Some interesting trends were called out by real estate expert Michael P. Hedden in a recent article on National Real Estate Investor’s site. In the piece, Hedden identifies some national economic trends that are affecting the real estate market, both on the commercial and residential side. It is enlightening to look at what’s happening in today’s marketplace from a broader viewpoint. Some of the factors he talks about surrounding the residential marketplace are things we’ve also seen here in the Bend, Oregon real estate market. For example, the evolving needs of the Boomers and Millennials are reshaping demand with trends such as:
- Older generations’ need to age in place with flexible living options
- The younger Millennials burdensome debt and lower than expected income
- Competition between generations for the same housing type
In addition, the nation is seeing a drive toward high density housing and mixed-use developments, similar to our home ‘hood of NorthWest Crossing. Some of the reasons this concept is gaining popularity is transportation options, walkability and work-live-play opportunities. Hedden says that suburbs are increasingly pressured in turn to similarly “urbanize” to meet this market demand. As reported in our August eNews Digest, we see the strength of this kind of development in the numbers. New and existing NorthWest Crossing homes continue to demonstrate value with the number of sales and average sale price for the year-to-date period exceeding last year by 5.1% and 5.9%, respectively. The average YTD sale price in 2016 is 48% above Bend as a whole.
We know that people won’t stop making their home in Central Oregon – the amenities that we all love aren’t going anywhere: spectacular beauty; easy access to year-round recreation; great place to raise a family or retire; dogs, beer, bikes…you get the picture. As the fastest growing region in Oregon, and one of the fastest in the nation, we don’t exactly follow trends on a national scale. However, national and global movements definitely affect the marketplace as a whole and we should make sure to educate ourselves – as realtors, buyers, sellers and even renters – on what’s going on outside our own communities and how it may affect us.
For the complete article, go here: http://nreionline.com/finance-investment/how-broad-economic-trends-are-affecting-us-real-estate