Bend home prices leveled off in May which may be a good thing for the market as a whole because prices had been climbing for four consecutive months and some were concerned that this market may be getting out of hand again.
What had been happening was that the number of homes for sale was not keeping up with demand from home buyers. That imbalance was putting upward pressure on home prices in Bend and leading to some bidding wars for houses.
A 9.8 percent increase in the number of homes for sale in May appears to have been enough to alleviate some of that upward pricing pressure. While bidding wars are not a thing of the past, buyers seem be exhibiting a little more patience in making their purchase decisions. Having more homes to choose from tends to allow buyers to slow down and not feel like they have to make an offer today or the house will be gone.
It is a definite plus for the market that inventory has been rising since February however, it is still not at the level one would expect it to be based on the last decade. Before inventory really started falling in 2012, we would have to go all the way back to 2004 to find three consecutive months where there were fewer than 2000 homes for sale in Central Oregon. We have below 2000 for nine consecutive months now and we still haven’t reached last years inventory levels. The number of homes for sale last month was 8.5 percent below the 1892 homes for sale in May 2012.
While inventory has been falling the last few years, Bend home prices have been enjoying steady gains. Since March 2012 the average price per square foot has risen 33 percent to $145. That price is unchanged from April and I think we could see it fall slightly in June.
So far this month we have seen 95 new listings. During the first 12 days of May there were 58 new homes on the market. If June new real estate listings continue to out-pace May we could see the average price per square foot stay level or even fall a little because the number of pending sales was essentially unchanged from April to May.
You can read more monthly sales reports: Bend Home Prices.
Real Estate Sales information courtesy of Central Oregon MLS