Everyone keeps talking about the "real estate bubble." They talk about it as if it were the same as the "tech bubble" we experienced in the stock market a few years back. There is no real estate bubble in Bend Oregon. Yes, prices are inflated and need adjustment but there is no bubble.
Bend Oregon is one of the most desirable places to live in the United States. Money Magazine ranks Bend as the 86th best town to live in the United States. Bend has two of the top 10 golf courses in Oregon, Broken Top Club in Bend and Crosswater in Sunriver. Mount Bachelor has been said to have the best skiing powder in the Western United States. The Deschutes River that runs through the middle of Bend is a nationally famous trout stream. The Bend job market remains in the spot light.
A recent report from the Federal Deposit Insurance Corporation, or FDIC said that Bend was the 35th fastest growing job market in the country for the second quarter of 2006. This easily places Bend as the top job market in Oregon. Oregon ranked sixth for its job market among all states during the same period. Tax wise Oregon has recently been named as one of the most "business friendly" places to start a business. Many business owners looking to move their companies look to Bend for its great livability. There is an abundance of sunshine, clean air, many outdoor activities and it's just a great place to live.
Supply and demand will always hold the value of Bend real estate up. It's a matter of simple economics, when demand is larger than supply prices remain high. Luckily for some buyers now is a good time to buy. Prices of homes in Bend are falling. One newer home that was listed in the Central Oregon Multiple Listing Service for $399,500 in December 2005 remains on the market today at a list price of $339,900. It is looking like a good buy and there are several like this one to choose from.
The tech bubble of the 1990s was fueled by speculation. Almost everyone was buying tech stocks. Sun Micro Systems, Microsoft, Intel, Apple computer, Cisco Systems, Applied Materials, Level 3 Communications, Yahoo, Dell Computers, Oracle, Juniper Networks and Qualcomm were only a few of the high fliers.
Some of these companies are still volume leaders on the NASDAQ today. They are selling for only for a small fraction of the all time highs they sold for in the late 90s. There were even grand mothers pulling money out of their savings accounts to buy stocks.
The tech bubble was caused by greed and a buying frenzy which can not be compared to the real estate market in Bend, Oregon. Yes, there have been investors in the past that would sign a sales agreement to buy a new home that had not started construction yet, wait the 6 to 8 months it would take to build it and then sell it for a nice profit. It's easy to make a profit when values are rising 35% a year and there are not many choices for the out of state buyer's that are moving to Bend to take advantage of its great life style. Today there are many more homes on the market than there were this time last year. The Multiple Listing Service of Central Oregon shows a 19.
32% decrease in the number of homes sold in the third quarter of 2006 as compared to the same quarter of 2005. Some investors and builders are stuck with inventory whose value is coming down. Homes are taking longer to sell and there are many more to choose from. Considering the great job market in Bend, the fact interest rates are low and gas prices continue to fall points to a correction that will probably turn around next spring. Investors have stopped buying single family homes and builders are slowing down their construction.
Bend will be in a buyer's market until next spring. People who can sell their property out of state are now in the driver's seat when it comes to buying real estate in Bend. Sellers are willing to negotiate.
Some builders are throwing in upgrades for free. Appliances, hardwood floors, extra landscaping, granite counter tops and other construction items are sometimes free for the asking. This is giving buyers more value for their money. When the tech bubble burst there were millions of shares sold driving the price down to realistic prices. The real estate market in Bend is going through a correction with prices gradually coming down. This is an excellent opportunity to buy real estate in Bend Oregon.
There is no real estate bubble in Bend.
Jim Johnson CRS is a real estate expert who has lived in Bend Oregon since 1981. Call 541-389-4511 or see his web site www.BendOregonRealEstateExpert.com or Search the Bend Oregon MLS