If you take the scenic drive from Portland past the impressive vista of Mt. Hood, you’ll find yourself rolling into Bend, Oregon. Bend is the very definition of “picturesque.” Thus, the Bend real estate market has no shortage of charming neighborhoods.
Bend is a city nestled among natural wonders and populated with four-star restaurants, fascinating museums, vibrant art galleries, rejuvenating spas, and exciting outdoor adventure opportunities. It is a great place to visit and an even better place to call home.
The Growing City of Bend
This charming burg is officially part of Deschutes County and, according to the U.S. Census Bureau, is home to 103,254 residents. That population number is destined to grow, especially considering that in 2010, the population was just 77,000.
Bend started as a milling town that took full advantage of the flowing waters of the Deschutes River. The original name of the city was Farewell Bend. In 1904, the population of 300 officially incorporated itself as a municipality.
Median Home Price Forecast in Bend
The median home price is a baseline number of prospective buyers’ expectations when entering any real estate market. According to the online real estate website Zillow, the median home price in the Bend real estate market is $746,400. That represents a 6.1% drop from the median home price at this same time last year.
What about the specific neighborhoods that make up the Bend real estate market? Here are the median home prices provided by Zillow:
· Southeast Bend $695,276
· Southwest Bend $719,858
· Old Farm District $619,065
· Century West $1,074,866
· Southern Crossing $742,129
· Larkspur $575,221
· Old Bend $903,609
· River West $864,638
· Orchard District $577,727
The Forecast for the Median Home Price in Bend in 2023
Despite that drop in the median home price, real estate investment firm Norada Real Estate Investments predicts that the prices in the Bend real estate market will go up by 7% in 2024. This is due to increasing demand for single-family homes.
In the Bend real estate market, online home search site Realtor finds that the median days on the market is 59 days. That is two months between when a home goes on the market and a pending sale. That’s great for home sellers but means a race for home buyers.
Factors Driving the Change in the Median Home Price
Anyone who takes on the challenge of buying a home takes a crash course in real estate. That includes learning about all the possible factors that impact changes in the median home price. Those factors could determine when and if it is the right time to invest in a home.
One of the key trends to watch in the Bend real estate market is the rising interest rates. When the Federal Reserve decides to raise the national interest rates, it has a ripple effect across all lenders. That means a rise in mortgage rates. When the mortgage rates go up, it directly impacts deciding how much you can afford a home.
Job opportunities are another factor that plays a role in how high or low home prices might be. In Bend, it is not about major industries or Fortune 500 Companies but about the growth of remote work. Bend has become a hub for folks who want to live in a great place and work from home. That drives up the demand for homes that are also “workspaces.”
The rising cost of living in Bend is also a factor that goes into the home-buying process. According to the online economic data source Salary, the cost of living in Bend is 12.2% higher than the national average. That can put limits on a home-buying budget.
The Impact of Inflation on Home Prices in Bend
The impact of inflation on home prices must be taken into account when considering the Bend real estate market. The rise in Bend home prices follows the trend of rising inflation across the country.
Inflation creates a significant impact on the buying power of couples and families.
Everyone is paying more for food, gas, utilities, and housing. That forces a reexamination of financial priorities.
Here in Bend, that has meant a definitive rise in home prices. That creates a significant challenge for prospective buyers. That could deter some buyers from entering the market, no matter how eager they are to become homeowners.
Sales Volume Forecast for Homes in Bend
There is rarely a situation in the Bend real estate market where there is only a single offer on a home. Multiple offers are good for the owner and frustrating for a buyer. According to online real estate company Redfin, the Bend real estate market is described as “very competitive.” What does that mean for the sales volume for homes in Bend? This is how Redfin breaks it down:
- Many homes get multiple offers with waived contingencies.
- The average home sells for 1% below list price.
- Properties deemed “hot” can sell for 1% above the listing in six days.
In Bend, the appeal of single-family homes is on the rise. As families and individuals prioritize space, privacy, and the joys of homeownership, the demand for single-family homes will grow in 2023.
If you went out looking for homes in Bend in August 2023, you would have 39 homes to look at. In July, that number was 35. That sales volume for homes in Bend is from the online real estate database Rocket Home.
Experts and market analysts predict that the Bend real estate market will remain vibrant, with a healthy sales volume. Projections suggest that the sales volume for homes in Bend may maintain a similar level or even show a slight increase compared to 2022.
Tips for Home Buyers and Sellers in Bend
In the competitive Bend real estate housing market, the success of your closing on a home often comes down to careful planning and informed decision-making. Whether you’re a buyer looking for your dream home or a seller aiming to get the best deal, here are some essential tips for buyers and sellers to help you navigate the market effectively:
Get Pre-approved for a Mortgage
Buying a home with cash is something multi-millionaires might do. For everyone else, it requires a mortgage. However, you don’t have to wait until you find your dream home to lock down your mortgage. You can get pre-approved for a mortgage before you go to your first open house.
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A mortgage pre-approval provides you with a clear understanding of your budget. More importantly, it shows the current homeowners that you’re a serious and qualified buyer. In a competitive market like Bend’s, having a pre-approval can give you an edge and speed up the buying process.
