What to make of the data from the Bend, Oregon, real estate market in June?
On the one hand …
• The month ended with 357 active listings, the most in any month since June 2020
• Three hundred fifteen homes were new to the market, the most in any month since May 2019
• Supply reached 1.8 months of inventory, the most since May 2020
• The total reductions in price of sold homes was 6.2 percent, the largest aggregate reduction in any month since August 2021
And on the other …
• Despite a greater inventory, average days on the market decreased from 28 days in May to 12 in June (the lowest since July 2021)
• The average sales price to list price was 100 percent, higher than in May
It can’t be disputed that the market in June tilted a little more toward the buyer’s side. Six months is regarded as the dividing line between a buyer’s and a seller’s market, and 1.8 months isn’t close to six. But it is 50 percent greater than May’s inventory, and it represents the third consecutive month the inventory has increased.
The median sales price in June was $720,000. That is 2.7 percent less than May’s $740,000. The median price has decreased four months in a row for a total 7 percent decrease from February’s record high of $773,000.
Year over year, June’s median price showed a 10.0 percent increase. June marked the fourth consecutive month that the amount of the year-over-year price increase has fallen. The year-over-year price has increased every month since June 2020; the year-over-year increase last month was the smallest we’ve seen since June 2020.
The 357 active listings at the end of June marked the fourth consecutive increase in the end-of-month listings. One factor in the relative loosening of the market might be mortgage interest rates. Average 30-year fixed rates rose nearly 2.5 percentage points since the start of the year.
Higher interest rates reduce the buying power of potential homeowners. The rise in Bend’s real estate prices over the last decade-plus occurred during a period of generally low – sometimes record-low – interest rates.
Bend’s sensitivity to interest-rate hikes, however, might be less than assumed. According to a report cited by The Bulletin newspaper, about one-third of the single-family home purchases in June were cash transactions. Moreover, mortgage rates fell in the final week of June.
Interest-rate uncertainty and fears of a recession are among the variables the real estate market will encounter in the coming months. Those factors are out of our control, but I can help control some aspects of your real estate experience. My experience, ethics and knowledge of the Bend market can help produce a positive outcome for my clients. I am confident I can assist you, whether you’re in the market for a home or considering selling your current residence. I invite you to contact me at (541) 362-1031 or to visit Bend Property Search to connect with me through my website.