2021 was another banner year in real estate across Bend and in particular at Tetherow. The factors that have been driving rising real estate prices regionwide (low supply and high demand) have been even more pronounced in Tetherow. Here are four quick statistics that help prove that point.
- Average Home Price (Glen/Crescent/Heath/Tartan Druim): $2,321,416 (up 24%)
- Average Home Price (including townhouses and vacation homes): $1,642,383 (up 14%)
- Average Land Price: $548,611 (up 49%)
- Properties For Sale: 5 (down 85%)
*Bend, as a whole, saw 19% price appreciation and inventory levels drop 62% in 2021.
What is driving Tetherow’s rising real estate prices, and will it continue? To answer this, we should look at a few important factors. Did you know that 82% of the homesites in Tetherow are built out or in construction? This leaves approximately 70 unbuilt lots, many of which will never hit the market or will begin construction in the years to come. For perspective, there were 82 home starts in 2021 despite build costs rising by 30% or more. Given this strength in the face of rising costs, we expect to see a large number of homes coming out of the ground in 2022 as well. This will leave even fewer vacant lots available for resale, and so in terms of future land opportunities, they will be scarce.
As we have seen in recent years, there have been more and more custom home sales in Tetherow. For years, many of the homes that have come to the market here have been builder spec homes, even though a majority of the homes being built here were custom. Generally speaking, these custom homes were built at a higher price point and with higher end finishes than many of the builder spec homes. This has led to an artificially low average sale price and does not truly represent the cost of homes in the neighborhood. As more of these custom homes sell, it will continue to drive the price point higher. In fact, in 2021, we saw 22 homes sell for over $2M in Tetherow compared to 9 in 2020.
Looking forward, we expect to see some more opportunities come to market in 2022. As discussed above, we expect there to be some land for sale in the coming year (there is one lot available currently). Given the age of the neighborhood, and considering that people stay in their homes for an average of seven to ten years, we expect to see several resale opportunities (there is one finished home listed right now). Lastly, looking down the pipeline, we also expect 30-40 new construction homes to hit the market in 2022 (there are currently three listed).
It has been an honor to have been the on-site Tetherow team for as long as we have. If you are wondering how these market trends affect you, let’s talk. We are here daily, and available by phone and virtually as well. Tetherow has seen another amazing year, and we expect this year to be strong as well. Let us help make sure you know your options and make the most of 2022!