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Tetherow Quarterly Newsletter

We like to provide you with 12 month snapshots in the weekly “What’s Happening in Tetherow” article, but for this quarterly edition we thought we would again discuss yearly data and see how this compares to years past, other resort communities, and to the market as a whole.

Let’s start with a discussion of average prices in Tetherow. Please keep in mind that the numbers below include everything from 1000 sq ft vacation homes to 5000 plus sq ft custom homes on estate lots. We have certainly seen Tetherow mature as a community and is undoubtedly one of the most coveted locations across Bend. What we have also seen is that it has shifted from a neighborhood dominated by lot sales and builder specs homes, to one where custom resales are the driving force.  

Homes# of SalesAverage Price% Change from previous year
2023 YTD40$1,856,22010.91%
202256$1,673,565-3.70%
202162$1,737,86618.53%
202074$1,466,18716.17%
201942$1,262,147-2.40%
201845$1,293,20719.85%
201747$1,078,99815.45%
201629$934,633

For comparison, here is what year to date looks like for some of the other (similar) resort communities in Central Oregon. 

2023 YTD# of SalesAverage Price% change from previous year
Pronghorn4$1,220,5008.30%
Brasada24$1,326,125-1.10%
Caldera Springs19$1,879,062-9.80%

Please take these numbers as quick snapshots and not overall indications of appreciation or market opportunity. WIth so few transactions happening in some of other resort communities, it is hard to get a solid read on appreciation or depreciation. I think the most glaring discrepancy is in the number of sales taking place in the various communities. We would expect to see Caldera continue to tick up in sales as more phases are developed and construction is completed on some existing/pending properties. 

This next table really highlights just how tight the market is for land in Tetherow right now. One trend that we have noticed is that some current land owners across Bend have grown tired of stubbornly high build quotes and 18-24 month build times, and have instead opted to purchase resale homes to provide a more immediate solution. This has helped the resale home market In Tetherow and has also led to an increased number of lots for sale (there are 9 active lots as of 9/15/23).

Land# of SalesAverage Price% change from previous year
2023 YTD3$764,0000.94%
20227$756,85737.96%
202118$548,61149.67%
202059$366,55712.77%

If you’re like most of our clients, the next thing on your mind is the question of what we are expecting to end this year and into 2024.  Below we have put a few bullet points that provide some perspective on where we are and where we may head. 

In the years leading up to the pandemic, there were routinely 20-30 homes listed for sale in Tetherow on any given month. As of mid September, there were only 10 available homes. Even though we are not expecting a rush of inventory in the market in general, (see our prior editions of the State of the Market for explanations) there are a couple of reasons that we believe Tetherow will see additional inventory in the coming months/years. Here are a few:

  • One common issue we are seeing in the market is the reluctance of financed sellers to move out of their home and into a home with a significantly higher rate. It is estimated that about 70% of financed homeowners have rates of less than 4% and the expectation is that they will not want to move into a home at 7% unless they need to move. However, people moving into or out of Tetherow are generally not making lateral moves and are buyers/sellers who need more space, less space, less upkeep, easier layout, etc. When you have to move for one of these reasons, you tend to do it, regardless of rates.
  • Generally speaking the higher price points have a higher percentage of cash buyers and owners who own their home outright. Given that about 40% of homeowners have no mortgage and another 30% have more than 50% equity, it is likely that homes in the Tetherow price point will continue to be less affected by rate movements.  If rates do drop however, this will allow more sellers who are interest rate sensitive to get their homes listed and more buyers to step in as well. 
  • Current numbers show that the average homeowner stays in their house for 9 years. Given a good number of homes in Tetherow are around this age or slightly younger, this should lead to a decent number of owners thinking about making a change.  
  • The last phase of Highlands Ridge will be getting built out and sold in 2024, so there will be about 20 more 2-3 bedroom homes and townhomes in the pipeline. If you have any questions about what is in store up there, please reach out to us. 

We are confident in Tetherow moving forward and believe that this neighborhood will continue to remain one of the best places to live and invest in Bend. We believe there are opportunities for both buyers and sellers right now, but we need to be strategic and have a plan. We would love to talk about your needs and how to make those a reality. 

How To Contact Our Team

There are several ways to reach the team, so please let us know how we can help. Call, text, email or stop by the Tetherow Sales Office for more information!

Tetherow Sales Office – 61240 SKYLINE RANCH ROAD, BEND, OR 97702

541.633.4034 I Tetherow@BendPropertySource.com

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Our agents write often to give you the latest insights on owning a home or property in the local area.

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