Lack of Inventory Triggering Escalating Sales Prices for Bend Homes

The figures are in for Bend single family home sales in March 2021. It has been a full year since Covid-19's impact on Bend home sales initially was felt and the resulting demand for Central Oregon homes began impacting our local housing market. We have had a year of tremendous buyer demand and Bend real estate sales which have broken records. Multiple offers and bidding wars have pushed Bend home prices to never before seen levels with cash offers typically beating out any offer involving financing. Entry level buyers have found Bend unaffordable and have determined Redmond, Prineville, LaPine and Madras may work better for their finances. The housing boom in Central Oregon is very real and it remains to be seen how long it will continue with buyer demand far exceeding supply.

When March 2021 is compared with March 2020, the following data can be noted for Bend single family home sales on less than an acre:

• Average sales price is up 40.7% to $776,573*
• Median sales price is up 32.2% to $597,500
• Number of new listings down 8.2% to 225
• Homes for sale down 84.9% to 99
• Pending sales up 103.7% to 385
• Sold homes down 6.3% to 177
• Median days on market down 76.5% to 4
• Months of inventory down 87.9% to 12 days
• Average price per square foot up 40.9% to $365
• Median price per square foot up 36.2% to $331
• Average percentage of listing to sales price up 5% to 104.2%
• Dollar volume of sales up 31.7% to $137,453,417

It should be emphasized that the number of sold homes are down 6.3% compared with 2020, yet the dollar volume of sales is up 31.7%. Bend home prices are on such an upward trend that appraisers are having a hard time justifying some of the prices and we are seeing homes not appraising, despite the huge demand and multiple offers. It is challenging to be a buyer in this market, especially a buyer that needs to finance their home purchase. 

Will Bend Real Estate Sales Continue With Early 2021 Trends?

We do not see any end to what we have experienced year to date with Bend home sales. Our low inventory of less than 1/2 a month supply remains a key indicator of Bend real estate sales. If/when this figure starts to increase, we will know that we are starting to move towards a more balanced market.

*Data from Central Oregon MLS

Redmond Oregon Home Sales Reflect Great Buyer Demand

Redmond Oregon home sales have been in high demand over the past year.  Although not involving the high end homes that are now such a component of Bend real estate sales, Redmond real estate sales have been tremendously strong since the Covid-19 pandemic hit with home prices and inventory levels reflecting an extremely strong sellers' market.

We made a comparison of 1st quarter 2020 with 1st quarter 2021 single family home sales in Redmond on less than an acre. The following trends can easily be seen:

• Average sales price is up 28% to $450,328*


• Median sales price is up 22.6% to $400,000


• New listings are down 9.1% to 291


• Homes for sale are down 64.1% to 118


• Pending sales...

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Winter hiking in snow has been a challenge for us this year since by the time we realized we needed snowshoes, they were sold out locally. Our winter hikes have involved more high desert locations with trips to Fort Rock, Whychus Canyon Preserve, Bessie Butte, Lake Billy Chinook, Blue Basin, and repeated visits to Smith Rock among our favorites. However, last Saturday we decided to visit Santiam Pass and hike the road to Big Lake. 

We arrived at the Ray Benson Sno Park around 8:40 am and found many people there either camping in their RVs or setting up their snow mobiles. We slipped on ice cleats and were determined to walk the couple miles to the far west side of Big Lake where we were told the views of Mt. Washington were the best.  It was a beautiful sunny day and the weather warmed as the day wore on.  The views of Mt. Washington from Big Lake were stunning and we were surprised to see that the lake was still frozen to the extent that snow mobiles were driven across the ice.

After leaving the lake, we decided to take the Ray Benson Sno Loop and visit the Brandenburg Shelter. The trails were fine traveling with our snow cleats and we saw several people cross country skiing as well as snow shoeing and hiking like us. The shelter provided us with both Mt. Washington and Three Fingered Jack views and an opportunity to talk with other people enjoying the day.

All in all, we traveled roughly 10 miles and really had fun being outside in the Mt. Washington Wilderness on a late winter day.

According to the National Association of Homebuilders (NAHB) annual Priced-Out Estimates released earlier this month, 71.5% of Bend residents have been priced out of the Bend real estate market based on a median priced home of $409,281. The household income needed to qualify would be $102,710.  Although the NAHB figures are fairly recent, this number is roughly 73% since the median price of a home in Bend today is closer to $520,000. And for every $5000 increase in the median price for a Bend home, another 700 local residents will be priced out of this market.

These Bend numbers are higher than the national median home price of $346,757, resulting in about 75 million households, or roughly 60% of all U.S. residents, being priced out of the...

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What's in the March 2021 Newsletter?

• Bend Real Estate Sales Remarkable in February 2021
• Hot Interior Design Colors For Oregon in 2021
• Is Bend Becoming the Next Aspen?
• A Perfect Taste of Something New
• How to Prepare Your House for a Perfect Sale This Spring