homes listed in Deschutes County, but that number jumped to 766 in the third week of June. I anticipate the year-over-year comparisons will flip next week based on the slow pace of new listings. Pending sales this week are up 31k from last year at a median of 739k for the seventy-five sales and a median price reduction of only -4.08%. At this time last year, the median price reduction was -4.96% and over 6% before the end of July. An expected pause in rate hikes from the Fed should calm markets slightly, but all of the strong sales and firm prices are happening despite the 30-year national average for a conventional fixed-rate mortgage at 6.98% yesterday afternoon. Mortgage rates at this time last year were nearly a full point lower than today, illustrating just how strong buyer demand remains. Total sales this year to date are down 36.6%, and while I do not expect that we will surpass last year's sales volume, the gap should narrow in the second half of the year. 

The Consumer Confidence Index is a tool for predicting market trends, released on the last Tuesday of every month. A number higher than 100 indicates consumers overall are optimistic about the economy, with numbers below indicating pessimism. The numbers for May were 102.3, down 4.1 from May 2022. The correlation between consumer confidence and real estate is uneven at best, and you could make a strong argument that declining confidence is a driver of demand for Central Oregon Housing. It takes few new, qualified, motivated buyers to keep our prices firm, which is a consistent theme for our market. However, at this time last year, despite stronger consumer confidence, buyers pulled back as the uncertainty of Fed rate hikes and the impact on the market were unknown. The dip in prices and home sellers' willingness to negotiate was short-lived, and prices were accelerating by March of this year. Whether the predictions for more Fed increases before year-end come true remains to be seen, but any reluctance from buyers seems to be in the rear-view mirror. Granted, higher mortgage rates have sidelined many, but enough buyers are engaged to keep prices firm and even increasing. The appeal of living in Central Oregon from out-of-town buyers is strong, with most seeing the light at the end of the tunnel on rising mortgage rates. If you can afford your mortgage today, a refinance down the road will only make your home more affordable. For most buyers, the bigger issue is finding the right property; when it comes up, they jump at the chance!

Constrained inventory today is a strong predictor of prices in the future. Based on the 2023 trends, there is every reason to believe 2024 home prices will remain strong and may accelerate depending on inventory levels. Unquestionably there are some concerning events in the overall economy, but the national economic engine is a beast not easily deterred. The stock market has outperformed expectations, making the BTFD investors (look up the acronym!) look like prescient beings. If our housing market is this strong in an uncertain economic climate, what will happen when the uncertainty gives way to increasing optimism? I still talk to buyers waiting for a collapse in home prices, and I completely understand many of the concerning issues. However, today's data does not reflect a coming apocalypse, and over the last few years, waiting has been a wash at best. Like a skipping vinyl record, this is the part where I espouse the benefits of a long-term vision in real estate! Asking anyone who purchased a home in the last ten years if they regret the price they paid should illustrate the point. While refinancing into lower rates might still be a couple of years in the future for today's buyers, where will the prices be with continued population growth and lower rates? Undoubtedly today's market is challenging, but for those that can navigate our current affordability, now might be a better time to buy than many realize. 

No matter your views on the housing market, I am here to help. Please feel free to reach out anytime for help strategizing or real estate needs. I approach every client request with individual analysis and the expert attention you deserve. 

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As you plan the renovations and upgrades you would like to do to your home in Bend, consider how you can benefit not just yourself, but the planet, too. Owning a home in Bend presents the opportunity to do good to the earth while making homeownership easier on your wallet and updating your home so that you enjoy it more.

Check out these 5 ways to reduce your carbon footprint by updating your home in Bend.

1. Upgrade your insulation

Making sure you have a well-insulated home is one of the best ways to be responsible with your energy sources. When your home is well insulated, it will take less energy to heat or cool, costing you less and being gentler on the planet. There are many homes in Bend that have lovely historic charm but are ready for an insulation upgrade. This is a significant upfront investment but will save you lots of money down the road.

