There are currently 1832 homes on the market in Bend. In February 76 homes sold, 171 are pending, and 94 are contingent. Of the 1832 homes for sale, 372 are short sales or foreclosures assuming the listing agent coded the house correctly in the MLS. Since I know that at least one of the sales in February was bank owned and it was not coded that way, I’m sure there are more than 372 distressed properties on the market.
The trend continues with the high end market being very slow. Again, there wasn’t a single sale over $700,000. There were 4 sales over $500,000 and the winners are:
$699,000 – 3249 square foot home in Broken Top built in 2006. It was a short sale.
$600,000 – 3113 square foot home in the Fall Creek neighborhood of Broken Top built in 2002. It was bank owned.
$550,000 – 2700 square foot home on 5 acres with Cascade views and irrigation. It was not a short sale or bank owned.
$515,000 – 3600 square foot home in River Rim. The agent did not disclose whether it was a short sale or bank owned but the home was sold AS-IS at $142/square foot and the lockbox code was an REO related phrase. Hmmmm.
4 of the 5 homes that sold in the $450,000 – $500,000 price range were short sales or bank owned. Of the distressed sales, two were in Northwest Crossing, one was in Shevlin Crest, and one was a home on acreage north of Tumalo.
The lowest price/square foot was a Mt. Bachelor Village condo that sold at $58.63/square foot. The second lowest was a single family home in Forum Meadows that sold at $78.67/square foot.
There is still a pretty large misconception that with bank owned properties, you can write a low ball offer and easily get it accepted. Let’s say a home is bank owned and listed at $500,000. I can almost promise you (almost) that you’re not going to be able to buy this home for $300,000. Typically the list price is very close to their bottom line. In fact, if you look at the list price versus sales price, on average, the bank/seller is getting 96% of the list price. So that $500,000 home could more realistically be purchased for $480,000.
Furthermore, foreclosures are not always the best deals in a particular neighborhood. Northwest Crossing is a perfect example. The price/square foot of some recent bank owned sales were $208/SF, $210/SF, and $220/SF. The price/square foot for some non-bank owned sales in NWX were $149/SF, $176/SF, and $179/SF. Many homeowners that bought well before 2005 probably have a bit of equity in their homes and can afford to list at very competitive prices. If someone bought an 1800 sq. ft. home in 2006 for $400,000 and someone else bought an 1800 sq. ft. home in 2002 for $250,000 and both need to sell today, the person that bought in 2002 can list their home at a really low price without having to do a short sale. If you’re looking for a great deal, don’t think that you have to focus on foreclosures. Ask an agent to show you the best priced homes in your price range. You might get lucky and find a motivated seller that’s even willing to make a few repairs on the home, rather than buying an AS-IS foreclosure that was trashed when the owners moved out.
View the complete real estate statistics here: February 2009 Real Estate Statistics