Bend Real Estate Sales Were Limited in 2024

Probably the biggest challenge for Bend Home Sales in 2024 was mortgage interest rates. Mortgage rates started the year at 6.48% and ended the year at 6.62%. During the middle of the year, the mortgage rates rose to 7.79% which greatly limited the buying power for most Bend homebuyers who needed to finance in order to purchase. Home sales in Bend continued, but at a greatly reduced rate than experienced during Covid when mortgage rates under 4% were normal.

High mortgage rates also kept many Bend home sellers from listing. The thought for many was why sell and give up a great mortgage rate of less than 4% to exchange to one over 7% on a different home? Many Central Oregon real estate brokers discovered that many listings were limited to just those who had to sell for a job transfer, a divorce, or a change in lifestyle such as a move into a retirement home. The typical move up or move down home seller didn't list in 2023. 

What Were the Changes for Bend Home Sales in 2023?

Looking back over the last twelve months, Bend single family home sales reflect the following changes:

• Average sales price up 1% to $874,647
• Median sales price down .9% to $723,000
• New listings down 24% to 1872
• Homes for sale down 9.4% to 310
• Pending sales down 16.9% to 1609
• Sold homes down 22.7% to 1581
• Average days on market up 70.8% to 41
• Months of supply up 22.2% to 2.2
• Average price per sq ft down 1.7% to $414
• Average percentage of list price received down 1.3% to 99.2%
• Dollar volume of closed homes down 21.8% to $1,382,816,893

Home prices have leveled off, but with few new listings hitting the market, we remain in a strong seller's market which is keeping home prices up. The chart below shows average home prices in Bend for 2021, 2022, and 2023. 

The key to a more balanced Bend real estate market is new listings. As already noted, when mortgage interest rates were close to 8% in 2023, home sales dropped, both from buyers no longer being able to afford a mortgage but also from sellers not listing; a financed replacement home was much more expensive than staying in the old home with a great mortgage rate. Fewer new listings provides less options for home buyers and keeps the price up on those that are available.  Lack of inventory leads to lack of affordability.

What is Ahead for Bend Oregon Real Estate in 2024?

According to experts as quoted in USA Today, mortgage interest rates are expected to continue to modestly improve in 2024; the sub 5% rate is not expected to return, but the low to mid 6% rate should help the market stabilize. Single family home shortages will continue since new construction has not kept up with the demand, but new multi-family dwellings around the city will provide homes for renters. We predict Bend home prices will remain high, but the rate of home price growth will be modest. Builders will continue to build and demand for their product will continue. Home sellers will have more confidence in listing with a stabilization of mortgage rates, and more inventory will enable more home buyers to find a property that works for them. Sales will not be at the level seen in 2020/2021, but well priced homes may see multiple offers once again.