April 2023 Bend Oregon Real Estate Market Update
Are you keeping up with the latest trends in the real estate market? If not, you may be surprised to hear that home prices in Deschutes County have been on an upward trend since February, breaking the declining trend from the previous months. According to Amanda Pasinetti, a representative from the Pasinetti Group NW at eXp Realty, low inventory and increasing demand have fueled this growth, resulting in prices that have risen significantly. In today's market update, we'll explore what's driving this trend and what we may expect in the future.
For the last few months in our monthly market updates we’ve been talking about how home prices have been coming down in Central Oregon and but this one's actually going to be a little bit different. We have started to see home prices come up in Deschutes County so let's break that down a little bit.
Prices peaked in March of last year where the median home price for Bend was around $773,000. From that point prices declined all the way through June, popped up in July, then went on a roller coaster ride of ups and downs where it bottomed out in February at $660k.
Here's the thing, now that March numbers are out and I’m filming this in mid-April, the median home price for March jumped from $660k in February all the way up to $685k in March.
Now why did that happen?
In the current market, buyers have accepted that interest rates are in the 6's and this has caused an increased demand for housing. At the same time, there is a shortage of available homes on the market, as many homeowners are hesitant to sell their property with mortgages in the 2's and 3's to buy one with higher rates in the 6's. This combination of elevated demand and low inventory has driven home prices up significantly.
So we have low inventory and we have high demand that's getting stronger and stronger each day.
To put a number on it we have 1 months worth of supply here in Bend and 1.6 in Redmond right now. Now what does that mean? Essentially what that means is that if no other homes came on the market right now at the rate homes are coming off the market it would take 1 month in Bend, or a month and a half in Redmond, for all the inventory to get sold now. That's not a lot of supply. We want to see 3, 4, 5, 6 months worth of supply for a more balanced market. As buyer activity increases and inventory levels remain low, it is expected that home prices will continue to rise. This is unsurprising as demand far outweighs supply in the current market.
Now let’s take a look at Days on Market for a second. Median Days on Market hovers around 4 days in a really hot market… when interest rates started climbing, so did days on market because buyers hit the breaks to see what the market was going to do. At the peak, days on market climbed to 51 days, which means when the home was listed to the day it went Pending, the median days was 51. In March it plummeted to 13 days in Bend and 27 days in Redmond, telling us that people are jumping back in the game.
The market has been unpredictable, and the bottom appears to have passed us all. Prices were declining and stagnating, until recently when there was a sudden rise in prices. The low supply and increasing demand suggest that the market is on an upward trajectory, though it is still possible for prices to dip again in the future. Nonetheless, current trends make it unlikely that prices will fall any time soon.
Over the last few weeks we're seeing multiple offers on a lot of houses, people are playing around with inspection and appraisal waivers again, and seller credits are disappearing. Buyer demand is still strong and activity is anticipated to pick up as we head further into the year. Prices have already started to increase, with levels of competition usually seen in April or June seen in March this year. With a lack of inventory and more buyers entering the market, 2021 could be just the beginning for a competitive housing market.
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