Lack of Inventory the Most Important Factor Impacting Bend Real Estate Sales in 2021
2021 has come to a close and the Bend housing market has broken records when it comes to volume, price and inventory levels. The huge influx of residents moving to Bend which started with the 2020 Covid-19 pandemic continued in 2021. Bidding wars, multiple offers, and a general lack of inventory drove prices higher than they have ever been. Builders have not been able to keep up with the demand and the supply shortage of building materials has impacted the pace by which new homes can be completed.
When 2021 is compared with 2022, the sale of Bend single family homes on less than an acre show the following trends:
- Average sale price up 26.6% to $774,860*
- Median sales price up 27.7% to $645,000
- New listings up 2.4% to 2692
- Homes for sale down 27.1% to 444
- Pending sales up 3.6% to 2706
- Sold homes down 4.2% to 2494
- Median days on market down 54.5% to 5
- Months of supply down 33.3% to 2
- Average price per square foot up 30.2% to $379
- Median price per square foot up 31% to $351
- Average percentage of list price to sales price up 2.7% to 102.6%
- Dollar volume up 21.2% to $1,932,499,813
That last figure for dollar volume is significant. Although sold homes were down 4.2% in 2021 compared with 2020, the dollar volume was up 21.2% to $1.9 trillion in sales. Bend home prices have reached a level never seen before, and the demand doesn't appear to be ending anytime soon. Even in early January we are seeing multiple offers on some luxury homes as soon as they are listed. There may never be a better time to be a Bend real estate seller than now.
Predictions for Bend Real Estate Sales 2022
As we have noted in previous blogs, industry experts believe that there will be an increase in mortgage interest rates in 2022, but at a level that is still historically low, most likely staying under 5%. Inventory levels for Bend single family homes will still be a serious problem which will continue to cause home prices to rise, but the experts believe this will be at a smaller rate of increase than we have seen over the past two years. We believe that supply shortages will continue to impact new home construction and challenge Bend builders who are trying to complete buildings on a timely basis. We also believe that people will continue to move to Bend as they have for decades. The lifestyle of the area will remain a strong reason for people to relocate to Bend.
