HOUSING Year-to-date survey begins another cycle as calendar rolls over to 2015: prices strong Our monthly survey of year-to-date statistics for the Bend area begins its annual cycle with January figures that show prices significantly higher than they were a year ago. Sale numbers were down in comparison with January 2014, continuing a trend that was carried forward from last year. The average sale price registered a 29% gain year over year, bolstered by an 18% increase in dollars per square foot. New construction sales in Bend equaled 27.6% of the total. The inventory of homes listed for sale continues to limit buyer choices. Absorp- tion rates for the Bend residential market translated to a low 2.5 months of inventory, virtually unchanged from 2.7 months at this point a year ago. NorthWest Crossing year-to-date num- bers for one month are too low to draw any lasting conclusions. Construction cycles tied to a sequential release of lot phases tend to show fluctuations that become less severe as data are added throughout the year. Average and median sale prices continue to outpace Bend as a whole by a significant margin. Bend area residential 2015 2014 Gain (loss) (Year to date, except as noted) Active residential listings 2/3/15 444 475 (6.5%) Number of residential sales 116 132 (12.1%) New construction sales 32 32 - Average sale price $404,072 $312,848 29.2%% Average price per sq. ft. $192 $163 17.8% NorthWest Crossing 2015 2014 Gain (loss) (Year to date, except as noted) Active residential listings 2/3/15 26 18 44.4% Number of residential sales 2 7 (71.4%) New construction sales 0 3 - Average sale price $725,000 $509,970 42.2% Average price per sq. ft. $253 $237 6.7% Calculations are based on Central Oregon Multiple Listing Service data. They represent single-family detached homes on less than one acre in the greater Bend area extending from Tumalo to Alfalfa. PROJECTS Nosler expands to new Redmond site Nosler Inc., a nationally-known manufacturer of ammunition, components and rifles, will ex- pand from its base in Bend to a 30,000-sq ft plant to be built in Redmond. The company bought a 60-acre tract of industrial land near Roberts Field for this purpose. Production machinery will come from Nosler’s Bend facil- ity and Silver State Armory in Packwood, Wash., purchased by Nosler in 2013. The Red- mond factory will manufacture brass casings and ammunition, allowing the Bend plant to ex- pand production of bullets. The Redmond plant will em- ploy 20 people and should be complete by the end of 2015. Office/restaurant building scheduled for NWX Construction of a 14,487-sq ft office and restaurant building in the NorthWest Crossing busi- ness district, to be named Trend Offices @ NWX, should take place this year. The two-story building, immediately north of the Mt. Washington Dr./NW Crossing Dr. roundabout, will employ post-and-beam con- struction and floor-to-ceiling windows to provide natural light and mountain views. Plans show office space on the main and upper levels and restaurant space on the ground floor next to an outdoor terrace. Comple- tion is targeted for next January. The Garner Group Real Estate Central Oregon News Digest Compiled by Harcourts The Garner Group Real Estate FEBRUARY 2015 Harcourts The Garner Group Real Estate, 2762 NW Crossing Drive, Suite 100, Bend, OR 97701 541 383-4360 • TheGarnerGroup.com New homes in Hidden Hills neighborhood
Transcript
HOUSING
Year-to-date survey begins another cycleas calendar rolls over to 2015: prices strongOur monthly survey of year-to-date statistics for the Bend area begins its annual cycle with January figures that show prices significantly higher than they were a year ago. Sale numbers were down in comparison with January 2014, continuing a trend that was carried forward from last year. The average sale price registered a 29% gain year over year, bolstered by an 18% increase in dollars per square foot. New construction sales in Bend
equaled 27.6% of the total. The inventory of homes listed for sale continues to limit buyer choices. Absorp-tion rates for the Bend residential market translated to a low 2.5 months of inventory, virtually unchanged from 2.7 months at this point a year ago. NorthWest Crossing year-to-date num-bers for one month are too low to draw any
lasting conclusions. Construction cycles tied to a sequential release of lot phases tend to show fluctuations that become less severe as data are added throughout the year. Average and median sale prices continue to outpace Bend as a whole by a significant margin.
