Only
a couple of years ago Obsidian Heights as it’s known was a dusty, weed-choked
stalled subdivision complete with streets, curbs and other infrastructure--but waiting
for any sign of a market pulse.
Now
the community on the east side of busy NE 27th Street just to the north
across from Mountain View High School is one of the more notable examples of
Bend’s housing market revival.
In less
than 18 months 45 homes have been built and sold-- many before completion, at
prices from $158,020 to $274,399, in sizes from 1,200 to 2,470 square feet.
And
many sold at more than the listing price, resulting in a sale to listing price
percentage of 100.88%.
Obsidian
Heights is among many examples of home builders and land investors who have
acted to meet substantial demand for new housing throughout the region. In some
cases investors acquired land at deeply-distressed prices--either from banks
that had foreclosed or other groups that could not hang on until the market
turned.
And
in one case, Central Oregon’s formerly top builder has reemerged as a major
factor in construction and sale of new homes after surviving hard times and
losing some projects to its lenders.
Obsidian
Heights is a project of Hayden Homes, by far the largest homebuilder in Central
Oregon. The Multiple Listing Service of Central Oregon database shows that
since January 1, 2011 through August 27, 2014 Hayden has sold 553 homes at a
median price of $189,625 for total sales volume of $104,742,443.
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| A Hayden Home in Obsidian Heights |
Of
those sales, 469 came after January 1, 2012 and the median price rose to
$194,990. From January of 2013 through August of 2014, Hayden’s median price
had risen to $205,152 for 333 sales.
Hayden’s
total sales volume in the approximately 20 months since January of 2013 exceeded
$68 million, more than two-thirds of the volume for the 44 months since January
of 2011. In only eight months of 2014 the volume was more than $32 million, 30%
of the total for the past three years and eight months.
With
the accelerating number of sales, demand continued to drive up Hayden’s median
price to $214,458, compared to $250,000
for single famly sales on less than an acre in all of Central Oregon and
$289,900 in the greater Bend sub-market.
Although
Hayden has a large market share in Central Oregon, similar stories of weed-to-lawn
subdivision revivals have been repeated throughout the region.
Among
the most active participants in acquisition of previously-troubled bare land
developments has been a joint venture involving California Republican
Congressman Gary Miller.
Beginning
in August of 2009 as the market had crumbled Long Term Bend Investors LLC -
Miller’s Group -- purchased 17 lots for $450,000, or $26,740 per unit, from
Liberty Bank in the failing Crosswinds
project along Reed Market Road east of Hwy 97.
That
purchase was followed by 44 lots in a
project known as Laurel Springs for $728,000 from Badger Partners LLC, or only
$16,545 per unit.
Another
major acquisition from lender Bank of the Cascades by Long Term Investors was 117 lots in Fieldstone
Crossing in Redmond for $2 million -- approximately $17,000 per lot. In that
project, Long Term has partnered with builder Signature Home Builders LLC in
construction of 18 homes in 2014 that were actively listed in a range of
$209,900 to $339,900 as of late August 2014, but there had been no sales
recorded.
Fieldstone
Crossing was begun by Pahlisch Homebuilders, once the region’s leading builder
until it shrank to only a few completions in the market slump. Now Pahlish
partnerships are active again.
In
2013 and 2014 through August 28, the regional MLS shows that Pahlisch has built
and sold 179 single family homes
throught the region in prices ranging from $186,600 for a 2 bedroom, 2 bath
1,143 square foot home in southeast Bend to a 5 bedroom, 4.5 bath, 3,761 square
foot one in Shevlin Ridge on the city’s northwest edge at $765,000.
In
that period, Pahlisch has also built and sold 46 townhome and condo homes,
starting at $194,000 for a 3 bedroom, 2.5 bath, 1,450 square foot unit in
McCall landing of northest Bend, to a luxury 4 bedroom 3.5 bath, 3,075 home in
Deschutes Landing along the Deschutes River trail immediately southof the Old
Mill District.
Throughout
Central Oregon the MLS database indicates that since January 1, 2013 through August 27, 2014 there
were 990 sales of new homes--single family and townhomes/condos--that were
built in 2013 or 2014, out of 8,097 sales during the period, or 12.27%.
But
the percentage was higher in the bustling Bend sub-market, where 784 sales out
of 4,545, or 17.25% were newly constructed homes.
