I would like to thank all of you that actually read my blog and website for these statistics. I received several emails from people wondering when the statistics would be available. Sorry for the delay. Between weddings, work, and training for the Pole Pedal Paddle (my team took 3rd!) I've been busy, but here they are.
I'm seeing two distinct real estate markets in Bend. One is the foreclosure market, the other is everything else. I'm working with a few buyers right now that are interested in purchasing bank owned homes and I can't tell you how many times we've run into multiple offers on homes they were interested in. There was a home in The Parks at Broken Top that was listed in the morning and by the afternoon they had 7 offers. It was listed at $270,000 and sold for $285,000. There was another home in Skyliner Summit that I showed and they had already submitted 2 offers to the bank but neither of them had been accepted yet. We submitted an offer but the bank accepted one of the other offers before they had a chance to review ours. That home was shown 36 times in the first week it was on the market.
If you're interested in bank owned properties, you have to be ready to submit an offer as soon as it hits the market. Get preapproved for a loan before you even start looking. The banks will require that you include a preapproval letter with your offer. Make sure your agent calls the listing agent to check on the status before you look at bank owned homes. You'll want to know if any offers have been submitted and also if there are any issues with the home. Many bank owned homes have problems like water damage from frozen pipes. You can find great deals but you have to be ready to act quickly.
You should NOT be paying to search for foreclosures. Many websites out there require you to pay to view their list of foreclosures. Contact me or any Bend real estate agent you know and request a list of foreclosures. Banks list these home through Central Oregon Realtors and they are in the MLS.
Better late than never eh? There are currently 1834 homes on the market, 129 are contingent, 203 homes are pending, and 110 homes sold in March. The majority of home sales were in the $150,000 - $300,000 range. One big change was that 11 homes sold over $500,000 compared to only 4 in February. Of those sales over $500,000 2 were bank owned and 3 were short sales. Of the 64 homes that sold in the $150,000 - $300,000 price range, 32 were bank owned or short sales.
Although the great deals right now are the foreclosures, if you look at the sales price versus list price, the average was 95%. That means the discount is really in the list price. Although I have seen some sell in the 80% of list price range, once a bank owned home is listed, they are typically getting 95% or more of the list price when it sells. Some are even selling at 100% of the list price. Here are some randomly chosen examples:
A 1933 square foot home with 3 beds/2.5 baths was listed at $179,900 and sold for $175,000 (97.28%).
A 2156 square foot home with 4 beds/2.5 baths was listed at $224,900 and sold for $210,000 (93.37%).
A 2170 square foot home with 3 beds/2.5 baths was listed at $195,900 and sold for $170,000 (86.78%).
A 1763 square foot Bluffs townhome with 3 beds/3 baths was listed at $282,000 and sold for $282,000 (100%).
I wouldn't let these numbers dissuade you from making a low offer because you never know what the bank's bottom line is. The home you like could be one that ultimately sells for 82% of the list price.
Let's move on to home values. The median home price is currently $224,750. One of the toughest things for sellers today is accepting that their home is worth less than they paid for it. Here's some perspective on median home prices:
Median sales price in March 2008 - $289,900
Median sales price 2008 - $289,900
Median sales price 2007 - $345,000
Median sales price 2006 - $353,286
Median sales price 2005 - $280,966
Median sales price 2004 - $230,000
Median sales price 2003 - $197,000
The median home price can be misleading because it's really a reflection of the types of home that are selling. Since the majority of sales are occurring below the $300,000 price point, it skews the median sales price downward. Furthermore, I can break the numbers down to specific areas in Bend (NW vs. NE) and get completely different numbers. Overall, it's as if our real estate boom never existed. If you bought your home in 2004 or later, any appreciation you had is probably gone if you didn't sell your home at the peak.
