central oregon news digest - harcourts the garner group real estate

Harcourts The Garner Group earns multiple sales awardsAgents of Harcourts The Garner Group Real Estate in Bend earned 12 awards from Harcourts USA for superior performance during the third quarter of 2014. In addition, the locally-owned real estate agency won a Platinum Award for outstanding performance as a company. Awards were presented recently at the Harcourts USA fall conference in Carlsbad, Calif. Shelley Griffin, broker (top right), received awards as No. 4 sales consultant and No. 2 listing agent among all Harcourts USA offices, plus a Platinum Award for sales performance. Broker Carol Donohoe (bottom right) won a Gold Award and a Top 20 award for placing 19th in sales. Other quarterly award recipients were: Rob Davis, Gold; Janis Grout, Silver; and Alison Garner-Mata, Sean Haidet, Suzanne Iselin, Lauri Miller and Angela Tweedie, Bronze. This was the first full quarter for measurement of sales performance since Harcourts The Garner Group became affiliated with the global Harcourts organization in June. Over 780 offices worldwide display the Harcourts brand, including 21 offices in California, Nevada and Oregon. “We were competing against Southern California agencies with listing portfolios of multi-million dollar homes,” observed Sandy Garner, president and CEO of Harcourts The Garner Group. “I’m really proud of the way our Bend agents compare with those in other markets.”

BEER

Multinational brewer acquires 10 BarrelBrewing giant Anheuser-Busch has purchased Bend’s 10 Barrel Brewing Co. Anheuser-Busch is a subsidiary of Belgium-based Anheuser-Busch InBev, the world’s largest brewer and proprietor of many familiar mass market brands. News of the move reverberat-ed through the local craft beer community. Founders Jeremy and Chris Cox and Garrett Wales will continue to lead the eight-year-old company and declare it will operate autono-mously. The Oregon Liquor Control Commission lists 10 Barrel as the fourth largest brewery in the state, measuring taxable barrels sold in Oregon through August. (Distribution elsewhere is not measured by the state.) The company expects to sell about 40,000 barrels this year. The purchase includes the production brewery on NE 18th St. in Bend, a popular brew-pub on NW Galveston Ave., a brewpub in Boise and another under construction in Portland’s Pearl District. The transaction is expected to close by the end of 2014. 10 Barrel will be part of an An-heuser-Busch craft beer portfo-lio that so far includes breweries in Chicago and Patchogue, N.Y. and a financial interest in Port-land-based Craft Brew Alliance, a merger of Widmer Brothers Brewing, Redhook Ale Brewery and Kona Brewing Co.

Central Oregon News DigestCompiled by Harcourts The Garner Group Real Estate

NOVEMBER 2014

Harcourts The Garner Group Real Estate, 2762 NW Crossing Drive, Suite 100, Bend, OR 97701 541 383-4360 • thegarnergroup.harcourtsusa.com

HOUSING

New home sales, pricesreflected in YTD statisticsYear-to-date statistics show the Bend housing market to be leveling off to a degree in comparison with the same point last year. New construction sales and average sale prices are holding the high ground with respective increas-es of 6.4% and 9.3% while the number of residential sales lags behind 2013 by 1.5%. New construction sales represent 22.6% of total YTD residential sales. At this point last year the proportion was 20.9%. The number of active listings as of Nov. 4 was about the same as last year When balanced against the rate of sales, it translates to 2.2 months of inventory. At the comparable time last year the rate was 2.5 months. This continues to limit buyer choices and thus inhibits sales. By comparison, the national inventory of homes stands at 5.3 months. The average sale price in NorthWest Crossing year to date exceeded last year’s figure by 13%. (See table on next page.)

Bend area residential 2014 2013 Gain (loss) (Year to date, except as noted) Active residential listings 11/4/14 564 565 (0.2%) Number of residential sales 1909 1939 (1.5%) New construction sales 431 405 6.4% Average sale price $346,391 $316,839 9.3% Average price per sq. ft. $176 $158 11.4%

NorthWest Crossing 2014 2013 Gain (loss) (Year to date, except as noted) Active residential listings 11/4/14 18 22 (18.2%) Number of residential sales 78 98 (20.4%) New construction sales 34 38 (10.5%) Average sale price $ 530,058 $468,250 13.2% Average price per sq. ft. $249 $230 8.3%

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.

