My Weekly Central Oregon Real Estate Blog

The national average for 30-year fixed-rate mortgages climbed to 6.7% yesterday afternoon. However, pending sales increased by three to eighty in Deschutes County, and only nineteen days on the market. In Crook County, pending sales more than doubled from seven to fifteen, with forty-one days listed before securing a contract. Although, the five sold properties in Crook County were only on the market for a median of nine days. Jefferson County had six pending sales, up two from last week, with the median days listed at twenty-seven. The three sold homes in Jefferson County were only listed ten days before receiving acceptable offers. 

The active inventory in Deschutes County increased by four to 529. In Crook County, the available homes decreased by four to 117; in Jefferson County, the inventory increased by one to seventy-four. Sold homes in Deschutes County had a median price reduction of -4.66%, while in Jefferson County, the drop was -5.56%. In Crook County, the two sold homes in the median were full-price sales, making the median reduction  0%. The price reductions for the three sold properties in Crook County that did reduce the price to secure an offer were -8.33%, -3.53%, and -1.11%.

Comparing year-to-date sales from this year to 2022 shows a significant decrease in transaction volume. In Crook County, sales went from 135 YTD 2022 to 99 this year, while the median sale price increased from 445k to 465k. In Jefferson County, sales decreased from 109 to fifty-one, with the median sale price at 382k, a decrease of three thousand dollars from the last YTD. In Deschutes County, sales decreased from 1231 to 735, with the median price dropping from 685k to 620k. 

Total sales in Crook County in 2022 were 431, at a median sale price of 455k. In Jefferson County, there were 312 sales at a median of 400k, and in Deschutes County, there were a staggering 4130 sales in 2022 at a median of 680k. The sales volume by the second half of 2022 was down considerably for all three counties as well as the median sale price, except for Jefferson County, where the median price increased slightly during the second half of 2022. This dynamic was in play for the entire country, so take reports of massive changes in YTD numbers with a grain of salt, as buyers were extremely active in the first half of 2022 in anticipation of rising mortgage rates. 

The lowest sales volume of single-family homes in Deschutes County since 1997 (the earliest data in the Central Oregon MLS) was 2,043 in 2008. Most of you will recall that in 2008, we were in the grips of a sub-prime lending-induced housing crash, and the median home price dropped from 399k in 2007 to 280k in 2008 before bottoming out at 176K In 2010. 

The low sales volume of 2007-2009 is attributable to the bottom falling out of the housing market and buyers sitting on the sidelines. Today, buyer demand is strong relative to inventory and couldn't be any different from 2008. However, at the current pace, it is apparent that sales volume in 2023 will be down significantly from the peak of 5,326 sales of single-family homes in Deschutes County in 2020. The results of all this data are firm home prices, although down from the peak last year. However, the median sale price is still considerably higher than just in 2021, when the yearly median price was 603k. In addition, last year's inventory peaked in early August at 972; we will be hard-pressed to match that number this year without a rush of sellers. 

Staying in close contact with your lender and being prepared to act quickly on appealing homes is very important for buyers in this market. Unfortunately, with so few listings, predicting when the next great home might be available is impossible. However, if rates decline later this year, buyer demand may increase considerably relative to the stock of homes for sale. So, believe it or not, now may be the right time to jump in and find your corner of Central Oregon.

Please do not hesitate to reach out whenever you need anything.

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Over a week, I consume a lot of real-estate-related content, whether working for clients in Central Oregon or reading and watching reports from different analysts. Recently, I've noticed a trend in the comment sections of videos and written accounts of incredulous agents taking issue with the data. First, I think it is essential to scrutinize the source, as many people working in this space are aiming for clicks or trying to sell you something. However, most legitimate reports use national numbers or, at best, provide a brief cursory overview of large to medium-sized cities. In almost every case, the data is at least 30 days old and, in many cases, closer to 60 days stale. Nowadays, the comment section of almost anything can quickly devolve into a mess, and the real estate forums are no different. However, I always find it interesting how anecdotal most commenting agents' views are rather than data-based. Others are demanding an opinion on what the market will look like in six months. If I, or any other analyst, could predict the market six months into the future, I would not be working in real estate! In most cases, I feel reasonably safe forecasting the next three months based on the last three months and following the financial markets. The latter being more volatile than ever makes those forecasts increasingly tricky. 

Comparing the sales from the week ending April 20, 2022, to the week ending April 12, 2023 (this morning) clearly show the changes over the past year. Using the seven days last April, there were ninety-eight sold single-family homes in Deschutes County at five days on the market, a median sale price of 685k, and fourteen price changes at a median of -1.32%. The previous seven days ending this morning show forty-three sold homes, seventeen days on the market, a median sale price of 639k, and thirteen price changes at a median of -4.62%. For the period in 2022, there were 100 pending sales compared with seventy-seven this week. 

