Bend Real Estate Sales Up Despite Rising Interest Rates
Mortgage interest rates for a 30 year conventional loan with 20% down have exceeded 5% for the first time in over a decade. Despite the decreased buying power this creates for many, especially first time homebuyers, the March 2022 pending sales of Bend single family homes on less than an acre are up an amazing 108% over the year before. Bend home prices are also up with the median sales price now at $775,000. Bend has become a town of the affluent and while affordability has been an issue for many years, it is now a level never before seen.
When March 2022 is compared with March 2021, the figures for Bend single family home sales on less than an acre are as follows:
- Average sales price up 12.7% to $867,475*
- Median sales price up 31.4% to $775,000
- New listings up 10.1% to 261
- Homes for sales down 63.3% to 165
- Pending sales up 108.8% to 380
- Sold homes up 13.3% to 205
- Median days on market unchanged at 4
- Average price per square foot up 15.9% to $423
- Median price per square foot up 23.9% to $410
- Average percentage of list price received down .8%to 103.3%
- Dollar volume up 27.7% to $177,832,311
Where Are We Going With Bend Home Sales?
The sharp increase in mortgage interests rates has happened in the past few days, whereas most March closings that involved loans were booked weeks earlier before rates were as high as they are now. With interest rates up along with prices, we believe our market is now entering in a fluctuating state. We are starting to see new listings enter the market as is traditional in spring, but at tremendously inflated prices beyond those from just a few years ago. We do not believe the increase in Bend home prices can continue at the rate they have over the past two years, especially in lieu of the increase in mortgage interest rates. While we believe home prices will continue to rise while there is high demand with little inventory, they should rise at a lower rate than we have seen since the start of the Covid pandemic.
