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Supply grows, but demand soars: Some Bend homes sell for $100K over asking price

Plenty more homes being built, but 'it's just not catching up to demand'

BEND, Ore. (KTVZ) -- No matter where you are in Bend, you will likely see construction of new homes -- and yet, a supply vs. demand squeeze has prices soaring to record levels.

Thousands of homes are planned from in northeast Bend, off Deschutes Market Road, to southeast Bend, off Brosterhous Road, and a future development planned to the east, off 27th Street and Stevens Road.

But Central Oregon Realtor Derek Cox said Wednesday it's still not even close to meeting demand, in part because new developments don't all sell at once.

"They'll release two lots a week, and it's just not enough for what's going on," Cox said. "So as much as you see 120 new potential listings coming up
for the current moment, it's just not catching up to what the demand is."

In fact, the competition can be so intense, Cox says it can lead to intense bidding wars.

"Like I've said, there have been a handful of properties that have gone well above $100,000 over the asking price," Cox said.

A long-time healthy real estate market has become a fiercely heated competition.

"Really for the last year, since 2020 about half way through, since Quarter 3, it just doesn't matter what price range -- you're having multiple offers on the $400,000 range, $800,000 and then above $1 million," Cox said.

As for who's buying these houses, Cox said in addition to people moving from out of state, others are looking for a place to work from
home, and they're competing with investors.

"There's a lot of people looking to park money here right now," he said. "You know, the stock market is very volatile, and so for me, the last handful of houses I've been able to help out have been investors, knowing that bend will probably continue to appreciate."

Cox said he's seeing more investors from California that are looking in Bend for a rental property. And they can often afford to pay cash.

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Blake Allen

Blake Allen is a multimedia journalist for NewsChannel 21. Learn more about Blake here.

Comments

39 Comments

  1. Crash is coming and unfortunately we will fall hard again. Always funny to hear realtors interviewed they never have a clue the markets is always going to go up in their minds. The stock market is volatile but this market is so solid?

        1. I think a large part of it is that the demand will remain here for those seeking to escape rapidly failing areas like SoCal and Spokane. SoCal especially is seeing a mass exodus.

          1. So it’s all about how bad it is where they were and not a whit about how attractive this place remains, despite the folks who loudly claim it’s gone to heck?
            I just marked 30 years here – and growth has its tradeoffs, but they sure beat stagnation or recession/worse…

            1. There maybe some people moving here because of how bad it is elsewhere but I think most of the people I have met it is because it is better here. Worse there or better here? That is kind of a cup half full or empty call.
              We are not immune from national recessions. There were plenty of people who would have liked to have moved here in 2009. Many Americans were wiped out including people from Bend. Hopefully the people who are buying investment properties here now are not overleveraged if things go south. By most metrics the stock market part of the current everything bubble is at a level surpassing the 1999 bubble and the level of trading on margin – borrowed money – is at an all time high. My understanding is that would greatly accelerate a serious downturn. Maybe everything will be hunky dory with the vaccine but then there is the enormous government debt and money printing used to save the economy from Covid 19 and to keep the economy rolling for the last 15 years – more like 20. Meanwhile we reduced taxes. Eventually the piper has to get paid. A stable part of the economy here might be the number of people who have retired here and could survive a bad downturn without having to sell their homes etc.

            2. Bend as a destination has not changed in any significant way to people coming from California. But California has changed very much lately. I think the safe assumption is that the fall of California is the dominant factor in this formula.
              Unfortunately their toxic ideas will spread here as well.

  2. Hey Blake, i know you saved that little bit of information just for the end of the article so you could watch the melt down in the comments you sick sadistic writer.

    1. If it were leftists, housing would be affordable or even free. You know…the evil socialism you’re always ranting about and scared of.

      Supply and demand is in the greedy garbage Capitalist wheelhouse. Moving up, buying houses to rent to other poor California migrants from San Francisco, investing in land to sell later for a huge profit and keep native Bendites from owning a home…that’s not the way a leftist works.

      1. But everything bad is the lefts fault and everything great is the right! so those right utopias like Texas are just perfect! oh wait maybe not Texas, But Kentucky, yes Kentucky, no problems there at all, no poor or uneducated everyone is just dandy!

  3. Can I PLEASE buy an overpriced, particle board piece of garbage? That’s Bend for you. I’m surprised they aren’t letting the developers just use sticks and mud. It’ll probably last longer.

    1. Once upon a time you could buy a new Chevy for $525.
      Once upon a time all your neighbors were white.
      Once upon a time, women kept to the house and didn’t wear pants.
      Times change.

    2. Yep. Most of the houses were basic single story 2 and 3 bedroom homes that were
      on decent sized lots, and almost all of them had at least a single car garage,
      and enough space to park an rv or boat…
      Now most are two story, ugly houses with small single car garages on the smallest
      sized lot they can get away with, and you can almost stick your arm out of a window and touch your neighbors house, and forget about having any extra parking space…

      The houses that were built back in the 60’s and 70’s weren’t fancy but most were built
      to last longer than 15-20 years. With the exception of high end custom homes, the homes being built today are absolute garbage and the workmanship on a lot of them looks like the middle school shop class built them. It’s pretty pathetic when someone can’t cut a simple 90 degree cut for finish mouldings and actually have them mate up, especially with the
      tools that are available today. As far as the actual framing goes, many of them should never pass inspection. There is no pride in workmanship…

      I’m not a carpenter but when I remodeled our last house, I replaced every piece of wood
      moulding in the house, and all I used was a cheap mitre box, and all my joints lined
      up perfectly, but I take pride in my work and want everything as close to perfect as I can get it…

  4. The realtors have a responsibility in prices. They drive them up and gouge. And the people ante up and pay the ridiculous asking price.

