Real Estate Brokers, Licensed in the State of Oregon
Spring has Arrived! So has the Buying/Selling Season.
Spring is hands-down one of the most popular times of year to buy or sell a home. With the weather warming up and people flocking outdoors, to the school year coming to an end, spring tends to be the time when the housing market rises. “Spring” in the real estate world starts in January – right after the holidays conclude – and peaks around mid-May. That doesn’t mean that there are no houses that sell during the summer, fall or winter months, but typically it does mean that more houses are on the market and more home buyers are looking to make a purchase.
Spring is one of the busiest times of year for the housing market. Does that mean it’s the best time of year for home buyers and sellers to enter the housing market? There are 4 key factors to consider when deciding to buy or sell a home in the spring.
- Home buying costs continue to rise
Between April 2016 and 2017 there was nearly a 12% increase in median house value across the state of Oregon. In comparison, the national average for this same 12-month period was 7.3%. Although house price appreciation is expected to slow slightly nationally, housing analysts expect home values in Oregon to continue to rise by 2%-3% extending through the spring of 2018. Those looking to buy a home in the next year should keep in mind that postponing their purchase may cost more money in the long run. Looking back at the first five months of 2017, the average rate for a 30-year fixed mortgage loan actually dropped from 4.2% in January 2017 to 3.95% in May 2017. Looking towards the spring of 2018, some real estate experts anticipate a gradual rise in mortgage rates (ref. 1). At Cascade Sotheby’s International Realty, our real estate experts understand that the best time to buy or sell a home is when the client feels confident in entering the housing market.
- Does weather play a role in the home buying and selling process?
After months of cold rain and snow, the sunshine and blossoms of spring are a blissful reprieve. As the weather gets warmer and drier, all key measures of housing activity spike. This includes an increase in searches, prices, starts, sales, and inventories, which tend to hit their annual lows in December (ref. 2). In January there are almost half the number of home buyers than in June (ref. 3). Starting in January, potential buyers begin their search, with search behavior peaking throughout March/April and staying high until August. In Oregon, June, July and August are the hottest months for online house hunting, based on a search traffic survey conducted from 2007-2012. In fact, 49 out of 50 states are 10% above their annual average in search traffic from March through July. Depending on where the transaction takes place, it’s important to be aware of the local market’s peak housing activity times. Home sellers may want to list during peak search times, while home buyers may prefer to search during off-peak times for a less competitive home buying experience (ref. 2).
- Gaining a competitive edge during the buying/selling process
Spring is largely regarded as the best time to enter the housing market, which also means that there is an increase in market competition during that time. With more people looking to buy, the market becomes more competitive. As a home seller, spring provides an opportunity for more interest in your property, although listing your house in late spring will also result in higher inventory levels (ref. 2). Winter home buyers will find lower home prices and less competition, although they will only see 79% of the housing inventory that home buyers see in the spring. However, a low inventory of homes may mean home buyers will spend more time shopping for the home of their dreams (ref. 3).
- Entering the housing market with a purpose
No matter the season, there are life events that require a home buying or selling experience. But for home buyers who aren’t influenced by a major life event, spring’s essence of new beginnings can inspire new transactions. “Spring” in the real estate world occurs from roughly January to July. Real estate and home building experts explain that an emphasis on the spring home buying season has its roots in practical reasons. For example, it fits nicely with the school calendar, allowing for a smooth transition when moving with kids.
As a home seller during spring, its crucial to identify less focused buyers who are just out to browse. Although the spring air may boost the attendance at an open house, the number of serious home buyers may still be limited. Whether buying or selling a home, in many cases, the best way to determine when to begin the process is to decide on the end date. On average, it takes about 30 days to close a sale. If taken into account the time it will take to find a dream home, a home buyer could easily be looking at 60-90 days going through the home buying process. If time is a factor, begin with an end-date in mind and work backwards from your date set goal (ref. 3).
Developing a solid understanding of some of the factors that play a role in the housing market will help home buyers and sellers choose the right time of year to enter the housing market. Spring may be the most common time of year for house shopping, with high levels of search activity, warmer and drier weather, and a potentially more competitive sale prices, but homes are sold year-round. Keep in mind that shopping for a home in the spring will lead to more competition with other buyers and potentially higher housing prices, while shopping during the winter months might bring you a better price on the property, but less inventory to choose from. If you have questions, don’t hesitate to contact a real estate expert at Cascade Sotheby’s International Realty.
