Skip to Content
Top Stories

Bend median home sales price drops from record in May, while Redmond rises to new record

Beacon Appraisal Group

REDMOND, Ore. (KTVZ) – Bend’s median home sales price dropped $23,000 in May from the record $651,000 set in April, while Redmond’s went the other way, jumping $30,000 in a month to a record $443,000, Beacon Appraisal Group reported Wednesday.

Here's the monthly summary by appraiser Donnie Montagner:

National housing inventory levels increased slightly in April 2021 to 4.4 months, the highest level since May of 2020, which was 5.3 months (according to Federal Reserve Economic Data - FRED).  The same source shows average interest rates ticked up to 2.99% on 6/3/2021 for a 30-year fixed rate mortgage.

SFR (single-family residence) inventory levels in Bend and Redmond scarcely increased in May 2021.  Heavy competition between buyers and lack of supply are continuing to fuel the increases in sale prices.

Bend SFR shows a decline in median sale price in May 2021 when compared to the high median sale price of $651,000 in April 2021. It is common for the Bend SFR market to show significant increases and declines in median sale prices due to the wide variations in SFR products within the market area.  This most recent decline does not correlate with a declining market, as supply and demand components are basically unchanged. Strong demand, coupled with very low inventory and short marketing times, all point to a very strong seller's market.

Redmond SFR had a spike in median sale price to $443,000, as there were a significant number of sales in the $500,000 and higher price range, nearly 30% of all SFR sales. 

The impending termination of the foreclosure moratorium raises questions as to how the market will be impacted if/when the moratorium comes to an end later this month.  Given the minimal level of inventory in Central Oregon (around a half-month supply) and the high demand, it is difficult to foresee how these potential foreclosures will impact the market, at least in the short run.

The full June report (May stats) can be found at: https://beaconappraisal.net/site/wp-content/uploads/2021/06/BEACON-REPORT-June-2021.pdf

Central Oregon / House & Home / Local News / News / Real_Estate_Essentials

KTVZ news sources

Comments

9 Comments

  1. “it is difficult to foresee how these potential foreclosures will impact the market” who’s statement is this, the author? Of course it is “difficult to foresee” as that is complete conjecture that is unsupported. As a local state certified appraiser, I have seen almost zero evidence that we will see any increase in REO properties, especially considering the fact that almost every home purchased outside of the last couple weeks has equity, and even those may have some. This is not 2008. The larger RE factors are not the same, and a home is not going into foreclosure if it is worth more than the owner paid for it. It is that simple. Let’s not be so fatalistic. If anything is going to kill this run, it will be the stock market, and/or a massive return to the cities by our new residents. The later I do not see happening in any significant amounts.

    1. Not sure if you were here in 2008, but it feels just like 2006 with people outbidding at least $50,000 on already overinflated prices. I understand the loan situation is different, but there are a lot of other factors that you failed to mention that COULD put us in a crash 2.0. Inflation is getting out of control in every aspect of consumers (gas, building materials), local businesses can’t pay enough to get help (shoot, no normal person can afford a $600,000 house) and many local businesses are either closing or cutting hours because of lack of a workforce which can only hurt the local economy, companies like BLACK ROCK overpaying to increase housing inflation, and people ARE buying houses they truly can’t afford. The termination of the foreclosure moratorium WILL contribute to a crisis. I don’t know what will happen, but I think there is a chance of big crash and yes it does feel just like 2006. I think there is a unique situation here in that a huge portion of overpriced sales are going to out of town buyers, buying site unseen for cash. I can only imagine if they realize their houses are underwater and there are foreclosures due to the reasons I mentioned, they will add to the crisis. Bend IS A BUBBLE!!!

      1. The big difference, even within your recital, is that cash buyers *aren’t* going to be “underwater” and subject to “foreclosure.”

        1. They are not all cash buyers. Maybe 20-30% at the most. prices have gotten so bad that not many have the kind of cash it takes to buy a $750,000 house in DRW!

  2. The market in Central Oregon is awash in cash buyers.

    And there’s a huge amount of case available right now.

    If you’re not prepared or able to bid at least $50 thousand plus over the asking price forget it.

    And, now a buyer has to be able to prove she/he can make the payments. In other words one has to truly qualify for a home loan where in the past that process was quite a bit looser.

    In perhaps two years or so there will be a swing, best case scenario, the other way and for many reasons, to include the displacement of the elderly and folks not “rico” enough to live in Blaine County.

    And in Ketchum, Idaho, they were considering tent cities for their blue collar workers given the same problem. Now that’s being set aside as other options are considered. An insightful read given Deschutes / Blaine counties sound an awful lot alike in this regard.

    “Kate Riley has nowhere to go, so she is here, wiping away tears on the grassy lawn in front of Ketchum’s City Hall where she hopes her story might be the one that compels the city to do something.

    “Rent on the small garage apartment where she lives in Blaine County has already shot up to $1,300 a month, and now the owners are putting it up for sale.

    “The 66-year-old has been searching, but can’t find anything she can afford anywhere close to Ketchum. Starting over somewhere else feels unthinkable.”

    https://www.ktvb.com/article/news/local/growing-idaho/ketchum-leaders-back-away-from-tent-city-option-vow-more-work-on-affordable-housing-crisis/277-7070b666-44db-4e64-b66b-e82099a656e1

  3. Makes sense Redmond is on the rise. Once Redmond becomes as unaffordable as Bend, Prineville will be next. Sisters was already pretty expensive and Madras isn’t exactly offering opportunities that cause a lot of population boom. Give it time though. Until the market crashes again, we will be forced out to make way for the new who come with greater financial means. This is what they planned for when they began “beautification projects,” also known as gentrification. Those who were on board thinking it only impacted the low economic population are now wishing they listened to those who saw the bigger picture from the beginning.

Leave a Reply

Skip to content