Median home prices in Bend and Redmond rebounded in May to $303,000 and $245,000 respectively according to the latest report from the Bratton Appraisal Group.
In Bend, May's median home price climbed more than 12 percent from its April level of $270,000 which had been the lowest median home price recorded since June 2005. However, Bend's median price is down more than 23 percent from its May 2007 price of 396,000, which was an all time high.
In Redmond, the May median price climbed nearly 9 percent from the April price of $255,000 but was down nearly 5 percent from it's May median price of $257,000.
The median is the price at which half the homes sold for more or less.
The report said 102 homes sold in Bend in May, up more than 12 percent from the 91 homes sold in April. By comparison, 132 homes sold in Bend in May 2007 and 244 in May 2006.
In Redmond, 37 homes sold in May, a 26 percent drop from April sales of 50 homes, according to the report.
There were 38 home sales in Redmond in May 2007 and 98 in May 2006
The Bratton Report cites the sale of single-family residences only and does not include condos, townhouses manufactured homes or acreage
Andy Zook, a Mortgage Broker and owner of Arbor Mortgage Group in Bend, said changes in the median price don't necessarily reflect changes in home value but rather the types of homes sold.
" I think the story here is the increase in sales in mid-and upper-tier markets in recent months and that's why the median price is going up, because people are not increasing the price of their homes", Zook said. " That's not happening.
Zook said the overwhelming majority of customers he's now serving first time buyers lured in the housing market by declining prices.
For May 2008 56 percent of the homes sold in Bend were between $150,000 and $300,000, according to the report.
In Redmond, 76 percent of the homes sold in May were between $150,000 and $300,000.
The report also showed that inventory levels in Bend for houses priced between $150,000 and $300,000 are at or less than a 12-month supply. While not great- a six-month supply of homes is generally considered normal and anything higher in a buyer's market- the inventory for more expensive homes exceeds 24 months in some price brackets, including houses priced at more than $1 million.
In Redmond, Homes prices between $150,000 and $250,000 also showed less than a 12-month supply.
Inventories are calculated by dividing the number of listing by sales in the prior 12 months.
Waiting to Hit Bottom
Zook said it's impossible to say when the housing market will reach bottom, but with mortgage rates likely to increase in the coming months, he said fence-sitters should act. Zook said a half-point swing in a 30-year fixed mortgage rate effectively equates to roughly as 5 percent move in the price of the house.
For example, Freddie Mac's June 5 mortgage rate survey gave the average national rate for a 30-year fixed rate are 6.09 percent. Using that rate, the purchase of $200,000 homes, with 20 percent down, would result in a monthly mortgage payment of $1210.70.
If the price dropped to $190,000 but the rate jumped to 6.59 percent, the monthly mortgage payment would be $1212.90.
"If you are apt to buy a homes, you may want to hurry up because inflationary pressures are pushing rate up and as rates move up, homes become more expensive," Zook said. "So while you are waiting for price points hit bottom, it may be completely offset by missing the chance to secure financing at a low rate"
Other statistics released in the report said the May sales price per square foot in Bend held steady at April's level of $155. A year ago, the sale per square foot in Bend was $197. In Redmond, the sales price per square foot climbed to $135 in May, from $118 in April. A year ago the sales price per square foot was $148,000
The report also listed median prices for the regions smaller communities, which are released on a quarterly basis. For the first quarter of 2008 median prices were $175,000 in Crook County; $160,000 in Jefferson County; $188,000 in La Pine; $429,000 in Sunriver; and $389,000 in Sisters.
Bend Bulletin Article
By Andy Moore
Call Team Birtola-Garmyn, OREGON'S and the PACIFIC NW #1 Prudential Real Estate team at 541-312-9449 or 800-816-9449 for any of your Central Oregon real estate needs.
ZIP Codes: 97701, 97702, 97707, 97739, 97758, 97759 Approximate Location Boundaries: Central Oregon's
Location Characteristics: "Oregon's Sunny Side"
