At the end of August, for the second month in a row, the number of active listings in the Bend, Oregon, real estate market exceeded 400 homes. That many homes hadn’t been available for sale at the conclusion of back-to-back months since April and May in 2020.
Those two months were probably the last “normal” months for the Bend real estate market before the effects of the COVID-19 pandemic took hold on real estate activity. July 2020 experienced a 14.3 percent month-over-month increase in the median sales price and a shrinkage in inventory of 44 percent from June 2020.
We saw in August 2022 some return to normality – as much as Bend’s market can be said to be normal.
• The inventory was 2.3 months. That’s down slightly from July’s, but the inventory figure has now exceeded two months in each of back-to-back months for the first time in more than two years.
• The average sales price to list price was 99 percent. That more closely resembles pre-pandemic 2020 than 2021’s data points, which were at least 100 percent in 10 of the 12 months.
• The aggregate amount of price reductions of sold homes was 6.8 percent, a high for this calendar year and the second-biggest aggregate decline dating to at least the start of 2014.
These factors are reflected in the decline in the median sales price of 6.9 percent month-over-month to $717,000. From the record high of $773,000 set in February, August’s median represents a 7.8 percent decline.
Comparing August 2022 to the previous year, the median sales price is 12.7 percent higher. The year-over-year median price has increased by at least 10 percent each of the last 26 months, but August’s year-over-increase is the fourth-lowest in that 26-month span – further evidence of a moderating pace of year-over-year price increases.
Only 181 homes were new to the market in August. That is the second-lowest figure this calendar year and the lowest for any August since 2011, when 166 homes came on the market.
Amid inflation fears and higher mortgage rates compared with the historic lows of recent years, potential home sellers might be staying on the sideline until the prospects for home buyers appear brighter.
Inflation and mortgage rates are out of our control, but what I can control is the service I provide for my clients. I have experience in all market conditions and a deep knowledge of the Bend, Oregon, real estate market. If you’re considering selling your home or if you’re in the market to buy, I invite you to contact me at (541) 362-1031 or by visiting Bend Property Search to connect with me through my website.