Redmond, Oregon has long been an attractive option for those wanting to experience the Central Oregon life without the same premium price tag as Bend. However, with prices increasing and inventory tightening all across Central Oregon, the Redmond real estate market is getting harder and harder to navigate.
Fear not, though: whether you’re thinking of buying or selling a home in Redmond, we have some tips that will hopefully make it easier to get a handle on the situation.
Where Bend’s market goes, Redmond’s real estate market tends to follow, and lately, that’s been up. Through the summer of 2020 and into the fall, Bend’s market shot through the roof. Inventory decreased by more than two-thirds and prices jumped just about 20% from the previous year.
Naturally, that’s led more people to turn to Redmond instead, and now inventory is shrinking there too and the cost of living in Redmond is getting higher. Read on as we offer a portrait of what the Redmond real estate market looks like today.
Lower Inventory, Higher Cost of Living: Redmond’s Real Estate Market Today
At the end of October 2020, only 145 residential properties were available for sale in Redmond compared to 363 a year earlier. That’s a 60% drop.
Meanwhile, the median sale price on all residential properties in Redmond was $373,150, a 14% jump from a year earlier. Homes spent a median of only 9 days on the market.
Of course, the cost of living in Redmond is still significantly less expensive than in Bend, where homes sold for a median of $557,000 in October of 2020. But Redmond’s real estate certainly isn’t cheap.
In many ways, the direction of Redmond’s market mirrors that of the rest of the country. Just about anywhere you look, new listings are down while buyer activity is surging. Low interest rates have played a big part in that, while the threat of COVID-19 has discouraged many sellers from putting their homes on the market.
In Redmond’s real estate market, buyer activity (as measured by pending sales throughout 2020) is up by 31% year-over-year. New listings are up too, but only by 8%.
That’s due solely to a 48% year-over-year increase in available new construction. It hasn’t been enough to make up for a shortage of pre-owned homes entering the market.
In spite of higher build numbers, Redmond’s new construction certainly isn’t sitting around on the market for long. As of publication, only 32 newly-constructed homes were available for purchase.
Over the past few years, Redmond had been relatively insulated from the bidding wars that were becoming more and more prevalent in Bend’s market. Nowadays, though, our clients looking in Redmond in the $300k or $400k range have faced multiple bidders on every single home they’ve offered on.
If you’re thinking of moving to Redmond or buying a home in Redmond, the question is probably this: will Redmond’s real estate market just get tighter and tighter, or is there some relief in sight?
Sellers, meanwhile, may be wondering how they should try to time the market and how to take advantage of high demand. Read on, and we will offer our verdict.
What’s in Store for Redmond’s Real Estate Market in 2021 and Beyond
We will start with the (mostly) knowns and proceed from there into our own predictions.
Interest rates will likely rise in 2021, though not by a lot. Current projections have the average for 30-year fixed-rate rising from 3 to 3.3%.
A certain amount of FOMO (fear of missing out) may have played into strong buyer activity nationwide in the summer and fall of 2020, record-low interest rates receiving as much hype as they did. That factor is unlikely to be as strong next year.
A lot, of course, hinges on the successful rollout of a COVID-19 vaccine. So far, early trials of one candidate have proven much more successful than expected. There is a possibility that the virus will be less of a concern in the summer of 2021 than it was this year.
If that’s the case, sellers might feel more comfortable having buyers walk through their homes. Meanwhile, hard-hit industries like restaurants, travel, hospitality, and retail may start to add jobs, helping to lift the economy and encouraging more new buyers to enter the market. All of this is far from certain, however.
What seems definite at this point is that there will be a new construction boom in 2021. In spite of virus-related supply constraints, Central Oregon’s construction industry kept things rolling through 2020, and more inventory will hit the market next year.
With that said, Central Oregon’s housing inventory has gotten so squeezed, the direction of Redmond’s real estate market is unlikely to shift in 2021. Bend was already unaffordable, but 2020 pushed it over the edge. More and more people will be turning to Redmond instead for housing.
Even going into the winter of 2020, there will be plenty of buyers waiting in the wings who couldn’t find what they were looking for earlier in the year. As a result, the typical inventory spike that we see in the off-season is unlikely.
The long and short of it is that we expect Redmond to remain a strong seller’s market at least through 2021 and likely beyond. Central Oregon’s real estate markets may experience a pullback further down the road, but there’s still plenty of fuel left in the rocket ship for now.
Homes for Sale in Redmond, Oregon
How to Navigate Redmond’s Real Estate Market as a Buyer or Seller
To start, what does all this mean for you if you’re thinking of buying in Redmond? For one thing, competition is almost a certainty in the sub-$450k price range.
Be prepared to lay all your cards on the table, but at the same time don’t overpay for a home just because you’re afraid of missing out. The better you understand your priorities, the easier it will be to find the right balance. Some flexibility may be necessary, but it’s also important not to give up too easily.
In presenting an offer, your agent needs to be able to prod for whatever advantage he or she can find. At the end of the day, the highest offer usually wins the day, but that’s not always the case. A well-crafted cover letter can sway a seller who is on the fence, and being able to close fast always helps. For that, working with a local lender is simply a must.
If you’re able to wait a bit, ordering a home from a builder can be an excellent way to avoid the stress of searching for just the right home and competing with other buyers. You’ll know what you’re getting and will have the opportunity to customize your finishes.
We can connect you with a number of local builders and make sure that your needs are being met throughout the process. Representation is key even when buying new construction.
All in all, buying a home in a low inventory market is a process. It requires clarity, perseverance, an agent who knows their stuff, and maybe a little bit of luck.
If you’re selling, on the other hand, it can be tempting to think that the whole process will be a walk in the park. That’s not necessarily the case, though.
Even in a strong seller’s market, it’s vital to price your home appropriately. Overpricing your home is just as bad as underpricing it, if not worse.
You’ll discourage buyers and leave potential bids off the table, for one. Multiple offers can do more than just about anything else to increase your net from a sale.
Depending on the location of your home and the quality of finishes, strategically underpricing your home may even increase the likelihood of a bidding war.
Even if you don’t plan to shoot for multiple offers, there are other disadvantages to overpricing your home. In a faced-paced market, buyer’s agents tend to smell blood when they come across a property that has sat on the market and had one or more price reductions.
It’s better to hit the target from the start. It’s also important to prepare your home appropriately for viewing and know what kind of leverage you do or don’t possess at the negotiating table. Your agent needs to guide you effectively through all the steps of the process.
All of this is just scratching the surface, but hopefully what we’ve shared has given you a leg up on the process. Being informed is always the best insurance, and we are certainly happy to help you fill in more of the blanks, wherever you are in your process. Thanks for reading!