The market has softened from last year's frenetic pace, shown in the data above. As you probably recall, the Fed initiated the first rate increase of 2022 in March (25 basis points) and was telegraphing several more increases throughout the year. Since last March, the Fed has kept its promise and has raised rates by 475 basis points. Preceding the coming rate increases, the fast-paced market of 2021 through early 2022 stepped on the gas as both buyers and sellers rushed to make moves before the full effect of future rate increases took hold. By September 2022, the Central Oregon real estate market (and the national market) slowed considerably, with mortgage interest rates near or above 7% (7.24% on October 17, 2022). However, By early February this year, sales began to pick up as mortgage rates eased back. The national average yesterday afternoon for a 30-year fixed-rate mortgage was 6.52%, still elevated compared to the last couple of years, although a pivot (or pause) seems likely for the second half of 2023. For comparison, the rate in April of 2022 was 5.13%.

January 1, 2022, through April 12, 2022, shows 1149 single-family home sales in Deschutes County, compared to 679 for 2023. It would be easy to look at the reduced sales volume and increased mortgage rates as signs of a softening market. However, while the market has slowed from last year's head-spinning pace, the dearth of sellers has kept prices firm, and many properties are commanding full-price offers quickly. Pending sales are down 23% since my report on April 20, 2022, but still robust at seventy-seven. More importantly, the days on the market for those sales was only ten. This morning there are 525 single-family homes listed in Deschutes County, down seventeen from last week. That breaks down to 343 in Bend, 163 in Redmond, ninety-six in La Pine, thirty-nine in Terrebonne, and thirty-six in Sisters. There are 121 listings in Crook County and seventy-three in Jefferson County. 

On May 18, 2022, there were 538 single-family homes listed in Deschutes County. So while the national reporting may beat the drum of high inventory and low prices, that simply has not been the case in Central Oregon. Whether sellers enter the market in the second half of 2023 remains to be seen, as well as whether the Fed blinks and backs off rate increases or even lowers rates. However, until something changes, our market looks more like it did in 2021 and 2022 than in pre-2019. As rates decrease, more buyers enter the market, and prices remain firm or increase. My prediction of a 9% increase in home sale prices may have been a miss, but the housing market in Central Oregon remains strong. 

Multiple offers may not be prevalent, but ten days for pending sales are moving quickly, and many properties have more than one buyer interested. Waiting on a home you like or waiting for more, cheaper inventory is not a good strategy in today's market. There are always homes to buy, but the more specific your needs are, the more critical it is to take action on a great property. Central Oregon has an incredibly diverse geography and home selection; in many cases, unique properties are only available rarely. For the casual observer, it may seem like there are myriad options. Still, considering the price point, location, and home attributes, it is clear that most buyers only have a handful of options. 

Regular readers of my report know I am a proponent of taking a long-term view of housing rather than trying to time the market. Conditions today may be challenging for buyers, but the long-term view of Central Oregon remains bullish. Sellers may not be commanding as high of prices as the last couple of years, but close. So don't wait to buy real estate. Buy real estate and wait!

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Selecting the right time to sell your home can feel daunting. Are you wondering whether the market conditions are right or if your home needs a little TLC before listing it? Consider these 3 signs that you are ready to sell your home in 2023.

1. Your Home is Not in Need of Repair

Before selling your home or deciding if it's a good time to sell, take a good look at the condition of your home. In order to sell for the price you want, your home should not be in need of any major repairs or updating. Perfectly renovated, turn-key properties are not essential, but there are some home improvement projects that will really pay off.

Your home is ready to sell if:

• The roof is either new or in good condition
• The foundation is free from cracks or damage
• HVAC stystem functions properly
• Plumbing  and electrical systems are in good condition
• All repairs and home improvements have been done up to code

2. Your Local Market is Strong

In recent years, just about every local real estate market in the nation has been considered a seller's market. This is defined as a market in which there is less than 3 months of inventory available. While some markets are becoming more balanced as interest rates have gone up, it is still a great time to be selling your home. This is because demand for homes still outpaces supply in the market significantly in nearly every market.

When you know the market is strong and there are many buyers in search of properties just like yours, it's a good time to consider selling. Even if buyers are able to borrow less now than they could a year ago because of shifts in the market, you are likely to find that there are motivated buyers for your home that can make strong offers that will be mutually beneficial.

3. You Have Positive Equity on Your Current Home

The equity you have in your home is calculated by comparing what you owe on your mortgage to what your home is currently worth. In other words, if the fair market value of your home is $300,000 and you owe $200,000 on your mortgage, you have $100,000 in home equity.

