News and Opinion from Sisters, Oregon
News and Opinion from Sisters, Oregon
The Sisters Country real estate market is getting stronger year to year - while it still faces challenges around inventory and affordability for young families and first-time buyers.
"It is continuing to strengthen from last year and years past," says Kevin Dyer, principal broker at Ponderosa Properties in Sisters. "However, it is still transitioning to a new normal. Inventory is low in comparison to standard expectations, which I believe actually inhibits some buyer activity due to poor selection. But as values increase, more sellers should be enticed to enter the market."
Jeff Jones, principal broker at Metolius Property Sales said, "The past year has been pretty darn good. The market has stabilized; interest rates are good. It's a stable market; it's not tilting one way (toward buyer or seller)."
That overall impression of stability is a consensus point among Realtors in Sisters. Phil Arends of Howells Realty Group, reported 25 sales in the January-March timeframe in 2014 and 28 in 2015. Days on market are fairly consistent, too - 196 in 2014, 222 to date in 2015.
"When I look at that, I feel like we're kind of stable," he said.
Dyer reports that "the majority of recent sales have been between $200,000 and $400,000. However, the majority of active listings are over $400,000."
Peter Storton, principal broker of RE/MAX Revolution, reports that "the high-end homes ($500,000-plus) are struggling," but that end of the market is also showing signs of strengthening.
Geff Kinnaman of Coldwell Banker Reed Bros. Realty reports that "bare land and building parcel sales are also on the rise by four percent as compared to this time last year. Now is a great time for folks who have tried to sell unsuccessfully in the last couple years to give it a go now. There is growing activity and people looking to buy in Sisters."
The things that make Sisters attractive "didn't go away during the recession," Storton notes. That means people want to move here - but Storton is concerned about lack of inventory.
"There's a scarcity of homes," Storton said. "Hayden (Homes, Northwest developer) has sold everything they can build on the property they have ... we need lots to put the houses on - and, more so, in a subdivision setting (which) is the most sellable."
Jones agrees that inventory is an issue, but he believes the market will adjust itself as it continues to strengthen and sellers feel it is time to act.
"I think that'll naturally take care of itself," he said. "We've got plenty of buildable residential lots; that's really not a problem."
Local Realtors say that the second-home market remains generally quiescent. However, Arends notes an interesting trend at Black Butte Ranch, where he does the majority of his work.
Many prospective clients are "young families in a position to buy who had some experience with the Ranch (on family vacations)." They are looking to give their children the kind of childhood experiences they enjoyed.
Most buyers are primary-home-buyers looking to be in Sisters full-time.
"They come from all over, but the majority are Oregonians - with a surprising number coming from Bend," said Kinnaman.
Arends echoed that observation. He recently sold a home to a young couple from Bend. The man works remotely and can live anywhere. The family chose to move up the road to Sisters for the small-town environment to raise a family, and the cultural amenities Sisters offers. The buyer told Arends that many people in Bend are looking to do the same.
"They want to be here because (Sisters is) "happening,'" Arends said. "If they're in a position where they can get here and can afford to be here, they want to be here. When he made that statement about people in Bend wanting to move to Sisters, I thought that was nice to hear."
Affordability for such younger buyers can be a hurdle.
"We do have a shortage of homes priced for families in the Sisters School District," Kinnaman said. "But for the first time in 20 years, the average selling price during the last two years is cheaper in Sisters than in Bend. Our community has so much to offer with respect to quality of life, excellent schools and our active outdoor lifestyles that are so appealing for raising a family."
The schools and the real estate market have a symbiotic relationship. The schools need young families to move into town to stabilize and increase enrollment and thus receive more state funding. The real estate market depends upon the quality of the schools as a selling point, not just for families with kids but as an indicator of the health of the community at large.
Housing that is attractive for first-time buyers sells briskly. Jones notes that Hayden Homes has sold 41 houses in the $210,000-$275,000 range.
"There's obviously a demand for that lower price-point in this area," he said.
But affordability of housing is only part of the issue. There's another major part of the equation, as Storton notes:
"Who are they and where are they employed?" he asks. "I keep thinking about the employment part of this."
Arends thinks about that, too. He reckons that entrepreneurs and those who can work remotely find an easier time of it.
"The limitations we have are just the lack of job opportunities," he said. "People have to bring their own bread to the table, so to speak."
Dyer concurs.
"Buyers with established jobs and income, relocating from other markets, will continue moving to Sisters Country for the wonderful benefits of this small community and its unique education environment," he said.
Steve McGhehey of Cascade Sotheby's International Realty is seeing increased interest in both commercial and residential property.
"I see investors coming back into the market who weren't there in the past three years," said. He cited a "townhouse project that I put together that I wouldn't have been able to do a year ago."
He also recently sold a three-acre parcel that will house a storage facility.
McGhehey reports that he regularly receives inquiries from businesses interested in 2,000 to 3,000 square feet of light-industrial space.
"The need is there," he said. "We're not meeting it very well. We're really short of industrial land right now."
McGhehey sees the interest in commercial projects continuing at least through this year. As Sisters Country rolls into spring and summer, hammers are swinging on new construction and more listings are coming on the market, indicating that the Sisters real estate market will continue to get stronger through 2015.
Jim Cornelius is editor in chief of The Nugget and author of “Warriors of the Wildlands: True Tales of the Frontier Partisans.” A history buff, he explores frontier history across three centuries and several continents on his podcast, The Frontier Partisans. For more information visit www.frontierpartisans.com.
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