By Jason Boone
Predicting the future is a fool’s errand. As the last 15 years of peaks and valleys in real estate has taught us, it can be particularly foolhardy to say with any certainty what the year ahead will bring.
Yet we all still look ahead to 2016 with a sense of optimism and excitement of what the new year will bring.
In 2015, we saw here in Bend, Oregon, a surging residential real estate market that helped the year-to-date median price rise to as much as $329,000. And we saw Bend explode with exciting new developments and continued success with neighborhoods years in the making.
No doubt, 2016 will bring even more news, and with any luck all of it will be welcome. Here are some some things to watch as the calendar turns:
- A return of an increasingly balanced market in Bend. We already got a glimpse of moderation in November and there are plenty of reasons to believe that the torrid pace of the last few years will begin to slow. This, though, can actually be good news for myriad reasons, including a return to a more historically normal market with sustainable gains in value. “This slowdown is not an indication of a problem — it’s just a return to normalcy,” wrote Jonathan Smoke, chief economist at Realtor.com. “We’ve lived through 15 years of truly abnormal trends, and after working off the devastating effects of the housing bust, we’re finally seeing signs of more normal conditions.”
- Mortgage rates will likely rise, but what effect will they have one Bend’s market? That is hard to figure. Rates will likely remain historically low for some time, and The Federal Reserve is on record saying that any increase of the federal funds rate will be gradual. That should help the market absorb a boost in interest rates.
- New development will continue to come in Bend. Some of the more transformational developments we know well by now, including continued expansion of NorthWest Crossing and the formation of the new westside Bend campus for OSU-Cascades. Other plans have yet to be fully conceived, but should help bring an exciting future to Bend.
One thing appears to be a strong bet: There are plenty of reasons to believe that Central Oregon will enjoy another strong year. And that is good news for all of us.
Happy New Year to all!
To learn more about the Bend market, get started with listing your Bend home, or to view area homes contact me call (541) 383-1426, or visit Bend Property Search to connect with me through my website.