One significant indicator that Bend’s housing market is stabilizing can be traced to the pace of builders purchasing already permitted and “shovel ready subdivisions.”
And there is also sales activity in acreage within the urban growth boundary, but not yet ready to build.
A recent, well-researched report by Elon Glucklich in the Bend Bulletin noted that builders or investors acquired 24 subdivisions comprising more than 900 lots in the 2009-2012 period.
The Bulletin reported that 18 of the 24 properties were foreclosures resulting from the market collapse that began in 2007 and has extended for nearly six years.
One of the biggest players among investors has been a group involving Republican Congressman Gary Miller of California, along with Harry Crowell, a builder from the state. Under the umbrella of Long Term Bend Investors LLC the group has spent about $6 million on up to 400 lots, according to the Bulletin.
Rep. Miller, who represents the California 31st Congressional District including San Bernadino, is vice chairman of the House Financial Services Committee, and has a track record in developing planned communities.
Among the LLC’s subdivision acquisitions, their location within Bend and the year bought are:
· Rimrock Riders, northwest, bought from Liberty Bank, 2009;
· Gleneden, southwest, from Premier West Bank, 2011;
· Laurel Springs, south, from Darren Kelleher, 2012;
· South Deerfield Park, south, from Sheldon Development;
· Crosswinds, east-Hwy 20, from Liberty Bank, 2009; and
· Mirada, northeast, from Edge Vertical Development Corp., 2009.
Other subdivision investors in recent years with multiple purchases were Castle Partners, LP, of Hood River and buyers Richard and Jelinda Carpenter who joined Compass Commercial broker Bruce Kemp.
One of the notable purchases reported by the Bulletin was Vancouver, BC investor Ender Milkay’s acquisition of about 100 lots in McCall Landing in northeast Bend for $1.6 million. Milkay and Bend’s Pahlisch Homes have teamed to begin building on more than a dozen of the project’s lots.
The City of Bend has estimated that about 2,800 lots were available for development in Bend in early 2013, with approximately 700 of those scheduled for construction this summer.
During the last decade about 330 subdivisions were recorded but few have been filed since 2010.
The Bulletin reported that the Central Oregon Builder’s Association estimates there were approximately 3,500 lots on the books in 2010.
Among the largest of the opportunities is 41 lots, ranging from 4,000 to 11,000 square feet in Phases 2 and 3 of the Holiday Park subdivision a few blocks north of St. Charles Medical Center. At a listing price of $3,485,000, those average lot prices of $85,000 would be a substantial premium to other subdivisions such as McCall Landing that sold for an average $16,000 per lot.
Among other residential development properties in the MLS database in late January were:
- Vail Lane; a 4.70 acre 58-unit planned townhome subdivision listed for $1,625,000, or $28,017 per potential unit.
- Painted Ridge Loop in Broken Top; 0.76 acres permitted for eight townhome units in the established gated golf community; listed at $885,000, or $110,625 per unit.
- Awbrey Point Circle; 0.710 acres zoned residential mutifamily with potential for eight townhomes; listed at $402,000, or $50,250.
Zoned multi-family with potential of up to 26 units, the parcel adjacent to a community park sold for $520,000 in November of 2009, or an average $19,307 per unit.
For individual “retail” buyers seeking a lot to build a custom home sales have ranged in 2012 from less than $20,000 in some subdivisions to the $300,000 to low $500,000s range in gated communities with larger lots, mountain views and golf courses or other amenities.
In at least several cases, bare lots that garnered more than $1,000,000 in some gated communities during the boom sold as short sales or foreclosures for less than $250,000 in 2012.
Following is a statistical report for sales in established Bend-area gated communities showing a median sales price of $150,000. Not included is the Pronghorn golf resort, where there have been lot sales below $10,000, although buyers must commit to the resorts club membership valued at $115,000.
In at least several cases, bare lots that garnered more than $1,000,000 in some gated communities during the boom sold as short sales or foreclosures for less than $250,000 in 2012.
Following is a statistical report for sales in established Bend-area gated communities showing a median sales price of $150,000. Not included is the Pronghorn golf resort, where there have been lot sales below $10,000, although buyers must commit to the resorts club membership valued at $115,000.
Property Type Land Include Property Subtypes Lots 1 acre or more, Lots/Land to 1 acre Areas Sunriver, Crook County, Jefferson County, La Pine, Three Rivers South, Bend/Tumalo/Alfalfa, Redmond/Terrebonne, Sisters Additions exact: Awbrey Glen,Bend Golf Club,Brasada Ranch,Sunset View Estates,Pronghorn,River Bend Estate,Ranch at the Canyons,Bbr,Tetherow,The Highlands at Broken Top,Caldera Springs,Crosswater,Vandevert Ranch Status Sold (1/1/2012 to 12/31/2012) Price 100,000 or more
Active: 0
|
Pending: 0
|
Sold: 61
|
Other: 0
|
Total: 61
|
Bedrooms
|
Bathrooms
|
Square Feet
|
List Price
|
Selling Price
|
DOM/CDOM
| |
Minimum
|
0
|
0.00
|
0
|
$109,000
|
$100,000
|
0/0
|
Average
|
0
|
0.00
|
0
|
$212,902
|
$191,431
|
247/302
|
Median
|
0
|
0.00
|
0
|
$175,000
|
$150,000
|
146/154
|
Maximum
|
0
|
0.00
|
0
|
$599,900
|
$523,761
|
1614/1960
|
Total Dollar Value
|
$11,677,261
|
Average DOM Breakdown and Average % of Listing Price received on Solds by Market time:
| |
0-30 Days
|
31-60 Days
|
61-90 Days
|
91-120 Days
|
120+ Days
| |
No. of Listings
|
14
|
8
|
2
|
3
|
34
|
Breakdown %
|
22.95
|
13.11
|
3.28
|
4.92
|
55.74
|
Avg SP % LP
|
99.46
|
80.89
|
100.00
|
80.40
|
88.00
|
Average CDOM Breakdown and Average % of Listing Price received on Solds by Market time:
| |
0-30 Days
|
31-60 Days
|
61-90 Days
|
91-120 Days
|
120+ Days
| |
No. of Listings
|
13
|
8
|
2
|
3
|
35
|
Breakdown %
|
21.31
|
13.11
|
3.28
|
4.92
|
57.38
|
Avg SP % LP
|
99.41
|
80.89
|
100.00
|
80.40
|
88.35
|
