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Strong Housing Market in Bend Oregon

The real estate market in Bend, Oregon continues to show strength as the Federal Housing Finance Agency( FHFA) releases first quarter 2013 numbers for their House Price Index (HPI). Click here to view full size image.

The House Price Index shows homes in the Bend Metropolitan Statistical Area (MSA) had price gains of 7.69 percent year over year from the first quarter of 2012 through the first quarter of 2013. Those gains are enough to rank as the 20th best price improvement of all 374 Metropolitan Statistical Areas in the United States. The top three MSA’s for price gain were Phoenix-Mesa-Glendale, AZ (15.27%), Bismarck, ND (12.81%), and Stockton, CA (11.38%).

During the first quarter of this year home prices in Bend rose 3.71 percent according to the FHFA report. That is a better gain than 13 of the 19 MSA’s that ranked above Bend for annual percentage price improvement.

Oregon ranked 11th among all 50 states in the House Price Index. For the 12 months ending March 31, 2013 house prices in Oregon rose 10 percent. In the first quarter of this year prices were up 3.4 percent. The three states with the highest percentage price gains over the last year were; Nevada (22.0%), Arizona (19.8%) and California (16.6%).

The House Price Index for states was calculated using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac. Transaction information from county recorder offices and the Federal Housing Administration was added to data from Fannie Mae and Freddie Mac in calculating the House Price Index for Metropolitan Statistical Areas.

A little more than one year after Business Insider called Bend the best real estate market to be invested in for the next five years it appears that while their predictions may not have been 100% accurate (so far), the House Price Index numbers do support the notion that Bend is one of the best places in the United States to be invested in real estate.

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Bend Oregon Ranked Best Housing Market for Next Five Years

Back in July I posted that Business Insider had Bend ranked as the second best housing market to be invested in during the next five years. The ranking was based on data compiled from Fiserv Case Schiller Indexes comparing the price change between two arms-length sales of the same single-family home. Earlier this month Business Insider combed the indexes again to compile an updated list. The new list has Bend ranked as THE BEST housing market for the next five years. They don’t offer any insight as to what might have changed to cause former #1 Carson City’s projected annualized growth to drop from 11.7% to 10% and Bend’s to improve from 11.7% to 11.9% during the last six months. However, the fact that they continue to see continued growth in the housing market here is definitely a good sign.

Business Insider’s projections of nearly 12% annual growth over the next five years is a good sign that we may be at or near the bottom of the market. One piece of information from Business Insider that is easy to overlook is the sentence about how far prices have fallen since the peak in the first quarter of 2007. In their latest release they say that home prices in Bend are now 45.2% below the peak. Just six months ago they said home prices were 42% below the peak. That means home prices have fallen 3% in six months but there is a caveat. In July they said that the price of homes in Bend was expected to “trough” in the third quarter of 2011. This means it is still possible for their projection to be accurate. Possible but not likely because for their July projection of 11.7% annualized growth to be accurate we would need to see nearly 15% growth over the next six months.

Maybe we won’t see the price of homes grow by more than 11% in the twelve months ending June 2012 but that doesn’t mean that you should wait to see that kind of growth before you buy. To the contrary, if you wait until home prices are growing at 10% per year then you have missed the bottom of the market. Now is the time to be watching for that perfect house and have your realtor on speed dial. If you would like to explore homes for sale in Bend and Central Oregon please call or email us for a personalized list of homes for sale in your price range or search Bend MLS.

Update: House prices in Bend continued to rise at a steady rate throughout 2012 and the first quarter of 2013.

Bend Among Best Housing Markets

BusinessInsider.com recently released a list of the top 15 housing markets for the next five years. Bend, Oregon was second best on the list. To determine rankings they used the Fiserv Case Shiller Indexes which survey over 370 housing markets throughout the U.S. comparing the price change between two arms-length sales of the same single-family home. If you like statistics you can read about their methodology here.

Most of the top 15 cities identified by the Fiserv Case Shiller Indexes are small cities like Bend and all of them have markets appreciating at over 8% annually. Bend home values are expected to appreciate at an annual rate of 11.7% from 2011 to 2016. Compare that to the national average appreciation of 3.7% and owning a home or homes in Bend looks pretty good. Where else can you get a return of over 11%? Plus, if the home you buy is a rental the return could be even better. If you buy well you could add 2% – 5% to your annual return. For those of you who invest in the stock market think of a rental home in Bend as a Growth and Income stock or mutual fund. You get the growth from the value of your home appreciating and income from the cash flow of your home as a rental. Please understand that nothing is guaranteed and just because someone says that the expected growth in Bend is 11.7% over the next five years doesn’t mean that it will be so. However, the Fiserv Case Shiller Indexes are a good indicator that there will be growth in home values over the next five years in Bend.

If you have ever considered owning an investment property, especially in Bend, now is a pretty compelling time to make a move. Take a look for yourself at the homes for sale in Bend. If you see any you like, give us a call. We’d be happy to show them to you.

Strong Housing Market in Bend Oregon

Bend Oregon Ranked Best Housing Market for Next Five Years

Bend Among Best Housing Markets

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