When you have positive equity, as the vast majority of American homeowners do in 2023, you are in a great position to sell. This is because your equity can be leveraged in multiple ways to make sure you benefit from the sale. This includes:

• Being able to offer incentives and sellers concessions to your buyers so that you can get the purchase price you want
• Not having to pay anything out of pocket to sell your home
• Having additional cash to use when purchasing your next home, offsetting a higher interest rate by putting more money down, cash-flowing renovations on the new house, or funding the moving expenses

Are you in search of a real estate professional to guide you through the home-selling process in Bend Oregon and surrounding areas? Contact me directly or browse the latest real estate market report to find out what is selling and for how much!

Mortgage rates improved slightly this week, with yesterday's national average for a 30-year fixed rate at 6.37%, down ~.2%. Sales in Deschutes County remained solid at sixty-five but not as hot as last week's seventy-nine. Inventory increased by the reduced number of sales the previous week, now at 542. Only twenty-five of the sixty-five pending sales reduced the asking price by a median of -4.59%. The median pending sale price was 650k, while the average was $853k.

In Crook County, inventory increased by two, now at 118, while Jefferson County decreased by one to sixty-five. Pending sales in Crook County for the previous week were twelve, surpassed by fourteen pending sales reported on March 8. This volume of pending sales in Crook County exceeded every week of 2022, indicating the continued growth of Prineville and the surrounding communities. Jefferson County had two pending sales the previous week, down from six reported last week. 

After reading several analyst reports (at this point, I hesitate to call them experts!), there seems a strong likelihood the Fed will raise the overnight rate another 25 basis points in early May. I suspect Jerome Powell would like to increase even further in his quest to squash the economy and gain control of inflation, but the state of the banking sector will likely force a more tepid response. As I mentioned last week, Powell has no good options, and despite his best efforts, the economy has been remarkably resilient. 

Mortgage rates are tied more closely to the 10-year Treasury than Fed market manipulation, but there isn't any question of correlation. That said, I suspect markets are pricing in future Fed action and expecting a pause or pivot in the second half of this year. The housing market in Central Oregon barely took a breath during the fourth quarter of 2022 and the start of 2023 before stepping on the gas again in February. Many buyers expected a steep decline in home prices based on mortgage interest rates near or exceeding 7%, but the descent turned out to be a plateau. While home prices today may not be skyrocketing, strong buyer demand and continued low inventory keep price decreases at bay. Many desirable homes are hitting the market priced correctly and, as a result, are receiving full-price offers. 

Considering all the market dynamics, home prices will likely remain firm in 2023. Myriad loan programs are available to address the higher rates, such as temporary rate buydowns, permanent rate buydowns, and even (heaven forbid) adjustable rate mortgages. However, waiting for lower rates will likely also increase home prices, which so far this year have been relatively stable. Now is where I mention (weekly) that housing is best considered a long-term investment! Attempting to time the market is nearly impossible, but rapidly increasing sale prices are more difficult for most buyers to navigate than higher mortgage rates. Plus, with an interest rate buydown, in most cases, your rate will be at least one point lower than the quoted conventional rates. I anticipate a robust refinance market starting in late 2023, as today's buyers potentially have an opportunity to decrease monthly payments and lock into a lower rate. We may look back at this time as the buying window many were seeking as rates decline in the future and demand for homes increases. Although I do not anticipate rates in the three's anytime soon. Adjusting expectations may be required to see today's market clearly.

Recently, many of my readers have taken advantage of the Market Reports on EnjoyBendLife.com to track the market. These reports are updated with the active, pending, and sold information for your chosen zip code, subdivision, or neighborhood every fifteen minutes. In addition, each property listed has a link to photos, maps, and all the necessary information to research our market. Registration is required to access these reports, so you can expect a phone call from me once you sign up! However, if you aren't ready to talk, the Market Trend Reports on my website are available without registering and provide tremendous information about the active inventory. You will not find a more comprehensive set of tools and information on any real estate website for Central Oregon! I am always available to provide a personalized, expert analysis of any community you are considering, and I am happy to work on your timeline. Information is power, and I am always available to share my knowledge. Don't hesitate to get in touch with me with any questions. 

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By every significant metric, the Central Oregon housing market is heating up. In Deschutes County, buyer demand outpaced new listings, and inventory dropped by twelve, now at 529 single-family homes. Crook County inventory was flat at 116; in Jefferson County, the available homes for sale dropped two, now at sixty-six. Moreover, all six pending sales in Jefferson County over the previous seven days went under contract at full price. In Crook County, five of the eleven pending sales reduced the price by a median of -4.65%, and in Deschutes County, twenty-nine of the seventy-nine pending sales reduced the price by a median of -5.14%. However, Deschutes County pending sales days on the market jumped slightly to fourteen. On February 1 in Deschutes County, the pending sale ratio of price decreases to total contracts was 57.9% compared with this week's 36.7%, a clear indicator that sellers are zeroing in on market pricing and buyers are chomping at the bit. Two of the seven homes I tried to schedule client showings for this week were pending after being listed for months. 

