About five months ago, a “For Sale” sign went up in the front yard of a home next door to an acquaintance. In less than a week, the home went pending at a sales price about 15 percent – more than $100,000 – above asking price.
Back in May, it might have appeared the heat generated in the Bend, Oregon, real estate market would never dissipate. The last couple of months of sales data, though, show that the market is backing off at least a little from the height of the pandemic peaks. Even though September’s median sales price rose 2.2 percent from August, other key data points indicated the market showed signs of stabilizing after being tilted starkly toward a seller’s market for more than a year.
September’s composite sales price to list price was 99 percent. That was the first month in which that ratio was less than 100 percent since July 2020, when it was also 99 percent. This data point reached a high point of 105 percent in May and again in August. The sales price-to-list price ratio has dropped each of the last two months.
The inventory of homes on the market was 1.2 months in September. Inventory represents the amount of time that would be required to sell all of the homes on the market given the current pace of sales. Although 1.2 months is a fraction of the six months that is regarded as a balance between a buyer’s and a seller’s market, it was the largest inventory in Bend since June 2020.
Finally, the average days on the market for Bend homes was 17 days. September was the third consecutive month that figure has risen (from a low of seven days in May and June), and 17 days are the longest days-on-market figure since March.
These data points suggesting a slight tempering of the market came even as the median sales price rose from the month prior. That figure was $650,000 in September, up from the $636,282 in August. The year-over-year increase was 18.2 percent – historically a very high number but the smallest year-over-year increase this calendar year.
September was the seventh month in a row that the number of active listings increased from the end of the previous month. The end-of-September figure was 291 active listings, which is nearly 50 percent more than in September 2020. But looking back longer, the 10 most recent pre-pandemic Septembers averaged 580 active listings. So despite the increase in active listings in September, that figure is still at 50 percent of the historical average.
My acquaintance’s neighbor might have picked the perfect time to list a home for sale in the Bend, Oregon, real estate market. I don’t know if prices will stabilize further or if we’re about to have another ramp-up in demand (and a resultant ramp-up in sales prices). I do know that if you’re considering selling your home or are in the market to buy, I can be of service. My experience in all market conditions and my knowledge of the sales environment in the Bend market will come to bear on your behalf. I encourage you to contact me at (541) 362-1031 or to visit Bend Property Search to connect with me through my website.