The inventory of homes for sale in the Bend, Oregon, real estate market in February dropped to its lowest figure in eight months, but a frequent companion of tighter inventory didn’t materialize. In fact, rather than increasing, the median sales price in February fell to its lowest since October 2021.
Bend’s supply of homes on the market and pace of sales produced a 1.9-month inventory. That means it would take that long to sell all the available homes on the market, given the pace of sales in February. An inventory of six months is commonly viewed as the balancing point between a sellers’ and a buyers’ market.
Inventory hadn’t been so low since June 2022, when it was 1.8 months. The average inventory since then, before February, was 2.5 months.
February’s median sales price of $659,450 was 3.7 percent less than that data point in January ($684,950). It was 14.7 percent less than the median sales price one year earlier, the $773,000 of February 2022 – a record for the Bend, Oregon, real estate market.
The year-over-year decrease in median sales price was the biggest we’ve seen since November 2011, when the median price dropped 17.0 percent from November 2010.
That big of a year-over-year drop in the median sales price is sure to grab a lot of attention. I’d like to make a couple of points to add some context.
I mentioned that the February 2022 median price is an all-time high for the Bend, Oregon, real estate market. The $773,000 median price represented a 12.7 percent increase from the month before.
I often make year-over-year comparisons in data, as they help account for some of the variation in the market that occurs from month to month. But if we looked at February 2023’s median sales price and compared it with that same data point from 13 – instead of 12 – months prior, we’d see a much more pedestrian decline of 3.9 percent.
Another point is, only homes that are for sale will be sold. In February 2022, 70 percent of the 99 homes active on the market were priced at more than $725,000. And, obviously, in light of the median price, more than half of the homes sold that month were in the more-than-$725,000 range. Given the relative dearth of homes for sale and the predominance of higher-priced homes among those for sale, it shouldn’t be a surprise that February 2022 was an extreme in terms of median sales price.
Finally, recalling the year-over-year decline we saw in November 2011: The next month, the median sales price was 10.5 percent higher than in November.
Looking ahead to March’s data, I’ll note that 45 percent of the homes that were pending as February ended were priced at more the $725,000, compared with 37 percent of homes pending as January turned to February. The alignment of those numbers would seem to portend a higher median price in March, assuming the market doesn’t experience disruptions through the rest of the month.
Historical data, of course, can’t definitively predict future trends in the Bend, Oregon, real estate market. Too many uncontrollable variables are in play. But one constant is the value of a Realtor who puts his or her clients’ needs first. I have been a Realtor through all kinds of market conditions. I have a deep and wide knowledge of the market. I operate always with an ethical approach to the industry. And I believe I can help produce a successful real estate journey for you. Whether you are considering selling your home or are 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.