Upgrading insulation in a home offers several compelling reasons for homeowners. Firstly, improved insulation enhances energy efficiency by reducing heat transfer, leading to lower heating and cooling costs. It creates a more comfortable indoor environment by maintaining consistent temperatures and minimizing drafts. Effective insulation also helps reduce carbon footprint, contributing to a greener and more sustainable lifestyle.

Additionally, upgrading insulation can increase the resale value of a home, as energy-efficient features are highly sought after by buyers. Moreover, it improves soundproofing, reducing noise transmission between rooms and from the outside. Overall, upgrading insulation is a wise investment that provides long-term financial savings, comfort, environmental benefits, and increased property value.

2. Install smart lighting

Smart lighting is a genius way to save energy. If you are like many people, you have memories of your parents constantly reminding you to switch off the lights until you became the one paying attention to lights left on in an unoccupied room. When you install smart lighting, you never have to worry about leaving the house with lights on, wasting money and energy. Your lights can be controlled by being motion activated (automatically shutting off when there is no activity in the room) or being attached to a control panel on your phone.

Smart lighting is an advanced technology-driven solution that enhances energy efficiency in homes. It involves integrating lighting systems with sensors, intelligent controls, and smart devices to optimize energy consumption. By utilizing energy-efficient LED bulbs, smart lighting reduces electricity usage while maintaining high-quality illumination. Automation and scheduling features enable lights to turn on and off based on predetermined schedules or triggers, preventing unnecessary energy waste.

Dimming capabilities allow for ambiance creation and further energy savings. Remote and voice control features enable effortless management of lights from anywhere, ensuring they are not left on unintentionally. Motion and presence detection ensure lights activate when needed and turn off in unoccupied areas. Integration with other smart home systems maximizes efficiency by coordinating lighting with factors like occupancy and daylight levels. Energy monitoring provides insights into consumption patterns, aiding in further optimization. Smart lighting transforms homes into energy-efficient spaces while enhancing convenience.

3. Design an edible landscape plan

Take a look at your outdoor space and consider where you might be able to plant an edible garden. While the Bend climate does not provide a long season for growing your own food, you can grow some to enjoy fresh and to preserve for the rest of the year.

This is a great way to take full advantage of your property, reducing your dependence on the grocery store and nationwide supply chain.

4. Upgrade to energy-efficient appliances

As you upgrade the appliances in your home, be sure to choose energy-efficient options. This is a no-brainer for your budget, as the cost to buy an energy-efficient appliance will be virtually the same as an appliance that is not as efficient. While your home may not need new appliances right away, keep this in mind as you find that your kitchen is ready to be updated or you need to replace your water heater.

5. Invest in renewable energy

Investing in renewable energy, like adding solar panels to your home, will pay off in multiple ways. Of course, it is better for the environment to rely on renewable energy sources, but it is also better for your wallet. After the initial investment, you will quickly see a decrease in your energy expenses. Depending on what you add to your home, there may also be tax benefits for you.

Some renewable energy upgrades can also help you sell your house in Bend. Your potential buyers will be drawn to the home that is better for the planet and the budget.

To learn more about owning your home in Bend, contact us any time.

Mortgage rates backed off of recent highs, with the 30-year average for a fixed-rate conventional loan at 6.89% yesterday afternoon, unchanged from Monday. This week is bereft of new data, with the Fed in a blackout period ahead of next week's meeting and the CPI numbers coming out on Tuesday. As a result, I expect mortgage rates to remain stable through the week, an anomaly for the last year. 

