Market Trends for August 2023

We were in the last gasps of summer and just as the temperatures can be erratic at this time of year apparently so is our current market. Interest rates remain high which defies all the predictions from the last year and a half. Many lenders out there used prior times of inflationary adjustments to predict that we would bounce back in about 18 months from the time the Feds started raising rates. Well, here we are just about 18 months later and things are moving in the other direction. We seem to be in uncharted waters regarding interest rates from what I can tell but if you want a deeper discussion I’m happy to recommend lenders that are much nerdier in this department than I am and love getting into the minutiae.

Although inventory is still tight and buyers continue to be discerning, due to only a two month supply of houses in Bend, it’s still a seller’s market. There’s been an interesting phenomenon happening as of late where buyers are walking away from negotiations or even contracts because they’re not getting exactly what they want from the seller. We’ve seen a slight uptick in the “Back on Market” properties whether due to cold feet, financing changes or inspection negotiations not coming together. Buyer’s are able to be a bit pickier. Even pendings were way down during the last three weeks of August which is not typical of this time of year.

Although Bend’s inventory level is holding steady at two months, inventory is increasing in Redmond. The inventory as a whole increased to 3 months for the first time since September of 2019. Some of that can be attributed to the amount of new builds in Redmond over the years though. The interesting piece for Redmond is the inventory for the $600k-$650k price point specifically has been increasing. They currently have an almost 8 1/2 month supply showing that there has been a flood of inventory in that price point coming to market.

All that being said, let’s get down to it:

August Numbers in Bend

Median Home Prices: $742k, down from $800k in July

Homes Sold: 156 sold, up from 141 in July

Days on Market: 16 days, up from 9 in July

Cash vs. Conventional Loans: 29% were cash financed, same as 29% in July

Inventory: 2 months, holding steady from last month (note that in the $1.6mill – $1.8mill we have a 6 month supply and in the $1.8mill+ we have a 4 1/2 month supply down from an almost 6 month supply in July)

156 Homes Sold in August: 

10% under $550k

30% from $550 – $699,999

36% from $700 – $999,999

12% from $1mill – $1,399,999

12% over $1.4mill

119 Homes Sold Under a Million: 

33% sold over asking  (vs. 30% in July)

15% sold at asking (vs. 23% in July)

52% sold under asking (vs. 47% in July)

37 Homes Sold Over a Million: 

22% sold over asking (vs. 26% in July)

19% sold at asking (vs. 26% in July)

59% sold under asking (vs. 48% in July)

Overall, we’re continuing to see more and more houses sell for under the original asking price. There are more negotiations happening between buyer and seller as the market continues to soften/plateau (or whatever term you’d prefer to use). But as we’ve been seeing for the past many months, there are still houses selling for asking or over asking all over town. Whether they’re prepped and ready for sale, priced correctly or in a location that is super desirable, some homes are moving faster than others. The takeaway is that if you’re looking to see a property, making sure it’s dialed, clean and ready for a new owner is key.

I’m always here if you have questions or in need of a good chat.

Have a lovely weekend and a great beginning to the Fall!