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The heat of summer is on and so is the market in Bend. In June we hit a high of $785,000 for our median sale price. Now keep in mind, looking at the market at such a micro level isn’t a true indication of the market as a whole or even from one side of town to the other but we’ll get to some fun graphs that’ll give a better perspective of how we’re fairing compared to years past. Spoiler alert, we’re currently seeing less sales at higher prices overall.
The Beacon Appraisal Group puts out a report around this time each month showing median sales price, number of sales, days on market, etc. It’s where I compile my numbers from for my reports to you. This month they conducted a study of the number of homes sold and median sales price from 2013 to present based on the four quadrants of town, NW, SW, NE and SE. To keep things a little more simple, since there are such a wide variety of homes in Bend, they isolated their numbers by looking at 3bed/2bath homes between 1800-2200 square feet. Interestingly, the NE section of Bend had the most sales based on this housing type for most these years. In 2022, the number of sales in the NW section of Bend increased significantly (about 46%) from 2021 sales. At the same time, 2021-2202, the number of sales in NE Bend declined.
Meanwhile (see below), the median sale price in each section of town has been on an upward trajectory since 2013. To date (2023) the median sale price has stabilized in NW Bend and slightly declined in the other areas. Something of interest is the wide spread of median price in the NW Bend area compared to the NE area. In 2013-2014, there was about a $165,000 difference in median sale price between these areas. In 2022, there was a $285,000 difference in median sale price between NW Bend and NE Bend. So far in 2023, there is a $305,000 difference.
These charts illustrate a couple of things. Our median sale price each month, as well as on an annual basis, is easily swayed by higher priced homes selling in a particular part of time, namely the NW. It can skew the numbers and make it look as though Bend overall has an incredibly high median sales price. There’s a considerable amount of price diversity in Bend based on location. All that being said, it’s clear that the NW part of town commands a premium price when compared to other areas. That premium has increased since 2013 and has contributed to the increase of median sales price in the Beacon report along with the higher volume of single family residential sales in the $1 Mill+ price categories. And now for the most recent numbers to get all micro again:
June Numbers
Median Home Price: $785k, up from $745k last month
Homes Sold: 172 sold, up from 157 in May
Days on Market: 13 days, up from 7 in May
Cash vs. Conventional Loans: 36% were cash financed in June, higher than we were seeing earlier this year and in 2022 which held steady around 25%.
Inventory: 2 months (finally) but still lower than our normal summer average.
Interesting Note for June: 25% of the 172 homes sold in June sold for over $1,000,000. In June of 2019 there were 236 home sales and only 5% of them sold for over a million. Our $1 Mill+ market has had a significant boom in only a few short years.
172 Homes sold in June:
12% under $550k
27% from $550k – $700K
35% from $700 – $1mil
11% from $1mil – $1.4mil
15% over $1.4mil
128 Homes Sold Under a Million:
21% sold over asking (vs. 36% in May)
25% sold at asking (vs. 18% in May)
54% sold under asking (vs. 46% in May)
44 Homes Sold Over a Million:
25% sold over asking (vs. 22% in May)
11% sold at asking (vs. 27% in May)
65% sold under asking (vs. 52% in May)
Overall, we’re seeing an uptick of homes selling under the original asking price than in previous months and a higher percentage of cash purchases which makes sense considering mortgage rates are still hovering in the high 6’s to 7% (especially if people are not buying down their rates). Remember, however, if you’re looking to buy or sell a home, cash is not always king. The terms could be better from a financed buyer than the cash buyer. Cash is not a slam dunk.
We’re coming off of what is normally our peak season and we’ll see what the rest of the summer brings. In the meantime, enjoy it out there and thank you for sticking with me through this longer than normal report.
