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Inventory is holding steady in Eugene as we approach the warmer months, with buyer activity roughly on par with seller activity. Basically, while Eugene's market isn't as hot as it was a year ago, there are still less homes to go around than there were at pretty much any point prior to the pandemic. High interest rates are keeping a lid on prices, but March's median sale price of $441k is still 1% higher than it was last year. In March, homes sold for an average of 97.8% of list price, compared to 95.7% in February. &&&Homes still aren't selling as quickly as they've tended to in Eugene over the past few years, but we're seeing buyers start to get more eager than they were during the winter months. In March, new listing activity increased significantly in the $500k+ range, indicating that sellers in the middle to upper end of Eugene's market are starting to warm up to the idea of selling their homes. &&&During the spring, we expect these trends to continue. Prices will increase somewhat, though they won't reach the highs that we saw last summer and early fall. Still, especially if mortgage rates continue to drop, there may be a decent surge of activity both for buyers and sellers.

Two trends have defined Bend's market in the past couple of months: prices dropping and homes spending significantly longer on the market. But March's numbers indicate that the tide is shifting heading in the spring. &&&In March, Bend homes spent a median of just 14 days on the market, down from 56 days just a month earlier. In other words, buyers are beginning to bite even before the weather in Bend really starts to turn. That corresponded with a 60% month-over-month jump in new listings. Bend's market isn't exactly flush with homes, with inventory levels remaining relatively flat in spite of that. But this could be a preview of a busy spring buying season, at least relative to the action we saw over the winter. &&&Like we mentioned, prices are up again, with homes selling for a median of $690k in March. That's still 10% lower than what we saw a year ago, but we expect sale prices to climb further in the months ahead perhaps before leveling off in the summer.

Eugene’s median sale price was down 4% month-over-month in February as home prices continue to zigzag. The numbers suggest, though, that this isn’t the beginning of any kind of trend. Overall, homes spent significantly less time on the market than they did in January, down from a median of 32 days to just 19 days. Things are moving slower than they did a year ago, but compared to elsewhere, Eugene’s market is plenty brisk. &&&Additionally, homes sold in February for an average of 95.7% of their original list price, compared to 94.8% in January. Basically, there’s just more activity right now at the lower end of Eugene’s market, so even though prices appear to be dropping, home values aren’t necessarily decreasing. &&&February’s new listings hit the market at a median ask price of only $405k, so this trend could continue until we hit the spring months. Sellers with higher end properties are choosing to wait for the weather to turn, and that may be true of buyers as well. &&&Eugene’s luxury market is much less active than Bend’s, but with what little sale data we have over the past few months, there appears to be a big increase in time spent on the market - a 79 day median for $1 million-plus homes, to be precise. Apart from that, however, there isn’t a clear correlation between market segment and number of days on the market.

Going by the official numbers, Bend’s residential inventory remained flat in February, but by the end of the month, active listings had dropped month-over-month while buyer activity was higher. Year-over-year, new listings were down 40%, while pending sales were down only 26%. That means Bend’s market is now a bit more competitive for buyers than it was earlier in the winter. &&&You wouldn’t know it, though, from the amount of time properties are sitting on the market. February saw a huge leap from 38 days up to a median of 56 days. That was reflected February’s sale prices, which dropped 3% month-over-month to a median of $659,000. &&&In general, Bend sellers need to be patient right now. Still, the strategy you need to take is completely dependent upon your individual property and what your goals are. In February, 40 homes went pending in less than a week, and this group includes properties all the way from the starter to $1.5 million-plus luxury ranges. Meanwhile, 46 homes lingered on the market for longer than 4 months, again at various price points. Location, level of finishes, and overall uniqueness definitely make a difference. But the most important thing is to price your home correctly from the get-go. &&&Even homes that are going off the market fast aren’t selling for much more (if any) than list price. In fact, the numbers show that some sellers are willing to accept low offers even in the first week of being on the market. That may actually be the wrong approach - it can be good to test the market, but if you start out too aggressive, it will almost certainly harm your bottom line.

Pending sales and new listings were up in the first month of the New Year, and so were home prices, rising 2% month-over-month to a median of $447,000. But time spent on the market also rose significantly, up 52% month-over-month to a median of 32 days. &&&We're definitely not seeing a repeat of 2022, when buyers hit the ground running to start the New Year, competing fiercly for historically low inventory. In January, homes went for a median of just 94.8% of their original list price, a 3% month-over-month decline. &&&Homes are definitely still selling in Eugene - they're just taking longer to do it. Prices have dropped much less than they have in other markets, and certain kinds of properties are just as much in demand as ever. &&&But sellers may be asking a bit more than the market can bear at the moment: list prices rose 5% month-over-month in January. How high you should aim depends entirely on your location, your level of finishes, and the level of competition.

January's numbers showcase a significant bump in market activity, with pending sales up 56% month-over-month and new listings up 79% month-over-month. Bend's median sale price also went up 3% month-over-month after a particularly desolate December. Inventory dropped from 1.9 to 1.6 months, and we expect that pattern to continue until temperatures start to warm up. &&&Homes are still spending a lot longer on the market than at just about any point since the pandemic started. With homes lingering on the market, price reductions have become normalized, with homes going for a median of 92.9% of their original list price. &&&We've said it before, but it bears repeating: it's important to price your home correctly. Sellers are getting the message, with January's median list price down 7% month-over-month to $725k. That helped drive more buyer activity in January.

The old year has come and gone, and it's time to set our sights on what's in store for Bend and Eugene's real estate markets in 2023. Let's get it [...]

December marked the first year-over-year sale price decline that we've seen in Bend since the first half of 2020. Prices are also down 5% month-over-month. Time on the market is up significantly to a median of 37 days. &&& Last month, we suggested that at least part of the equation is a decline in activity at the upper end of Bend's market. A year ago, million-dollar-plus homes were still flying off the market. That isn't the case now, so prices look much lower in comparison. &&& One of the more interesting tidbits from December's numbers is the extraordinarily low amount of new listing activity. 80 listings is the lowest number that we have on record. It isn't just a matter of Bend's normal seasonal dynamics: people just aren't putting their homes on the market. &&& Bend's inventory is especially flush in the $500-650k range. It may only be a matter of time, though, before we see another inventory crunch, especially in the $650k to $1 million range.