What's Up With Bend Oregon Luxury Homes?

By
Real Estate Broker/Owner with Bend Premier Real Estate 200009031

Bend OR Luxury Home Sales Have Spiked in 2020

When we think of luxury homes in Bend, we have a vision of a grand property with stunning mountain or river views, lots of elbow room, and fabulous amenities. Easy location to access the Bend lifestyle, which includes proximity to downtown, the mountains, the river, and the Old Mill also checks a lot of homebuyer's luxury wish lists. Having an up-to-date architectural design and interior features are also important to many who are making Bend their home. Yet with so many people moving to Bend over the past year and with inventory supply not keeping up with demand, homes that are not considered luxury have pushed the million dollar market into never before seen figures.

The chart below outlines the last ten years of million dollar home sales in Bend. As you can see, from 2011 through 2014, high end home sales were almost nonexistent. Coming out of the great recession, it took time to sell all the accumulated inventory at all price points that were subject to foreclosures and short sales; during the peak of the recession Bend had over 17 months of inventory which made it one of the best times ever to be a Bend homebuyer.  It wasn't until 2016 that inventory levels dropped below 5 months, entering into the seller's market that has been with us ever since. This seller's market became intensified when the Covid-19 pandemic spread throughout the country and the stay-at-home orders made Americans realize that if they were to work from home, home should be where the lifestyle suited them. Bend has been a mecca for decades for people wanting to live where the recreational opportunities Bend offers were easily accessible. This became the reality for many when the pandemic hit and moving to Bend became a priority. The demand for Bend homes pushed the prices up; when 10 potential homebuyers were bidding on the same home, prices rose beyond expectation. What sold last year at $800,000 was suddenly worth $1,100,000. Bend has had both a median and an average price increase of 40% for single family homes since the year before. The words "affordable" and "Bend" no longer work together.

Bend Luxury Homes Sales Trends

Where Do We Predict Bend High End Home Sales

Will Be in the Next Year?

Since the Covid restrictions were lifted the beginning of July, we have started to notice a change to the Bend real estate market. The huge demand which pushed home prices up has softened somewhat. Bend homes that have sat without offers are starting to show price reductions. The huge number of multiple offers that we were seeing for certain homes have dropped. We are also starting to see counter offers on deals - something that disappeared during the last year when seller demands were met and exceeded by desperate home buyers. We believe that these changes will accelerate as the emphasis on buying Bend Oregon real estate diminishes. 

Original blog can be read at Bend Premier Real Estate's blog page.

Comments (9)

Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

For sellers in Bend that have been sitting on values for years, this market can help them sell, but as you note not at the prices they wanted

Jul 28, 2021 07:14 PM
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Lynnea.

We all know a correction is coming, question is, when?

Jul 29, 2021 12:27 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Lynnea! I remember when Bend was just a sleepy little area.

Jul 29, 2021 08:04 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Lynnea... your prices always leave me astounded... as Rocky Dickerson said, I remember when Bend was a sleepy little town.

Jul 29, 2021 09:41 AM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Hi Nina Hollander, Broker . Prices are skyhigh.  But we are finally starting to see some adjustments with seller dictated pricing being reevaluated with price reductions. If something has been on the market more than two weeks, we are having serious discussions with our sellers.

Jul 29, 2021 10:55 AM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Hi Rocky Dickerson .  So do I!  When I moved to Bend its population was around 20,000.  Now we are over 100,000.  Amazing growth - not always a positive for those who have lived here a long time.

Jul 29, 2021 11:14 AM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Hi James Dray -  So true!  We are starting to see some adjustments on inflated seller pricing, but there is still a lot of optimism among sellers.

Jul 29, 2021 11:15 AM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Hi Ed Silva -  just heard from our agent on a new sale.  A 1966 home selling for $1,025,000 - waiving inspection, appraisal, $25,000 EM immediately released to seller plus a week at a vacation rental thrown in ($3000 value) and occupancy after closing for a month at no rent. Listing price is $950,000. The right priced home will sell very quick still.

Jul 29, 2021 11:19 AM
Brian England
Vacasa - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

It seems that living in Bend would be a luxury in and of itself.  People will definitely appreciate your scoop on what is going on with luxury homes in Bend!

Jul 30, 2021 04:43 AM