Welcome to our Bend Real Estate Market Update for the first quarter of 2022. These statistics are for stick built homes on 1.0 acre or less in Bend zip codes 97701, 97702 and 97703 and do not include manufactured homes, condos, or townhomes. This report uses market data based on transactions that closed from January 1 through March 31, 2022. All statistics come directly from the Central Oregon MLS and these statistics are compared to Q1 2021.
Bend Market-wide Activity
At the end of March 2022, there were 113 single-family homes for sale, 333 pending sales, and 477 homes had sold through the first quarter of 2022. The number of homes sold is only up 5.76% from this time last year despite inventory being 73.85% higher. How can this be? Near the end of the first quarter we started to feel a shift in the market. It was much less frenzied and it started to feel like it was normalizing. In our experience working with buyers, home prices had reached levels that were starting to give them pause and they were much more discerning. They expect more from a home at these prices and if the homes they’re looking at don’t meet their expectations, they are much more willing to pass, keep looking, or wait for a price reduction. To add to that, mortgage interest rates had risen to almost 5%. All that said, we’re still in a seller’s market but it is becoming more balanced. We still speak about our inventory level in days rather than months.
Bend Home Values
Compared to this time last year, the average sales price increased 17.73%% to $855,466 and the median sales price increased 23.85%% to $740,000. While home values increased significantly over the last year, the rate of increase has slowed during Q1. Rather than looking at comps and listing higher to account for the trajectory of the market, we are recommending list prices in line with the comps. Buyers may still offer over asking in some cases but if they perceive a home to be overpriced, they’re much more willing to move on than they have been in the past. We do not expect sales prices or home values to decrease this year but sellers will need to be more conservative about their list prices.
Home values within the Bend city limits varied significantly, particularly from the west side to the east side. The table below includes the average and median sales prices for NW, SW, NE, and SE Bend. The median home price in NW Bend is typically around 50% higher than Bend’s overall median home price while SW Bend is roughly 15% higher. NE and SE Bend are most affordable with median home prices around 15% lower and 10% lower than the median, respectively.
New Construction
At the end of Q1 2022 there were 22 new homes for sale, making up 19% of all active listings. Of the 477 homes that sold in Q1 2022, 87 were new homes, accounting for 18% of all home sales. There were 169 pending home sales in the new construction segment of the market, which is 51% of all pending sales. This is the highest percentage we’ve seen since we started tracking new construction separately. It’s interesting that the number of building permits hasn’t increased to levels that would support that data. One likely explanation is that supply chain issues and labor shortages are resulting in longer build times and a backlog of pending sales. It’s also possible that with such low inventory of resales, more buyers have shifted their focus to new construction. The average sales price for new construction was $897,603 and the median sales price was $859,900, much higher than Bend’s overall median home price.
Cheri Smith | Principal Broker, Licensed in Oregon
csmith@total-property.com | 541-788-8997
Molly Brundage | Principal Broker, Licensed in Oregon
mbrundage@total-property.com | 541-788-8997
The Brundage Smith Team | Total Real Estate Group
2900 NW Clearwater Dr. Suite 320 | Bend, OR 97703
O: 541-330-0588 | F: 541-330-0589
Our Bend Oregon Real Estate Blog 