The Making Home Affordable plan is part of President Obama's strategy to get the economy and housing market back on track. It is estimated that this plan could help up to 9 million homeowners avoid foreclosure. On March 4, 2009 the Treasury Department released detailed guidelines of the plan. I am summarizing what I think are the key components from the Treasury Department's website. For more information, click on the following links:
1. Home Affordable Refinance Program - Under this program eligible borrowers may refinance loans that the GSEs (Fannie & Freddie) own or guarantee, which amounts to about half of all outstanding mortgages. Currently the refinance option is only available for conforming loans owned or securitized by Fannie Mae and Freddie Mac. The owner must be current on their mortgage payments, the property must be owner occupied, the borrower must have sufficient income to support the new mortgage debt, and the first mortgage may not exceed 105% of the current market value of the property. For example if the property is worth $200,000, the borrower must owe $210,000 or less on their first mortgage. If you also have a second mortgage and your total debt exceeds 105% of the current market value, you may still be eligible for a refinance on your first mortgage if the second mortgage holder agrees to remain subordinate to the new first mortgage.
To find out if your loan is owned by Fannie or Freddie, you can call these numbers or visit these websites:
2. Home Affordable Modification Program - This $75 billion program provides loan modifications at no cost to borrowers who are at risk of default or already in default, and are experiencing a hardship. Loans eligible for the modification program include most conventional loans: prime, subprime, adjustable, loans owned by lenders and loans in securities. The borrower must be an owner-occupant in a one to four unit property, have an unpaid principal balance that is equal to or less than $729,750 (for one unit properties and higher for two to four unit properties) a loan that was originated before January 1, 2009, a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31% of the borrowers' gross monthly income, and have experienced a significant change in income or expenses, to the point that the current mortgage payment is no longer affordable.
In most cases, the modification will be accomplished by an interest rate reduction to as low as 2% if necessary. One of the goals is to get the borrower's debt to income (DTI) ratio down to 31%. Borrowers will get a three month trial modification and if they remain current on their payments after the trial period, their loan servicer will execute a modification agreement. If the modified interest rate you are given is below the current market rate, your rate will be fixed for a minimum of 5 years. On the 6th year, your rate may increase no more than 1 percentage point per year until the rate reaches a cap equal to the market interest rate on the date the modification is finalized.
In certain cases, a rate reduction might not be enough to get the borrowers DTI ratio down to 31%. In those cases, the loan servicer can extend the amortization period (i.e. a 40 year loan term rather than a 30 year loan term). If that still doesn't do the trick, the lender must forbear principal. In this situation, you can certainly expect a ballon payment in the amount that was deferred when you sell the house, pay off the loan, or refinance in the future.
3. Supporting Low Mortgage Rates by Strengthening Confidence in Fannie Mae and Freddie Mac - in other words, we're giving Fannie and Freddie more money. The goal of this portion of the plan is to provide liquidity, stability and affordability to the housing market.
There is a lot of great information available about these refinance and modification plans and I have only provided a summary. Please do your homework and if you think you might qualify, start gathering the information your lender will need to make a determination about your eligibility. Call your lender and ask about the Home Affordable program.
There are currently 1832 homes on the market in Bend. In February 76 homes sold, 171 are pending, and 94 are contingent. Of the 1832 homes for sale, 372 are short sales or foreclosures assuming the listing agent coded the house correctly in the MLS. Since I know that at least one of the sales in February was bank owned and it was not coded that way, I'm sure there are more than 372 distressed properties on the market.
The trend continues with the high end market being very slow. Again, there wasn't a single sale over $700,000. There were 4 sales over $500,000 and the winners are:
$699,000 - 3249 square foot home in Broken Top built in 2006. It was a short sale.
$600,000 - 3113 square foot home in the Fall Creek neighborhood of Broken Top built in 2002. It was bank owned.
$550,000 - 2700 square foot home on 5 acres with Cascade views and irrigation. It was not a short sale or bank owned.
$515,000 - 3600 square foot home in River Rim. The agent did not disclose whether it was a short sale or bank owned but the home was sold AS-IS at $142/square foot and the lockbox code was an REO related phrase. Hmmmm.
4 of the 5 homes that sold in the $450,000 - $500,000 price range were short sales or bank owned. Of the distressed sales, two were in Northwest Crossing, one was in Shevlin Crest, and one was a home on acreage north of Tumalo.
The lowest price/square foot was a Mt. Bachelor Village condo that sold at $58.63/square foot. The second lowest was a single family home in Forum Meadows that sold at $78.67/square foot.
