Lack of Inventory Triggering Escalating Sales Prices for Bend Homes
The figures are in for Bend single family home sales in March 2021. It has been a full year since Covid-19's impact on Bend home sales initially was felt and the resulting demand for Central Oregon homes began impacting our local housing market. We have had a year of tremendous buyer demand and Bend real estate sales which have broken records. Multiple offers and bidding wars have pushed Bend home prices to never before seen levels with cash offers typically beating out any offer involving financing. Entry level buyers have found Bend unaffordable and have determined Redmond, Prineville, LaPine and Madras may work better for their finances. The housing boom in Central Oregon is very real and it remains to be seen how long it will continue with buyer demand far exceeding supply.
When March 2021 is compared with March 2020, the following data can be noted for Bend single family home sales on less than an acre:
- Average sales price is up 40.7% to $776,573*
- Median sales price is up 32.2% to $597,500
- Number of new listings down 8.2% to 225
- Homes for sale down 84.9% to 99
- Pending sales up 103.7% to 385
- Sold homes down 6.3% to 177
- Median days on market down 76.5% to 4
- Months of inventory down 87.9% to 12 days
- Average price per square foot up 40.9% to $365
- Median price per square foot up 36.2% to $331
- Average percentage of listing to sales price up 5% to 104.2%
- Dollar volume of sales up 31.7% to $137,453,417
It should be emphasized that the number of sold homes are down 6.3% compared with 2020, yet the dollar volume of sales is up 31.7%. Bend home prices are on such an upward trend that appraisers are having a hard time justifying some of the prices and we are seeing homes not appraising, despite the huge demand and multiple offers. It is challenging to be a buyer in this market, especially a buyer that needs to finance their home purchase.
Will Bend Real Estate Sales Continue With Early 2021 Trends?
We do not see any end to what we have experienced year to date with Bend home sales. Our low inventory of less than 1/2 a month supply remains a key indicator of Bend real estate sales. If/when this figure starts to increase, we will know that we are starting to move towards a more balanced market.
*Data from Central Oregon MLS
