Bend Oregon has a lot to offer. Boating, Fishing, hunting, hiking, site seeing, biking, swimming, water skiing and snow skiing at our world famous Mt Bachelor. These are just a few of the reasons why so many people choose Bend as a favorite destination and eventually a place to live.
In 2007 the values in Bend peaked to a historic high where an entry level home sold for $300,000 or more. Investors and builders lined up to make offers on almost anything that came on the market.
In the early 2000s the key to making large amounts of money was buying real estate. Has that changed? Looking at Bend real estate today, a brand new entry level home starts at $190,000. Seeing prices slowly creep upward, I am asked by many clients if we are in a bubble again?
In order to answer that question we must look at what history has to say. There seems to be a pattern over the last 60 years. This pattern can be established by speaking with the generations before us who first entered Bend, Oregon in the 50s and 60s. My parents bought their first home for $12,000 in the 1960s. After speaking with other residents who purchased in this time frame their answers all seem to be about the same. They purchased their homes for around $12,000-$15,000.
Flash forward to 1985 I was able to buy a similar home on a local golf course for $50,000. This shows an obvious increase in price and value during a 25-35 year span. In 1992 I was yet again able to buy a new home, similar to the one near the golf course. However, this time I purchased it at $97,000 that I sold the in 1995 for $120,000.
In 2007 many starter homes sold for approximately $300,000. During this time, buyers were hungry to purchase any home they could, no matter what the condition or age of the listed home.
Then the crash! The real estate trend across the country was over. The banks became the largest real estate owners in history. Homes were on the market at new time lows, in Bend many older homes sold for as little as $100,000. In mid-2011 people realized that the bargains were as good as they were going to get and started buying. Over the last couple years prices have increased 30 to 50% in some cases.
Since 2011, the market has slowly been inching its way up. Today building is going strong and lots are becoming scarce. Lot prices have climbed over the last three years. A lot which could have been purchased for $20,000 now is listed for $50,000. This spring we will see many new streets and lots being developed. It appears that this will be a good year and profitable for those who get involved.
Beware there may be more corrections in the future to market, because that is what occurs in a healthy market But by looking at history I feel confident in that home prices will continue to climb through the not-so-distant future, as we have seen them climb over the past 60 years.