Castle Advisers LLC, a Hood River based private equity fund that recently purchased The Shire development in Bend Oregon, announced its purchase of another bank-owned subdivision, the 45-lot "Tuscany Pines" project in northwest Bend. The firm paid $2.75 million for the Italian-themed development, which includes a clubhouse and pool, six vacant townhouses and four other townhouses that are near completion. The development also includes a 35 improved lots and 5.5-acre parcel that's undeveloped. The whole development covers 11 acres. Scott Baklenko is the co-founder and managing director of Castle Advisers LLC.
"In my opinion there are lots of markets in the Northwest that are still getting worse." Baklenko said. "It has flattened here. It won't recover tomorrow, but We've watched closely over the last nine months and have confidence we have invested at the right time for the right assets" Balenko believes he has a strong strategy, and public opinion seems to show that he is correct: Markets are stabilizing, but not improving just yet. "We look at markets throughout the West Coast, and Bend is certainly a market we believe in long term" Baklenko added, "Here's an incredible town that's gone through a little bit of a real estate correction, but long term this town is no different than five years ago, a place people want to be"
The pace of single-family home sales in Bend jumped from 68 homes in January to 131 homes in June, a gain of nearly 93% according to the Bratton Report, a periodical by the Bratton Group, a bend based appraisal firm. It's the biggest gain since 2005, when the market climbed 114% in the same period of time. In addition, the 131 home sales last month were the most since August 2007, when 144 sales were recorded. The Bratton Report also states that while the sales of distressed properties are theoretically putting a downward pricing pressure on homes, the price per square foot is ticking up. Price per square foot (considered the best measure of value-for single family homes in Bend) rose in June to $112, or a gain of nearly 7 percent from the April low of $105. The price per square foot rose previously in May to $106. The recent uptick in price per square foot should bode well, said Bill Watkins, Executive Director of the Central Oregon Economic Forecast Project, a local economic research organization. "The price per square foot has to stop falling before the market turns, so two months is not enough to call a trend, but another two months (of increases) and you can start calling it good." Watkins said.
There are more perspective buyers than in recent months drawn by a combination of low housing prices and lower interest rates. The median price for a singe-family home in Bend was $210.00 in June. Average interest rates for a 30 year loan are hovering around 5.0 percent. There's a consensus in buyers that this is the bottom of the Bend, Oregon Real Estate market and now they have an open window if they want to take advantage of historically low prices and rates. These low prices are attracting many first time homebuyers, who can take advantage of the federal government's $8000.00 tax credit "We have all the making of what should be a dynamic recovery but we haven't turned the corner yet, we don't think the market will go much lower. We are also starting to see multiple offers and homes that sell for more than asking price. We will only find out for sure that it has turned when the bottom of the market is behind us, I don't think a buyer should try to time the bottom if they find a home they like they might lose out." said Ruben Garmyn & Jim Birtola Broker/Owners Prudential High Desert Realty.
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