By Jason Boone
Not long ago it seemed there was a reward for those who chose to wait on the sidelines of the real estate market. The housing boom had gone bust, and downward pressure was created as more and more foreclosures hit the market.
Thankfully, those scary days of the Great Recession are largely behind us and the Bend, Oregon real estate market has returned to health. But really just how healthy is this market?
Well, a good barometer is to always look at an area’s foreclosure rate. After all, a low foreclosure rate generally means that home prices are at least stable, and that foreclosure sales are not having an outsized effect on a market’s value.
The news has been good on that front here in Central Oregon.
According to an October report by CoreLogic, a firm that tracks national real estate data, the number of completed foreclosures was down 20.1 percent across the nation in August 2015 compared with August 2014. Meanwhile, the home price index has risen 6.1 percent from August 2014 to August 2015.
A similar pattern has emerged here in Central Oregon. During the depths of the real estate market, foreclosures spiked. More than 3,500 default notices were filed in Deschutes County in 2009 and 3,762 notices filed in 2010. But that trend has been reversed since. Foreclosure filings in Deschutes County dropped 58 percent in 2014 compared with the previous year, down to 391.
Of course, this means that there is nowhere near the foreclosure inventory in Bend that there was in 2011, when home prices had hit a statistical trough. Predictably that has had a positive effect on home prices, which have risen some 9 percent year over year in Deschutes County.
The rising prices may make some folks a bit skittish about jumping into the Bend real estate market. But with foreclosure rates under some control, there is reason to believe that the market will continue to be robust.
Before purchasing a home a potential buyer should take stock of their own financial situation. Every investment carries some risk. Here are some questions every potential buyer should ask themselves:
- Can I truly afford the home? This not only includes the monthly payment of a mortgage, but also the hidden maintenance costs associated with owning any home.
- Is the home I want to buy a good value in the market?
- Does the home and the neighborhood fit your lifestyle, not just now, but in the future?
Answering those questions affirmatively will set a buyer up for years of satisfaction.
I can help buyers navigate the market and find the perfect Bend, Oregon home. To get started with listing your Bend home, or to view area homes contact me by calling (541) 383-1426 or visit Bend Property Search to connect with me through my website.