The Central Oregon real estate market saw rapid growth in 2016 and is gearing up for this to continue in 2017. The key to this will be how the county and the city of Bend manage this growth. As we saw at the end of 2016, the Urban Growth Boundary expansion was approved and will add over 2,000 acres of land to the City of Bend.
According to the U.S. Census Bureau, nearly 10,000 additional residents moved to Deschutes County either from another Oregon county or from a different state. This increase in population and popularity means a higher demand for housing - a demand that builders and contractors are working hard to keep up with.
What does this mean for home prices?
According to the Beacon Report, a market report supplied by local appraisers, the median home price in Bend was $374,000 at the end of 2016, up nearly 18% from the same time in 2015. As demand for single-family homes continues to rise, we expect to see continued growth in home prices, but probably not nearing 20% like in 2016.
Central Oregon residents and newcomers are also looking to outlying communities like Redmond, LaPine, and Prineville for their new home. The median home price in Redmond at the end of 2016 was $270,000 - nearly $100,000 less than a home in Bend, but still up nearly $40,000 over the median price in November, 2015.
Where do we go from here?
As we move forward into the 2017 housing market, there are a few things to keep in mind:
1. It's going to continue to be a seller's market. With housing inventory so low, and buyers continuing to enter the market, the demand will keep sellers in the drivers seat as long as they price their home appropriately.
2. The Fed is going to raise rates in 2017, which means home buyers will see higher interest rates on their loan. Buying in early 2017 will be key for those who can do it.
3. Rental vacancies will continue to be historically low meaning rent costs will remain very high.
If you'd like to talk to a professional about selling your home or buying a home in Central Oregon, send me an email. I look forward to providing you with comprehensive service and real estate advice.