There is still a pretty large misconception that with bank owned properties, you can write a low ball offer and easily get it accepted. Let's say a home is bank owned and listed at $500,000. I can almost promise you (almost) that you're not going to be able to buy this home for $300,000. Typically the list price is very close to their bottom line. In fact, if you look at the list price versus sales price, on average, the bank/seller is getting 96% of the list price. So that $500,000 home could more realistically be purchased for $480,000.
Furthermore, foreclosures are not always the best deals in a particular neighborhood. Northwest Crossing is a perfect example. The price/square foot of some recent bank owned sales were $208/SF, $210/SF, and $220/SF. The price/square foot for some non-bank owned sales in NWX were $149/SF, $176/SF, and $179/SF. Many homeowners that bought well before 2005 probably have a bit of equity in their homes and can afford to list at very competitive prices. If someone bought an 1800 sq. ft. home in 2006 for $400,000 and someone else bought an 1800 sq. ft. home in 2002 for $250,000 and both need to sell today, the person that bought in 2002 can list their home at a really low price without having to do a short sale. If you're looking for a great deal, don't think that you have to focus on foreclosures. Ask an agent to show you the best priced homes in your price range. You might get lucky and find a motivated seller that's even willing to make a few repairs on the home, rather than buying an AS-IS foreclosure that was trashed when the owners moved out.
Shevlin Reserve, which features 12 sleek and sophisticated modern, single-level townhomes in NW Bend, now has 4 bank-owned townhomes available ranging from $350,000 to $595,000. That's great news for buyers but bad news for owners that paid nearly $900,000. Modern design typically strives to integrate the indoor and outdoor environments and Shevlin Reserve does just that. The single level townhomes have a low profile and are situated on larger lots. They feature modern and sustainable touches like concrete radiant heat floors, wool carpet, stainless steel countertops in the kitchen, floating cabinets, Italian light fixtures, and a wall of 23 foot tall windows in the living room that open onto the outdoor living area via German engineering. Some of the townhomes have Cascade Mountain views.
Here's the catch (ah, you knew it was too good to be true didn't you) - 3 of the townhomes are not finished. There are 2 listed at $350,000 and they are far from being complete. They are framed and the windows are in but if you require much more than that to live happily you'll have some work ahead of you. These are the 2341 square foot floor plan with 3 bedrooms/2.5 baths. You can bring your own builder/contractor to finish the job or the bank has someone that can finish them. A third townhome, listed at $595,000, is nearly finished. When I visited, most of the cabinets, sinks, and flooring were in and the appliances were in the garage. The 4th townhome is completely finished. The 3rd and 4th townhomes are the 1801 square foot floor plan with 2 bedrooms/2.5 baths.
There is another great deal at Shevlin Reserve listed at $519,000. It's the 1801 square foot floor plan and it's completely finished. The owner just wants to sell and sell quickly. He paid much more when he bought it in 2006 but he owns it outright so you get the satisfaction of a short sale deal without all the hassles of a short sale. This townhome has walnut floors and the darker cabinets so the interior feels very warm. It also has Cascade Mountain views.
Shevlin Reserve townhomes are located off of Shevlin Park Rd. in NW Bend.
Yesterday President Obama signed the American Recovery and Reinvestment Act into law. That act includes the Homeowner Affordability and Stability Plan, which could be a very positive thing for the housing market. After a quick scan of the Executive Summary and Q&A, I think it looks great. Some of the highlights include:
1. Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices.
2. Create A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners.
3. Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac.
So what does all that mumbo jumbo really mean and how might it help you if you're a homeowner struggling to make your payments? Here is some additional information from the White House Q&A.
If you are current on your mortgage payments: The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.
If you are behind on your mortgage payments: The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender's discretion modifications may include upfront reductions of loan principal. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage. In addition, the plan provides incentive payments to the borrower if they make timely payments on the loan once it has been modified. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.
If you think you might qualify and would like to take advantage of this modification program, you'll need to gather information for your lender, including:
Your montly gross income (from pay stubs, etc.)
Most recent income tax return
Information about any second mortgage on the house
Payments on each of your credit cards (if you have balances)
Payments on other loans such as student loans and car loans
Complete eligibility details will be announced on March 4th, 2009 when the program starts. Mortgage lenders will begin accepting applications after that. Only the mortgage on your primary residence is eligible for modification. Mortgages on second homes or investment properties are not eligible. Mortgage companies are not required to participate in this program but because the government is offering incentives, it is expected that most major lenders will participate.
