Bend median home sales price returns to record $800K peak as Redmond’s holds in $500K range; appraiser gives insights

'Economic factors indicate that the market is healthy'

REDMOND, Ore. (KTVZ) -- Bend's median home sales price returned to the $800,000 record set in the summer of 2023, while Redmond's figure of $500,000 held within the fairly narrow range of the past year, Redmond's Beacon Appraisal Group said in its monthly report Thursday.

Here's a look at what's behind the numbers from appraiser Donnie Montagner, and his full report for the region is below:

Over the past several years, there have been months when the Single Family Residential (SFR) median sale price in Bend has seen apparent significant increases, like last month – the SFR median sale price in Bend was $800k. 

A major impact on the median sales price is seen in price point.  Of the 143 SFR closed sales last month, nearly 35% of those sales were over $1Mill.  Given the large volume of these higher priced SFR properties, the median inference then swings to the upper end of the price range.  

The number of monthly sales in Bend has been steady since June of 2024 at 143 to 148 sales per month. The sales data for October also indicates that there were fewer sales under $1Mill last month than in the prior months, which also pushes the median sale price even further to the higher end of the range.

For example, the overall number of sales did not increase last month, in proportion to the increase in the number of $1Mill+ sales that took place.  Therefore, since the 143 sales were consistent with prior months, there were fewer sales of lower priced properties in October.

What is the overall SFR trend in Bend?  While the significant increase in median sale price can be explained, other economic factors assist in examining the market, i.e. SFR inventory declined slightly last month, days on market increased to 44 days (but remains significantly lower than seen in October of 2019, for example, which was 88 days on market), and new SFR building permits increased last month.  These economic factors indicate that the market is healthy. 

Of course, if the focus is comparing the current market to the market in 2020-2021, then one could say that it is a soft market in some regards.   In 2020-2021, the marketing times were significantly low (1-7 days) with unprecedented high demand (multiple offers, escalation clauses, etc.), which is why I also view prior Beacon reports for comparison. 

The market activity of 2020-2021 was an anomaly.  Prices have not significantly declined (as seen in 2009-2011) as the current SFR market is easing away from an aggressive sellers’ market. 

The Redmond SFR market provides a trend that is based on SFR properties that have less variation in SFR dwellings, i.e. site/location, etc., than the Bend SFR market.  This trend has fewer data points but more consistency (as noted above) between the properties within the sample.  

The median sale price has been mostly stable over the past few months, inventory declined last month to around a 3-month supply, the median marketing time has also declined to around 36-days, and new SFR permits increased to 39 which is the highest number of permits since October 2021.  Again, this is all showing evidence that the market is healthy. 

It is common for the Central Oregon real estate market to experience a slowing in market activity going into fall and winter seasons.  This slowing in market activity does not necessarily result in significant price declines, unless a number of sellers are highly motivated to sell.