Monthly view: Bend prices recoveringStatistics for the month of October show Bend housing prices moving up again, regaining much of the ground lost during a brief dip in Septem-ber The median sale price for a single-family home on a conventional lot was $318,000, a gain of 20.4% over October 2013. The average price of $391,000 registered a similar gain at 19.6% above the same month a year ago. Both reached a high point in August. The number of sales rebounded 6.5% from September, reversing three consecutive declining months, and is roughly comparable to last April. Charts describing these and other data may be seen on Pages 6-7.

Market strong at three-quarter mark Cumulative statistics at the end of three quarters compiled by the Central Oregon Multiple Listing Service show overall continued gains in property val-ues as measured by the dollar volume of sales and median sale prices (see table on following page). Bend home sales produced 7% more volume over the nine-month peri-od than was the case in 2013. The number of sales inched downward by a fraction over 1%. Median sale prices in this category were 7.7% above 2013 at the end of the third quarter. The Redmond market continues to strengthen. Total sales in the first nine month were 16% ahead of last year, dollar volume was 31% higher and the median sale price was up 15%. Sales during the first three quarters of 2014 in all localities and real estate categories covered by Central Oregon MLS were counted at 5,222, a gain of 2.5% over 2013. Sold volume was up 13.4% to $1.45 billion and the median sale amount increased 11.8% to $225,250.

Bend ranks 4th in national beer pollBend ranked No. 4 on a national Best Beer Town readers’ choice list compiled by 10Best and USA Today. “When it comes to Beer, it’s Portland’s little sis-ter,” wrote beer journalist Tara Nurin. “Lots of early and strong breweries doing innovative stuff and a hefty beer culture.” Grand Rapids, Mich., topped the list; Portland came in eighth.

‘Small beer cities’ singled out for attentionBend appears on an alpha-betical list of Nine Small Beer Cities That Deserve National Attention compiled by Thrillist.com, an on-line food, drink and travel site. Long a destination for outdoor sports, Bend “also has one of the most booming brewing scenes for a small city in the country,” author Andy Kryza declared. “Big dogs like Deschutes, 10 Barrel and Boneyard (bring) attention to the smaller operations that have turned the place into a beer destination,” he wrote.

Top ski town brewpublocated...where else?Boneyard Brewing of Bend headed a list of The Best Ski Town Brewpubs compiled by Outside magazine as “our top pick, beer-for-beer.” Noting that Bend stocks more than a dozen breweries in a town of 80,000 people, writer Frederick Reimers recommended visiting Deschutes Brewery after Bone-yard’s 6 p.m. closing time.

Local beers score highFour locally-brewed beers were included on a Top 250 list of

Central Oregon News Digest

Harcourts The Garner Group Real Estate • 541 383-4360 • thegarnergroup.harcourtsusa.com

Residential Sales, First Nine Months 2014 vs. 2013 2014 2013 Gain (loss) Bend Sales volume Homes on lots $578,400,846 $540,424,414 7.0% Homes on ac. $105,889,999 $105,605,916 0.3% Townhome/Condo $56,943,380 $40,093,971 42.0% Total $741,234,225 $686,124,301 8.0%

Sales Homes on lots 1,686 1,707 (1.2%) Homes on ac. 201 231 (13.0) Townhome/Condo 196 154 27.3% Total 2,083 2,092 (0.4%)

Median Sale Price Homes on lots $289,100 $268,500 7.7% Homes on ac. $451,000 $399,000 13.0% Townhome/Condo $259,250 $217,500 19.2%

Redmond Sales Volume Homes on lots $131,001,499 $99,986,565 31.0% Homes on ac. $27,504,150 $29,186,632 (17.2%) Townhome/Condo $8,676,750 $7,046,750 23.1% Total $167,182,399 $136,219,947 22.7%

Sales Homes on lots 600 516 16.3% Homes on ac. 75 82 (8.5%) Townhome/Condo 44 42 4.8% Total 719 640 12.3%

Median Sale Price Homes on lots $197,000 $171,050 15.2% Homes on ac. $332,000 $331,950 (0.0)% Townhome/Condo $199,250 $176,250 13.0%