    And for what? To live in Bend? Pass. You can have your “native” land (that was taken from the first people/ aka indigenous).

    1. Have you ever sold a house? When you do, you hire a realtor to get the highest price you possibly can. That’s your right as a property owner. It’s a realtor’s job to drive up the price as much as they can; that’s what you hire them to do. It’s called capitalism and the free enterprise system.

      1. We have never used a real estate agent to sell any of our houses, and we have always done just fine without them.
        The only time I would ever consider paying an agents fees is if the market was tanked.
        It doesn’t take a genius to sell real estate, and you can save yourself a lot of money if you are willing to invest some time and effort into doing it…

  5. If housing is selling for up to $100k over asking price, it sounds like there is room to finally raise SDCs to the point they are actually enough to pay for the needed infrastructure the growth creates. Then we won’t have to continually vote in new bonds to make up the difference.

    1. Do you ever post anything positive??? You must be one depressed individual…..

      And for the record, CO growth isn’t going to slow even in an econimic down turn. Remember Clinton deregulated funding, causing the great recession. Next chapter, America passed the telecommuting test with COVID, and people now have the ability to live, play and work from where they want. I work in an industry that provides services for telecommuters and remote work force, and the influx of people moving here are just that. CO real estate and values wont change anytime soon, because of Oregon crappy land use laws (changed in the late 70s), us just can’t build a house anywhere, there is regulation, and with that creates a supply and demand problem, which is what we are seeing. As a city, we will not see additional land brought into the UGB until 2028. So getting ready CO, we are further more going to be the next Vail, Co.

      1. Actually I own a lot of Central Oregon real estate so I am not depressed, just realistic! I held all my property trough the last recession while others were all running away and going through BK. It made me a millionaire so no , I’m not depressed at all! But open your eyes it’s all happening again!

  6. This is a major problem. As much as I love it here, the inflation rate is absurd. The overall mentality and positive vibes have shifted. We saw it coming when gentrification was dubbed “beautification projects.” Destroying more of the natural area, taking away mountain views by adding large obstructions, and controlling access to public lands is not beautification. It’s greed. There’s no balance and when the balance is gone, the scales will surely tip.

  7. I remember the last crash, houses were selling for way more than their worth, people were taking loans out that they could barely cover monthly. Are we seeing that now?

  8. Economic crashes/slumps go in cycles and are fact of life.

    That said, the relocation of folks to Central Oregon will continue unabated. Why?

    Because the major cities on the West Coast, in particular, like Seattle/Portland/San Francisco/San Jose, etc are becoming untenable to live/work in.

    And “working from home” is now an accepted reality.

    Oregon’s less than stellar economic stability aside.

  9. It really makes no sense to “blame” any one part of the chain here- it’s not the developers, or the realtors, or the wealthy investors, or the “greedy” landlords, or the Californians that are causing this market to behave like this. In a capitalist system, everyone is out to make a buck, and if you don’t want this particular buck, someone else will gladly take the opportunity. Nobody is breaking the law, nobody is “evil”, everybody is just trying too make a buck.

    The issue, in my opinion, is that we do NOT have a purely capitalist economic system. The realtor quoted in the article alludes to this in saying that “they are only releasing a couple of lots”. “They” I assume is our local government doing their job as best they can and following the laws we have put in place. If there were no governmental regulation of development, the capitalist system would function more like it does in theory, and we’d have lots of housing. Imagine what Bend would look like if there were no zoning, no codes, no restrictions on development.

    The housing situation here in Central Oregon is a manifestation of the mess that invariably ensues when you mix capitalism and government control (socialism). It is an unintended consequence for sure, and it is real clear who is losing as a result.

    The capitalist system here in the US, in EVERY sector of the economy, is hugely impacted by government rules and regulations. The wood products industry is not operating in a purely capitalist fashion as it is subsidized by the Forest Service (and yes there is a lot more to it than that, but the fact is the industry does not operate freely). Same with agriculture, same with health care, same with homebuilding and real estate speculation. The energy sector is both subsidized and restricted by the government. Whether it is through taxation, legislation, subsidization, the federal government is to a large extent “interfering” in a freely operating capitalist system.

    I don’t mean “interfering” in a pejorative sense- most of the governments actions are intended to keep prices down on critical commodities, like food and energy and health care (prescription drugs for example) while trying to preserve common resources (air and water etc) from the ravages of greed. And, trying to keep the economy growing- a very difficult balancing act indeed.

    With laws and regulations there will always be loopholes, and where there are loopholes there will be people to take advantage of them.

    What we have at present is a semi- capitalist, semi-socialist economy. If we went to a purely capitalist system, we’d ruin this planet in no time flat, because us human beings (as a whole) are fundamentally greedy and irresponsible. While there are good and valid examples of failure in socialist economies around the world, there are also some very good examples of success. I don’t think our hybrid system works very well, do you?

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