Median sales price continues rise, but is a ceiling near?
By Jason Boone
The median price of homes sold in Bend, Oregon, in May was the second-highest in the last 10 years, but there are signs that prices might be nearing or at a peak.
At $374,000, the median sales price in May 2016 trailed only that of May 2007 ($396,250) in the time span covered by the Skjersaa Group’s data, which dates to the start of 2007. May’s figures represent an increase of 2.8 percent from April’s median and marked the fourth month in a row the median sales price has increased.
May’s sales data pushed the year-to-date median sales price to $349,500.
Of the 243 homes sold in May, nearly one-fourth (60) were priced at $525,100 or more, which contributed to the rise in the median price. The percentage of May’s home sales priced in that range was similar to the rate in May 2007 (31 of 118 homes, 26 percent) and was a high for 2016.
Housing inventory in May declined from a record-low 2.1 months in April still further, to 1.7 months, even as active listings rose to 462 homes, a high for 2016. Months of inventory estimates how long it would take to sell all of the homes for sale if no new properties went to market. Six months is commonly used as the boundary separating a seller’s market and a buyer’s market.
Among the other figures from May:
• The number of pending sales at the end of the month numbered 266 homes, fewer than the previous two months.
• The average days on market was 114 days, the lowest since the 109 days in October 2015.
• Nearly one-fourth of the active listings in May had a price reduction. That is the most for any month this year.
In the last three years, the number of homes sold in June was no lower than the second-most of any month that calendar year. The robust number of pending sales and the low inventory at the end of May 2016 indicate another busy month probably lies ahead.
Still, the reductions in price last month indicate the market might be reaching a zenith with pricing. Current conditions make it imperative for sellers entering the market to price their homes exceptionally well to garner the attention of buyers as competition becomes greater.
My experience in the Bend market can help you market your home in our current conditions, or if you are looking to buy a home, I can help you find the right home at the right price.
To learn more about Bend home prices, get started with listing your Bend home, or to view area homes, contact me at (541) 383-1426, or Bend Property Search to connect with me through my website.