Single-family homes for sale in Deschutes County increased by thirty-six to 722 listings 922, including manufactured homes on land, condos, townhouses, and fractional ownership properties. Our inventory is still slightly ahead of last year's week, while the median listing price is higher, and the pending and sold price is marginally lower. Comparing the weekly median price of the active inventory is valuable, but the pending and sold numbers change dramatically weekly. Using a more extended timeline helps to smooth those numbers, and the median closed sale price for the year-to-date  2022 was 695k, compared to 635k this year. I expect the active inventory volume and possibly the median sale price to invert from last year's numbers by July. Still, sales volume is down significantly, primarily due to higher interest rates. Year-to-date sales volume for 2022 was 1914 for single-family homes compared to 1216 in 2023, a decrease of -36.5%. You may recall that last week's median sale price was $718,750, slightly less than last week in 2022, illustrating the significant changes in those numbers week-to-week. However, pending sales last week rebounded to eighty-five, fourteen more than last week and two more than this week in 2022. We will unlikely surpass total sales from last year, but the gap is narrowing as the year progresses. Considering the sharp decline in activity through the second half of 2022, I expect the year-over-year comparisons to narrow. 

It would be understandable to attribute the reduced sales price to less expensive homes or significant price reductions, but the median price drop of sold homes last week was -4%, the same as last year. Interestingly, the sales below 500k are only down -6% year over year, with sales above $2M down -27.4%, both better than the total market comparisons. While the median sale price below 500k dropped slightly to 430k, a drop of 19k, the homes sold over $2M show an increase in the median sale price of 150k, now at $2.5M. However, the middle of the market shows radical sales volume reductions from last year, with the 500k-$1M segment down -40% and the $1M-$2M segment down -48%. Neither the run-up in prices starting in 2020 nor the reduction in sales volume this year has impacted our market evenly. Also, likely attributable to the demographics relocating to Central Oregon, home prices in the high-end are firm. Constrained supply is another contributing factor to high prices. 

By all accounts, the Fed is most likely to pause on rate hikes next week, although the signals are more complicated to predict than at any point since they began hiking rates last year. There is a chance of another 25 basis points hike, albeit a small one. However, if the CPI prints higher than expected, there is a strong chance that more hikes will happen before the end of the year. It is important to remember that increases in the overnight rate charged between banks do not directly correlate with mortgage rates. There are also many different rate buy-down options and strategies to keep mortgage rates closer to 6% than seven, or even less. Interest rate buy-downs fund with pre-paid interest often comes from a seller credit at closing. Whether you employ this tactic or pay the buy-down costs out of pocket, working closely with your lender to calculate the timeline for a return on your buy-down investment is essential. If the ROI is ten years out, it is likely not worth the up-front costs since there is a strong chance most buyers will either refinance in that time or even sell. If this sounds complicated, contact me or call your favorite lender to learn how these tools could benefit you. 

One more factor to remember is the rapid pace of the market today. Pending sales last week had median days on the market of fifteen and sold properties of ten. Multiple offers are increasingly common, and being pre-approved by a local lender is essential to giving yourself a chance. I have also noticed more desirable listings coming to market purposely priced low to create a bidding competition. In these situations, time is of the essence, and it is vitally important to work with an agent that knows the market inside and out to help determine the maximum price appropriate. You won't find many agents more bullish on Central Oregon than me, but paying too much without a long timeline of potential ownership is never fun. My knowledge of our market is always current, and I act quickly! On the flip side, if you are looking at a property that has lingered on the market, now is a great time to make a lower offer. Whatever the case, I have experienced it and have the local knowledge to help you make ownership in Central Oregon a reality. 

Lastly, click the links below to check out my new vacant lot listings in the great Diamond Peaks subdivision in Crescent Lake! The abundance of trails in the area is unparalleled, with world-class mountain biking in Oakridge only a 45-minute drive away and the Willamette Pass Ski Area only a nine-minute drive. Or hit all the hot spots in Bend, only an hour's drive. Diamond Peaks has paved roads, power and water on the street, and beautiful homes. As this desirable community grows, several new high-quality builds are also in the subdivision. Don't miss your chance to get established in one of the Pacific Northwest's outdoor meccas! Please feel free to contact me for more details.

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Are you looking for a way to enjoy your home in Bend even more this summer? Designing an outdoor space you love is a great way to add value to your home, both for yourself in the immediate future and for your potential resale value.

Recent surveys reveal that most buyers now list an outdoor space as a top priority for them as they are house hunting, thanks to a post-pandemic shift toward spending more time at home. This means that when you invest your time and effort into designing an outdoor space you love, you are also investing in the future market appeal of your home in Bend.

