August median sales price shows further leveling off
By Jason Boone
In my review of May’s home sales data in Bend, Oregon, I suggested that the market might have been reaching a peak. The figures for the three months since seem to support that theory.
The median sales price of a home in August was $359,000. That represents the third month in succession that the median price has fallen, from May’s figure of $374,000 (which was the second-highest median figure in the 10-year period for which we have data).
Complementary data, however, show a still robust real estate market.
A decline in the median sales price in August might be reflection of the number of homes on the market. There were 534 active listings, the most this calendar year. The inventory of homes on the market (which represents how long it would take for all homes currently on the market to be sold if the number of houses for sale held steady) increased from 2.2 months in July to 2.4 months in August.
The inventory in Bend was nearly five months in February, but it has been less than three months in each of the six months since. Keep in mind that an inventory of six months is generally regarded as the boundary between a seller’s market and a buyer’s market — and we’re still at less than half of six months.
It’s worth considering also that the average days on the market for a sold home in August was 101 days. That’s an increase of four days from July but otherwise the lowest in this market since a 99-day average in May 2015.
The average sales price to list price in August was 98 percent. That’s the second-lowest of 2016. This calendar year had a string of 99 percent figures except for one month (95 percent in March), which probably has to be dismissed as noise. Excepting March, the average sales price to list price has been 99 percent in each month since October.
Despite the month-to-month declines in median sales price, the year-to-date median rose to a calendar-year high $356,124. That’s 9 percent more than the year-to-date median last August ($326,482). The August 2016 median sales price was 4.1 percent higher than last August’s.
Pending sales at the end of August numbered 257 — the fewest since 242 at the end of February. A similar drop in pending sales occurred last August, which could be a reflection of the end of the summer, typically a busy time for the real estate market.
The data indicate that it’s a good time to be either a seller or a buyer. To learn more about Bend home options, get started with listing your Bend home, or to view area homes, contact me at (541) 383-1426, or visit Bend Property Search to connect with me through my website.