Bend Oregon Real Estate Prices Escalated During Covid
We typically look at Bend real estate trends based on comparisons each month - seeing what the data shows the same month a year previously. This has resulted in some startling information, especially when trends over the past year are reviewed. The Covid pandemic impacted the Bend Real Estate market in ways we never anticipated when the initial stay at home orders were given. However, to get a full idea on what has happened to Bend home prices, it is often very helpful to look at a longer timeline.
Ten years ago Bend was just starting to turn around from the Great Recession in which poor lending practices led to the mortgage melt down. Real estate brokerages' businesses consisted of working with short sales and foreclosures. It was a very strong buyer's market with months of supply well over six months in all prices points and with twenty months supply for Bend luxury homes (those priced over a million dollars). What a difference we are experiencing today with less than a month of supply for Bend single family homes.
The chart below shows the the last ten years of Bend single family home sales separated by price. It can be noted that the vast number of homes sold in Bend in 2011 were less than $300,000. Today, such properties are almost nonexistent which is why outlying areas such as Prineville, Madras and LaPine have become so popular for first time homebuyers. Bend's greatest number of sold homes over the last twelve months were priced between $300,000 and $600,000, but those between $600,000 and a million dollars were trending upward as well as those properties over $1,000,000. The sharp increase we have seen in home prices over the past year since the Covid pandemic impacted the world has resulted because of huge demand without supply. What sold for under $300,000 in 2011 is now priced in excess of $600,000.
Predictions for Bend Oregon Home Prices 2022
Bend Premier Real Estate predicts that in the remainder of 2021 into 2022, home prices will continue to rise, but at a reduced rate that what has been experienced over the last year. The greatest limitation to a return to a normal market is the inventory of available housing. Until there is a significant increase in available homes for buyers to purchase, home prices should keep rising.