1. Shane, Michael. Sammamish Mortgage. “Outlook: Oregon Home-Buying Costs Expected to Rise Into 2018.” 31 May 2017. Web. 20 April 2018
2. Kolko, Jed. Citylab. “The Best Time to Look for a House, By State.” 30 Jan 2013. Web. 20 April 2018
3. Umberger, Mary. NewHomeSource. “When is the Best Time to Buy a New Home?” Web. 20 April 2018
Five Predictions for the Real Estate Market for the Remainder of 2018
Home ownership, once a staple of the “American Dream” has hit a resurgence the past several years. Favorable market conditions, such as low interest rates, increased housing starts and a generally strong economy have spurred robust interest in the real estate market. As we continue into 2018, forecasters point to several factors which may negatively impact decision-making. Most recently, fluctuations in the stock market, signs of higher interest rates, along with a change to the allowable mortgage interest deduction, could all play a significant role.
The market throughout the Pacific Northwest, specifically the Portland, Oregon region, has been extremely active in the last few years. Unfortunately, that growth is expected to slow in 2018, down 3-5%. Much will be dependent on affordability of a neighborhood and some are showing lower appreciation growth than in previous years. Factors predicted to affect Portland home buyers and sellers are low inventory, slow economic growth and rising mortgage rates. In other areas, such as the resort town of Bend, located in Central Oregon, brokerage firms such as Cascade Sotheby’s International Realty, have experienced record growth. In fact, as part of their expansion strategy, the firm has concentrated efforts throughout Portland, the Oregon Coast and SW Washington.
Take a look at several possible scenarios that could have consequence on the market.
1) Affordability pressure plagues slower market growth. Available inventory of homes, actually considered affordable on a median income, has been in steady decline. Experts predict that inventory will recover slightly, up 1.7% year over year, after falling about 3.4% in 2016. Predictions also suggest that median home sale prices will increase 5.3% year over year while existing home sales are forecast to increase 2.8% in 2018.
2) The average number of days a home spends on the market will be the lowest on record. In 2016, the average home spent only 52 days on the market, the shortest since 2009. Due to low home inventory over the last several years, in particular, with entry level homes in certain markets, homes have had offers within only 6 days of being listed. In addition, transactions have become less time consuming and drastically more efficient due to new technologies, resulting in making the home buying process easier.
3) Anticipate a minimal increase in mortgage rates. Industry experts predict that 30-year-fixed mortgage rates will rise to 4.3% next year. The 30-year-fixed mortgage rate has already increased from 3.5% at the end of 2017 to just above 4%. Wall Street’s optimism is said to be in response to the economic proposals from the White House and the Federal Reserve’s interest rate hike earlier this year.
4) Everyone can get a home loan – for now. A positive credit score will go a long way in this market. Some financial institutions have introduced mortgage down payments of as little as 1-3% of the home’s purchase price. However, an immaculate credit history is often necessary to be eligible. Last year, government-sponsored Fannie Mae and Freddie Mac awarded considerable larger mortgages for the first time since the 2006 financial crisis. In fact, loan limits saw an increase from $417,000 to $424,1000 in many regions.
5) There’s still an ongoing housing shortage in many regions. It’s no secret that in 2018 there is a serious shortage of affordable housing across the entire country. It’s a combination of construction slow-downs, mortgage rate increases, and so much more. Little is predicted to change in the near future. Population growth has dramatically outpaced new construction and the industry is having difficulty in keeping up with demand. Ironic, considering new home building remains has encountered a slowdown.
What does this all equate to when influencing our decision-making regarding the market? Mortgage rates should remain for the immediate future and continue to promote confidence in the home buying sector. The advice of most industry professionals, though, is to act now, to capitalize on advantageous conditions before inevitable changes in the market climate begins to take effect.
A Rare Bend Offering with VIEWS | GARY NORMAN-BUILT HOME
Discover this speechless Gary Norman-built home, an iconic property cradling the Deschutes River in Bend, Oregon and just minutes downtown Bend. Nestled near mature forests with endless outdoor opportunities, this highly-coveted home sits amid views of Mt. Bachelor, Broken Top and the River Canyon.
Framed by awe-provoking terrain, this exceptionally-designed home offers a magnificent natural backdrop for enthusiastic recreationalists drawn to the captivating beauty of Central Oregon. This open and bright home is the epitome of privacy with natural light within a detailed home that’s already poised to anticipate and attend to your every desire. Top-of-the-line amenities – walk-in refrigerator and freezer and built-in espresso machine – treat your family to the finest of comfort and design.
Featuring a 4,501 sq. ft. riverfront home situated perfectly on the canyon of the Deschutes River to take advantage of the magnificent wild river and historic forests that the Central Oregon has to offer. The proximity to the Deschutes River Trails allows you to walk or mountain bike along the river all the way to the Old Mill District and beyond.
