Inventory continues to improve in the Bend and Central Oregon real estate markets.
The Bend real estate market has favored home sellers recently because there have been relatively few homes for sale. That has left buyers with few homes to choose from and even caused bidding. Those days may be coming to an end.
In August, the number of homes for sale in Deschutes County reached its highest level since September 2011. This is great news for buyers as it improves their chances of being able to find their “perfect” house. Having more homes for sale also relieves some of the pressure from worrying about whether or not someone else will make a better offer. Less competition for homes because of increased inventory can lead to a softening or leveling off of prices. We saw this in August when the average price per square foot of homes sold in Bend fell from $164 to $160.
For sellers, all is not lost. A price drop of $4/sqft hardly means the sky is falling and prices are still higher than any other time since October 2008. Sellers should be focused on what sets their home apart from the increased competition. Will it show well or does it look like a tornado hit? Is it priced right or is the price based on wishful thinking? A good local Realtor can help you sort through the strengths and weaknesses of your home before you list it for sale. Your real estate agent will also sit down with you to look at how your home compares to others that are for sale in your neighborhood and help you determine the best way to position your house for a quick sale.
It appears that what we are seeing in the Bend real estate market is a kind of balancing of forces between demand and inventory that will likely continue through winter. That balance should keep prices in a fairly narrow range close to where they sit now. The one big component of the real estate market that could upset this balance is mortgage interest rates. A sharp rise in interest rates could reduce the buying power of would be home buyers depleting demand and forcing home prices down.
*Sales data courtesy of Central Oregon MLS