Bend home prices continue to rise; inventory still slim

It’s not cheap to buy a home in Bend, and those high home prices are continuing to rise.

In January, the median price for a single-family home in Bend was $410,000. That’s up $15,000 from December.

Along with increasing prices, there’s only a two-month inventory of homes available. Typical housing markets have a six-month inventory. This makes everything more competitive, not only between home buyers, but also between real estate agents.

The cost of homes in housing developments is typically determined by the builders, and a big part of that comes from the cost of land, Bend Premier Real Estate Principal Broker Lynnea Miller explained Monday.

“I’ve lived in Bend since 1985, and I can recall, you could pick up a lot a really nice lot for $5,000 back in those days,” Miller said. “Now that same lot, shrink it down to make it about 4,000 square feet, and the going rate for that is $85,000 to $95,000 for a developed lot. When you have to spend that kind of money for land, the home you build on it has to be at least $400,000.”

Another factor to consider is the cost of building materials. During the recession, there was excess lumber, making building more affordable. There also were lots of people willing to work for low wages. Now, there is so much building going on, the number of available subcontractors is limited. Plus, tradesmen are working for a much more competitive wage.

Miller also said most buyers are coming from out of town.

“Bend has been found by an awful lot of West Coast people relocating from the Bay Area or Seattle, and compared to those markets, Bend is still very cheap,” she said. “The thing I’m concerned about: We don’t want to become an Aspen, where the only people who can live here are the wealthy. Where do people with regular jobs live?”

Another cost that adds to the price of homes are permit fees from the city and the Parks and Recreation District.