Bend Oregon Real Estate Market Trends

If you’re a buyer interested in Bend Oregon real estate, these are GREAT days!  Mortgage rates are terrific…Prices are hitting bottom…doesn’t get better than this!  There hasn’t been a better time to buy real estate in Central Oregon in a long time.  You'll find great bargains on quality homes in all of Central Oregon:  Bend, Redmond, Sisters, Sunriver, LaPine and Prineville!

If you’re thinking of buying a home in the Bend Oregon area, you should sign up for Teri’s free New Listing Notification Service or call or email today!  Teri Green is a Senior Real Estate specialist and sells quality homes in Bend, Redmond, Sisters, Sunriver, La Pine and Prineville, Oregon.

Let me elaborate on our Central Oregon real estate market trends:  There are 1,985 residential properties listed for sale in the MLS for the Central Oregon Area at this time.  This leaves us with 7.5 months of inventory.   Last year at this time, we had 2,645 residential properties listed for sale in the MLS for the Central Oregon area with 12.0 months of inventory to work through.  Why is this important to look at?  Our real estate market has clearly been defined as a buyer’s market since our real estate values peaked in May of 2005.  Since that time, property prices have continued to reduce.  Anytime a months of inventory goes under 6 months, the market will most likely be defined as a seller’s market.  Meaning property prices are starting to go back UP and the seller is more in charge of the selling price of their property.  There can be more bidding wars, multiple offers, listing prices increase as a home remains on the market.  That has not been our experience recently in Central Oregon or in the nation!  With our current months of inventory dropping this year from 11.0 months in January to 7.5 in April, those properties that are listed very competitively are actually experiencing multiple bids and some bidding wars!  Wow!  But, for those overpriced properties NOT priced competitively, they sit…offer-less and often showing-less (if you will). 

It seems we are approaching some improvement if you consider the movement of real estate an improvement.  Since I’m a real estate broker for The Hasson Company, I’m anxious to see real estate properties MOVE.  Not only for me, but for Bend’s economic-well-being.  It seems that when real estate is healthy, other industries are also enjoying the good health (employment, restaurant sales, car sales, vacation spending, etc.) 

One impacting factor locally however is our total of New Notices of Default.  During “normal “ times, Deschutes County might experience 300 New Notices of Default in a given year.  So far this year we have seen 1,437.  Again I say, WOW!  Although I see “signs” of Central Oregon’s general economy improving or changing slightly, until the real estate market stabilizes this New Notices of Default total and reduces this supply to maybe 500 a year, I don’t see our economic pressures  letting up for our employed, our employers or our unemployed residents.  The good news is that we ARE heading in that direction!

There are many ways to interpret our local market trends.  In my world, these are the signs I watch and these are my interpretations.   I’m always being asked, “When do you think home values will return?”  And, “Do you think we have hit the bottom yet?”  If you were to look at our home values in a graph form, you will see the huge dropping of values from May of 2007 to now.  I believe the general Bend real estate market is “hitting” bottom currently.  But I also believe we will continue to bounce in this bottom range until we stabilize our New Notices of Default totals.  This could take one year, two years or more.  If we had a crystal ball, this recession, this economy, etc. would be much easier to tolerate and decisions would be much easier to make.  But, we don’t.  I will just say that if I had to give an opinion, it is my humble opinion that after we work thru the New Notices of Default totals and stabilize that issue, property values will inch up but not quickly…maybe at a rate of 3-4% a year.  Now does this mean your listed home will increase at that rate?  That depends… is your home listed at a competitive and current price?  Are you getting multiple showings?  Are you processing offers?  If not, you must lower your perceived value to a correct & current value and that would be your starting point.  Ouch.  (I know, I’m sorry)

Are there positive signs?  Yes, I see more hiring going on.  I see more building taking place.  I see more real estate being purchased and I see bidding wars for competitively priced homes.  All signs that we WANT to see.  We want to see employment and money in our pockets to spend or save providing security.  If you’re a buyer, these are GREAT days!  Terrific interest rates…it doesn’t get better than this!  There hasn’t been a better time to buy real estate in Central Oregon in a long time.  Great bargains on quality homes in all of Central Oregon.

I hope you found this information helpful to your understanding of our current market conditions.

If you’re thinking of buying a home in Bend, Redmond, Sisters, Sunriver, LaPine or Prineville, you should sign up for Teri’s free New Listing Notification Service or call or email today!  Teri Green is a Senior Real Estate specialist and sells quality homes in all of Central Oregon including Bend, Redmond, Sisters, Sunriver, LaPine and Prineville, Oregon.

For foreclosure information, Call Teri at (541) 350-8424 or visit  www.bendoregonrealestateplus.com

If you have questions about Bend or Bend real estate , Call Teri at (541) 350-8424 or EMAIL at This e-mail address is being protected from spambots. You need JavaScript enabled to view it  . 

