This week the median list price for Bend, 97701 is $690,000 with the market action index hovering around 40. This is less than last month's market action index of 44. Inventory has decreased to 138.
This week the median list price for Bend, 97702 is $730,000 with the market action index hovering around 40. This is less than last month's market action index of 41. Inventory has decreased to 209.
This week the median list price for Bend, 97703 is $1,250,000 with the market action index hovering around 37. This is less than last month's market action index of 38. Inventory has decreased to 133.
This week the median list price for Bend, 97707 is $800,000 with the market action index hovering around 37. This is less than last month's market action index of 39. Inventory has decreased to 41
Overall for Bend Median List Price is $867,500, $422 a square foot, 63 Days on Market with 50% of the Sellers decreasing the Price and 1% increasing the price, Inventor7 is 521 homes. Market action index has declined from last month and is 38 a slight sellers advantage,
This week the median list price for Sunriver, is $999,900 with the market action index hovering around 52. This is less than last month's market action index of 55. Inventory has decreased to 19.
Per Square Foot
$507
Average Days on Market
44
Price Decreased
53%
Price Increased
0%
This week the median list price for Redmond, OR 97756 is $589,000 with the market action index hovering around 40. This is less than last month's market action index of 44. Inventory has increased to 181.
Per Square Foot
$331
Average Days on Market
67
Price Decreased
53%
Price Increased
5%
This week the median list price for Sisters, OR 97759 is $970,000 with the market action index hovering around 39. This is less than last month's market action index of 40. Inventory has decreased to 58.
Per Square Foot
$407
Average Days on Market
71
Price Decreased
47%
Price Increased
0%
This week the median list price for La Pine, OR 97739 is $504,000 with the market action index hovering around 32. This is less than last month’s market action index of 33. Inventory has decreased to 102.
Per Square Foot
$285
Average Days on Market
77
Price Decreased
47%
Price Increased
0%
This week the median list price for Prineville, OR 97754 is $515,000 with the market action index hovering around 37. This is an increase over last month's market action index of 36. Inventory has decreased to 99
Per Square Foot
$297
Average Days on Market
78
Price Decreased
52%
Price Increased
1%
This week the median list price for Madras, OR 97741 is $424,600 with the market action index hovering around 37. This is less than last month's market action index of 41. Inventory has increased to 48
Per Square Foot
$237
Average Days on Market
67
Price Decreased
54%
Price Increased
2%
The past eight months of 2022 have been interesting ones as far as the real estate market is concerned. Mortgage rates have risen sharply since the start of the year, which has slightly slowed buyer demand but not by a lot. Throughout Central Oregon inventory has decreased over the last month. In other words there are less homes on the market to choose from if you are a buyer. Here are a few things that are likely to shake out over the course of the month. Although our 2+ month supply is still well below normal, and our average days on market continues to increase, Sellers may decide to list their homes to get ahead of a potential predicted increase in interest rates. With recession fears on the horizon, sellers won't want to miss the opportunity to sell while home values are still high even though prices continue to slowly decline.
Mortgages are predicted to get even more expensive Mortgage rates have been climbing since the start of 2022. Meanwhile, the Federal Reserve just implemented a 0.75% interest rate hike for the second month in a row. That could lead to an even more substantial uptick in mortgage rates in the coming weeks. And at a time when home prices are already high, that's not a great thing for buyers. Cash buyers have, for the past few months, had a solid advantage over mortgage borrowers. But with borrowing rates rising, we could see an uptick in cash offers in the next four weeks. Home prices will largely hold steady We are not yet at the point where there's enough inventory to meet buyer demand -- not even close. As such, it's doubtful that we'll see a major drop in home prices, as the market will need time to adjust to inventory-related fluctuations. Should you buy a home in now? The upside of buying now is potentially locking in a reasonable mortgage before rates climb even more. Plus we are seeing nearly 50% of the Sellers decreasing their sales price. Should you sell a home in now? Inventory is still limited, which means there's less competition. And it's a good idea to list a home before rising mortgage rates push more buyers out of the market. All told, it will be interesting to see what is in store for the real estate market. But whether you're a buyer or seller, be sure to pay attention to how things shake out so you can make the right financial decision for you.
Back in June, Fed Chair Jerome Powell made it clear to reporters: The Pandemic Housing Boom was over. Heading forward, he said, spiked mortgage rates would push the U.S. housing market into a slowdown.
“We saw [home] prices moving up very very strongly for the last couple of years. So that changes now. And rates have moved up. We are well aware that mortgage rates have moved up a lot. And you are seeing a changing housing market. We are watching it to see what will happen. How much will it really affect residential investment? Not really sure. How much will it affect housing prices? Not really sure,” Powell told reporters in June. “I’d say if you are a homebuyer, somebody or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together and where inflation is down low again, and mortgage rates are low again.”
It’s clear the Fed’s “housing reset” will give homebuyers more options (i.e., rising inventory) and more breathing room (i.e., fewer bidding wars). The question mark—which Powell acknowledged in June—is will it push home prices lower? Historically speaking, home prices remain sticky until economics forces sellers’ hand.
One of my favorite Real Estate Economist is Danielle Hale the Chief economist at Realtor.com. Some of you may know that Realtor.com is owned by the National Association of Realtors, and one of the least biased, most reliable source for all things Real Estate.
Danielle Hale, chief economist at Realtor.com recently stated: “The number of homes on the market increasing is driven by two factors: more homeowners deciding it’s a good time to sell and buyers growing choosier and pausing their search because their budgets don’t work with higher prices and higher mortgage rates. The buyer moderation is likely to continue. But we may not see as much participation from homeowners deciding to sell going forward. That’s something we’ve got our eye on, and will be a big determinant of whether or not this trend continues.”
What I find interesting about what she is saying here is based on higher increasing inventory, but in our local market we are seeing less homes on the market.
For the week ending Aug. 27, the number of new listings on the market dropped by 12% compared to that same week a year earlier. That’s the eighth straight week of declines, and the third consecutive week showing a double-digit drop.
Clearly, sellers are miffed they can no longer call all the shots with desperate buyers—although from a purely objective standpoint, they might be missing the big picture that they’ve still got it pretty good.
“Even though home prices are near record highs and home equity has soared, homeowners appear to be less eager to list homes for sale compared to last year,” says Hale. “Recent survey data shows that while home sellers are in a good position, typically getting their list price and still generally satisfied with the price and other aspects of their home sale, these markers have shifted over the last year. Among the most recent sellers, twice as many had to contend with a buyer request for repairs.”
According to Freddie Mac, for the week ending Sept. 1, the average 30-year fixed mortgage rate increased to 5.66%, a steep hike from the previous week’s 5.55%.
In summary, homebuyers will pay dearly to finance a house today. And while many might be tempted to put their home search on hold until interest rates subside, some may be driven to forge ahead anyway because rents are up, as well.
This does create an opportunity for those who wish to move forward in the buying process right now. Seller’s are more open to negotiating and interest rates have yet to peak. So we are still in a bit of a sweet spot, the challenge is finding the right home, because inventory remains low.
In the previous weeks we talked about loan options available to buyer, i.e. buying points, going with Adjustable Rate Mortgages, and then plan on refinancing when rates begin to fall again. There are still many options for buyers so please don’t hesitate to reach out and we can recommend some really great lenders to help you.
Lastly today, According to Jerome Powell we will see rates continue to rise until there is more of a balance where supply and demand are back together and inflation is low as well as mortgage rates. He indicated that we can expect a bit of a “reset” through the next coming months.