Of late, there have been several encouraging signs that the Bend Oregon real estate market is on the road to recovery.  Sales figures for the month of October rose sharply . . . reaching their highest figure since mid 2006.  Notices of default were also down for the month. But perhaps the biggest indicator has been the huge fall off in for sale inventory.  Just two years ago, according to COAR MLS, there were over 1600 homes on the market; as of today, there are around 785 . . . that’s a decline of slightly more than 50%.

This decline is great for Central Oregon’s beleaguered sellers.  Reduced supply is usually a precursor for increased asking prices. And, as the head of the Central Oregon Economic Forecast Project put it rather succinctly, ” A decline in housing inventory is  a precondition for recovery.”

It’s difficult to put an exact finger on the reasons for this decline in available inventory.  Some would point to the record low interest rates (30 year fixed at under 5%).  The $8000 credit (and its extension) for first time homebuyers has also “got people out of their chairs.”  The quintessential “Central Oregon lifestyle” (golf and skiing/snowboarding on the same day!)

continues to draw folks from California . . . for whom real estate in Bend Oregon is still a bargain.  Likewise, the recent resurgence of the stock market has buoyed the hopes of retirees and the leading edge of the baby boomers, helping to make Central Oregon once again a very viable relocation/retirement option.

The pessimists among us would perhaps point out that banks have been rather slow to put foreclosure properties on the market  . . . thus accounting for some of the decline in inventory.

Going forward, who can say?  We have been mired in the depths (if you are a seller!) of an extreme “buyer’s market.” Some analysts would point out that less than six month’s supply of inventory is indicative of a “seller’s market.” Borrowing figures from the recent Bratton Report, shows that last month there were 132 sales in Bend below $300,000.  For the same period, there were 416 listings in that range–or  roughly 3 month’s supply.

Buyer or seller . . . click to search for your dream home (or at least a pretty good one!); try here to find out how much you home is worth.