Want to learn more about the market value of your home in Bend, or the process of selling your home in Central Oregon? Contact us any time.

Set Up a Seating Area

If you find that you don't have a large porch or patio, don't worry! There are plenty of creative ways to set up a seating area in a different part of your yard. Consider creating a dedicated space by installing a paver or pea gravel patio area. These options are not only cost-effective but also provide a charming and rustic ambiance.

When designing your seating area, think about incorporating features that can extend the usability of the space throughout the year. Adding a fire pit at the center can create a cozy and warm atmosphere, allowing you to enjoy your outdoor space even during cooler evenings or colder seasons. Gathering around a fire pit with friends and family creates a focal point and encourages socialization, making your outdoor area the perfect spot for hosting gatherings and creating lasting memories.

To make the seating area more comfortable and inviting, invest in quality outdoor furniture that suits your style and needs. Consider durable and weather-resistant materials such as teak, wrought iron, or aluminum, as they can withstand the elements and require minimal maintenance. Additionally, accessorize the seating area with plush cushions, outdoor rugs, and throw pillows to create a cozy and welcoming atmosphere.

Don't forget to add shade elements to your seating area, especially if your yard receives direct sunlight. Install a pergola, canopy, or patio umbrella to provide relief from the sun's rays and create a comfortable space to relax during hot summer days. Shade structures not only offer protection from the elements but also add architectural interest and visual appeal to your outdoor space.

Finally, don't underestimate the power of landscaping and greenery in enhancing your seating area. Surround the space with lush plants, shrubs, or flower beds to create a sense of privacy and natural beauty. Consider planting fragrant flowers or herbs nearby to infuse the area with pleasant scents, making your outdoor oasis even more enjoyable.

By setting up a comfortable seating area in your outdoor space, you can transform it into a place where you'll want to spend more time. Whether it's relaxing with a book, hosting a barbecue, or simply enjoying the fresh air, an inviting seating area will not only enhance your quality of life but also add value to your property.

Make Entertaining Easy

By incorporating a few key elements, you can effortlessly host and entertain friends and family in your backyard.

Consider adding a bar cart to your outdoor space. A bar cart equipped with a cooler allows you to conveniently set up a variety of refreshing beverages and appetizers. It serves as a stylish and functional piece, providing a designated area for drinks, glassware, and other bar essentials. With a well-stocked bar cart, you can easily cater to your guests' preferences and ensure that everyone has their favorite beverage within reach.

To further facilitate hosting and entertaining, invest in extra chairs and a set of outdoor dishes. Having ample seating options ensures that everyone has a comfortable place to relax and enjoy the company. Folding chairs or stackable seating options can be easily stored and brought out when needed. Opt for durable and weather-resistant outdoor dishes, including plates, glasses, and utensils, which are designed to withstand outdoor conditions. This eliminates the need to constantly bring out and clean indoor items when entertaining outside.

To create an inviting atmosphere, consider adding outdoor lighting to your space. String lights, lanterns, or pathway lighting can enhance the ambiance and provide ample illumination for evening gatherings. Lighting not only adds a touch of charm but also ensures that your outdoor space remains functional and enjoyable even after the sun sets.

In addition to the practical elements, don't forget to incorporate comfortable and cozy seating options. Consider investing in outdoor furniture such as lounge chairs, sofas, or a dining set that is both stylish and comfortable. Cushions and outdoor pillows can add a pop of color and extra comfort. Creating various seating areas, such as a cozy lounge space or a dining area, encourages conversation and mingling, allowing guests to relax and enjoy themselves.

To add a touch of creativity and personalization to your outdoor space, consider incorporating decorative elements that reflect your style and interests. This could include outdoor artwork, vibrant planters, or even a small outdoor garden or herb patch. These elements can serve as conversation starters and create a visually appealing backdrop for your entertaining space.

