Central Oregon Real Estate Update First Quarter 2018
The residential housing market of Central Oregon is off to a busy start in the first quarter of 2018, usually the quietest of quarter in residential real estate markets. In most areas, sales volumes and sales prices are above levels seen during the same quarter in 2017. Other data points, days on market and sales price vs listing price remain steady from 2017 levels in most locations.
A few notable economic highlights that are influencing Central Oregon Housing markets include the following:
Two years after completion, the City of Bend eagerly exploring options for allowing new development in Urban Growth Boundary expansion areas. Recently the Bend City Council reviewed the area in Southeast Bend known as Elbow (474 acres), the Bend Central District, and the Korpine site. At full build-out, these three areas are projected accommodate over 1,000 new units of housing an upwards of 5,000 new jobs
In March, the City of Redmond’s Urban Renewal Committee supported the Central Oregon Medical Specialist plan for a $6.5 million-dollar upgrade. The facility will increase the number of physicians in the area and lead to less trips to Bend for medical care.
The City of La Pine is working with the University of Oregon on the Sustainable City Year program for 2018. The students will spend time in the community and help provide framework for the future of downtown to economic development.
The Bend market is still quite active, even in the typically quiet first quarter of the year. Sales volume is up over 22 percent above the same quarter in 2017. However, home pricing has been stable over the past three quarters. Bend homes continue to fetch asking prices, with 100 percent of homes sold during the first quarter being at or above listing price. Days on market has crept up over the past few quarters but is still below first quarter 2017 levels. Almost 25 percent of Bend homes sold during this quarter were new construction. These new homes did not have any associated price premium and sold on average less than existing homes.
More than any other Central Oregon home submarket, the La Pine/ Three River South area showed stability on most indicators when compared to data from 2017. There was similar level of homes sold in the first quarter of 2018 to same quarter of 2017. Home pricing while up on a per square foot basis is in line with pricing from the last few quarters. There was no price premium associated with the new home construction during the first quarter of 2018.
Like the Bend submarket the Redmond/Terrebonne submarket continues to see a lot of sales activity even in the typically quietest quarter of the year. Sales volume in the submarket is up by over 15% from the same quarter last year. One notable difference between this submarket and the Bend submarket is that prices appear to have leveled off-median home prices are stable over the past five quarter. Existing homes continue to retain their value, as there was no price premium associated with newly constructed homes during this quarter.
Unlike all other submarkets in the Central Oregon region, the Sunriver submarket saw no newly constructed homes sold in the first quarter of 2018. Existing homes saw a decrease in home pricing of over 11 percent from the first quarter of 2017. The most notable change from this time last year in the Sunriver submarket is the large decrease in days on market (DOM) from this time last year DOM has dropped by over 50% from a median 147 days to 80 days in the first quarter of 2018.
Report from COAR