Sell your Central Oregon home in this fast-paced seller’s market

As the world continues to navigate through unprecedented times, the housing market is making an impressive turnaround and is on track for a robust recovery with record-low interest rates and a shortage of listings resulting in a fast-paced seller’s market.

If you’re thinking about making a move, here are 5 reasons why now is a great time to sell your Central Oregon home:

 

1. Low inventory

There are simply not enough homes on the market right now to facilitate buyer demand, both nationally and locally. 

Looking at months of supply for single-family residences in Crook County, Deschutes County, and Jefferson county, you can see inventory is on the decline for 2020. As reported for July:

  • Crook County: 3.0 months of inventory
  • Deschutes County: 2.3 months of inventory
  • Jefferson County: 3.2 months of inventory

 


 

Months of inventory refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers. In Central Oregon, we are currently in a Sellers Market.

The lack of inventory has been a challenging situation for a while now, and with low mortgage rates fueling buyer demand, inventory is even harder for buyers to find today. Buyers are eager to purchase, and because of the shortage of homes available, they’re encountering more bidding warsThis is one of the factors keeping home prices strong, an advantage for sellers. Lawrence Yun, Chief Economist for NAR notes that this trend may continue, too:

“Home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.”

With low inventory and high buyer demand, homeowners can potentially earn an increasing profit on their houses and sell them quickly in this sizzling summer market. {Source: Keeping Current Matters}

 

2. Days on market is down & home values are up

Nearly every major metro area across the country saw home prices continue to escalate in the second quarter. Median single-family home prices increased year over year in 96% of measured markets—or 174 out of 181—during the quarter, according to the latest report from the National Association of REALTORS®. {Source: REALTOR® Magazine}

Locally, Central Oregon saw existing home sales rising 30%, the median price rising 14%, and inventory down 35%. These numbers are for residential listings in July 2020 over July 2019 in Crook, Jefferson, and Deschutes Counties.

Bend’s housing market performed better in the second quarter of 2020 than it did in the first quarter with sales volume up 5% and the median days on market (DOM) falling 38%. However, sales volume declined from this same time last year to the second quarter of 2020, falling nearly 26% and the median DOM was 3% higher. The median home sales price in Bend continued to rise, increasing nearly 8% from last quarter and about 6% from this same time last year.

In Redmond, homes sold more quickly than they did in the previous quarter with median days on market (DOM) falling 19%. Compared to this same time last year, however, median DOM rose nearly 7%. Relative to last quarter and to this same time last year, the median home sales price rose 11%.

{Read more: Central Oregon Real Estate Market Update | Q2 2020}

If you’ve been taking a closer look at your house recently and are thinking it might be time for you to make a move, determining your equity position is a great place to start. Understanding how much equity you’ve earned over time can be a key factor in helping you realize the potential profits in your real estate investment and move toward your next homeownership goal. {Source: Keeping Current Matters

If you’re considering selling, contact a FRED Listing Specialist today for a robust current market analysis for your home in order to better understand your home equity position and discuss your real estate options.

 

3. Buyers are ready to buy

Buyer demand is high and property searches on our site have risen significantly over the past few months, not surprisingly since we’ve all been at home and online, and buyer activity has not slowed down with virtual tours and showings becoming the ‘new normal’.

Of the 11% of American adults considering a future home purchase in the second quarter of 2020, about half (49%) are not simply planning it, they are actively engaged in the process to find a home. That is a significantly higher share than the comparable figure a year ago (41%), which suggests that the COVID-19 crisis and its accompanying record-low mortgage rates have converted some prospective buyers into active buyers. {Source: NAHB – Eye On Housing}

The last report from Freddie Mac put its 30-year fixed rate mortgage (FRM) at 2.99 percent, up 1 basis point from the all-time low. Black Knight, in its new Mortgage Monitor, says that has made home affordability the best in four years. With mortgage rates hitting all-time lows eight times this year, it’s now less expensive to borrow money, making homes significantly more affordable over the lifetime of a loan, as explained by Mark Fleming, Chief Economist at First American:

“In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.” 

 

4. The WFH factor

Two unexpected trends we’re seeing as a result of the pandemic stay at home orders are 1. Companies, employees, and entrepreneurs/business owners have realized the ability to successfully work remotely and digitally, 2. Homeowners are re-evaluating how their current home meets their needs, signaling a potentially significant impact and evolution of homebuying needs for the coming year, according to data from a new Realtor.com-HarrisX survey of active buyers:

“In a June poll of 2,000 potential home shoppers who indicated plans to make a purchase in the next year, 63% of those currently working from home stated their potential purchase was a result of their ability to work remotely, while nearly 40% [of] that number expected to purchase a home within four to six months and 13% said changes related to pandemic fueled their interest in buying a new home.

 

5. Home buying and selling has virtually gone virtual

The Central Oregon real estate market is open for business!  While in-person property showings and appointments can still take place, with appropriate pandemic protocols in place, working with a real estate professional that efficiently leverages online tools and virtual communication methods is crucial, especially in this current climate.

Many buyers are coming from out of the area and relocating to Central Oregon for a variety of reasons including the realization that work can be managed remotely, the strong desire to live in a place that offers fresh air, outdoor adventures, and a vibrant community, and comparing housing affordability in our area to where they may currently be living.

Here’s how we’re working with Sellers right now:

  • We’re offering free virtual consultations for advice on how to best prepare your home for sale and to discuss smart strategies for pricing and promotion in our current market. Get in touch to schedule a time with a FRED Listing Specialist who can *meet* however is comfortable for you: Skype, Facetime, email, text, phone call, or in-person
  • We’ve got a simple to use online home values and neighborhood comparables tool with information specific to your home’s community. Want a more in-depth analysis and market value? Our team is ready to assist with a comprehensive report with real-time data; simply fill out your property information and we’ll be in touch promptly
  • We’re well-versed in pricing and promotion and will showcase your home beautifully both online and offline to attract and connect with serious home buyers already in Central Oregon and out of the area
  • Our in-house network of 130+ real estate professionals has an efficient communications strategy designed to quickly connect buyers and sellers within our team
  • We have practices in place for electronic listing contracts, documents, and signatures, as well as manage the negotiation of offer terms and contingencies and ongoing virtual communication throughout
  • Click here to learn more about selling your home with Fred Real Estate Group

 

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Sell your Central Oregon home

We welcome the opportunity to assist you in the sale of your Central Oregon home.

Tell us more about your property via the form below and a FRED Listing Specialist will follow-up promptly.

 

 

About Keeley Mannila

As the co-founder and owner of Fred Real Estate Group, Keeley is the driving force behind company culture, branding, and creative marketing strategy.