Cheap interest rates? Pent-up demand after the pandemic-caused shutdown? A push from urbanites to move somewhere with a little elbow (or social-distancing) room? All of the above? Something completely different?
Whatever the cause, the effect on the Bend, Oregon, real estate market in July was stunning. The median sales price of $529,000 in July was …
- A record high and the first time Bend’s median sale price exceeded $500,000
- An increase of 14.3 percent from the previous month’s median price ($463,000)
- An increase of 11.4 percent over the previous record for a monthly median sales price ($474,950, in August 2019)
- An increase of 12.6 percent year-over-year in the median sales price from July 2019 ($470,000)
Beyond just the price increases, other data provided nearly unanimous evidence of the desirability of owning a home in Bend.
- There were 318 homes sold in July. That is a record for any month in our data set, which dates to the start of 2007. Even given Bend’s population growth since 2007, taking into account the total listings on the market in July, the number of sales stands out.
- The pace of sales produced an inventory of 0.9 months – a record low for the Bend market, breaking the 1.6 months set in June. (Inventory represents the number of months it would require to sell all the houses on the market at the current pace of sales.)
- July ended with 372 pending sales – the greatest at the end of any month dating to the start of 2007. That figure promises that August’s sales numbers are likely to reflect a continuing tight market.
- The aggregate net change in sales price to list price among homes sold was minus-2.3 percent – the second-lowest change in that data point in more than six years.
As shown by the nearly microscopic inventory, the pace of sales appears to be drying up the source of homes on the market. July ended with 297 active listings, the fewest since January 2013. There were 280 homes new to market in July, which was the fewest for any July since 2013.
Again, we’re not trying to attribute the stunning performance of the Bend real estate market to any one factor – or any combination of them. It could have nothing to do with the possibilities mentioned above. But it’s undeniable that Bend remains an attractive place to live – as shown by the healthy number of tourists we’ve seen this year despite the pandemic and despite the Bend City Council discouraging visitors.
Interest rates will change. The situation with respect to the coronavirus will change (for the better, we hope). But Bend’s status as a desirable destination to live will be constant. If you’re thinking about buying a home, or if you’re considering selling your home, I am confident I can be of help. I have navigated through all sorts of market conditions and can leverage my experience on your behalf. I encourage you to contact me at (541) 362-1031 or to visit Bend Property Search to connect with me through my website.