In this Issue of C.O. Local BUZZ Wealth Weekend…

Investment Guide:

💲📃 Bonds 101: Your Guide to Understanding and Investing in Bonds

🏘️ Real Estate News

📰Central Oregon Market Report | May 1, 2024

🏘️ Newest Central Oregon Listings for Sale

🏠💲Guidance for First-Time Homebuyers Amid Market Fluctuations from OnPoint Community Credit Union

↘️Deschutes leads Oregon counties with the most homes selling under list price

📰Business News

📰 ‘Barrier to entry is far less:’ More C.O. food cart pods with taprooms emerge, cheaper to launch than restaurants

💹Market Pulse: A Comprehensive Overview of Stock and Commodities Trends

Bonds 101: Your Guide to Understanding and Investing in Bonds

Sponsored by Lisa Landi

Hey there, savvy investors! Let's dive into the world of bonds - those fascinating fixed-income instruments that play a crucial role in the financial market.

So, what exactly is a bond? Picture this: it's like an IOU between an investor (that's you) and a borrower, which could be a corporation or government entity. When these entities need cash for new projects, daily operations, or to refinance debts, they issue bonds to raise funds directly from investors like yourself.

Now, who issues these bonds? Well, governments and corporations are the big players here. Governments need moolah for building roads, schools, or during times of unexpected expenses like war. On the other hand, companies might issue bonds to fund their growth or manage existing debts.

Are bonds a good investment? Absolutely! Bonds are less volatile than stocks, making them a stable addition to your investment portfolio. Plus, bond prices tend to increase when interest rates fall. If you hold onto your bond until maturity, you'll get back your initial investment along with the interest payments - sweet deal, right?

Let's talk advantages and disadvantages. On the upside, you receive regular interest income, get back your principal at maturity, and can even make a profit by selling bonds at a higher price. However, remember that bonds offer lower returns compared to stocks, there's a risk of companies defaulting on bonds, and bond yields can decrease.

How can you get in on the action and buy bonds? Well, you can turn to specialized bond brokers or check out online platforms where you can purchase them just like stocks. Alternatively, government-issued Treasury bonds can be bought directly through Treasury Direct or indirectly through fixed-income ETFs or mutual funds.

So, if you're intrigued by the world of bonds and want to explore them further as part of your investment strategy, reach out to your financial advisor for personalized guidance. Happy investing!

Stay tuned to "Weekend Wealth" for more insightful articles to boost your financial knowledge and empower your financial decisions. Your financial future starts here!

Sponsored By

Central Oregon Market Report | May 1, 2024

by Reed Melton

Last year, low inventory suppressed sales, as buyers had so few homes to choose from. This year, however, is an entirely different scenario, with sellers flooding the market with willing buyers ready to go. More listings would theoretically temper prices, but attractive listings are moving quickly with so much pent-up buyer demand. The increase in homes for sale is helping buyers find what they are looking for, and the days listed are plummeting.

This morning, the inventory of single-family homes in Deschutes County experienced a notable surge, jumping from 53 to 841. This is the most significant weekly increase since 2024. Despite this influx of properties, pending sales remained robust, with seventy-one homes placed under contract this week. The days on the market for these properties fell to six, indicating a high demand. One hundred three properties closed, with the median days listed at sixteen. The median list price for active inventory is $824k, $1000 less than last week, while the pending median price is $709k, up 20k from last week. The closed median sale price this week is $715k, up 39k. The active, pending, and closed sales averages are $1,174,168, $837,579, and $857,240.

In Crook County, the inventory of single-family listings declined by six to 114, indicating a demand that surpasses supply. A robust seventeen pending sales occurred this week, with properties spending an average of thirty-one days on the market. Nine transactions closed this week. The median sales price for active, pending, and closed sales were $649k, $498k, and $491k, all increases from the previous week. The averages were $980k, $695k, and $842k, respectively, and are up from the last week. It's important to note that Crook County has a diverse inventory of homes, including those with large acreage and the desirable Brasada Ranch golf community. With the smaller pool of active and closed or pending transactions, it only takes a few higher-end sales to impact the numbers significantly.

The number of single-family homes for sale in Jefferson County remained stable at 80, with three pending sales and five closed transactions. The median days on the market for pending sales were only thirteen, with the closed transactions at twenty-eight. The pending list prices were $455k, $548k, and $625k; the median sold price was $599,500.

The recent economic data has all but eliminated the possibility of a Fed rate cut in 2024, with the narrative from Jerome Powell today likely more hawkish than recent Fed meetings. Dubbed the "Powell Pivot," Jerome Powell talked of tightening financial conditions back in November, doing the work of the Fed in helping to fight inflation. In a fit of irrational exuberance, Wall Street interpreted the "Powell Pivot" to mean up to seven rate cuts in 2024, starting in March, and financial conditions immediately eased through year-end 2023 and the first quarter of 2024. Even the most bullish analysts today call for no more than one rate drop this year, with many more increasing the odds of an increase. The likely scenario is the Fed holding the overnight rate right where it is. For 30-year mortgages, watch the 10-year Treasury for clues about where rates are heading. This morning, the 30-year fixed-rate conventional mortgage national average is 7.51%, with the 10-year Treasury at 4.665%. As the 10-year Treasury yield increases, so do mortgage interest rates. 

