The Beacon Report – June 2021.
Heavy Competition & Low Inventory Continue To Fuel Increasing Prices.
National housing inventory levels increased slightly in April 2021 to 4.4 months, the highest level since May of 2020, which was 5.3 months (according to Federal Reserve Economic Data – FRED). The same source shows average interest rates ticked up to 2.99% on 6/3/2021 for a 30-year fixed rate mortgage.
Single Family Residential (SFR) inventory levels in Bend and Redmond scarcely increased in May 2021. Heavy competition between buyers and lack of supply are continuing to fuel the increases in sale prices.
Bend SFR shows a decline in median sale price in May 2021 when compared to the high median sale price of $651,000 in April 2021. It is common for the Bend SFR market to show significant increases and declines in median sale prices due to the wide variations in SFR products within the market area. This most recent decline does not correlate with a declining market, as supply and demand components are basically unchanged. Strong demand coupled with very low inventory and short marketing times all point to a very strong seller’s market.
Redmond SFR had a spike in median sale price to $443,000, as there were a significant number of sales in the $500,000 and higher price range; nearly 30% of all SFR sales.
Redmond SFR had a large increase in median sale price in the prior month (March) to$412k, and stayed relatively stable last month at $413k.
The impending termination of the foreclosure moratorium raises questions as to how the market will be impacted if/when the moratorium comes to an end later this month. Given the minimal level of inventory in Central Oregon (around a half month supply) and the high demand, it is difficult to foresee how these potential foreclosures will impact the market, at least in the short run.
The link to the most recent report is below. From all of us at Beacon, have a great summer!
The Beacon Report is compiled each month by Donnie Montagner (State Certified Residential Appraiser) of Beacon Appraisal Group LLC with information obtained from the MLS of Central Oregon with permission from the Central Oregon Association of Realtors®.