Warmth and charm can be felt throughout this spacious, grand home with clean lines custom designed for family function with 5 bedrooms, 4.5 bathrooms, master suite with fireplace, additional family room, 3-car garage, outdoor deck and patio, and working elevator.
Celebrate the spectacular beauty of this rare gem as you enjoy the low maintenance landscaping and the enchanting river waters that lead throughout the surrounding woodlands. An enticing environment for exploring all the wonders of the great outdoors just minutes from golf, fishing, parks, and mountain vistas, this spectacular home is an ideal investment for those enamored with living the luxury lifestyle.
HOUSING STATE OF THE UNION
Ahead of the presidential State of the Union Address, The National Association of Realtors released its own Housing State of the Union Report. >> READ MORE
BEND SEES MORE SIGNS OF GROWING ECONOMY IN 2018
Last year brought a big increase in the number of new Bend business licenses, and now 2018 is starting off even stronger, according to a law firm that tracks those statistics. >> READ MORE
HIGH-END OREGON WINES ENJOY BOOM
The definition of “wine country” keeps expanding. Consumer visits to wineries increased last year in New York, Virginia and Oregon, but decreased from 2016 levels in Washington state and Napa and Sonoma counties in California. >> READ MORE
5 Reasons to Give Us a Call
We can do more than help you buy or sell a home! We offer a variety of services to our clients, regardless of whether we are currently working with you to buy or sell a home.
1. We know the local market. We’ll keep you informed of current market trends, which can be different from what is happening in the national marketplace. We can keep you informed so you can make the most practical decision on whether to buy a home or sell a home. If you’re wondering what your home is worth, give us a call and we’ll give you a free market analysis.
2. We know real estate. If we are currently working with you on a transaction, we’ll walk you through the detailed process and answer any questions. Even after the transaction is complete, we will be there to answer your questions, regardless if the closing happened last week or two years ago. If you’re looking to sell your home, we’ll give you tips on how to improve the curb appeal, make small improvements, and make other suggestions on how to get the most for your home. Give us a call!
3. We are happy to share our professional network. Real estate is a social profession. We are constantly in contact with a network of reputable trade and service people in our local community. If you are looking for a contractor, we know one. If you need a landscaper, we know the best in the business. A siding specialist? A dog walker? A housekeeper? We have a list of professionals for you to leverage. Use our network to find a reliable referral. Give us a call!
4. We are connected in the community. We know our neighborhood. Whether you’ve just moved to town or are a local veteran, we can give you the scoop on what is happening in the neighborhood, the best local hot spots, and upcoming projects.
5. We know realtors around the country. If you are moving away from the area, we can help connect you with a real estate colleague at your final destination. We only work with the best so expect our referrals to give you the same level of high-quality service that you receive from us. We can help make a stressful life event, like moving, seamless. We will be sad to see you go, but happy knowing that you are in good hands.
We are here 24/7 to help you, no matter what your needs. If you know anyone who would appreciate the service we provide, please send them our way. We will happily provide them with the same quality service that you are accustomed to having.
10 Articles on the Economic Outlook of Bend
The economic outlook for Central Oregon – the Bend-Redmond area – appears strong for 2018, but some sectors are still struggling. Have you reviewed your copy of the Central Oregon Economic Outlook? What are the economic forecasts for 2018 and how do they compare to 2017? How is housing and tourism affected by economic growth? Where does Bend rank among other top growing cities around the nation?
Here are 10 articles on the economics affecting Central Oregon:
1. Our Economic Forecast? It’s Coming Up Rosy Well, Maybe
Is Central Oregon overdue for an economic implosion? All other things being equal, our region’s bull market is poised to continue. Read about the regional economics affecting Bend in 2018.
2. Bend Tourism Continues to Evolve in 2018
Bend’s tourism industry jumped 62 percent between 2010 and 2016. What is the trend for 2018? A stable growth, supported by the many events that we love including the fly-fishing national championship & cascade cycling classic. There has been a surge in Air B&B transient tax and 2 new hotels will be opening in 2018.
3. The Arts: Where We Stand Now & Some Thoughts About What’s Next
What is the economic impact of art both regionally and nationally? Making the case for art in rural and urban areas in 2018.
4. Small Business Development Center Sees Robust Outlook for 2018
The Small Business Development Center at Central Oregon Community College sees a healthy outlook as optimism in the economy will continue to drive growth throughout 2018. Read how the new tax laws impact this outlook.
5. Forecast Past & Present
The Central Oregon economy outlook looks fantastic. See how the predictions for 2017 forecasts compare to those of 2018.
Bend is a growing city. Learn about its accolades.