New construction to increase across USSingle-family home production in the United States is expected to rise 2.5% this year to 637,000 units, increase an additional 26% next year to 802,000 and reach 1.1 million in 2016. This was the takeaway from the National Assn. of Home Builders 2014 Fall Construction Forecast Webinar Oct. 30. Single-family starts are expected to reach 90% of normal by the fourth quarter of 2016, said chief economist David Crowe. Normal is defined by the benchmark period of 2000-2003 when single-family production averaged 1.3 million units annually. Mark Zandi, chief economist at Moody’s Analytics, was more optimistic,

survey favorites compiled by BeerAdvocate.com. They are The Abyss by Deschutes Brew-ery (49th) and three Boneyard Beer Co. products--Notorious Triple IPA (95th), Hop Venom Double IPA (116th) and RPM IPA (233rd). The Abyss scored first on a companion list of 100 Oregon beers that included 24 labels by six Bend breweries.

Local breweriesbring home medalsThree Bend craft breweries won awards recently at the 28th an-nual Great American Beer Festi-val in Denver: 10 Barrel Brewing Co. one gold and two bronze medals; Bend Brewing Co., one gold medal; and Deschutes Brewery, one bronze medal. 10 Barrel was in a four-way tie for most medals won. The festival, organized by the Brewers Assn., attracted 710 breweries and 49,000 attendees; 234 brewer-ies won medals.

OTHER MEDIA KUDOS

Bend residents balancedon lifestyle issues Livability.com has placed Bend in the No. 2 spot on a list of 10 Best Cities for Centrists. The national web site develops lists of various criteria focusing on lifestyle issues in small to medium sized cities. The on-line journal points to the dichoto-my between a traditional voter preference for Republican can-didates and liberal views on en-vironment, health care and civil rights. Bend residents are likely to drive a Subaru, shop at REI, watch The Bachelorette and read Good Housekeeping, says the web site. Spokane Valley, Wash., topped the centrist list.

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declaring single-family starts could be closing in on one million units by the end of 2015. Multi-family production could go as high as 500,000 units. NAHB is forecasting 991,000 total housing starts in 2014, up 6.6% from 930,000 units last year. Multi-family starts are projected to increase 15% in 2014 to 356,000 units and hold steady next year, Crowe said. Zandi said annualized starts of one million units fall short of long-term needs. “In a normal year, there should be demand for 1.7 units,” he said. Increasing the housing stock by 700,000 units to meet this demand would create 2.1 million jobs, which Zandi said would reduce unemployment by 1.5 percentage points. Zandi predicted mortgage interest rates should reach an equilibrium of 6% by the end of 2017. “The housing market will be fine because of better employment, higher wages and solid economic growth, which will trump the effect of higher mortgage rates,” he said.

New homes lead national market statsNational housing statistics for September show mixed but generally robust market conditions. Single-family starts and new home sales were above the same month a year ago by double-digit percentage margins. Total starts passed the million mark for the third time this year, rising 6.3% over August to a seasonally-adjusted annual rate of 1.017 million units. Sin-gle-family starts were 1.1% above August. “September’s uptick reveals that (the August) dip in production was more of an anomaly than a market reversal,” commented National Assn. of Home Builders chief economist David Crowe. “I expect we will see a continued recovery as job creation grows and consumers gain more confidence in the housing market.” Existing-home sales bounced back in September to their highest annual pace of the year, according to the National Assn. of Realtors. Total sales increased 2.4% over August. Single-family home sales in September were 2.0% above the August level.

9/14 vs 9/13 Sept 2014 Gain (loss) Housing starts, all types 1,017,000 17.8% Housing starts, single family 646,000 11.0% Building permits, all types 1,018,000 17.8% Building permits, single family 624,000 1.1% New home sales, single family 467,000 17.0% Existing home sales, all types 5,170,000 (1.7%) Existing home sales, single family 4,560,000 (1.9%) Existing home median sale price, all types $209,700 5.6% Existing home median sale price, single family $210,300 5.9% New home median sale price, single family $259,000 (4.0%) Existing home inventory (9/31) 2,300,000 6.0% Pending home sales index 105.0 1.0%

Local firms among best work placesOutside magazine included three Bend companies on its seventh annual Best Places to Work list in the November issue. “The 100 amazing companies on the 2014 list made it through a year-long vetting process overseen by our independent research partner, Best Compa-nies Group. They come in many forms, but they all agree that the secret to success is empow-ering employees to live bigger, better lives,” wrote Nick David-son. The local winners: No. 56, G5 Search Market-ing Inc., property management software, 150 employees. No. 75, Hydro Flask, vacuum insulated stainless steel bottles, 31 employees. No. 88, Deschutes Brewery, craft brewery and brewpub, 442 employees.

