Market Statistics and Data
August 2020 Market Update
Everyone has probably experienced some aspect of the real estate frenzy that has been taking place this summer in Central Oregon. Maybe you witnessed the steady stream of people walking through the newly listed home down the street, or you perhaps were a part of that group of buyers and experienced the bidding war that ensued later that evening. If you were lucky, maybe you were the seller who was reviewing 3 offers in the first few days of being on the market.
However you shake it, the activity we have been seeing in the housing market is unprecedented. All of this was confirmed in the headlines last week, such as “Bend’s median home price hits $529K amid hot C.O. real estate market!” (a 12.5% increase from the month prior). These stats are pretty staggering, so let’s dissect them a little further.
A quick glance at the numbers shows that we may have peaked in July. The number of pending sales in July was 44% higher than that of July 2019. Although we saw more homes go Pending in the first two weeks of August than we did over the same period last year, the increase is less than that of July.
However, when you dig a little deeper, in 2019 more homes went Pending in the second week of August than in the first, while in August 2020, the number of Pending homes dropped from week 1 to week 2. This is a small sample set and could bounce right back this coming week, but it could also be one of the first signs of a change that is happening beneath the surface.
| 2019 | 2020 | Week-over-week | |
| Aug 1-7 | 68 | 93 | 36.76% |
| Aug 8-15 | 122 | 100 | -18.03% |
Although the headlines (and recent additions of this newsletter) have outlined how strong the housing market has been, there are some other things to consider. This chart from Realtor.com goes beyond just sale price or pending activity and factors in key market components such as supply, demand, price and time on market to generate a corresponding index value. When we look at the numbers this way, we can see that although we have seen a huge recovery, we are actually approaching the same levels we saw before the pandemic.
So, what happens next?
Well, the answer is: It’s hard to say. On the one hand, we have historically low inventory (less than 2 months) and a steady stream of buyers eyeing Bend as their home base for remote work and school. On the flip side, we have the threat of another surge in COVID as well as a looming general election in November, both of which have shown that they can sway markets.
Although we don’t know exactly how the next few months will play out, the bottom line is that we have continued long-term optimism for Bend. We do not expect any major downturns in pricing, given the low supply, high demand, and consistently low interest rates. However, there are several factors that can affect short-term fluctuations. Potential sellers have an opportunity to take advantage of the pent-up demand and maximize gains. As more sellers do this, buyers will see more opportunities come to market, and as long as they are ready and prepared to act, they will be in a good position to capitalize as well.
Regardless of which end of the spectrum you are on, being prepared and knowing your options are key to navigating this ever-changing market. Please give us a call and we can schedule a time to sit down (either virtually or in person) and discuss your options.
As always, be sure to check out our recent webinars and to follow us on Facebook at facebook.com/bendpropertysource/. If you’re not on social media, don’t hesitate to call or email us so we can send you the information you need via email or through our website at bendpropertysource.com.
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