Or, you can  use our  FREE MLS Search to search for local real estate. 

Sincerely,

Teri Green
Bend Oregon Real Estate - Senior Real Estate Specialist
The Hasson Company
(541) 350-8434
www.BendOregonRealEstatePlus.com

Short Selling vs Foreclosure

As you can imagine in these times many Bend Oregon Real Estate owners have questions about these two ugly options.  It is my goal to shed some light on the consequences and the processes involved in the short sale and the foreclosure. 

First of all, what is a short sale?  A short sale is a home sale where the selling price and value are less than the amount the homeowner owes the lender.  A short sale involves missed mortgage payments by the homeowner.  To short sell, the homeowner AND the lender must approve the sales agreement and terms.  The lender may retain the right to come after the homeowner for the deficit.  The homeowner will face about a 200 point credit score hit that remains for 2 years and this documentation will remain on his credit record for 10 years however, it is not frowned upon as negatively as a foreclosure. 

What is a foreclosure?  This is where the owner of a home has stopped making mortgage payments and the home has been sold by the lender.  The owner will face about a 200 credit score hit that remains for 5 years and this documentation will remain on his credit record for 10 years. Future loan applications will ask if you have ever foreclosed on a home. 

Next, we should clarify some details.  With each purchase in Oregon there are two involved documents:  1) the Deed, and 2) the Promissory Note.  These documents are part of your closing documentation at purchase.  Basically at closing you promise to repay the loan (Promissory Note) and if you do not, the lender will retain the deed and possession of the home. 

When people short sell their home, their lender must agree to release the deed/possession of the home to the new buyer.  The lender does NOT have to release the promissory note meaning that the lender would be maintaining the right to come after those funds sometime in the next 6 years.  Do not agree to a short sale without proof of the lender’s release of both the deed AND the promissory note.  Otherwise they can come after you for the deficit. 

There are a couple things to consider before comparing these two.  First, is this your primary residence or an investment property?  Second, do you have one loan or more?  Third, who is your loan(s) with and how much is the shortage? 

Is this your primary residence or an investment property?  This is important for tax reasons.  In a short sale situation, the lender may issue a 1099 for the deficit.  If this is your primary residence, there will be no taxes due for this 1099-ed amount.  If it is an investment property, you should discuss tax consequences with your financial advisor.  There are two ways to handle this in order to lessen your tax consequences.  It is possible that with the high property value assigned by the county and the low current values, your accountant will be able to avoid taxes for you on this deficit. 

Do you have one loan or more?  This is important to understand because it complicates a successful short sale process.  An offer comes in, the seller agrees, all documents are submitted to the lender for their consideration.  If there are two lenders, documents must be submitted to both lenders.  The lenders must agree to payoff amounts.  Often the first and the second can not come to terms thus killing the deal.  Often buyers can not endure the extra time that having a second lender involved requires thus killing the deal.  

Who is your loan with?  It has been my experience that some lenders are consistently NOT releasing promissory note obligations.  They are retaining the right to come after their short homeowners for the deficit amount.  They have 6 years to do so. 

If your loan is with one of the other lenders, this could be good for you.  Some lenders ARE releasing their right to pursue for the deficit and will provide this in writing prior to close of escrow. 

How much is the shortage?  Obviously a larger shortage is a more difficult pill for the lender to swallow thus complicating the possibility of a successful short sale. 

Let’s say you have decided to short sale your home.  What would that process mean for you?

1.  List your home for sale with a real estate agent who will publicize using the MLS.
2.  A sign goes up in your yard.
3.  A lockbox on your door.
4.  Your home is published on the internet MLS. 
5.  Buyers will want to see the home accompanied by their agent.
6.  Offers will hopefully come in.
7.  A large packet of your financial information and your accepted offer are submitted to the lender.
8.  45 days to 3 months later, your lender’s negotiator will respond IF your buyer has not backed out.
9.  An appraisal and Broker Price Opinions (BPOs) are performed and presented to the negotiator.
10.  The lender could take 3 more months to finalize a decision as to how much they will let the house go for.
11.  They may ask you to contribute money toward this sale.
12.  They may not release your promissory note.
13.  They may counter your buyers offer.
14.  The sale could close or you could kill the deal refusing to contribute or your buyers could kill the deal by rejecting the lender’s counter offer.
15.  Hopefully you successfully short sell but you could still proceed to foreclosure even after all your efforts. 

If you have a renter, they would need to agree to the lockbox, the MLS and to the  inconvenience of agents showing their residence to potential buyers giving a maximum of 24 hours notice. 

It is not illegal to continue to collect rent from your renter even though you are not using that rent to pay the mortgage.

