"In a time of deceit, telling the truth is a revolutionary act."
~ George Orwell, 1984
For many years the housing industry has been buoyed by low-interest rates, helping buyers in an era of rising home prices. All indications point to rising interest rates through 2021, while home prices have shown no signs of backing off. Anyone that has lived through changes in the housing market knows those changes happen quickly. Even though buyer demand throughout Central Oregon has been unprecedented, it is not unreasonable to wonder if our home prices are over-heated. Generally speaking, a home is worth what a buyer is willing to pay, and supply and demand rule the roost. Here are some statistics from last week to illustrate my point:
Bend
Active listings: 127
Median Days on the Market: 61
Median List Price: 850k
Pending in the last week: 71
Closed in the last week: 44
Median Sold Price: 559k
Median Days on the Market: 4
List Price/Sales Price Ratio: 96.94%
With so few homes at any given price point, buyers are grabbing any home that roughly suits their needs, adding a sense of urgency that only a seller could love. With a median household income in Deschutes County of $67,043, who is purchasing these homes? Some home purchases can be attributed to investors, while many new residents work remotely from home. Unquestionably, the pace of people retiring to Central Oregon has increased.
All good things must come to an end, and real estate market changes tend to be dramatic. Although our current market is firing on all cylinders, it is anything but balanced. I encourage anyone with questions or concerns to call me for help. It is of vital importance in these market conditions to know exactly where you stand.