6. Milken Institute Ranks Bend-Redmond MSA #1 Second Year in a Row
Los Angeles-based Milken Institute released their 2017 yearly findings of the Best Performing Small Cities study. For the second year in a row the Bend/Redmond area was ranked as number one in the country.
7. Women in the Workplace
Women have made great advances over the years in workplace equality, but still rank far below men in several industries.
8. Commercial Real Estate in 2018 An Economic Outlook
What are the four major themes affecting the commercial real estate outlook for 2018? Tax reform. Global economic expansion. Midterm elections. Shortages.
9. Central Oregon’s Business Cycle Paradox
2017 was a great year for the Bend-Redmond metro area, yet, opportunities and challenges persist. While one person benefits, another must breach obstacles at the same point in the business cycle. Why the paradox?
10. Tech On The Edge
The economic outlook for Bend looks strong for 2018. But what about the tech industry? Recruiting posses some serious challenges for the Central Oregon tech industry.
Read each article in full from the Central Oregon Economic Outlook.
From Basketball and Golf in California to Real Estate in Bend – The Journey of the Kearney Duo
Perhaps you’ve met them? Jodi and Brandon Kearney? Perhaps you’ve worked with them, buying and selling homes? As a husband and wife real estate power couple, how much about their story do you really know?
The Early Years
Jodi Kearney was born and raised in Polson, located on Flathead Lake in NW Montana. She spent the Montana summers boating and spotting beautiful properties on the water. Jodi was an avid basketball player and was fortunate enough to earn a four-year college scholarship. She spent two years in Coeur ‘d Alene, Idaho playing for North Idaho College and another two years in Helena, Montana playing for Carroll College. She competed on the golf team as well her senior year and graduated with a Bachelor’s degree in business.
After college in 2002, Jodi sought warm weather and decided to move to San Diego. She worked at Torrey Pines Golf Course by day and as a server downtown at night. Her position at the golf course opened the networking door for her into sales, selling switch blade divot tools called Divix. She traveled throughout Southern California selling these products to golf courses and retail shops. She found that she was great at selling – totaling over 400 accounts but didn’t enjoy the continuous travel required by the job.
Meanwhile, while Jodi was exploring Montana mountains, Brandon Kearney was growing up in San Diego, California. He was born into a real estate family, both of his parents being in the industry since 1972. He spent his after-school time being dragged to seemingly endless open houses and listing appointments. When it wasn’t “take your kid to work day,” Brandon too enjoyed sports. He grew playing them all: baseball, soccer, basketball, and golf. He played basketball and golf in high school and graduated from San Diego State University in 2002 with a Bachelor’s degree in Psychology. In college, he was a scholarship athlete and captain of the top ten nationally-ranked golf team. He turned professional and continued playing golf in the United Kingdom on the EuroPro Tour until a major chest injury prevented him from playing for over a year.
When Brandon wasn’t traveling for his golf playing or attending tournaments, he supplemented his income by buying and selling fixer-upper homes.
When Two Became One
When Jodi and Brandon first met, they did so at a night club in Las Vegas on Labor Day weekend in 2004. They learned quickly that they had only lived nine blocks away from one another while in San Diego yet had never crossed one another’s path.
After a year, Brandon’s injury was fully healed. The couple moved to Bend, Oregon in 2006. Brandon resumed his professional golf career where he earned full status on the 2008 Canadian Tour. He played in many state opens & section events for the Pacific Northwest PGA. Most significantly, he qualified for the Utah Championship on the Web.com Tour, won the 2012 PGA Northwest Open, and was awarded 2013 Assistant Player of the Year for the Pacific Northwest PGA.
That was the same year the couple’s daughter Stella was welcomed into the world. At the time, Brandon was pushing for a PGA Tour card. After a year of travelling and golfing – finding himself away from his family – they decided to reevaluate their goals as a family. Brandon would get his real estate license and they would approach their careers as a husband and wife team. Brandon received his license in 2013. In 2016, they welcomed their second child, their son, Saxon, into the world.
The move from sunny, warm California to February-frozen Bend, Oregon in 2006 had been a shock for Brandon, but they soon embraced the community. They sought and joined the Bend Golf & Country Club and made connections in their immediate neighborhood. Jodi loved the mountain air and fresh climate. She waited tables during her first two years in Bend while she earned her broker’s license and built her real estate business. The market was in a downturn. It wasn’t easy. But she knew that if she could make it in a down market then she could make it in any market. And that’s what she and her husband did. Together, they rank in the top 5% for volume of all brokers in Central Oregon. They’ve built their business on the founding principles: build relationships, provide excellent service, and working by referrals.
These days, the Kearney’s enjoy the outdoor activities of Bend. On any given day you can find them playing golf, skiing, hiking, riding bikes, or enjoying time in the sun with friends and family.
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