Let’s say you decide to foreclose on your home.  What would that process mean for you?

1. You quit making mortgage payments.
2. You receive calls from your lender asking when you can pay.
3. You receive notification of the foreclosure date.
4. Once the home has been foreclosed on, the occupant will be notified that you/they have 90 days to vacate.  The occupant will be given 10 days to decide if they want to move out quickly and receive "Cash for Keys" or if you/they want to occupy the property for the full 90 days following this notification of foreclosure.
5. If you have a renter, you will need to let them know you are in the foreclosure process.
6. You may continue to collect rent while the property is in your name. 
 

If you are planning on foreclosing it is not necessary to continue to pay the property taxes.  The property taxes are a liability of the property and not you personally so you do not need to pay them – they will be paid by the lender or eventual buyer. 

Note to Bend Oregon real estate owners:  This is only the tip of the iceberg but I found this information to be helpful to many who are weighing the pros and cons of each. 

I can’t imagine reading the above information and not having questions.  Please feel free to contact me with any and all of your questions.  It is always my honor to assist with your Bend Oregon Real Estate needs.

Teri Green
Bend Oregon Real Estate - Senior Real Estate Specialist
The Hasson Company
(541) 350-8434
www.BendOregonRealEstatePlus.com

Have you heard about the "Neighborhood Stabilization Program" coming soon for Bend Oregon Real Estate Buyers?

The Neighborhood Stabilization Program is bringing Federal money to Deschutes, Crook and Jefferson Counties to help reestablish neighborhoods hit hard by foreclosures.  That definitely describes Deschutes County!  This is Home Buying help!  There is money available to residents who apply and qualify.  To qualify, area applicants must earn less than $75,000 for a family of four.  Families can apply for the funds and use them for a down payment on a bank-owned, foreclosed property.  The down payment can be up to 20%  of the purchase price of the home, with a maximum of $35,000.

So let's say you purchased a home for $175,000 in Bend and put $35,000 down.  If taxes were around $2,400 and your insurance was about $600 per year, your mortgage payment could be around $1,000 per month.  That could possibly be do-able for a family of four if they were not burdened with other debts.

 "The availability of these dollars allows families to establish themselves as permanent members of our community," said Bend Affordable Housing Manager Jim Long."  "This is going to help us get a lot of people into homes and also help us to clean up neighborhoods that are full of empty homes." said city councilor Mark Capell.  "It's going to be a very positive program for the community."

 If you or someone you know might qualify for this program, give me a call.  I'd be happy to help you find a great home and steer you in the right direction to apply for this terrific Home Buying help!

Teri Green
Bend Oregon Real Estate - Senior Real Estate Specialist
The Hasson Company
(541) 350-8434
www.BendOregonRealEstatePlus.com

Bend Oregon Pole Pedal Paddle 2010

The Pole Pedal Paddle in Bend Oregon is a fantastic event!  Hats off to whoever came up with this idea!  It’s a great way to break into Spring! The Bend Oregon Pole Pedal Paddle is a for-fun event or can be taken very seriously; it’s for individuals, pairs, or groups.  The PPP is for adults, teens or kids with a large variety of categories.  It is my absolute favorite Central Oregon community sporting event of the year!  It brings all of Bend plus a slew of others together for an alive, fresh-air, competitive yet fun day. 

The first Pole Pedal Paddle event is the alpine ski portion.  Skiers begin by running up hill to their skis.  Put their skis on and ski to the exchange point near the West Village Lodge passing off to the cross country skier.  The cross country skier skis approximately 8 km passing off to the road biker.  The road biker pedals from the Nordic Lodge parking area of Bachelor 35 km into Bend along scenic Century Drive where the runner begins the 5 mile course.  The runner passes off to the paddlers for the Canoe/Kayak portion.  The Boaters paddle upstream and downstream near the Healy Bridge on the Deschutes River.  The river paddlers pass off to the sprinter who runs along the banks of the river for half a mile to the finish line.

The Bend Oregon Pole Pedal Paddle Event date this year is May 15, 2010. 

 I recruited a PPP team a few years ago and ran the two running legs.  This year I’m a sub for the road biking section on one of the Hasson teams.  I’m a little nervous but that is what makes it all so alive and fun!

Putting on an event like this requires a well organized crew of volunteers.  For further information or to volunteer call Mt. Bachelor Education Foundation at 541-388-0002.

For full details or to register to participate in this event, visit:  www.mbsef.org  This event benefits the Mt. Bachelor Sports Education Foundation.

If you are in the Central Oregon area, any where near Bend, Oregon on May 15^th, I consider this a must-see experience.  I’ll be there.  Hope you’ll join me!

Teri Green
Bend Oregon Real Estate - Senior Real Estate Specialist
The Hasson Company
www.BendOregonRealEstatePLUS.com