How’s The Real Estate Market In Bend? January 2014
Real Estate in Bend
After the solid recovery seen in 2013, the Bend real estate market rolled into 2014 with a sense of optimism and ready to rock. The market in January, however, proved to be as dry as the weather.
After a brilliant summer, and six consecutive months of 200 sales or more, the residential (single family homes on less than an acre) market in Bend hit a bit of a snag in January . . . just 95 sales. That’s the lowest month total since March of 2009.
The Calm Before the Storm?
Despite the rather dreary numbers, the optimism continues and there were also some promising indicators that bode well for the months ahead:
- Pending sales were up (155 for the month) . . .
- Building permits were solid (54)
- Interest rates remained low . . . 4.47% for a 30-year fixed rate
- New construction in Bend continued to boom
- Unemployment rate in Deschutes County went below 9% for the first time in years
- Distressed properties accounted for just 10% of overall sales
- For sale inventory remained at just 5.1 months overall (NAR considers 6 months to be a “balanced” market)
Maybe January simply represents the “calm before the storm,” with the Bend market just waiting to bust out this spring.
Median Price in Bend . . . $266,000
Median price for a house in Bend remained much the same as last month . . . $266,000. For that price, one could expect a home like this:
Three bedrooms, three baths, and 1831 square feet. This home, built in 2003, featured an open plan with large kitchen island and pantry, vaulted ceiling, and fireplace in the great room; it sold for $146/square foot.
Located just an outfielder’s throw from the Bend Parkway, and near the Old Mill, parks, trail, and shops.
Low End Bend . . . $119,000
Harder and harder to find a house in Bend for under $200,000 (see chart above), this cute little cottage
borders Juniper Park. It’s one small bedroom and one small bath, and just 384 square feet. It was built in 1945 (though thoroughly renovated) and went for a hefty $309/ square foot.
It’s centrally located . . . next to Safeway, Bend HS, and the cemetery.
Awbrey Butte . . . $880,000
There were no homes in Bend that sold for more than a million dollars in January. In fact, there were only two that fetched more than $650,000. But, Awbrey Butte again produced the winner . . . a stunning four bedroom, four bath, 4695 square foot home built by Melrose Construction in 2004. It went for $187 per square foot (a bargain!) and closed in just 80 days.
The home featured a master on the main level, hot tub, pavers, and great city views. As an aside, this same home sold for $1,189,000 in 2005!
We’re on the road to recovery, but we ain’t there yet.
What Lies Ahead?
Prognostication should be based on data and hard numbers (as above), but sometimes a little intuition goes a long way. There’s been too much activity, too many buyers in town, too many folks thinking about moving up or downsizing, too many investors eying the potential predicated by the tight rental market. As long as rates stay down, price increases stay in line, and we have sufficient inventory . . . it’s going to be a dynamite spring!