It appears inventory has finally hit bottom.
We first suggested back in September 2012 that the Bend real estate market was headed toward having bare cupboards this winter if it stayed the course it was on. Well, nothing changed and not only did the number of homes for sale in Central Oregon hit what we thought was a low projection of 1390 it fell below that to 1318 last month. That is a number we haven’t seen in more than eight years.
Another number we haven’t seen in years is price per square foot consistently above $130. For five of the last seven months prices have been above $130/sqft. The last time we had five of seven months above $130 was from October 2008 through April 2009 when prices were falling from $160/sqft to $124/sqft. Home prices eventually bottomed out in February 2011 at $102/sqft.
There are reasons to believe that two years after prices hit bottom inventory has finally done the same.
- Buyers are active. Look at the chart above and notice the blue triangle with 389 above it for February 2013. That means that 389 houses went pending in February. Compare that to last February when there were 357 more homes for sale but less buyer activity.
- Hammers are swinging. It is hard to not notice all of the new construction going on in Bend. Especially after the last few years when there was virtually nothing happening.
- Interest rates have started to rise from their unbelievable lows just six months ago encouraging buyers to move while 30 year mortgage rates are still below 4%.
- Prices are reaching levels that will lead to profit taking by some investors who bought well over the last three years.
If you have questions about what all of this means for you and your real estate situation please call Becky at (541) 508-2930. She would be happy to sit down with you and discuss what options make the most sense for you.
You can read more monthly sales reports: Bend Home Prices.
Real Estate Sales information courtesy of Central Oregon MLS