Inventory Levels Less than a Month for Bend Real Estate
The October 2020 figures have been published for Bend single family home sales on less than an acre. The results continue the trends we have been experiencing this year - recording breaking low inventory, record breaking demand and record breaking home prices. The inventory of available Bend single family homes for sale has now reached a desperate level of less than half a month of supply. This has created a situation where multiple offers are the norm, days on market historically low and prices escalating at a rate that we believe is unsustainable.
When October 2019 sales figures for Bend single family homes on less than an acre are compared with those from October 2020, the following changes can be noted:
- Average sales price up 21.5% to $669,699*
- Median sales price up 19.1% to $560,000
- Average listing price up 11.4% to $638,699
- Median listing price up 19.6% to $549,000
- New listings up 18% to 223
- Homes for sale down 86.7% to 110
- Pending sales up 113.6% to 472
- Sold homes up 12.7% to 249
- Median days on market down 90% to 4
- Months of supply down 90.7% to 12 days
- Average price per square foot up 13.5% to $319
- Median price per square foot up 17.6% to $300
- Average percentage of sales price to list price up 2.7% to 101.5%
- Dollar volume up 36.9% to $166,755,122
Can Bend OR Real Estate Sales Trends Continue?
We believe the above trends are unsustainable. With inventory levels down to under two weeks and with demand still breaking records, prices are sure to continue their upward trajectory with multiple offers the norm. Within our brokerage alone, one new listing in October received 19 offers and the property is in contract for far more than the asking price. The 18 buyers who did not win the home are still looking for other housing options. A major problem with Bend's lack of inventory stems from state control on expanding the city boundaries. When the city applied to expand the Urban Growth Boundary (UGB) during the last housing boom, it was turned down by the state and it took over a decade before approval was finally received. The original 10,000 acres requested was denied and only 2000 acres were eventually approved. This has led to an escalation in land prices which in turn leads to an increase in home prices. The city and state recognize the lack of affordable housing opportunities in Bend, but their actions have contributed to the problems we are experiencing. Until we reach a point in which buyers no longer buy in the city (perhaps due to high prices), we believe these trends will continue.
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