Readers pick Brasada Ranch as best in NWBrasada Ranch Resort in Powell Butte was named Best Resort in the Pacific Northwest by readers of Condé Nast Traveler. The list, among a plethora of 2014 Readers’ Choice Awards, calculates a variety of factors to determine a final score. Brasa-da’s total of 91.758 made it the only Central Oregon resort on the list. Others nearby were Running Y Ranch near Klamath Falls, No. 5 at 86.310, and Tim-berline Lodge, No. 8 at 84.405.

PROJECTS

Madras arts center nears completionMadras High School’s $11.3 million performing arts center is scheduled to open Dec. 1.



Median sale prices for single-family and all types were above September 2013 by 5.9% and 5.6%, respectively. “Traditional buyers are entering a less competitive market with fewer in-vestors searching for available homes,” said NAR chief economist Lawrence Yun. “Moderating price growth and sustained inventory levels are keeping conditions favorable for buyers.” Figures originate with the U.S. Census Bureau, National Assn. of Home Builders and National Assn. of Realtors. Starts, permits and sales are sea-sonally-adjusted annual rates for September 2014 compared with the same for 2013.ECONOMY

Commercial occupancy on the riseBend’s commercial real estate market closed out a busy third quarter with lower vacancy rates in all sectors compared with the previous quarter. Com-pass Points, the quarterly newsletter published by Compass Commercial Real Estate Services, called this “a great comeback story” and noted that all markets surveyed (retail, office and industrial) experienced positive ab-sorption and decreased vacancy. “This speaks volumes about the economic picture in Central Oregon.” Excerpts: Office space: The citywide vacancy rate was 11.44% at the end of the second quarter and inched down to 11.37% in the third quarter. This was the tenth consecutive drop in the citywide office vacancy and the lowest rate since first quarter 2008. Retail space: The citywide vacancy dropped slightly from 8.58% in Q2 to 8.05% in Q3. Market conditions continue to improve overall in terms of absorption and increased lease rates. Strongest submarkets were north and south Highway 97 corridors. Downtown’s third quarter vacancy rate showed the best occupancy at 2.41%. Industrial space: The citywide industrial vacancy rate dropped to 7.96% from 8.23%. “This is the lowest vacancy rate we have experienced in years. We are now in a range that we consider normal and healthy for our market.” Redmond industrial: Vacancy rate dropped from 18.30% to 15.85% during the quarter. “This is a significant statistic, as the last time the vacancy rate was below 20% was the fourth quarter of 2007.”

Improved economy forecastSpeakers at the Bend Chamber of Commerce Vision 2015 Economic Fore-cast Breakfast in late October sounded an optimistic note. Economist Tim Duy and portfolio manager Mark Kralj outlined reasons why. Duy is a University of Oregon professor and senior director of the Oregon Economic Forum and Kralj is a principal at Ferguson Wellman Capital Man-agement. Central Oregon has been adding more jobs than other cities across the state with the greatest improvements in professional and business services, Duy said. The region is starting to diversify away from construction and

The 34,000-sq ft, 600-seat auditorium, funded through a 2012 bond measure, features energy-efficient lighting, heating and cooling. Drama and music performances heretofore have taken place in the school gym-nasium. The center will serve as a venue for other communi-ty-based performances as well as high school events.

Affordable apartments going up in BendHousing Works has begun construction of Eastlake Village Phase 2, a 40-unit affordable apartment complex in east Bend. Completion is scheduled for next spring. The new apart-ments are adjacent to another 40 units in Phase 1. Income re-strictions apply. Housing Works received tax credits worth $7.5 million from Oregon Housing and Community Services to build the project.

PUBLIC LAND

School district to selldowntown parcelTroy Field has been declared surplus property by the Bend-La Pine School Board and will be offered for sale. The turfed parcel faces NW Bond St., ca-ter-cornered from the district’s administration building south of the downtown district. Proceeds from the sale will be used to offset future district expens-es as enrollment continues to increase.