Lastly, keep in mind the importance of convenience and functionality. Make sure your outdoor space is equipped with amenities such as a convenient access point to the kitchen for easy food preparation and serving. Consider adding a grill or outdoor cooking area to expand your culinary options and create a seamless flow between indoor and outdoor entertaining.

Balance Hardscape and Landscape

Your yard should incorporate a nice blend of hardscaping and landscaping. If your outdoor space leans too far in one direction, it can feel like something is imbalanced in the space. Take a look at the current outdoor design and determine whether you might benefit from added plants around the hardscape, like planting flowering shrubs along a fenceline or incorporating potted plants on the patio. If there is too much plant life and not enough structure, add some concrete or stone edging or a paver pathway through the lawn to visually break up the space.

Don't Forget about Lighting

Outdoor lighting plays a crucial role in transforming the design and ambiance of your outdoor space. Just like indoor lighting, the right choices can make a significant difference in creating a welcoming and inviting atmosphere. When it comes to outdoor lighting, it's important to give yourself options and think beyond the basic illumination.

One approach to outdoor lighting is to consider ways to provide shade when needed. Installing outdoor drapes on the sides of a patio cover or investing in a large umbrella not only offers relief from the sun's rays but also introduces an element of style and versatility to your outdoor area. These shade options allow you to control the amount of natural light entering the space while adding a touch of elegance and privacy.

To enhance the ambiance after dark, consider incorporating string lights into your outdoor space. Stringing these lights across the area where you are most likely to spend your evenings adds a magical and enchanting touch. Whether it's wrapping them around trees, hanging them along a fence, or draping them across a pergola or canopy, these lights create a warm and inviting atmosphere that is distinctly different from the typical house lights. The soft, ambient glow of the string lights sets a cozy and relaxing mood, perfect for unwinding or entertaining guests in the evening.

In addition to string lights, explore other options for outdoor lighting that can further enhance the aesthetics and functionality of your space. Consider installing pathway lights along walkways or garden borders to provide both safety and visual appeal. These lights not only illuminate the path but also add a charming element to your landscaping. Furthermore, spotlights can be strategically placed to highlight specific features in your yard, such as trees, sculptures, or architectural elements, creating a focal point and adding depth and interest to the overall design.

Another consideration for outdoor lighting is the use of accent lighting. This involves using subtle lighting fixtures to illuminate specific areas or objects. For instance, you can install low-voltage lights beneath steps or along the edges of a patio or deck to provide a gentle glow that enhances safety and aesthetics. Accent lighting can also be used to highlight plants, flowers, or other natural elements, adding drama and beauty to your outdoor space.

Incorporating smart lighting technology is another option worth exploring. With smart outdoor lighting systems, you can control the intensity, color, and timing of your lights from your smartphone or other devices. This allows you to easily create different lighting scenes and adjust the ambiance according to your mood or the occasion. Whether you want a vibrant and energetic setting for a lively outdoor gathering or a soft and tranquil glow for a quiet night under the stars, smart lighting provides the flexibility to customize your outdoor lighting experience.

By giving yourself options and thinking beyond the typical house lights, you can elevate the design and atmosphere of your outdoor space. The strategic use of shade elements, string lights, pathway lights, spotlights, accent lighting, and even smart lighting technology allows you to create a captivating and versatile outdoor environment that can be enjoyed day and night. Whether you're hosting a gathering or simply unwinding after a long day, the right outdoor lighting can transform your outdoor space into a captivating haven.

Make It Fun

Don't forget to add some fun elements to your outdoor space, for kids and adults alike. This might include:

• Swings
• Lawn games like bocce ball, cornhole, or croquet
• Supplies for s'mores around the fire pit

In conclusion, transforming your backyard into a truly inviting space requires careful consideration and thoughtful planning. By implementing the right elements, such as creating a comfortable seating area, incorporating outdoor lighting, adding shade options, and incorporating personal touches, you can turn your backyard into a haven that beckons you and your guests to spend more time outdoors. Whether you're seeking relaxation, entertainment, or simply a connection with nature, a welcoming backyard provides the perfect setting for creating cherished memories and enjoying the beauty of outdoor living. So, take the time to invest in your outdoor space, and reap the rewards of a backyard that not only enhances your home but also enriches your lifestyle.

