The traditional definition of a balanced market is when there is a 6 month of supply of housing inventory. Less than 6 months represents a Seller’s market and more than 6 months, a Buyer’s market.
Our supply of homes has been dropping every month since July 2011. The month of July, 2011 began with approximately 640 homes which was the highest available all year. Roughly 114 homes sold in July, which represented 5.6 months of supply. By January 1, 2012 there were only 456 homes available in Bend and 228 were sold, which calculated to a 2 month supply. Under $300,000, there is less than one month supply of inventory. Consequently, there are multiple offers and disappointed buyers. However, this hasn’t translated into increased sale prices, as of yet. In fact, average sale price has been running pretty flat for several months. We believe the prices haven’t increased as we still have quite a few distressed properties that are holding prices down. In fact, there is good news on that front too, as Notices of Default (the first step towards a foreclosure) are down considerably with only 95 recorded in January, the lowest single month since January 2008.
This information coupled with near record low interest makes it a good time to buy and a good time to sell.