Lack of Inventory Impacting Bend Luxury Home Sales
2020 was a year that will be remembered in the history books. In January and February 2020, real estate sales were great across the country with low interest rates leading the way enabling buyers to afford more than they could in the past. Low inventory levels were making sellers realize that listing in the winter could be a good decision and Bend Oregon real estate sales were breaking records. Then the Covid-19 pandemic hit and the subsequent recession and work-from-home orders made many believe Central Oregon real estate sales would drastically drop. However, after the initial shock, Bend home sales came roaring back when the pandemic made people realize that if they were to work from home, home could be where they really wanted to live as long as a good internet connection was available. Cities like Bend became the destination of many across the country as people left high density, urban areas and moved to smaller cities and suburbs where the location and housing worked better for their new lifestyle. The inventory of available housing in Bend was quickly purchased and as fast as new inventory came on board, it too went into contract. Bidding wars started driving the price of Bend homes upwards with homebuyers being willing to buy property well above asking price. Bend real estate agents found themselves working with many buyers and were unable to find homes that either their clients could afford or were outbid by someone else. This situation remains in place almost a year after it started and lack of inventory remains the number one issue for homebuyers in Central Oregon.
Bend OR Luxury Home Sales Surged in 2020
A large number of people who moved to Bend in 2020 were very affluent and the bidding wars often enabled cash purchasers to often win the home. When the offer didn't have a financing contingency and the property didn't have to appraise, home sellers facing multiple offers were often more willing to take a cash offer over one involving financing. What used to sell for $800,000 in 2019 quickly began selling for over $1,000,000. The price of new homes also escalated as lumber and land costs hit new records. But buyers continued to purchase Bend homes and the high end market surged.
The chart below shows twelve months of data comparing three years of Bend single family high end sales on less than an acre. Price does not appear to be an issue when it comes to newcomers to Bend and much of the increase in prices has been driven by multiple offers - that and home sellers setting asking prices recognizing that Bend homebuyers appear to be willing to pay a much higher price than they were just two years ago.
What are Our Predictions for Bend Oregon Luxury Home Sales in 2021?
2021 has started where 2020 left off - great demand with little inventory. Even in the high end, the inventory of available homes for sale in Bend is far less than the buyer need. Until buyers stop offering on Bend homes, we predict that prices will continue to rise and demand will far exceed supply. We should remain in a seller's market for 2021 with our greatest issue being the lack of listings.
