Kelly Winch, Broker

Lets get straight to the million dollar question; "How is the Central Oregon real estate market doing?" Well, that is a good question and the answer is...it depends. It depends on whether you are looking to buy or sell and what part of Central Oregon you are referring to.

If you are looking to buy property in Central Oregon you are in luck. 2008 is one the best buyers markets we have seen in a very long time. Total sales volume and the total number of sales are down significantly across Central Oregon from the peak years of 2005/06. That is good news for buyers; inventories remain high and there is a great selection of homes for sale in all price categories. Inventory levels for Central Oregon as of June 6, 2008 range between 16 and 23 months depending on location. Add low interest rates to the mix and the fact that many sellers and developers are willing to negotiate and you have a great opportunity to find the right home at the right price.

The average sales price for homes across the region are also down significantly from 2006/07 peak levels and in many cases continue to fall. Through the first quarter of 2008 average sales prices were down an average of 10.26% compared to the first quarter of 2007. The exceptions are the Sunriver and Three Rivers South markets which recorded quarter over quarter price increases for the same time period. According to 2007 Multiple Listing Service data, Sunriver also had the highest Average Sales Price and the lowest Average Days on Market in Central Oregon for 2007. Unlike the Bend, Redmond and La Pine markets, Sunriver is a resort community and predominantly a second home market. The Three Rivers South market encompasses everything in between Sunriver and La Pine to the south.

Of course there is always a flip side to high inventory levels and falling prices. If you are looking to sell property in Central Oregon, these market conditions create more of a challenge. The average number of days it takes to sell a property has been steadily increasing over the last several years. For example, in Bend the average days on market has increased from 120 days in 2005 to 185 days in the first quarter of 2008. This trend is similar across all of Central Oregon. The most important thing to remember is to make sure your property is priced in accordance with the market.

Check out the latest market statistics at Central Oregon Association for realtors for the 1^st quarter of 2008.

As always I am readily available to answer your real estate questions in Central Oregon.

How can I make sure a home is in compliance with all SROA CC&R's before buying a property?

Make sure your agent requests that any offer is contingent on an SROA inspection of the property. Additional info is available at the SROA website

A special SROA Inspection Addendum should be included with any offer to buy Sunriver property.

How is this market affecting Sunriver?

Like the rest of Central Oregon, Sunriver is being affected by the market slowdown. However when compared to the Bend, Redmond and the La Pine markets, Sunriver home prices are still going strong.

Despite the fact that sales volume and the number of sales transactions were down considerably in the first quarter of 2008, Sunriver still maintained year over year gains in median sales prices. According to 2007 MLS data Sunriver also had the highest Average Sales Price and the lowest Average Days on Market in Central Oregon for 2007.

Sunriver is predominantly a second home market so it is not affected in the same way as other markets.

As promised another section in my blog regarding owning a vacation rental. We left off with a question regairding property management companies and their fees.

Another option is the Independent Owners Program

Q Can I rent the property myself? How?

A - You can market the property (VRBO.com, Craigslist.net) and manage reservations yourself and then hire you own maid and handyman to clean and maintain the property for you. This scenario may NET you the most but may be more problematic unless you live close by and have a reliable maid/handyman i.e. what happens when the furnace breaks at midnight?

Another option is to hire a property management company to manage the check in check out process, housekeeping, and maintenance for a fixed fee and you manage the marketing and reservation part of the business. This scenario might ensure a higher level of service, more peace of mind AND save you money.

RE/MAX Sunset Realty does offer this service (Independent Owners Program). It costs $75 per month plus maids fees and whatever maintenance fees are incurred.

We all know Central Oregon is associated with skiing, fishing, hiking and various other outdoor activities. Many people may not be aware that Central Oregon is a great place to play tennis. With the summer approaching the tennis nets are being put up all over Sunriver ~ Yippie. After spending the winter playing indoors at Sage Springs and the Bend Athletic Club, I can't wait to play outside.

Beginning June 15^th outdoor clinics will be held at the Sunriver Resorts courts every day. So plan on packing that tennis racquet when you come to Central Oregon this summer.

There are two tennis tournaments scheduled in Sunriver this summer. A Jr. Tournament June 20 - 22 and a Senior Tournament August 20 - 24. For more information on both you may go the Sunriver Home Owners Website or USTA.

See you on the courts ~ and watch out for my forehand!