With the median home price in Bend at an all-time high of $470,000 and the first reduction of the interest rate by the US Federal Reserve in more than a decade, we are getting questions from our clients about the economy and how it may affect their real estate decisions.
The most recent data for Bend real estate showed continued signs of a typically robust, summertime market. Home sales in Bend were up 3% (compared to 2.5% nationally) in July from 236 in June to 243, and the number of homes that went pending was up 13%, from 247 in June to 280. Sales in July were consistent with last year (232) and pending sales were up year-to-year 17%. The number of active listings was up again, from 491 in June to 560 in July, which may be a result of properties that were reintroduced to the market after being withdrawn last year or earlier this year.
Price reductions were relatively flat from June to July of this year (175 to 179), and down significantly (-24%) from July of 2018, when 230 listings were reduced. The time it took to sell a home in July was also flat month-to-month (from 84 days in June to 87 in July), and considerably quicker than July of 2018 when it took an average of 101 days.
As for the new median home price of $470,000, an uptick of 6% from June and 8% year-to-year, it’s good to remember that the fluctuation of monthly data is normal. We find it helpful to show our clients big-picture, 30,000-foot view trends that account for statistical fluctuations, seasonality and larger economic factors. See a more detailed analysis of the current trends for the Bend real estate market from Jason here.
We find it helpful to show our clients big-picture, 30,000-foot view trends that account for statistical fluctuations, seasonality and larger economic factors.
The .25% reduction of the interest rate by The Fed on July 31 seemed to be a catalyst for both buyers and homeowners who are refinancing, and two more interest rate cuts are expected for 2019 according to Fannie Mae.
What does this mean for sellers? Lower interest rates help motivate buyers, and listing your home in Bend in time for fall can be beneficial. The mild weather in September and October can feel like a well-kept secret for locals, and there are fewer listings on the market in general, which helps your property stand out. Buyers who haven’t felt the urgency of making a real estate transaction during the summer months (before school starts, for example), may benefit as well, with the aforementioned lowered interest rates and a selection of homes from buyers who are truly motivated to sell.
Need advice on your next real estate decision? We are here for you. Contact us for a straightforward appraisal of your real estate goals based on our deep experience in the Bend market.