Market Statistics and Data
July Market Update
Summer is in full swing and we are noticing what feels like the start to the summer lull that predictably takes place in mid to late July. Traditionally this lull arrives after a strong spring push as people take time to enjoy the outdoors and summer vacations. Let’s take a look at the numbers and see what is behind the trends.
Median Home Price
The median home price in Bend reached $640,000 in June. This represents a slight increase from the prior month ($625,000) and sits just below the record of $661,000 from April. June 2020 had a median price of $468,800 placing us 36.5% higher than where we were just a year ago. If we look at year-to-date, we see a 10% increase in the median home price since the start of the year. Looking at the same period last year, we saw a 5.8% increase in median home price from January to June.
New listings generally reach their highest point of the year in June, and this year was no exception. However, what will be interesting to watch is whether June 2021 ends up being the top for the year. As potential sellers watch the prices continue to climb, they are finding themselves more and more compelled to list their home and make the change they had once considered. Currently, July has experienced a continued push with a number of new listings coming. We anticipate July, and possibly even August, to end up being the peak for 2021.
Number of Homes Sales
As new homes are listed monthly, we consistently see them being absorbed by buyers. The number of home sales in June reached 372. Looking back one year, we see June as the peak with 350 home sales, just 6% lower than this year. It is worth noting that in three of the last five years August was actually the peak in sales/pending activity, so it remains to be seen if that holds true this year as well.
Days on Market (DOM)
It is no surprise that given the numbers discussed above, the market remains very strong and homes are still selling very quickly. We look at two data sources for this statistic and we see that with one, it remains extremely low at four days on market. However, based on the data provided by our local MLS, we are seeing that Days on Market actually ticked up slightly going from eight to nine days. We are not sure why there is a discrepancy, but regardless of the exact number, it is still a small fraction of what we have been accustomed to seeing in previous years.
Average Sale to List Price
As mentioned in our last newsletter, it was in August of 2020 that we saw our first month where Bend’s average sale price was over the list price. This has now continued for ten consecutive months, and by the end of summer we will have almost surely spent a full year above this threshold. Our data goes back to 2002 and there has not been another period of time where this has happened. As we have previously discussed, this metric also has a seasonal component, so barring any major external factors, we would expect this to taper as we head into the fall and winter months.
Some other points to consider…
- Price changes: Although not displayed in a chart, we are also keeping our eyes on the number of price changes, which is something that many buyers notice and look at as a sign of a shift. At the time of this writing, so far there have been 188 price changes compared to 132 in June. Is this evidence of overzealous sellers pricing their homes too high or sign of a shifting market? The answer is likely both.
- Interest rates: Rates continue to fluctuate but remain close to 3% for most buyers. Rates are still at historic lows and continue to fuel new purchase interest from buyers. Significant shifts in rates may taper demand, but as of yet, we have not seen large enough movement in rates to keep people on the sidelines.
- Demand: This does not seem to have changed and remains very strong for all of the reasons we have discussed (tens of millions of millennials entering the market in their prime home buying years, COVID related job flexibility, COVID related reassessment of priorities and needs, low interest rates, and climbing rental rates.)
- Expected appreciation: A survey of various real estate groups including Fannie Mae, Freddie Mac, National Association of Realtors, and others have the average expected national appreciation at approximately 8% for 2021. As of the end of Q2, it was up 4.5% for the year.
We hope you find this information valuable and helps you towards your ultimate real estate goals. There are a number of ways to reach us, so please let us know how we can help.
As always, you can reach us a number of ways…
- 650 SW Bond St, Ste 100
- Tetherow Sales Office
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Working with Brian to find a new home for us was a great experience in all aspects. Brian listened well to our selection criteria, and always quickly responded to our many questions. We knew we were in very good and experienced hands with his extensive knowledge of the local real estate market. Brian’s completely open style and pleasant personality make him a top choice. Brian obviously loves his job and the results he gets for his clients show his dedication and commitment. HIGHEST RECOMMENDAT…
Brian has helped us purchase two properties in Bend now. We’ve worked with multiple realtors in the past, and Brian has proven to be by far the best (better than all of them combined I daresay). He’s quick to follow up, diligent, really shows he has your best interest at heart, and he is altogether pleasant to work with. -Fred
Brian has been very careful to listen to our home purchase desires and showed us appropriate possibilities. He took us through information steps that we had never thought of as we purchased a historic home. I would and have recommend Brian to anyone who is interested in real estate in the central Oregon territory. I appreciate his professionalism. -Susan Reyes
We began our search from out of state and Brian was exactly what we needed. He is a transplant to the region and has done extensive research about the area and what each neighborhood has to offer. He easily understood what we were looking for, and when we finally made an offer (sight unseen) it was because we trusted what he saw in addition to his knowledge and support. I would highly recommend working with Brian. -Anonymous
The Ladd Group has been professional and responsive during the sale of our Tetherow home. They have helped us with the complications of selling our home in the time of Covid.
Denise was very supportive and helpful during the house buying and selling process. She was knowledgeable; and her steady, low key style suited my likes and needs. I very much enjoyed working with her.
We first became acquainted with Brian 12 years ago while building our home in Arvada, Colorado by Bruttany Builders. Brian was always willing to make sure all of our concerns were addressed and remedied. We began looking for a second home in Steamboat Springs, Colorado 3 years ago. We were pleasantly surprised that Brian was a Real Estate Agent in the area and to be honest that is why we pursued the search at that time. Brian made himself available on the week-ends that we would be traveling…
We listed our house with the Ladd Group and they sold it in a day. Everybody on the team (Brian, Kim, and Denise) gave excellent support throughout the process. These people know what they’re doing.
My experience with the Ladd Group has been superior, due in large part to the efforts of Alice Fairbairn. Alice has been a true professional, and a pure delight to work with, and one of the very few people I have worked with over the years who seemed to have a genuine interest in my needs, instead of just focusing on the sale. Her associate, Allison Wiggins was also a positive part of the process. The Ladd group is indeed fortunate to have these two professionals as members of their group.
Denise Wyatt was amazing throughout the process of both selling our current home and purchasing our new home. She helped sell our home at the top of market value in about two weeks, and helped us negotiate a number of changes and upgrades in our new construction home purchase. Other members of the Ladd group also were very helpful and responsive. We have bought and sold many homes over the last 25 years and Denise and the Ladd group team have been the best we’ve worked with.