Be Prepared to Act Quickly
In Bend’s real estate market, properties often move swiftly. It would be best to act quickly when finding a home matching your must-have list and budget. A delay of 24 hours often results in losing out on that property to other buyers. Having your financing in order (thanks to that pre-approval) and being decisive can be game-changers.
Be Willing to Compromis
In Bend’s competitive housing market, you have to be flexible. That means being open to compromise. In other words, not every home you come across will be 100% perfect. You might find a home that needs a new kitchen or landscaping. It may have ugly carpeting, but the price and location are right. Decide what matters regarding cosmetic changes you can make once you move in.
On the other hand, you don’t want to invest in a home that requires a new roof or plumbing unless you get significant concessions from the homeowner. That could mean a reduction in the price, but you would have to pay for those renovations. Buying a home is all about thinking ahead.
Work With a Good Real Estate Agent
Working with a good real estate agent makes a huge difference. You want an experienced agent who knows the neighborhoods and what homes might be coming onto the market. Your agent will negotiate on your behalf to land you the best deal. They’ll also guide you on when to walk away or what to compromise on.
The Top Reasons to Invest in Bend, Oregon Real Estate
Bend is one of three U.S. cities with an extinct volcano within its borders. The dormant volcano isn’t enough to keep Bend warm in the winter when temperatures can drop to 10 degrees, and the average annual snowfall is 24 inches.
Even though the winter nights might be chilly, overall, Bend’s climate is classified as semi-arid.
It’s not too hot in the summer. Those climate conditions allow Bend residents to hike, kayak, ski, and bike all year.
The Different Neighborhoods in Bend
In Northwest Bend, you’ll find plenty of hiking trails, mountain biking, and parks that make up the neighborhoods of Awbrey Butte, Summit West, River Wes, and Old Bend.
Most homes in Northeast Bend surround the St. Charles Medical Center. You can find terrific opportunities for first-time homebuyers in Boyd Acres, Orchard District, and Mountain View here. You’ll see the increasing demand for single-family homes on full display in these neighborhoods.
Moving down to Southwest Bend, you’ll find homes with larger plots of land. Neighborhoods like Larkspur, Old Farm District, and Southeast Bend are where you’ll find most of the ranches and farms in Bend.
Southwest Bend has many riverfront properties comprising the Old Mill District, Century West, Southwest Bend, and Southern Crossing.
The Impact of the COVID-19 Pandemic on the Bend Real Estate Market
The COVID-19 pandemic created upheavals in every business sector across the country. That includes the housing market. At the start of the shutdowns, the housing market experienced great uncertainty. Housing sales and new home construction came to a halt. Then, the real estate market began to stabilize.
According to National Association of Realtors data, the median home price in the U.S. was $280700 in March 2020. Compare that to the July 2023 price of $406,700, and you can see the housing market has bounced back from the COVID-19 pandemic in a big way.
What triggered that change? Two significant factors are historically low-interest rates and families seeking larger homes during quarantine. Those factors set off a housing shortage that found deals on homes being closed within hours of coming onto the market.
Many deals involved investment firms buying properties for cash and desperate buyers waiving inspections and contingencies to get into a home. The Bend housing market was not immune from those changes.
The Impact of the Millennial Generation on the Bend Real Estate Market
The millennial generation significantly contributes to the current housing market frenzy.
Millennials are the segment of the population that were born between 1981 and 1996. Initially, this group put off buying a home in their 20s and 30s. The 2008 housing crisis forced everyone to reevaluate their home-buying plans.
A substantial demographic of older millennials is now eager to enter the housing market. That only intensifies the competition among all buyers. This surge in demand also impacts the younger millennials who are just starting their own families and are searching for the perfect place where that family can thrive.
The Impact of Climate Change on the Bend Real Estate Market
Climate change is becoming a major factor for homebuyers to take into consideration. When unpredictable weather can cause flooding, wildfires, and droughts, it impacts the quality of life.
On that list of climate change concerns, flooding, and wildfires are at the top of the list for Bend residents. According to Redfin, Bend has a moderate risk of flooding, with 2,209 properties, or 8%, designated in a potential flood zone. The risk of wildfires is greater, with 78% of properties in the line of fire in the next 30 years.
As for rising temperatures, the prediction is for Been to experience a 114% increase in the number of days that top 90 degrees over the next 30 years. So far, Bend has had four days in 2023 that peaked at 90 degrees.
Calling Bend Home
Robust tourism is part of Bend’s economy. It might be how you first discovered what that charming city offers. A city that attracts visitors is also a city that attracts new residents. Bend has much to offer for families who want to send their kids to good schools. It is also an excellent place for residents to embrace the growth of remote work. Those same workers also take full advantage of all those fantastic outdoor activities.
If you want to invest in a Bend home, you’ll find neighborhoods offering a range of median home prices from $575K at the low to $1 million at the high end. Bend has riverfront properties, farms, ranches, condos, and single-family homes. And each home has its unique charm.
For buyers, it is essential to line up a pre-approval for a mortgage. You must also be ready to pull the trigger on an offer and be open to compromise. Sellers should consider leveraging the demand for single-family homes and ensure competitive pricing. In both cases, working with a reputable real estate agent is highly recommended to successfully navigate Bend’s evolving real estate landscape.
When you add it all up, calling Bend your new home is an excellent call to make.
