Hitting record-high sale prices in November isn’t exactly normal in Bend’s market. One might even call it bizarre, and yet here we are. A drop in inventory from 1.5 months in October to 1.2 months in November coincided with a 7% month-over-month increase in the median sale price to $690,000. Let’s put that number into context, however.
Over the summer, the market for residential properties in Bend appeared to be cooling down, with inventory steadily increasing. Prices remained high through the warmer months but started to drop heading into the fall, which is the normal seasonal pattern. Nonetheless, buying pressure has remained higher than normal and hit an inflection point in November.
It isn’t that bidding wars have suddenly become the norm again, with homes selling at an average of 2% under list price. List prices aren’t up either, having dropped in October and November from September’s record high. Rather, the upper end of Bend’s market is seeing more activity than the lower end.
Pending sales of $1 million-plus homes were up 13% month-over-month in November. Meanwhile, pending sales of homes between $400k and $1 million were down 17%.
In other words, we’re seeing a typical seasonal cooldown in the lower and middle-end of Bend’s market, while the upper-end is unseasonably hot. That’s skewing median sales figures upward. Bend’s inventory of luxury homes is still significantly higher than it was a year ago, but plenty of buyers are choosing to bite. For the rest of Bend’s market, we still expect prices to remain relatively flat leading up to the spring even though inventory will likely drop somewhat further.
October 2021 Bend Real Estate Market Report
October is typically the time when Bend’s market starts to undergo its usual seasonal slowdown, and this year was no exception. But new listings dropped significantly more than pending sales (19% versus 8%), leading inventory to drop for the first time since the spring.
Basically, buyers are grabbing up the inventory that accumulated in Bend during the summer. Price reductions have made these properties more palatable. Though Bend’s median list price has continued to climb steadily, up 2% month-over-month, homes sold on average for 98% of list price. That’s a shift from the late spring, when bidding wars drove homes to an average of 104% above list.
Bend buyers won’t see that kind of competition during the winter months. We expect purchase activity to level off significantly in November, but if pending sales continue to outstrip new listings the scene could be set for a very hot market in the spring. Potential sellers can be reassured that Bend remains a strong seller’s market. Still, it’s much more important now than it was during the summer not to overprice your home, with properties staying on the market longer and selling for less relative to list price.