There is a lot of talk about the Real Estate market, mortgage issues and so on, most of it negative. I wonder, why? Rates are low, the real estate market in La Pine and Three Rivers South has a lot of inventory to choose from and homes are selling. Maybe not in record numbers but they are selling.
Lenders have multiple programs that are very suitable for first time home buyers. Rick Grand a lender in Eugene recently wrote an article about one such program called P.A.L. Rick states that some borrowers can receive up to $10,000 towards the purchase of their new home.
Tamra of CountryWide also states that they still have 100% financing for qualified buyers too.
Currently La Pine and Three Rivers South have a lot of different types of properties that qualify for many different lending programs. There are sellers that are motivated and willing to pay for closing costs or really negotiate a lower purchase price.
The market is not nearly as bad as the media makes it out to be here in Central Oregon. According to the Bend Bulletin last week the real estate market has hit a plateau. The good news of this is that Bend is no longer seeing a downward trend.
La Pine and Three Rivers South has not seen a declining market, although the average days on market are longer and there are price reductions, actual sales prices for 2007 are still higher than those of 2006. This means when a property is appraised the appraiser does not have to check the dreaded declining market box. La Pine and Three Rivers South have not seen a declining market. There are a few areas in Bend where appraisers have had to check this box.
Gena Riede a REALTOR® in Sacramento, California recently wrote an article titled “When Should a First Time Home Buyer Buy a House?” In Gena’s article she says
“There are some great homes for sale and great buys on the market for sale right now. Don’t wait until the homes are picked over and the good ones are gone or until the real estate market heads back up or worse yet, until interest rates go back up with severe tightening on loan restrictions.”
I find it encouraging that although she is in Sacramento and I work the Central Oregon market that the same is true for both areas.
Carole Cohen says
The home in the virtual tour is gorgeous…first time home buyer’s should love it Thesa! What a serene marketplace you have.
Jon Seabring says
If 1st time buyers can wait about 1 more year, then things will have really tanked. Then would be a good time to buy a house…but not now. We’re still on the way down for a while.
You can read all the articles from Eugene, Sacramento, etc., that you want. I’ve lived in Sunny Central Oregon my whole life, and if you want to buy, just sit on your money for a while.
Thesa Chambers, Broker, ABR says
Jon; I too have lived in Central Oregon most of my life. Looking at the stats for La Pine and Three Rivers South show promise of more closings over the last couple months than we have had over the last several months. Although the market is down, I do not think we will see it go down like Bend has. We saw huge appreciation over the last couple years and we are still seeing appreciation.
What loan programs will be available in a year? What will prices be in a year? What will next year bring? None of us know the answers to this…. but next year is an election year – which generally does bring a stronger market and that will be better news for sellers than buyers.
Rita Taylor says
The right time to buy is different for every one and every location. The worst thing would be to wait and have conditions change to where you could no longer afford a home. I vaguely remember the 15% rates from the early 80s and shudder to think about it but it could happen again.
Gena Riede says
Thesa, as a good Realtor you have informed the Home Buyers. Those that listen will be thankful. Those that don’t and wait may find themselves priced out of the market and getting a loan. There’s a reason this is called a “Buyer’s Market.” It’s not rocket science…
Real estate is very localized. Here in my area a commute of an hour each way is normal. Our prices are pretty much that of 2003…buyers here have choices and are in control. Is it a good time to buy in NH? I think so and judging from the buyers I’m working with so do many of them. Could it be busier? Absolutely.
Another Native says
Thesa, the notion that an uptick in the medians for La Pine/Three Rivers South means all is well is patently absurd. According to the COMLS numbers, the area is on pace to match something approximating 2003 figures in terms of total sales volume — this despite four years of population growth and significant price appriciation.
Who is the target market for La Pine? Admittedly, it’s a pretty place for a retiree who doesn’t mind pine beetle and stray dogs, but anyone who has to earn a living will have to drive at least 45 minutes every morning and evening to do so. Possibly as long as two hours should we catch a snowy year one of these days.
Despite some variation in the numbers, La Pine’s stock is tied at the hip to Bend’s. As Bend goes, so goes La Pine, Redmond, Sisters, etc.
Your poster Rita raises an interesting point. Yes, real estate in the early 80s was somewhat depressed, and 15 percent interest rates had something to do with that. At 15 percent, the monthly out-of-pocket payment any individual can afford helps cap runaway appriciation.
On the flip side, the loose money policies of the federal government and lenders in recent years have thrown gasoline on the appriciation fire.
Thesa Chambers, Broker, ABR says
Another Native – the uptake for La Pine & Three Rivers South is that there are still a lot of homes for sale under $100,000 – stray dogs and pine beetle – ummm sounds like all of Central Oregon – La Pine is tied to Bend – and Bend has seen a higher growth rate and home prices soaring beyond what the wages can support. Although this year there are homes in the mid $200k range in Bend that has not been the norm over the last couple years. La Pine and Three Rivers South does have a lot homes that the people that work in Bend can afford. First time home buyers sometimes have to make that 30 mile drive which in comparison to most 30 mile commutes across the country is short. Personally I made that drive for over 9 years, funny thing was when I got home I did not need the wind down time that some need when they get home. If you live on the west side of Bend and work on the east side your commute can be just as long.
2 hour commutes do happen, but they are far and few between – the road conditions and improvements over the last couple years have made commuting from La Pine to Bend much easier and less dangerous.
I love Central Oregon, but do not take the approach that so many do that our smaller communities are the red headed step children of the area.
La Pine offers the land that Bend does not offer – pricing that Bend does not – they are worlds apart.
My point was and still is – that there are areas of Bend that appraisers are having to say are in a declining market – that has not happened in Three Rivers South or La Pine – which does help with lending.
First time home buyers needing 100% financing sometimes have to make choices.
Joanne Hanson says
A great look at both sides of the discussion. Numbers are the most telling, and what I look at for confirmation either way. Real Estate is very localized and we often see different markets in towns only 15 minutes apart.
1st Time Home Buyer says
they already have 100% financing…MyCommunity and HomePossible has been helping out a lot of homeowners in Charlotte NC