Welcome to our Bend Real Estate Market Update for the Second 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 June 30, 2022. All statistics come directly from the Central Oregon MLS and these statistics are compared to Q2 2021.
Bend Market-wide Activity
At the end of June 2022, there were 395 single-family homes for sale, 277 pending sales, and 1,085 homes had sold through the second quarter of 2022. Inventory increased, as did the number of pending sales, but the total number of homes sold was down slightly compared to this time one year ago. At the beginning of 2022, interest rates hovered around 3% for a 30-year fixed rate mortgage but it was well known that the Fed planned to raise the benchmark interest rate over the coming months to fight inflation. Experts estimated that rates would increase to around 3.6% – 3.8% by the end of 2022 but by the end of March, rates had already surpassed that and were at 4.42%. Many buyers hoped to beat any additional increase and that spurred a flurry of buying activity. By mid to late June, rates had jumped to 5.8%, significantly affecting the purchasing power for buyers. We typically see a slow down near the end of June with kids graduating, school letting out, and families going on vacation, but this year it continued into July. The market just felt slower in general. Higher interest rates, inflation, the war in Ukraine, and overall uncertainty about the economy have impacted the real estate market. Sales prices are still increasing but days on market are a bit higher, price reductions are much more common and multiple offers are less common. It feels as if we are returning to a more normal and balanced market.
Bend Home Values
Compared to this time last year, the average sales price increased 14.35% to $868,203 and the median sales price increased 18.72% to $742,000. The historically low inventory and high buyer demand has been the biggest driver of this increase.
Home values within the Bend city limits varied significantly, particularly from the west side to the east side. The median sales prices for the four quadrants are $1,075,000 for NW, $800,000 for SW, $649,900 for NE, and $650,000 for SE Bend.
New Construction
At the end of Q2 2022 there were 74 new homes for sale, making up 19% of all active listings. Of the 1,085 homes that sold through Q2 2022, 176 were new homes, accounting for 16% of all home sales. There were 135 pending home sales in the new construction segment of the market, which is 49% of all pending sales. In Q1 and Q2 pending new home sales were the highest we’ve seen since we started tracking new construction separately. 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 $901,259 and the median sales price was $815,000.
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