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Bend Oregon Real Estate | February 2024 Trends
High Mortgage Rates - High Prices Affecting Bend Home Sales
For the 4th week in a row, the thirty year mortgage interest rate has risen which has impacted real estate sales across the country. With these rates now pushing 7%, the buying power of Bend homebuyers has diminished.
With this change, few sellers are putting their homes of the market. Why sell a home with a great interest rate when the replacement home will cost so much more to finance? Both Bend home buyers and Bend home sellers are making decisions based on the cost to finance and when mortgage rates rise, often the decision made is to do nothing.
Bend Real Estate Inventory Levels Remain Low
Although there is always a downward seasonal adjustment for Bend home sales in the winter, the number of homes for sale and pending sales in February 2024 were exceptionally low. There were only 124 single family homes in Bend that went pending in February, which is down over 38% from the same month in 2022. Some of this slowdown can be attributed to a heavier than normal winter with later snow showers dampening showings and sales. However, most of it can be directly ascribed to mortgage interest rates; these were less than 4% in February, 2022 which was the month before the dramatic increase in rates began.
When February 2024 is compared with February 2023 for Bend single family home sales, the following changes can be noted:
- Average sales price down 2.3% to $803,821*
- Median sales price up 3% to $680,000
- Average list price up 3.9% to $977,675
- Median list price down 1.7% to $737,000
- New listings down 1.5% to 129
- Homes for sale down 15.5% to 212
- Pending sales down 17.3% to 124
- Sold homes down 4.4% to 108
- Average days on market up 4.8% to 65
- Months of supply unchanged at 1.6 months
- Average price per square foot up 3.6% to $399
- Average percentage of list price received up 1% to 99.4%
- Dollar volume of closed sales down 6.6% to $86,812,688
Large Number of Bend Home Sales are Cash
The data shows that of the 108 closed homes in February 2024, 30 of them were cash sales. High mortgage rates do not impact people with sufficient cash to purchase a home. Although many of the experts in the industry predict mortgage rates will drop to the low 6% or even high 5% by fourth quarter, 2024, cash buyers remain a major demographic of Bend home purchasers. This is not anticipated to change throughout 2024.
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