Market Statistics and Data
July 2020 Market Update
Although we are still dealing with the ongoing challenges of COVID and have a long way to go before we are back to “normal” in Bend, there has been a marked influx of visitors (and buyers) coming to Bend. When you compare our situation to that of many of our feeder cities, Bend is a bright spot and is increasingly on people’s radar, whether for a short vacation or something more permanent. With this influx, we have seen some of the strongest conditions in real estate in many years.
As we discussed in a few of our webinars, it was not surprising that the housing market took quite a hit in terms of the number of homes sold at the beginning of the pandemic. In April and May, we saw roughly 50% fewer homes being put under contract than during the same period of 2019. We expected that the housing market in Bend would bounce back, but the question was the duration of the downturn. We discussed whether it would be a V shaped recovery, U shaped recovery, or something like an L with a prolonged creep back to normal levels.
Looking at the data below, it seems fairly clear that the recovery was sharp and V-like. You can see that the number of showings has continued to remain higher than in the same months of 2019. This information, combined with the continued number of Pending sales we are seeing, will lead to continued sales in August and September.
https://www.showingtime.com/impact-of-coronavirus/
The next two statistics to review to see if showings are translating into sales are the number of homes going Pending and the number of those homes that are selling. The following two charts summarize what we have seen this year and both show a V type of recovery from a steeper drop in the Spring. Both are also higher than what was seen in 2019, which by all accounts was a strong year for real estate. For perspective, in searching the data, we were unable to find a June with more Pending sales in the last 20 years.
Pending Sales Year Over Year
Solds Year Over Year
*both charts are based on MLSCO totals for single family, residential in Bend and are through Jul 22
The next chart is possibly the most startling and compares the number of new listings coming to market to the number of homes going Pending each month. As you can see the number of new homes getting listed was running roughly in line with the number of Pending sales, but in the last few months it has deviated drastically. With so many homes going Pending and so few new homes coming to market, it is no surprise that the average days on market is 21 and the median price has increased ($464,000).
2020 Pending Sales vs New Listings
When you factor in record low interest rates (Wall Street Journal article) to this lack of inventory, it is no surprise that we are seeing many multiple-offer situations. There is pent-up demand and very little supply, so we are working extra hard to make sure our clients are well-informed and prepared to navigate these competitive times. If you have any questions about how all of this affects you, we would be happy to set up a time to discuss your options.
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