Lower Mortgage Interest Rates Are Making a Difference for Bend Home Sales
For many Bend real estate brokers, the first half of 2025 had mixed sales results. Home prices moderated, and inventory levels increased. With more homes on the market, buyers had more choices. However, high mortgage interest rates kept many would-be home buyers off the market. Home sales proceeded through the summer at a relatively lower pace than was typical for Central Oregon.
However, the market changed in September. In the beginning of September, mortgage rates dropped below 6.5%. This coupled with more motivation from sellers in accepting buyer's terms and prices resulted in an increase in pending sales, an increase in closed sales, and a lowering of original sales price. This is great news for Bend home buyers who have been dealing with an extremely strong seller's market since Covid. Having more balance in the Bend real estate market has created more opportunities for buyers.
When September 2025 is compared with September 2024 for Bend single family home sales on less than an acre, the following changes can be noted:
- Median sales price up .6% to $718,000
- Closed sales up 22.7% to 184
- New pending sales up 9.4% to 174
- New listings down 2.2% to 176
- Active inventory up 15% to 592
- Price per square foot of closed homes down 2.5% to $376
- % of original price received down 1.3% to 94.6%
- Supply of inventory down 6.3% to 3.2 months
- Sold volume up 24.5% to $156,926,896
- % of cash sales up 35% to 28.8%
- List to close days up 28.8% to 85
- Unsold listings up 4.3% to 48
- % of cash sales up 35% to 28.8%
Home sellers are recognizing that in today's market, buyers have options. If sellers really need to sell, their home price needs to be competitive. Many homes that sold in September 2025 sold for less than their original list price. And sellers need to be patient. With days on market up 29% to 85, sellers have to anticipate it may take time for a buyer to offer on their home. However, if mortgage interest rates drop further as is anticipated, sellers may find more buyers can afford their property as the year moves on.
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