Before July 2020, the median sales price of a home in Bend hadn’t reached $500,000. It hadn’t touched $475,000, for that matter.
Thirteen months later, it’s soared past $500,000, sped beyond $600,000 and lies as close to $700,000 as to $650,000.
In the 13 months since the end of June 2020, the median price has increased by more than $200,000. It was $463,000 in June 2020, and in July 2021, it was $675,000.
The strongest theories for the most recent increases are probably the same ones that have been used in the past year. They boil down to supply and demand: Bend has too few homes for the many people who want to live here.
Some of that supply-and-demand issue is probably attributable to COVID-19. Experts tell us the pandemic has prompted many to seek a less congested area for their home.
And some of that issue is probably attributable to non-COVID-19 reasons. Bend remains a desirable place to live. And that’s unlikely to change regardless of where we go with COVID-19.
Diving into July’s sales figures, we see that the $675,000 median price is 27.6 percent higher than the median price in July 2020 ($529,000).
July 2020, incidentally, was the first month that Bend’s median price crested $500,000. Prices in July 2020 rose 14.3 percent from the month before – the largest month-to-month gain since late 2013, which is about when the real market began to regain its stride after the recession. We can trace the start of the recent steep rise in Bend home prices to July 2020.
On a month-to-month basis, July 2021’s median sales price rose 3.1 percent from June’s $654,500. It might be interesting to know that during our current 13 months of rapidly rising prices, we’ve had three months when the month-to-month median price actually fell.
But even in May, the most recent month with a month-to-month decline in prices, other fundamental data in the market were outliers signaling fevered demand for homes. May’s average days on market was seven – matching the lowest we’ve seen in our data set (which dates to the start of 2007). Inventory in May was half a month; only one other month has ever had a lower inventory. And the average sales price to list price was 105 percent – matching the highest we’ve seen.
July’s figures for those data points are similar. Average days on market was eight, inventory was 0.9 month, and average sales price to list price was 105 percent.
Figures about homes on the market at the end of July point to tight supply compared with historic figures. Although 305 new homes came to market in July (the most in a July since there were 307 in July 2016), the month ended with 237 active listings, the fewest on record for a July. The month ended with 243 pending sales, fewer than usual in the post-recession period. And the number of homes sold – 250 – as a percentage of total homes on the market was high compared to historical data.
We don’t know when the effects of COVID-19 might no longer come to bear on the housing market, or if in fact they already have. But we’re fairly certain that Bend’s draw as a residence will remain strong. That fact will keep the real estate market in Bend, Oregon, a dynamic, thriving environment – one in which it pays to have a trusted Realtor. If you’re thinking of selling your home, or if you’re in the market to buy, I am confident I can help you. I encourage you to contact me at (541) 362-1031 or to visit Bend Property Search to connect with me through my website.