You must have heard by now that the house and senate passed a modified version of the stimulus bill that includes a tax credit for first time home buyers. The final version of the bill that passed includes the following:
1. A tax credit of 10% of the purchase price up to $8000.
2. Only first time home buyers purchasing a primary residence are eligible. The definition of a first time buyer includes someone who has not owned a home in the last 3 years.
3. The credit can be applied to a home purchased between January 1, 2009 - November 30, 2009. (I've also read that the home must be purchased by December 31, 2009 so check with your accountant or tax advisor)
4. The credit does not have to be paid back as long as you live in the home for 3 years or more. If you sell before owning the home for 3 years, the entire credit will be recaptured upon the sale of the home.
5. Your taxable income must be less that $75,000 (single filer) or $150,000 (joint filers).
The above terms were compiled based on everything I've read about the tax credit. Please check with your accountant or tax advisor to discuss how this tax credit might benefit you.
I'd like to clarify something - this money cannot be used towards your down payment. Once you purchase a home you are eligible to claim this credit on your 2009 tax return. You won't actually receive the refund check until 2010.
Newport Landing has undergone a makeover. While I loved the vision that Diamond Built Homes had and that GGL Architecture designed, it became evident that there isn't enough demand for 42 modern homes. Diamond Built Homes sent Sean Cochran back to the drawing board if you will and he gave Newport Landing a fresh new look. Buyers can now choose from modern and contemporary styling or a more traditional west Bend appearance. The new exteriors were designed to flow together and complement each other. Now there's something for everyone that loves this location on Bend's west side.
In addition to the redesign, Newport Landing also has new prices. Homes at Newport Landing now range from $299,900 for a 2 bedroom/2 bath home with 1115 square feet to $429,900 for a 3 bedroom/2.5 bath home with 2043 square feet.
Newport Landing is located just off the roundabout at Newport Avenue and College Way on Bend's coveted west side.
Located in the heart of Bend between downtown and The Old Mill District. This bank owned Mill Quarter townhome is listed at $479,900. With a mix of contemporary and industrial styling, this home features granite counters, cork flooring, central vac, and Viking appliances. The townhome is a 3 bedroom, 3 bath with 2400 square feet. Square footage includes zoned office space on the lower level with a separate entrance on the street.
Property not listed by agent presenting the information.
78 homes sold in January (compared to 77 in December), 126 are pending, 65 are contingent, and 1830 are currently for sale. Surprisingly there are more homes on the market than there were in December.
None of the three homes that are pending in the higher price range are newly pending. In the $950,000 - $999,999 range, the home is a 3400 square foot riverfront home just north of downtown that has been pending since September 16, 2008. In the $1,250,000 - $1,499,999 range, a Deschutes Landing riverfront townhome. This townhome is one of their redesigned floor plans that includes a 2-car garage and it has been pending since November 24, 2008. This townhome isn't completed so it could be pending for awhile. In the $1,750,000 - $1,999,999 range, the pending sale is a home that has been pending since December 10, 2008. It's a new 4400 square foot Awbrey Glen home.
34 of the 78 homes that sold in January were short sales or foreclosures. Let me grab my calculator... that's 44% if I round up. As for the pending sales, 52 of the 126 are short sales or foreclosures, so about 41%. Of the 1830 homes for sale in Bend through the MLS, 333 are short sales or foreclosure so 18%.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Shevlin Reserve, which features 12 sleek and sophisticated modern, single-level townhomes in NW Bend, now has 4 bank-owned townhomes available ranging from $350,000 to $595,000. That's great news for buyers but bad news for owners that paid nearly $900,000. Modern design typically strives to integrate the indoor and outdoor environments and Shevlin Reserve does just that. The single level townhomes have a low profile and are situated on larger lots. They feature modern and sustainable touches like concrete radiant heat floors, wool carpet, stainless steel countertops in the kitchen, floating cabinets, Italian light fixtures, and a wall of 23 foot tall windows in the living room that open onto the outdoor living area via German engineering. Some of the townhomes have Cascade Mountain views.
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