Bend Single Family Home Prices Have Grown
Over the past 8 years, the sales price of a Bend single family home has grown by 129%. The average sales price at the end of 2010 was $223,000 and $510,000 the end of 2018. During the same time period, the average active price of a Bend single family home has gone up 91% from $373,000 in 2010 to $711,000 the end of 2018.*
This growth in the price of a Bend home has led to an affordable housing crisis with the average Bend family questioning whether or not they can afford to purchase a single family home in Bend; for many the answer is no.
How Much Home Can a Bend Family Purchase in 2019?
According to Deschutes County records, the median annual Bend household income in 2018 was $67,727. Chris Raven with Fairway Mortgage has told us that mortgage lenders utilize a figure of 50% of gross income to determine what housing costs should be. A normal $100,000 home should cost about $600 per month. Given the median monthly household income of $2821, your typical Bend family should be able to afford a home costing $470,000. However, this assumes no debt for the buyers. How many Bend residents have no car loans, student loans, or credit card debt? All these financial obligations have to be taken into account when a lender provides an estimate of what a buyer can afford. Plus there is also that important factor of down payment. Some loan programs such as FHA will lend with as little as 3% down, but most conventional loans require 10 to 20% down payment. For a typical Bend family earning $68,000 a year, being able to save $47,000 for a 10% down payment will take a lot of discipline and time and may be out of reach for many.
What Are the Options for a Bend Family?
Most mortgage lenders appreciate the opportunity to work with first time homebuyers. Often they can determine strategies ( i.e. eliminate of certain debt such as paying credit cards off) to make these potential homeowners able to qualify for a long term loan. There are other loan programs which may work as well through credit unions, the VA, portfolio lending and more. But for those who, despite their best efforts, find Bend too expensive, other cities and communities such as Three Rivers South, La Pine, Redmond, Prineville and Madras may provide homes at a price that will work within the family's budget.
*Data from Central Oregon MLS.
Leave a Comment
The content relating to real estate for sale on this website comes in part from the MLS of Central Oregon. Real Estate listings held by Brokerages other than Bend Premier Real Estate are marked with the Reciprocity/IDX logo, and detailed information about these properties includes the name of the listing Brokerage. © MLS of Central Oregon (MLSCO).
This content last updated on January 29th, 2020 at 12:44pm PST. Some properties which appear for sale on this website may subsequently have sold or may no longer be available.
All information provided is deemed reliable but is not guaranteed and should be independently verified.
All content displayed on this website is restricted to personal, non-commercial use, and only for ascertaining information regarding real property for sale. The consumer will not copy, retransmit nor redistribute any of the content from this website. The consumer is reminded that all listing content provided by automatic transmission by MLSCO is © MLS of Central Oregon (MLSCO).