LA GRANDE — The real estate market in Union and Wallowa counties is generating a buzz as dynamic elements come together to create a hot seller’s market.
“It is almost like these forces are converging to create the perfect storm,” said Patty Glaze, a broker with Blue Summit Realty Group of La Grande.
The dynamics Glaze is referring to include a scarcity of homes available for sale.
“We have super-low inventory. This is the lowest I can remember,” said John Howard, the owner of John Howard Real Estate & Associates, who has worked in local real estate since the 1990s.
Dan Cosner, the owner and principal broker of A-1 Realty Northwest, La Grande, agrees.
“This is the lowest I’ve seen it (the inventory),” said Cosner, who has been involved in Union County real estate for 26 years.
Statistics from the Regional Multiple Listing Service illustrate how tight the real estate market is in Union and Wallowa counties. The figures indicate that as of November Union County had an residential home inventory of 1.1 months and Wallowa County had an inventory of 3.6 months. Both are down substantially from the same time a year ago when Union County’s inventory was 3.8 months and Wallowa County’s inventory was 6.2 months.
Months of inventory is a measure of how fast all the existing homes on a market would likely last if no more listings are added.
The low inventory, which partially reflects limited home building over the past decade, means homes in Union and Wallowa counties are selling for higher prices. The average sale price of homes in Union County went up 6.5% the first 11 months of 2020 and 21.6% in Wallowa County over the same period according to RMLS Market Action reports.
Glaze said the increases indicate that in some cases people were offering to pay more than the asking price for homes because there is such competition for them.
This means home buyers do not have the luxury of taking their time, Cosner noted.
“Property is selling a few days after being listed. If you do not get an offer in, in a timely manner, you will be beat out,” he said.
Glaze advises home buyers to have to have items like pre-qualification letters from lenders ready before making offers. This will help speed up the closing process, preventing buyers from being beaten out.
“Basically because of the competition buyers have to put their best foot forward,” she said.
Buyers are facing higher prices and fewer choices, but they have a major plus in their corner — low interest rates. The low rates are reducing the monthly payments buyers must pay after getting a loan to purchase a home. Glaze said with these rates home buyers in many cases will be making monthly payments about equal to what they would pay if they were renting a comparable home.
The hot market in Union and Wallowa counties may be partially due to the COVID-19 pandemic and increasing violence in cities. Glaze said that since these outbreaks many people who grew up in Union County and lived in larger urban communities are returning if they can keep their jobs by working remotely.
“They want to live in a safer, more secure environment,” Glaze said. “They want a better quality of life.”
A number of other home buyers are purchasing second homes with an eye on the future.
“Some people are buying second homes so they can move here when they retire in two to three years,” Glaze said.
Anette Christoffersen, a principal broker with Ruby Peak Realty in Joseph, is witnessing a similar phenomenon in Wallowa County.
“This is a place where people are buying second homes,” she said.
A number of these may be homes and cabins at Wallowa Lake.
“Everything around the lake was sold (in 2020),” Christoffersen said.
She believes many people are moving to Wallowa County at least in part due to how it has been effectively promoted as a travel destination. It is not unusual for people who first come there as tourists to eventually live in Wallowa County after retiring.
On the other end of the home buying spectrum in Wallowa and Union counties are first-time home purchasers, many of whom are millennials in the 25-40 age category. Glaze said millennials like the outdoor amenities the region offers including its hiking trails, rivers and lakes.
“We have a lifestyle a lot of millennials would like to have,” Glaze said.
The low inventory housing situation combined with high demand is being welcomed by homeowners in Union and Wallowa counties who are seeing the value of their houses rise. However, the same phenomena that is helping homeowners’ residential property value increase also puts them in a precarious situation.
Glaze explained some people who want to stay in Northeast Oregon are hesitant about listing their homes, fearing they will not be able to find another residence in the tight market.
She noted that she has a neighbor who wants to sell her house and then buy a smaller one. The woman is reluctant to sell because she does not know if she could find another home in the area to move into.
“It is a catch-22,” Glaze said.
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