Pending Bend Home Sales Significantly Down in 2022
When we study Bend real estate sales in 2022, we can state with confidence that the first six months were very different that the second half of the year. The first half of the year was a continuation of what was seen in 2021, with Bend single family home sales greatly impacted by lack of inventory and relatively low interest rates. It was an extremely strong sellers' market with multiple offers and contingency waivers a normal occurrence. However, the second half of the year was highly influenced by rising mortgage interest rates with these more than doubling in just a few months - something that had never happened before in the country's history. The high mortgage rates changed the buying power of potential Bend homebuyers, and the sales of Bend homes abruptly slowed. The rate of the increase in Bend home prices decelerated, but remained up over 2021 figures. Days on market for existing listings rose and new listings, pending sales and closed homes dropped. However, sellers who needed to sell became more willing to negotiate over price, repairs and concessions, which provided new opportunities for buyers.
When 2022 is compared with 2021 for Bend single family homes on less than an acre, the following changes can be noted:
- Average sales price up 11.8% to $866,495*
- Median sales price up 13.2% to $729,900
- New listings down 8.7% to 2460
- Homes for sale up 65.5% to 321
- Pending sales down 21.2% to 1947
- Sold homes down 18.3% to 2044
- Average days on market up 50% to 24
- Months of supply up 88.9% to 1.7
- Average price per square foot up 11.1% to $421
- Average percentage of of list price received down 2% to 100.5%
- Dollar volume down 8.6% to $1,771,115,733
What Do We Predict For Bend Real Estate Sales in 2023?
We believe that Bend home prices will moderate in 2023 and potentially decrease. We still have a sellers' market, but with inventory rising, buyers have far more opportunities and more negotiating power than they had just six months ago. We believe that mortgage interest rates will remain in the 6% range which will limit what first time homebuyers will be able to afford. However, sellers will be willing to offer buy downs and other concessions to assist buyers with their home purchase. The outlying towns and cities to Bend, with their lower home prices, will continue to be desirable for first time homebuyers. However, what makes Bend special remains - the beautiful scenery and fabulous outdoor lifestyle. If people can afford to live here, people will continue to come. Low inventory will remain an issue and until this gets solved, we will not see a huge decrease in Bend home prices.
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