Bend Home Prices Up, But at Slower Rate
Ask any Bend Premier Real Estate broker what the Bend home market is like late spring 2022 and they will tell you it "feels different" than it has been over the past two years. The frenzied buying scenarios and multiple offers that were experienced on many listings in 2021 are fewer, days on market on many properties are up, and price reductions on homes that are not in contract within a few days are becoming more regular. While well priced homes in desirable locations are still receiving strong offers, and while bidding wars are occurring, we are not having the numbers of offers in these wars that we had in 2021. As interest rates grow, the buying power of potential homeowners shrinks. Cash offers are still prevalent and often will win over financed offers, but the sheer number of buyers is less. Many of our agents tell us their buyers got discouraged and are either renting, or looking elsewhere to purchase.
When May of 2022 is compared with May of 2021, Bend single family homes on less than an acre show the following changes:
- Average sales price up 23% to $882,604*
- Median sales price up 17.8% to $739,750
- New listings up 1.4% to 289
- Homes for sale down 43.2% to 284
- Pending sales up 77.1% to 409
- Sold homes down 5.6% to 218
- Months of supply at 1.2 months
- Average days on market up 50% to 12
- Average price per square foot up 24.4% to $443
- Median price per square foot up 20.1% to $406
- Average percentage of list price received down 3.1% to 101.4%
- Dollar volume of sold homes up 16.1% to $192,407,779
The figure for median sales price, while still showing significant price increases over the year before at 17.8%, is much lower than the rate between 2020 and 2021 where home prices were up over 40%. National experts have predicted that in 2022 home prices would continue to rise across the country, although at a slower rate. We are seeing the same trend with Bend home sales.
What Can We Predict for Bend Real Estate for the Rest of 2022?
While rising interest rates, high inflation and talk of a potential recession are realities, we believe that the desirability of Bend's lifestyle will remain a draw for many people across the country. As long as people continue to move to Central Oregon, and while inventory levels of Bend homes remain below 6 months, we will continue to experience a sellers' market. We believe home price increases will moderate, however, and the rate of the increase will drop to more sustainable levels; the trends seem to support this supposition.
Original blog can be read at Bend Premier Real Estate's blog.