Bend real estate market update – 2013 recap

Bend, Oregon home prices in 2013.

In 2013 we saw big changes in the market, and just like in 2012, it was predominately a seller’s market. We currently have only 3 months of inventory. Bend home values increased 16.2% from 2012 and the median sales price at the end of 2013 was $269,000. The majority of the appreciation occurred in the first half of the year. At end of the 2nd quarter, home values were up 25% from the same time in 2012 but by the end of 2013, the pace of appreciation slowed.  Low inventory continued to frustrate many buyers and resulted in multiple offers and homes selling for more than the list price.

5 year comparison of Bend home values

New construction inventory continued to rise throughout 2013. In January 2012 there were only 87 brand new homes for sale. By the end of 2013 there were 218 brand new homes for sale. Of the homes that sold in 2013, new construction accounted for 21.5% (487 homes).

Bank owned and short sale inventory continued to decline throughout 2013. The 2013 numbers can be misleading though. In Oregon, several laws were passed over the last couple of years that dramatically changed the foreclosure process and resulted in a short-term and likely temporary drop in foreclosure activity. While the number of short sales and bank owned home sales decreased, foreclosure starts actually increased in Oregon in 2013.

Bank owned homes sold in Bend

The two charts below show the average sales price of homes in Bend as a percentage of the list price. The first chart includes all price ranges. The second chart includes homes that sold in the $200,000 – $300,000 price range. Of the 2260 homes that sold in 2013, 801 homes sold in this price range, more than in any other price range. In both cases, well priced homes that sold within the first 0-60 days received top dollar. It was common for sellers to receive multiple offers within the first few days after listing and homes frequently sold for more than the list price. This is largely responsible for the rapid increase in home values and can be attributed to the low inventory in Bend.

Avg SP as % of LP - $200-$300k price range
Avg SP as % of LP – all price ranges
Avg SP as % of LP - all price rangesAvg SP as % of LP – $200-$300k price range

Sellers often wait until the spring to list their homes or pull their homes off the market during the winter because they’re under the impression that homes don’t sell. I can assure you, buyers are looking right now and they’re really frustrated that they don’t have more homes to choose from. With so many sellers pulling their homes off the market in the winter, there is less competition. A motivated buyer might have 30 homes to choose from in the summer but only 10 in the winter. If your home is one of those 10, you have much better odds of selling.

If you want to know how the value of your home has changed over the last few years, please contact me and I’ll send you customized report.

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Search all Bend, Oregon homes for sale, view market statistics, or find out what your home is worth by visiting my website:  www.findbendhomes.com

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