(Graphic | Courtesy of COAR)
You probably have seen so many different state’s license plates cruising down the road — from Alaska, Arkansas and Arizona to Indiana to South Carolina and Texas to Washington — since our South Deschutes County visitors have migrated here in search of their dream homes! The Greater Sunriver area and La Pine property sales have been heating up as residents from California, Washington and so many other states have discovered the South county prices and room to roam alluring, and what they have long been searching for — for COVID reprieves and for greater quality of life, lower housing prices and to all the area’s lower density and uncrowded access to the outdoors. Buyers no longer have to live where they work as they can work more from home, and they now have the equity from the market value increase in their home’s sale to afford to buy where they can live where they dream. So land and residential sales have gone through the roof! Sellers from all over the map have become our area’s home buyers with CASH burning a hole in their wallets.
The Clash — Should I Stay or Should l Go? Between record low inventory and record high demand with fewer homes available, it’s driving prices up in bidding wars with accepted offers $20,000 to $100,000 over asking prices with multiple offers, according to Pacific Residential Mortgage Industry Insider, June 29, 2021. A recent study conducted by Realtor.com stated that 39 percent of buyers went over their original budget for their new home between March 26, 2020 and April 7, 2021. Sunriver area and La Pine permits for remodeling and new construction in residential developments are at record highs.
“If I go there will be trouble, and if I stay it will be double…” The Cash-Shiller National Home Price Index stated in March 2021 that prices were 13.2 percent higher than March of 2020 — that is the most significant increase since December 2005. Our local market mirrors this explosive trend. According to Central Oregon Association of REALTORS’ (COAR) Appraiser Newsletter Second Quarter, home sellers are expecting more than list price when they go to sell. And there’s good reason why they believe that: over half of homes — 51 percent — are selling for more than the asking price, a record high, according to new research data from the real estate brokerage Redfin. A year ago, 26 percent of homes were selling for above asking price.
Our area’s sellers want to mine the area sales’ Gold Rush, but where can they find homes across the nation they can afford to move to? It’s so important that buyers coming here or leaving our area have a clear plan before they start home shopping so they are not left homeless!
For best success:
- Shop below your budget so you have the flexibility to increase your offer to be more competitive.
- Have your lender of choice explain to you how even a small increase in your interest rate for your home loan can result in a higher monthly mortgage; so, be sure to lock in low interest rates for 90 days whenever possible as interest rates will rise.
Attributed to COAR Quarter 4 2020 Report Graph:
MEDIAN SALES PRICE AND SALES VOLUME (2020)
Fires, Elections, and a Pandemic. 2020 was quite the year. On a daily basis, we experience the unprecedented nature of what is becoming the new normal. The roller coaster began with the fastest rate of job loss on record, as the economy was shut down in attempt to save itself. In the two-month period of March and April, nearly 18% of jobs were lost in the Bend MSA. This was then followed by the fastest recovery of jobs on record, where through November, more than half the jobs were recovered and there were 7.3% fewer jobs compared to the pre-pandemic level. The recovery, began to slow, then in December, reversed course with 1,280 jobs lost in the Bend, MSA, almost entirely concentrated in the leisure and hospitality sector. At the end of the year, there were 6,360 fewer jobs in the region than at the beginning of the year. The unemployment rate in Bend is 8.3% in December, slightly better than the state average of 9.2%.
How are the broader economic conditions impacting the real estate market? If you look at the current data, it would be difficult to determine that we are in the midst of a pandemic and recession. This is due to a several factors,
MEDIAN SALES PRICE AND SALES VOLUME (2020)
| Submarket | Price | Volume |
| Bend | $528,000 | 3,262 |
| Crook County | $343,000 | 523 |
| Jefferson County | $262,500 | 274 |
| La Pine/Three Rivers South | $347,250 | 398 |
| “Redmond/Terrebonne/Crooked River Ranch” | $362,500 | 1,517 |
| Sisters | $474,500 | 288 |
| Sunriver | $514,500 | 272 |
Ginny Kansas-Meszaros, PC: Principal Real Estate Broker/Owner, Certified Residential Specialist (CRS), Seller Representative Specialist (SRS), Real Estate Negotiation Expert (RENE), Accredited Buyer Representative (ABR), Graduate, Realtor Institute (GRI), Zillow 5-Star Agent, Seven-Star Award Broker Agent Advisor 2015-2020. Sunriver – La Pine Economic Development (SLED) Advisory Board member, Central Oregon Visitors Association member, Sunriver Area Chamber of Commerce member.
