The Year Comes to an End

Whew! Finally! It seemed like the year would never end . . . another year of masks, vaccines, quarantines, mandates, and divisiveness. Also, another year of frenzied real estate activity in Bend. It seemed that 2o20 was one for the ages, but 2021 topped it! Historic inventory shortages, unabated buyer demand, and low low interest rates created the perfect storm and drove the local market to record highs.

December 2021

Another chapter in the same script–we saw the purchase of 173 homes (single family residential on less than an acre), the lowest figure (as expected) since February. Median price leveled near peak at $680,000. Our inventory woes continued with just .6 months available; that equates to about two weeks supply. As a perhaps unnecessary reminder, six months of inventory is considered a “balanced market.” We’ve a ways to go.

The Luxury Market . . . $2,920,000

Per recent trends, the luxury phase of the market continued to perform well . . . 17% of purchases topped the one million dollar mark in December. The big winner, you guessed it, came from Tetherow once again. A little historical perspective on this home as it pretty well personifies the Bend market, over the last few years, in a nutshell. It sold originally in May of 2017 for $1,451,640–certainly a hefty sum at that time.

It sold again in October of 2019 for $1,850,000 ($520/ft)–what seemed like a pretty tidy two year 27.4% profit for the seller.

Lo and behold, the 3 bedroom, 5 bath, 3552 square foot home sold once again in December; this time at $2,920,000 ($788/ft) . . . an increase of 58%!! Don’t get me wrong . . . this single level contemporary was nice–outstanding Cascade views, abundant natural light, exposed beams, and a wonderful detached casita.

Bend’s Median . . . $680,000

The median priced home in December might have looked like this 3 bedroom, 3 bath, 2005 square footer, another one of those ubiquitous Pahlisch homes, this time in “The Bridges” neighborhood.

Surprisingly, in this market, the home languished unsold for 101 days and closed at almost 15% below list . . . perhaps in part due to some pretty amateurish listing photos. I like the shadow in the lower left (looks like I took it)!

No more cattiness. Regardless, the house featured an open plan, a kitchen with quartz counters and a large island. The community itself also offered an indoor gym, pool, spa, games room, clubhouse, and walking trails. The home closed at $339 per square foot.

As always, a comparison of median prices for the two sides of town:

East side   $605,000

West side   $895,000

Bargain Bend . . . $369,900

Not many bargains here! The only home in Bend to sell for less than $400,000! This 2 bedroom, one bath, 800 square foot house sold at list price and went pending in 14 days (after a $15,000 “price improvement”).

The home itself was a bit of a mystery. The listing agent stated that it was light and bright and even had a small fenced area. It also offered an interesting shed (man cave?) that featured prominently in the listing photos.

The home closed at $462 per square foot.

A Notable Sale

One auspicious sale this month.

A clean 3 bedroom, 2.5 bath, 1766 square foot home on Bend’s east side. It went pending in just two days and closed at $11,000 over list at $317 per foot.

Looking Ahead

The big question for 2022 seems to be just how much more will our home prices increase in Bend? Even with additional housing inventory coming online (a given as we approach spring), demand will continue to outstrip our supply. There will be no shortage of keen buyers. Rising interest rates (also a given) will somewhat slow the runaway pricing of 2020 and 2021.  Thus, I don’t think it’s unreasonable to anticipate a year over year increase of 4% to 9%.

We’ll certainly see fewer multiple offers (a relief for buyers, sellers, and Realtors!). Still, a careful analysis of sales and solid strategic pricing should yield another stellar year for Bend real estate.

Thinking of listing or curious about the value of your home? Give us a call or shoot us a text at 541-480-8131.