Bend area residential 2015 2014 Gain (loss) (Year to date, except as noted) Active residential listings 2/3/15 444 475 (6.5%) Number of residential sales 116 132 (12.1%) New construction sales 32 32 - Average sale price $404,072 $312,848 29.2%% Average price per sq. ft. $192 $163 17.8%
NorthWest Crossing 2015 2014 Gain (loss) (Year to date, except as noted) Active residential listings 2/3/15 26 18 44.4% Number of residential sales 2 7 (71.4%) New construction sales 0 3 - Average sale price $725,000 $509,970 42.2% Average price per sq. ft. $253 $237 6.7%
Calculations are based on Central Oregon Multiple Listing Service data. They represent single-family detached homes on less than one acre in the greater Bend area extending from Tumalo to Alfalfa.
PROJECTS
Nosler expands to new Redmond siteNosler Inc., a nationally-known manufacturer of ammunition, components and rifles, will ex-pand from its base in Bend to a 30,000-sq ft plant to be built in Redmond. The company bought a 60-acre tract of industrial land near Roberts Field for this purpose. Production machinery will come from Nosler’s Bend facil-ity and Silver State Armory in Packwood, Wash., purchased by Nosler in 2013. The Red-mond factory will manufacture brass casings and ammunition, allowing the Bend plant to ex-pand production of bullets. The Redmond plant will em-ploy 20 people and should be complete by the end of 2015.
Office/restaurant building scheduled for NWXConstruction of a 14,487-sq ft office and restaurant building in the NorthWest Crossing busi-ness district, to be named Trend Offices @ NWX, should take place this year. The two-story building, immediately north of the Mt. Washington Dr./NW Crossing Dr. roundabout, will employ post-and-beam con-struction and floor-to-ceiling windows to provide natural light and mountain views. Plans show office space on the main and upper levels and restaurant space on the ground floor next to an outdoor terrace. Comple-tion is targeted for next January.
The Garner Group Real Estate
Central Oregon News DigestCompiled by Harcourts The Garner Group Real Estate
FEBRUARY 2015
Harcourts The Garner Group Real Estate, 2762 NW Crossing Drive, Suite 100, Bend, OR 97701 541 383-4360 • TheGarnerGroup.com
New homes in Hidden Hills neighborhood
Bend home prices up in JanuaryMonthly figures show Bend area home prices took another jump in January. The median sale price of $340,000 was highest in our rolling 12-month chart and were 18% above January 2014. Average sale prices registered a com-parable increase. NorthWest Crossing median and average sale prices for January moved up sharply, meeting at $725,000. The number of sales that closed in January dropped as a continued inventory shortage and higher prices continue to slow the buying pace. Sale numbers were 13% above January 2014, however. Charts presenting monthly levels for the past year are derived from Central Oregon MLS data and may be viewed on Pages 5 and 6 of this newsletter. Figures represent sales of detached single-family homes on less than one acre in the greater Bend area.
National housing market shows strength at end of 2014; forecasts are optimisticNational housing figures for December, compared with the same month a year before, show gains in all categories except existing home inventories. New single-family home sales rose 11.6% from November and were nearly 9% ahead of December 2013. “This uptick is in line with what our builders are telling us in surveys and on the ground--that they are seeing increased traffic and more serious buyers in the market for single-family homes,” said National Assn. of Home Builders chairman Tom Woods. “After a slow start to 2014 precipitated by bad weather conditions, new home sales have ramped up in the second half of the year,” observed NAHB chief economist David Crowe. “We can expect this momentum to continue into 2015 with the release of pent-up demand, particularly as existing home owners are trading up,” Crowe said. Sales of existing homes bounced back in December and climbed above an annual pace of 5 million for the sixth time in seven months, according to the National Assn. of Realtors. Median home prices for 2014 rose to their highest level since 2007. Single-family home sales increased 3.5% from November to a seasonally adjusted annual rate of 4.47 million in December, 4% above December 2013. “Home sales improved over the summer once inventory increased, prices moderated and economic growth accelerated,” said NAR chief economist Lawrence Yun. “Sales were measurably better in the second half, up 8% compared with the first six months of the year,” Yun declared. December housing starts pushed the seasonally adjusted annual rate for all types of housing above one million for the first time since 2007. The sin-gle-family segment finished the year on a strong note as well. Tables on the next page show national housing figures for December 2014 compared with the previous December and full-year figures for 2014 com-pared with 2013. Figures originate with the U.S. Census Bureau, National Assn. of Home Builders and National Assn. of Realtors. Starts, permits and sales are seasonally-adjusted annual rates.
Medline plans new Redmond facility Medline Industries Inc. plans to purchase 12 acres of in-dustrial land in Redmond and construct a 50,000-sq ft build-ing to replace the company’s existing leased location, also in Redmond. Based in Mundelein, Ill., Medline is described as the largest privately-held manufac-turer and distributor of health care supplies in the U.S. The Redmond branch is the former Medisiss, purchased in 2012.