This week's robust activity in Central Oregon illustrates that buyers have accepted higher rates and are responding to increased selection from increased availability. While a significant spike in rates or a pivot to lower rates would likely change the current momentum, stability in the mortgage market, with rates staying higher for longer, is more likely. You can rest assured that Wall Street will be looking for any glimmer of hope or a dovish tone from the Fed today. Jerome Powell has been particularly reticent to speak hawkishly; however, with inflation rising, unemployment low, and GDP flatlining, the Fed is between a rock and a hard place. As I have said, since the end of 2023, I do not expect a rate pivot this year, so strategize your home buying and selling accordingly!

Click here for the full report.

Newest Central Oregon Listings for Sale

Guidance for First-Time Homebuyers Amid Market Fluctuations from OnPoint Community Credit Union

PORTLAND, Ore., April 30, 2024 — The average home price in Oregon is more than $530,000, a $5,000 increase over last year according to the Regional Multiple Listing Service (RMLS). With housing prices in Portland at historic highs, OnPoint Community Credit Union wants first-time homebuyers to know there are opportunities on the horizon.

“It's not all bad news,” said Jessica Chestnut, a mortgage loan officer at OnPoint Community Credit Union. “Market dynamics are shifting and there are proactive steps Portland residents can take to make homeownership more than a dream.”

The Federal Reserve has signaled it plans to cut interest rates three times in 2024. And Oregon Governor Tina Kotek has made housing and homelessness the state's highest priority, announcing significant investments to expand access to homeownership. OnPoint mortgage loan officers are counseling first-time homebuyers on how to get into a great home they can afford in this complex housing market. 

Here is what OnPoint is sharing with members:

1. Define goals upfront. It is crucial to have a clear picture of your goals and financial outlook before starting the home-buying process. List your must-haves, nice-to-haves and don’t-needs before touring properties. When you are financially ready, determine the maximum amount of money you are comfortable spending on a down payment, closing costs and monthly mortgage payments without straining your finances. Refer back to your needs and budget each time you look at a home.

2. Don’t get tied to the right time to buy. Although interest rates are higher, it doesn’t mean homeownership is out of the question. When rates are higher, you face less competition and have room for negotiation. And when rates go down, you can refinance later. When rates are lower, competition is higher, and you may pay over the asking price for the home you are interested in. The truth is, the perfect time to buy is when you are financially ready and find a house that works for your budget.

3. Explore government programs. The state of Oregon has many housing initiatives designed to help first-time homebuyers. The Oregon Bond Residential Loan program offers competitive interest rates, which can help eligible families increase their home purchasing power and keep their monthly house payments affordable. The state also offers first-time homebuyer savings accounts (FTHBSA) aimed at helping new buyers with a down payment, title insurance, closing costs, appraisal and inspection fees and other qualifying payments.  The Portland Housing Bureau offers a Down Payment Assistance Loan (DPAL) to help first-time homebuyers purchase a home within the city limits of Portland. 

4. Build confidence with knowledge. Your financial institution and nonprofits in your community offer one-on-one counseling and other resources that will teach you about the home-buying process. OnPoint supports the work of Hacienda CDC, which provides affordable housing, homeownership support and educational opportunities for prospective homebuyers. The Portland Housing Center also offers “Homebuyer 101” classes to walk you through the home-buying process. OnPoint offers free homebuying seminars led by OnPoint’s mortgage professionals. OnPoint also offers mortgage programs for first-time homebuyers like the Just for Starters or Homeroom.  All OnPoint members have access to GreenPath Financial Wellness for free individualized counseling and access to financial wellness services.  

5. Find a reliable lender you can trust. Navigating the current housing market can feel overwhelming, so it is important to choose a mortgage lender you can trust. Don’t be afraid to talk to multiple lenders and compare rates and fees to find the best deal. Ask that they conduct a thorough pre-approval process, equip you with a pre-approval letter and respond quickly to inquiries. Using your financial institution as your mortgage lender may also be beneficial because you have an existing relationship and an understanding of their process. It is also possible that you can transfer your down payment directly out of your savings, potentially reducing fees and making for a simpler experience.

“Buying a home is a life-changing experience, especially for first-time homebuyers,” Chestnut continued. “With these financial tips, you will be on the right track toward homeownership.” 

Learn more about purchasing a new home, mortgage refinancing and home equity loan options with OnPoint, or visit any of OnPoint’s 57 branch locations across Oregon and Southwest Washington to discuss your path to homeownership. 