To learn more about real estate in Bend, contact us any time with your questions.

As mortgage rates rise, the threshold that keeps buyers on the sidelines in Central Oregon also rises in our supply-constrained market. When rates first began climbing, 6% was the breaking point for many buyers, with the inventory of single-family homes in Deschutes County peaking at 972 on August 10, 2022, before the seasonal decline into fall and winter. With rates breaking the 7% threshold last week, buyers seemed undeterred relative to this year's activity. Thankfully, rates dropped to start the week, with the 30-year fixed-rate national average at 6.95% yesterday afternoon. However, sales are still down year over year, and inventory is up, albeit slightly. This morning there are 686 single-family homes for sale in Deschutes County, compared to 617 on June 1, 2022. Sales over the previous week were seventy-one compared to ninety-one in 2022, and closings were forty-six, down from seventy-seven last year. On June 15, 2022, there were 705 single-family homes listed in Deschutes County, only nineteen more than today. 

Equity markets showed mixed results with the recent "hair on fire" crisis of the debt ceiling negotiations passing the House of Representatives yesterday. Although, Wall Street will rapidly move on to bigger things, with talk of government default relegated to the dustbin and deficit spending secured for another two years. I assume that many active home buyers paid little attention to the machinations of Congress. Still, one less "crisis" in the headlines should calm markets and may even result in slightly lower mortgage rates, with the 10-year Treasury yield dropping somewhat on yesterday's debt ceiling news. All eyes will be on the Fed and the next Open Market Committee meeting in two weeks. With inflation still concerning the Fed, whether the June meeting results in a pause or another increase will set the tone for the remainder of the summer real estate season.

This morning, the median price of active listings of single-family homes in Deschutes County is 847k, averaging $1,162,901. The median of the seventy-one pending sales over the previous seven days is 765k, with the median sold price over the last week at 719k. The active and pending prices increased from this week in 2022, with the median sale price down only $11,000. Peak selling season may have something to do with the robust activity, but considering mortgage rates are over one-percent higher than this time last year, it is safe to say buyers are bullish on Central Oregon. However, nineteen of the forty-six sales the previous week were cash deals, an increase from recent weeks. Judging by our robust market, there is a strong chance home prices will stay firm through summer, possibly increasing.

There are twenty-four homes under 400k currently listed in Deschutes County, primarily in the south county, with seventy-one over $2M. The active listings and median price by city/county are as follows:

• Bend, 372, $1,082,325
• Redmond, 144, $$615,000
• La Pine, 86, $524,950
• Sisters, 50, $924,950
• Terrebonne, 28, $689,900
• Crook County, 123, $575,000
• Jefferson County, 67, $440,000

There are 285 residential lots listed in Deschutes County at a median of $349,900, 192 in Crook County at $146,250, and twenty-nine in Jefferson County at $153,000. Remember that many of the lots in each of the three Central Oregon Counties need a private well and septic system, which individually run approximately $30,000. 

That is a lot of data illustrating one thing; Central Oregon homes sell at near-record prices. Recently I've read reports about sales prices down as much as 12% in cities like Seattle and San Francisco, a trend that has not occurred in Central Oregon. Many new Oregon residents come from populated west coast cities, driving our market. I've mentioned population increase projections for Deschutes County of 15k by 2025 and another 20k from 2025 to 2030. The deficit of homes for the new residents relocating to Oregon is not going away soon, and a price collapse has not materialized. If any signs of change in our market appear, you'll read about it here first, so stay tuned! 

Click the link if you are interested in the population estimate reports.

I started writing these weekly reports four years ago and have not missed a Wednesday report since! My first report went out to eight readers, and today over one thousand, plus social media. You will not find a more comprehensive weekly analysis of the Central Oregon housing market anywhere. Whatever your view of the market or real estate needs, I am here to help with the knowledge you need to make the right decision for your needs. 

Click here for the full report.