Median price falls, but inventory scarce for most buyers
For only the second time in the last 11-plus years, the median price of a home in Bend, Oregon, has declined for three months in a row. September’s median price was $425,000, a drop from June’s $449,450, which stands as the highest for any month dating to the start of 2007.
Deciphering September’s sales data is a matter of perspective. Yes, the $425,000 is 5.4 percent lower than June’s record high. But it is also the fourth-highest median sales price out of the more than 140 months for which the Skjersaa Group has data.
Three successive months of declines in the median sales price also occurred from June through August in 2016, from $374,000 to $359,000. That run of declines was reversed with a 7.45 percent increase in the following month, and at the end of that calendar year, the year-end median price was $360,000, a sliver more than what it was at the end of those three monthly declines.
Much like in 2016, 2018’s declines came on the heels of a post-recession record sales price. These two occurrences of dips in the median prices seem more understandable when considered in light of the highs achieved just a few months prior.
Looking at year-over-year numbers, September’s median price represented a 2 percent increase from the same month last year. That is the lowest year-over-year increase in a September since 2014, when the Bend, Oregon, real estate market experienced a 6.28 percent year-over-year decline in median sales price to $279,300.
For what it’s worth, the median sales price of a home in Bend has never fallen below what it was in September 2014.
One hundred eighty-four homes were added to the active listings in September. That’s below average for a post-recession September and the fewest new listings since the 177 in September 2014.
The average days on the market in September was 104 days, tied with 2016 for the fewest DOM for a September. The overall inventory for September was 5.0 months, but at each price tier of less than $625,000, the inventory was three months or less.
The inventory of homes prices at $925,100 or more was 12.4 months, and it’s worth noting that the active listings in that price tier (87) exceeded the active listings of the four price tiers ranging from $525,100 to $925,000. Clearly, homes in the neighborhood of a million dollars are disproportionately represented in the overall inventory in the Bend, Oregon, real estate market compared with homes within reach of the majority of buyers.
We are in a dynamic real estate environment. Mortgage interest rates have crested 5 percent, compared with rates of 4.07 percent a year ago. National midterm elections are drawing near, and even locally, candidates for leadership in Bend have voiced policies that could affect the supply of homes. With so many variables in play, an experienced, ethical Realtor is of value now more than ever. Whether you’re in the market for a home or considering selling, I will leverage my knowledge of the market to produce an outcome that exceeds your expectations. Please contact me at (541) 383-1426 or visit Bend Property Search to connect with me through my website.