November Sucked (well, maybe not quite that bad)

After six consecutive months above the “Mendoza Line”  (above 200 sales), November’s numbers sucked. Perhaps it was the weather, a seasonal lull, too much turkey, or maybe a real softening of the market; whatever the case, Bend real estate took a hit in November.

We saw the purchase of just 167 homes (down a full 25% from October); another 180 (down 11%) went pending. The average price per square foot for sold homes was the lowest in eight months at $258/square foot. Even the median price got punched . . . down $40,000 to $431,000.

Inventory remained low at just 2.4 months overall. Homes continued to sell at 96% of original list. Despite all the doom and gloom, still a strong “seller’s market” except the the luxury price range.

Affordable Bend . . . $210,000

The low end of the market actually did quite well–we saw the sale of 12 homes for less than $300,000 . . . in October, there were two.

The least expensive was this two bedroom, one bath, 754 square foot “bungalow” that sold for $210,000. The house itself featured  a near dream location . . . conveniently set in a primo spot between Dr. Jolly’s and Domino’s Pizza (what could be better?) within Bend’s proposed opportunity zone.

Aside from some interesting marketing photos, the property closed in just 18 days at 102% of list (or $279/ft.).

Bend’s Median . . . $431,000

The median priced home in Bend in November would look like this spacious 4/3, 3110 square foot house in Desert Skies. It featured a desirable open plan with a huge country kitchen, stainless appliances, new flooring and updated bathrooms.

The fully fenced yard had it all . . . a patio, a fancy fire pit, BBQ area, horseshoe pit, and even a chicken coop! A bargain at just $159/ square foot.

For those contemplating relocation to Bend, here’s a comparison of monthly median prices for the two sides of town:

West side   $685,000

East side    $374,900

Luxury Bend . . . $1,535,000

Of course, it’s easy to skew the numbers when looking at just a single month’s worth of data. Regardless, the luxury sector of the Bend market was off 50% from the previous month’s stellar performance. But, yup, you guessed it . . . the winner came from Tetherow again!

Perched above the eighth and ninth holes of the David Kidd-designed track, the 3/3, 3541 square foot home is a newly constructed contemporary retreat.

Mostly single level living with three bedrooms on the main level, the home featured custom cabinets, quartz counter tops, and high end appliances.

It sold for $433 per square foot.

Looking Ahead

Short a political disaster (trade war escalation), past trends should continue in Bend. In-migration, low interest rates, and continued economic growth bode well for the real estate market for the immediate future. Though inventory will remain tight, generally prices should remain steady with perhaps even some slight declines in higher end properties.

Hopefully, builders in Central Oregon can deliver on their promises to build smaller and at more affordable price points; if so, new construction can be attractive to buyers unable to find a match in the competitive and limited existing home market. We’ll see more millennials entering the Bend market.