ABOUT ONPOINT COMMUNITY CREDIT UNION

OnPoint Community Credit Union is the largest credit union in Oregon, serving over 554,000 members and with assets of $9 billion. Founded in 1932, OnPoint Community Credit Union’s membership is available to anyone who lives or works in one of 28 Oregon counties (Benton, Clackamas, Clatsop, Columbia, Coos, Crook, Curry, Deschutes, Douglas, Gilliam, Hood River, Jackson, Jefferson, Josephine, Klamath, Lane, Lincoln, Linn, Marion, Morrow, Multnomah, Polk, Sherman, Tillamook, Wasco, Washington, Wheeler and Yamhill) and two Washington counties (Skamania and Clark) and their immediate family members. OnPoint Community Credit Union is federally insured by the National Credit Union Administration (NCUA). More information is available at www.onpointcu.com or 503-228-7077 or 800-527-3932.

Deschutes leads Oregon counties with the most homes selling under list price

Counties with the most homes selling under list price in Oregon

 Stacker compiled a list of counties in Oregon where homes typically sell below list price using data from Redfin.

#6. Washington County

– Average price difference: 0.02% below list

— Median list price: $579,974

— Median sale price: $575,000

– Total homes sold: 486

— Share that sold above list: 35.6%

#5. Clackamas County

– Average price difference: 0.41% below list

— Median list price: $654,975

— Median sale price: $615,000

– Total homes sold: 368

— Share that sold above list: 31.5%

#4. Lane County

– Average price difference: 0.49% below list

— Median list price: $479,000

— Median sale price: $459,950

– Total homes sold: 296

— Share that sold above list: 28.7%

#3. Marion County

– Average price difference: 0.66% below list

— Median list price: $436,450

— Median sale price: $433,500

– Total homes sold: 251

— Share that sold above list: 27.5%

#2. Jackson County

– Average price difference: 1.40% below list

— Median list price: $474,450

— Median sale price: $438,950

– Total homes sold: 207

— Share that sold above list: 19.3%

#1. Deschutes County

– Average price difference: 1.67% below list

— Median list price: $729,000

— Median sale price: $695,375

– Total homes sold: 278

— Share that sold above list: 23.0%

Sponsored By North Empire Storage Center

‘Barrier to entry is far less:’ More C.O. food cart pods with taprooms emerge, cheaper to launch than restaurants

BEND, Ore. (KTVZ) -- Between food and beer, Central Oregonians love to congregate around both. Food cart and taproom pods have offered the perfect place for people to come together and enjoy both pleasures.

Central Oregon region has seen a dramatic increase of food cart and taproom pods pop up in recent years, with 11 in Bend alone, according to Visit Bend.

"I think restaurants will always have a place in our community," said Kenneth Bryant, co-owner of Alley Dogz, said Thursday. "However, I see more of this happening - and I like it."

Bryant is the co-owner of two Alley Dogz food trucks in Bend and says a food cart is more cost-effective than having a restaurant. For him, leasing a spot in a pod averages $1,500 a month.Aaron Fass, the co-owner of P!zza food truck, said, "In general, the startup cost of a food truck is far less significant than any brick and mortar location. The barrier to entry is far less than a regular restaurant."

P!zza is located at the Midtown Yacht Club, one of 13 food truck pods in Bend, according to the city. Another three are in the approval process,

The latest to hit the food scene is Ponch's Place, at Veterinary Referral Center in NE Bend, which has 18 taps and four food trucks.

Stephen Stockdale, owner of Veterinary Referral Center and Ponch's Place, said, "It's great for our customers. It's great for people who are waiting for their pets to get treatment. It's great for our staff, who need a lunch break and just some somewhere to hang out."

"Even this area of town, there's a lot of industry, there's a lot of businesses, and there's not too many options for them," Stockdale said. "So just seeing local workers come by and grab lunch or grab a bite after work is pretty awesome,"

Food cart pods are making a mark beyond Bend. In an online search, NewsChannel 21 found just under 30 pod areas in Central Oregon, with varying numbers of food carts.

The number will increase with the opening of Century Commons Taps & Trucks in Sunriver. The pod plans include seven food cart options paired with a variety of beer, cider and kombucha in the taproom.

Bryant said, "Having multiple food carts with different menus gives people a reason to keep coming back."

The increasing number of pods doesn't seem to concern owners, who say they welcome the competition.

Fass said, "for instance, here where we have seven food trucks and the beer garden. You're looking at eight different businesses operating, and in one location. It's basically a strip mall for food. "

Market Pulse: A Comprehensive Overview of Stock and Commodities Trends

From April 29th to May 3rd, 2024, the stock market experienced varied performance, beginning the week with positive momentum that built on previous gains, primarily led by sectors such as consumer discretionary and utilities. However, the mood shifted on April 30th with major indices closing down significantly due to renewed inflation worries, particularly after a hotter-than-expected eurozone core inflation reading. On May 1st, the markets closed mixed as the Federal Reserve held rates steady and Fed Chair Jerome Powell presented a less hawkish outlook, which provided some relief to the markets. The following day, attention was still on the Federal Reserve's monetary policy and earnings reports, maintaining a cautious market sentiment. The week ended on a high note on May 3rd, as weaker-than-expected job data influenced market expectations that the Federal Reserve might delay any upcoming rate hikes, sparking a rally especially in the technology-heavy Nasdaq. Overall, the week was marked by a mix of volatility and recovery, reflecting the ongoing interplay of economic data and monetary policy expectations.

Follow us on facebook