State plans to sellRedmond subdivisionThe Department of State Lands is planning to sell the 36-acre Forked Horn Butte residential subdivision near Ridgeview



holiday/leisure employment, adding jobs in other sectors including the tech industry. Inflation in the U.S. remains well below the 2% federal target and the econ-omy continues to grow, Kralj said. Both speakers said interest rates should begin to rise in June 2015.

Local job picture improvesDeschutes County job growth in September outpaced all other Oregon counties with employment levels up 5.4% from the year before, according to an Oregon Employment Dept. report issued Oct. 20. The seasonally-adjusted unemployment rate moved downward to 7.9% from 8.1% in August. The rate was 9.1% a year ago. The statewide rate is 7.1%. Deschutes County employers added 3,500 more jobs in September com-pared with the same month a year ago, an increase of 5.4%. Construction, professional and tourism-related numbers were significantly higher than last year, according to the report. Schools added 240 jobs since the start of the 2013 school year. Crook and Jefferson posted September unemployment rates of 10.1% and 9.3%, respectively.

Conference helps fund startupsInvestment funds totaling a record of $940,000 were presented at the 11th annual Bend Venture Conference in October. Eleven startup companies par-ticipated in the finals. Winners highlighted on the organizer’s web site were: Amplion Research Inc., Bend, $250,000 from Bend Venture Conference as winner of the launch-stage category plus $150,000 from Seven Peaks Ven-tures. Poachedjobs.com, Portland, $100,000 from Bend Venture Conference. Bright.md, Portland, $100,000 from Seven Peaks Ventures. CrowdStreet Inc., Portland, $100,000 from Seven Peaks Ventures, $50,000 Fire Starter Marketing Program award from Mandala. Volcano Veggies, Bend, $10,000 BendBroadband Concept Stage award and $1,500 Palo Alto Software LivePlan award. Cairn, Bend, $15,000 Fire Starter Marketing Program award from Mandala.COMPANIESSmolich Motors Inc. has sold its Hyundai franchise in Bend to the Eugene-based JKC Automotive Inc., owner of dealerships in the Willamette Valley, Southern California and the Kia dealership in Bend.

Logan’s Market and TrueValue Hardware will move into the 42,000-sq ft space vacated by Ray’s Food Place in Redmond’s Nolan Town Center. The new retail operation should open in December.

Big Country RV Inc. is building a 10,800-sq ft service and parts center on Highway 97 in south Red-mond at a cost of nearly $1 million. It will replace a shop facility at the north end of the city.

Atlas Hard Cider Co. has leased an 1,800-sq ft suite in the Old Mill Marketplace as the will open a tasting room. Cider production will move from SE Wilson Ave.

Rack Room Shoes, based in Charlotte, N.C., will open an outlet in the Bend Factory Stores complex. Rack Room has nearly 400 stores in 32 states, including four others in Oregon.

High School in southwest Redmond. The state acquired the unfinished parcel in 2009 in a land swap for 620 acres of forest land in Lane County. There are 63 developed lots on 17 acres and another 19 acres of bare land.

EDUCATION

Bilingual charter school proposed for BendThe proposed Bend Interna-tional School has received a three-year U.S. Department of Education Federal Charter Schools Grant of $700,000 to help with start-up costs. The Bend-La Pine School District is considering a request to es-tablish the K-8 charter school which would focus on Spanish language immersion, world studies and diversity promotion. The charter school application was submitted to the school board in September. Organizers are hoping to open the school in the fall of 2015.

TOURISM

COVA moving info centerto Village at SunriverCentral Oregon Visitors Assn. will move from Bend to a new information center at the Village at Sunriver. The 2,000-sq ft space will open in December. COVA currently shares space with Economic Development for Central Oregon. Visit Bend will continue to provide tourist information services in Bend.

Bachelor opening setDepending on the amount of snow available, Mount Bachelor plans to open for the 57th win-ter season on Nov. 26. Activities will center on West Village.



Market WatchCharts on this page and the next provide an overview of sales and price trends in the Bend real estate mar-ket. Figures are derived from statistics compiled by Central 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 abbreviation for NorthWest Crossing. Experienced real estate agents at Harcourts The Garner Group can help buyers 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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Bend Area Residential, No. of Homes Sold



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