Fred Meyer hopes for 2017 construction startPlans to build a second Fred Meyer shopping center in Bend are running up against infra-structure problems. The grocery and department store chain is proposing to build a 175,000-sq ft structure and fuel center on 57 acres near Highway 20 and Cooley Road, at the north edge of Bend. At issue are the city’s north end sewer system, currently at capacity, and traffic congestion impacting the near-by beep-and-creep intersection of Highway 97 and Cooley Rd. No long-term solutions to either problem are in sight, so the cur-rent focus is on interim fixes ac-ceptable to the city of Bend and Oregon Department of Trans-portation. Fred Meyer officials are hopeful that groundbreaking can occur in 2017.
Bend Senior Centerexpansion acceleratedBend Park & Recreation Dis-trict directors approved a major expansion of the Bend Senior Center that will combine two phases originally planned. Design work will begin later this
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December 2014 compared with December 2013 12/14 vs 12/13 Dec 2014 Gain (Loss) Housing starts All types 1,089,000 5.3% Single family 728,000 7.9% Building permits All types 1,032,000 1.0% Single family 667,000 8.1% Homes completed All types 927,000 19.6% Single family 667,000 17.4% New home sales Single family 481,000 8.8% Existing home sales All types 5,040,000 3.5% Single family 4,470,000 4.0% Median sale price Existing homes, all types $209,500 6.0% Existing homes, single family $210,200 6.3% New homes, single family $298,100 8.2% Existing home inventory (12/31) 1,850,000 (0.5%) Pending home sales index 100.7 6.1%
Full year 2014 compared with full year 2013 2014 2013 Gain (loss) Housing starts All types 1,005,800 924,900 8.8% Single family 648,000 617.600 4.9% Building permits All types 1,032,900 990,800 4.2% Single family 629,500 620,800 1.4% Homes completed All types 883,000 764,400 3.2% Single family 619,500 569,100 8.8% New home sales Single family 435,000 429,000 1.2% Existing home sales All types 4,930,000 5,09,000 (3.1%) Single family 4,343,000 4,484,000 (3.1%) Median sale price New homes, single family $283,600 $268,900 5.5% Existing homes, all types $208,500 $197,100 5.8% Existing homes, single family $209,000 $197,400 5.9%
year and construction should begin in late 2016 or early 2017. The $16 million project will add nearly 39,000 sq ft to the cur-rent 14,000-sq ft center, which will be remodeled as part of the process.
Medical building on near horizonGetz Properties will build a two-story, 14,500-sq ft medical office building to be named The Janis in the Woodlands Pro-fessional Office Park near St. Charles Medical Center-Bend. Anchor tenant Bend Ophthal-mology LLC will occupy 6,500 sq ft and the balance is avail-able for lease. Groundbreaking should take place this spring.
Care facility work beginsCountry Side Living, based in Canby, Ore., is building a mem-ory care facility in Redmond. Preliminary work is under way on the project, located immedi-ately east of St. Charles Medical Center-Redmond. The Canby facility opened in 1999, employ-ing the philosophy that provides a family-type atmosphere for Alzheimer’s and other dementia patients.
Beer distributor grows in BendBigfoot Beverages will expand its Bend warehouse by 12,299 sq ft to accommodate growth in craft beer distribution. The expansion includes more cold storage and warehouse space and more efficient racking sys-tems. The Eugene-based dis-tributor recently added Ninkasi craft beer in Central Oregon and other parts of the state to a long list of brewing companies represented.
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Crystal ball gazers see housing gains in 2015The National Assn. of Realtors is predicting a banner year for the U.S. housing market in 2015. NAR’s outlook is summarized on the accompanying graphic. It shows substantial gains in home sales, median prices and home values. Home builders are also opti-mistic. “The signs point to a more robust year for housing,” according to National Assn. of Home Build-ers chief economist David Crowe. “Household balance sheets are returning to normal levels, home owners’ equity is increasing and significant pent-up demand is rising. More than 7 million existing home sales were postponed or lost during the downturn, and while some are lost forever, we should see some catch-up,” he said. NAHB expects single-family home production to increase by 26% to 804,000 in 2015. Multi-family starts should rise by 2% to 804,000 units.
