A Crazy Month

A  crazy month . . . we’ve whined about a lack of snow at Mt. Bachelor for most of the season, then along comes April . . .  dumping more snow than what we saw in the previous three months combined.

Some truly epic powder days (most of which occurred while your faithful correspondent was away from his Central Oregon home, battling COVID in Washington DC). But, I digress, just check out this remarkable video (by clicking on the photo below). Make sure to watch it in full screen mode.

Real Estate in Bend . . . April 2022

Despite the weather, rising interest rates, and a continued lack of inventory, real estate performed pretty well. We almost hit the Mendoza Line, with a respectable 184 single family sales (on less than an acre). Of note, 22% of purchases were cash transactions.

Our median price remained stratospheric at a near record $770,000. A year ago it was  $651,000; two years ago it was $468,000. So glad we all bought then!

A bit more (not much!) inventory to select from . . . we’re up to one month overall–still an extreme seller’s market!

Even Redmond is starting to get a bit uppity–its median price surged to a hefty $538,000 . . . up a shocking 30% from one year ago.

Also, kind of interesting to look at the sales data for mid range ($700,000 to $800,000) homes . . . virtually every one of them closed at prices substantially above list. Buyers beware!

Luxury Bend . . . $2,500,000

Nope, not Tetherow; not Broken Top . . . this one was a “big motha” (5/6, 6987 square feet) on Awbrey Butte. It offered some primo (I think that’s a real estate term) finishes, magnificent Cascade views, and simply was not my style.

Brazilian Cherry hardwood flooring, coffered ceiling in kitchen and formal dining room, vaulted ceilings and floor-to-ceiling windows. The gourmet kitchen

included multiple pantries (surely a necessity) and super high end appliances–a Sub Zero fridge, Dacor 5-burner cook top, and a Wolf microwave.

The home lingered on the market for 64 days, but closed at full list price (at $358/square foot). Just for a bit of historical perspective, this home sold for $799,000 in 2011.

Bend’s Median . . . $770,000

In April, the median priced home in Bend looked like this not-so-exciting 4 bedroom, 3 bath, 2362 square footer in Eastridge (guess on which side of town!), a nicely treed community created by Monte Vista Homes in 2017.

It featured an open plan, with master (excuse me, “primary”) suite on the main level; a designer kitchen with island, breakfast bay, and stainless appliances.

Maybe because of the fenced back yard, 3 car garage, fancy storage shed, and expanded patio, the home went pending in just 4 days. It closed at $30,000 over list (at $326/foot).

Looking at median prices on the two sides of town . . . some big news! The median price of homes on Bend’s west side finally crossed the $1,000,000 plateau. On the east side, it was $675,000.

Bargain Bend . . . $520,000

This 3/1, 1036 square foot single level ranch also went into contract in just 4 days. It closed at $70,000 (15%) over list at $502 per foot . . . nicely done! It was sited at the end of a fairly quiet cul-de-sac.

The smaller home featured a smaller open plan, a few windows, a single car garage, and a very cool chicken coop.

An added plus . . . the home was a baseball aficionado’s dream (thus the $70,000 bump?)– located near Vince Genna Stadium (home of the the Bend Elks)–close enough to see the lights and hear the PA system.

Looking Ahead

Starting to sniff some changes in the air (maybe we say that every month) . . . though inventory remains near record low, we’re starting to see homes remaining on the market a bit longer; also, not quite so many multiple offers. Perhaps buyers are becoming just a bit more picky. Also, starting to see a bit of push-back from appraisers, as, for the first time, more appraisal numbers are coming in below the accepted price.

Rising (quickly!) interest rates have certainly affected some buyers (and taken many more out of the market). In December of 2021, an average 30 year rate on a $500,000 loan was 3.11%. In April, that same loan would be financed at 5.11%. The difference in the payment . . . $600 per month! Yikes!

Despite all this inferred gloom and doom, I think we’ll still see prices continue to rise in Bend . . . but certainly at a  much more sustainable rate for 2022. How’s 5% sound?