Spring is finally here – but where are all the homes? That’s the question Bend and Eugene buyers at most price points are asking right now, with inventory still at a low, low, low 0.6 months in both markets.
There were certainly more new listings in March compared to February of this year, especially in Eugene. But there were also significantly more buyers, as measured by pending sales, even if we account for the pandemic-related buyer dip that happened in the second half of March 2020.
Lingering pandemic-related concerns are one thing, but there has also been a vicious feedback loop at work – sellers aren’t listing their homes because they can’t find replacement properties that fit their needs. Also, contingent purchases have become less attractive than ever to sellers in Bend and Eugene’s fast-paced markets.
The silver lining is that when more inventory does come up following widespread vaccinations, sellers will be inspired to take the plunge and the floodgates may really open.
Let’s go into the numbers for Bend first.
March 2021 Real Estate Market Report: Bend
First of all, there is one piece of good news here for Bend-area buyers: the median sale price for all residential properties finally dropped from a high of $605,000 in February to $600,000 in March.
As much as home prices have climbed in Bend year-over-year, it’s a small consolation, but the drop is a sign that prices are finally leveling off. The median list price also dropped from $760,000 in Februrary to $750,000 in March.
There’s actually more good news: new listings between $400,000 and $500,000 were down only slightly year-over-year in March of 2021, while new listings were actually up in the $500-700k range.
However, there’s significantly more competition for these homes than there was a year ago, and multiple offers have become the norm. Meanwhile, homes under $400k are quickly ceasing to exist in Bend, with new listings down more than 80% year-over-year.
In general, homes are selling faster than ever, spending a median of only 4 days on the market before they go pending.
March 2021 Real Estate Market Report: Eugene
While new listings in Eugene were down year-over-year in March, 40% more new properties hit the market than did in February, and new listings even exceeded pending sales by a slight amount.
That’s a positive indicator for buyers, but the flip side is that March’s median sale price of $402,000 was a significant jump from the previous record of $380,000. Eugene sellers are increasingly realizing how much leverage they have, even with homes in neighborhoods that weren’t as “hot” in previous years.
Notably, March’s median sale price was 6% above February’s median list price, a clear indication of how competitive Eugene’s market is right now. But even though Eugene’s market is very tight, it isn’t necessarily getting tighter than it was during the winter.
There is likely some amount of FOMO (fear of missing out) involved. Many of the buyers looking for homes in Eugene right now have already put in multiple offers without getting an acceptance. Those with the resources are likely to put in a more aggressive offer the next time around, and so the cycle continues.
That’s true up to a certain point, anyway: as we’re seeing in Bend, there’s a place where the line simply gets crossed into unaffordability.
Okay, so what does all this mean for my own real estate needs?
Being familiar with the overall numbers and broader dynamics of Bend and Eugene’s markets is one thing, but if you’re thinking of buying or selling a home in the Bend or Eugene areas, there’s so much more to consider.
Wherever you are in your process, whether you’re kind of maybe thinking of moving to Oregon or you’re ready (you think) to buy or sell a home here today, we’re here to help you clarify your goals and provide the context you need to properly navigate the Bend and Eugene-area real estate scenes.