MEDIA RECOGNITION
Oxford improves position on listThe Oxford Hotel in Bend ranked sixth among the Top 10 U.S. hotels in TripAdvisor Travelers’ Choice awards for hotels. The luxury boutique hotel in downtown Bend was the only hotel in Oregon to make the list. TripAdvisor, an on-line travel site, develops Top 10 lists in several categories based on reviews and opinions from travelers. The Oxford moved up from No. 10 a year ago.
Local breweries in Oregon’s Top 10Three local craft breweries were represented on a list of Oregon’s Top 10 Craft Breweries and Local Brewpubs compiled by The Culture Trip Ltd., whose culturetrip.com is self-described as a one-stop digital platform for global culture and lifestyle. The Top 10 selected from 185 brewing compa-nies throughout the state included Bend Brewing Co., Crux Fermentation Project and Deschutes Brewery.
Fittest towns: 5th out of 9Bend was 5th on a list of 9 Fittest Towns of the West compiled by Sunset
NEWS ABOUT HARCOURTSTHE GARNER GROUP
Sandy Garner receivesCOBA loyalty awardSandy Garner, president and CEO of Harcourts The Garner Group Real Estate, was chosen by the Central Oregon Builders Assn. to receive the 2014 Gary Bunger Memorial Award for Industry Loyalty. The presentation took place at the association’s Excel-lence Award gala in January. Award recipients were nominated and judged primarily on their involvement in COBA, industry accomplishments and civic activities.
Local Realtors earn2014 sales awardsThree brokers from Harcourts The Garner Group Real Estate in Bend returned from the Harcourts USA Na-tional Conference Feb. 10-11 in Palm Springs, Calif., with awards presented in recognition of sales in 2014. Shelley Griffin was 10th among top producing Realtors throughout the Harcourts USA organization and in addition received a Gold Achievement Award as a measurement of sales performance. Janis Grout and Carol Donohoe were presented with Bronze Achievement Awards. In addition, Harcourts The Garner
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Garner Griffin
Donohoe Grout
magazine. “What’s not to love about a high-desert town with about 300 days a year of sunshine and trails that start conveniently in the center,” the review-er wrote. The list of activities hit the usual high spots--mountain biking, hik-ing, running and climbing, and suggested morning and evening eating spots.
TOURISM
Bend to host XC championshipsBend has been chosen as the host city for the 2016 and 2017 USA Track and Field Cross Country Championships. Events will take place in early February on a course set around River’s Edge Golf Course. “Bend proved to be a wonderful host when the city staged the Club Cross Country Cham-pionships in 2013,” said USATF CEO Max Siegel. “Our athletes had a great experience and we’re happy to introduce Bend to another group of elite athletes who will be competing at an individual level.”
TRANSPORTATION
Airline passenger count sets recordPassenger boardings at Roberts Field in Redmond closed out 2014 with a 7.6% gain over the previous year. The total was 263,614, compared with 244,654 in 2013. Increased airline patronage carried into 2015, with 21,225 departures in January representing a 3.3% increase over January 2014. Departures and arrivals combined set a new record of 524,338 in 2014, up 6.9% from 2013.
Group earned a Gold Office Award for total sales recorded as a Harcourts affiliate during 2014. The conference was attended by an estimated 300 agents and staff members of Harcourts USA franchise companies.
Fourth quarter: fouragents in top bracketFour brokers from Harcourts The Garner Group Real Estate earned their way into recognition among the Top 30 Harcourts USA agents in the fourth quarter of 2014. Shelley Griffin, Melody Lessar, Janis Grout and Alison Garner-Mata were the honorees.
Harcourts USA judgedamong top franchisesHarcourts USA has been listed as one of the Top 200 franchises in the United States for 2015 by Franchise Business Review, an independent national market research firm focused on franchisee satisfaction and per-formance. Harcourts USA is one of eight real estate franchise companies listed. FBN surveyed 28,500 franchi-sees representing over 350 franchise brands to create the 10th annual Guide to Today’s Top Franchises.
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Market WatchCharts on this page and the next provide an overview of sales and price trends in the Bend real estate market. Figures are derived from statistics compiled by Cen-tral Oregon MLS. Bend figures represent single-family homes on less than one acre in the Bend area, extending from Tumalo to Alfalfa. NWX is the abbrevia-tion for NorthWest Crossing. Experienced real estate agents at Har-courts The Garner Group can help buy-ers and sellers interpret home values and market trends. Their knowledge of local real estate markets and market niches provides clients with the insight needed to make informed decisions. These charts may also be viewed on our web site, www.thegarnergroup.harcourtsusa.com, click Market Watch on the navigation bar.
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