2011 Real Estate Market Update | Sunriver, OR

Sunriver Real Estate Market Summary Information and Update

Simply said, the Sunriver real estate market is rather complex. There is no simple or canned answer for what has happened in the past, what is currently happening, or what will happen moving forward. The market is sliced into between 10 and 20 different mini segments (if not many more), depending upon how general or specific one is looking to get.

Let’s begin with the market as a whole. Homes for sale within Sunriver currently range from just over a million dollars to just under 200k. Of the 176 Single family residences, town homes and condos for sale, somewhere between 75% and 80% are listed below 500k. Meanwhile, homes under 500k account for 88% of the homes currently pended or sold in 2011. Needless to say, the most active end of the market are homes sold for less than 500k. To further support the notion that the more active end of the market is below 500k consider the following… The average square footage of a home currently for sale in Sunriver is 2,040, while the 2011 Sunriver average square footage for a home that has sold or is currently pended is 1,922. The 2011 average price per square foot in Sunriver for pended and sold properties is $179. Based on these statistics, the 2011 average value of a home sold or currently pended within Sunriver is 346k.

At this point, you may be wondering if the most active end of the market is synonymous with the strongest end of the market…

The average price per square foot for Sunriver homes over 500k that were sold or are pended in 2011 was $202. Meanwhile, the average price per square foot for Sunriver homes under 500k that have sold or are pended in 2011 was $176. Typically, a smaller home will command a higher price per square foot because the land the home is built upon factors into the properties overall value. Also, If you are the biggest house in a subdivision and the ratio of smaller homes to bigger homes is slanted heavily in favor of smaller homes, the smaller homes will impact the value of larger homes in a negative way. Obviously that is not currently the case within Sunriver and there are many varibles that help create the paradox.

Confused yet? Let’s look at distressed properties and their affect on the Sunriver Real Estate Market…

As is the case with most real estate markets, short sales and bank owned homes have had a significant impact on the Sunriver market. However, the impact upon Sunriver stemming directly from non-traditional sales has been less than that of other areas of Central Oregon. Let’s use Bend, the largest area as an example. 2011 Bend real estate sales were comprised of just over 50% non-traditional sales (aka short sales and bank owned homes). In contrast, Sunriver real estate sales were comprised of just under 15%. Furthermore, non-traditional active listings represent 23% of active listings in Bend. Whereas non-traditional active listings represent just 8% of active listings in Sunriver.

Certain homes with certain features do have the ability to exist outside of all of the averages and trends, here are a few…

• Sunriver Homes boasting a open or great room floor plan will typically sell for more than homes without the sought after feature.
• Homes in Sunriver for sale boasting a 4th bedroom with relatively small square footage are in short supply and are able to command a small amount more when it comes to sale price.
• Sunriver homes that have been meticulously maintained will typically have a lower days on market statistic to their credit.
• Sunriver homes for sale that have been completely updated or remodeled will command a premium. This is the most glaring trend I’ve noticed of the Sunriver real estate market.

It’s not always all rosy to exist outside of the averages…

Homes near the railroad tracks, near the sewer facility, backing up to S. Century, or near a busy road like Beaver will sell for less than properties outside of those areas and will also experience a higher DOM or days on market. What I’m trying to illustrate with this update is that the Sunriver real estate market is a little like a rabbit hole, no one can be completely sure of where it will lead. What’s certain is that it is imperative to rely upon someone who is aware of the “mini segments” and understands how to interpret them in relation to your specific real estate situation. Additionally, in my opinion it is dangerous to completely rely upon historical knowledge and wisdom. Although history is often times a great predictor of the future, if that is the only variable being considered it can produce disastrous results. Considering today’s real estate market is glaringly different than that of any other time, there is no substitute for a fresh look at your specific real estate situation and how it relates to the current state of the market, anything else is incomplete and likely incorrect.

Please feel free to leave comments below…

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Further Reading… National Housing Market Recovery Predicted Late 2012