Available homes for sale, days on the market before securing a contract, and the percentage of price reductions are the most predictive metrics concerning market dynamics. Without an increase in inventory and a decrease in days on the market, sellers have little incentive to reduce their asking price, assuming the property price reflects the market. When very few options exist in a particular neighborhood or price point, sellers can command higher and higher prices, and buyers are left either paying those prices or waiting. In 2008, prices dropped significantly and stayed depressed for some time, clearly indicating the market bottom. In this cycle, our "bottom" may have been the slowdown last fall and into the first weeks of 2023. While I fully expect the Federal Reserve to raise rates another 25 basis points in early May, most experts expect a pivot or pause for the year's second half. Some analysts believe more rate hikes that last longer is the strategy the Fed should follow to reign in inflation and disengage from the past zero-interest rates policy. Still, it seems unlikely the Fed will act that aggressively. With a rate pivot or pause already factored in by most lenders, we might see rates in the upper 5% range by peak season. If so, expect the already hot market to get even hotter. 

If you are following national real estate news, you've likely read that days on the market are increasing, prices are down, and inventory is up in the Western US. However, astute readers of my weekly report know that has not happened in Central Oregon. Last week was the first time since last October that the median price of actively listed homes in Deschutes County moved into the 700k range, now at 735k. This week's median list price is 749k. While this is a significant drop from April 2022's 825k, the market is heating up. After a scorching first half of 2022, the median list price finally declined from the 800k range into the 700k territory on July 6 and then into the 600k territory on October 5, 2023. If these trends continue, there is every reason to believe this summer's pricing will reflect the first half of 2022.

There are twenty-three homes in either La Pine or Redmond in the 300k range, with another forty-nine in the 400k range in Deschutes County. The two least expensive homes in Bend are 425k and 475k. 

I can recommend fantastic lenders with creative ways to help you secure a great loan package for your situation. Once you make a purchase, refinancing at a lower rate in the future is always an option. However, waiting for lower rates will likely increase the purchase price and competition with other buyers. While we might not be experiencing a high percentage of multiple offer scenarios now, most desirable homes have several buyers circling. My broken-record statement still holds; home purchases should have a long-term focus! Whatever metric you like to track, I can run a personal report with comparables for you or use the great tools on EnjoyBendLife.com. Market Trends allow you to sort by price quartile and are updated weekly. Market Reports are highly customizable by neighborhood, zip code, or city and are updated from the MLS every fifteen minutes! My home valuation tool provides a price range from low to high, and sold searches are customizable to your particular interest. Of course, I want to hear from you directly, but many of the tools on my website allow you to research 24/7. You will not find more comprehensive data and tools on any other real estate website!

Click here for the full report.

For many people, finding a coffee shop is essential to making themselves at home in their new town. If that sounds like you and you are considering a move to Bend, plan to stop by some of these local coffee shops on your house-hunting trip. Bend has a thriving restaurant scene, including food, craft beers, and excellent coffee.

To learn more about moving to Bend, contact us any time. We would love to help you find your ideal property in town or in one of the many beautiful surrounding communities.

Don't forget to check out some of these coffee shops while exploring the area.

Thump Coffee

Thump Coffee, with three locations in Bend, truly offers something for every coffee lover. Quality coffee and an inspiring experience motivate Thump Coffee and its fantastic staff to create memorable experiences. Whether you drop into the downtown location in a quaint old brick building on Minnesota Avenue, grab a quick cup of your favorite beverage in the Grove Market Hall in NW Crossing, or check out the live music down the street at the York Drive Roastery, Thump has something for everyone!

Lone Pine Coffee Roasters

Lone Pine Coffee Roasters has been perfecting their craft and serving up delicious coffee in Bend since 2009, now in two locations. They have amassed an enthusiastic following with their commitment to quality. Enjoy a latte or pour-over coffee in one of their cafes, where it's easy to connect with a community of fellow coffee lovers and Bend residents in their friendly spaces.

Backporch Coffee Roasters

With four locations in town, Backporch Coffee Roasters can be enjoyed no matter where you're headed that day. They get their name from the location of their original roaster, out on the back porch. Backporch represents the best of the third-wave coffee movement, with high-quality, locally roasted beans offered in a variety of brew methods. Grab a pound of beans to bring home or choose from their unique instant brew options to take with you on the go.

Kanona Cafe

With an emphasis on craft coffee and clean food, Kanona Coffee is committed to serving the best to the Bend community. Their food menu sets them apart from other coffee shops, with fresh and healthy menu items like açaí bowls and avocado toast. Enjoy your time in Kanona inside the charming cafe or out on the wraparound porch, where you just might want to relax and stay a while.

Perk Avenue Coffee

If you love the classic coffee shop vibe, you will love Perk Avenue Coffee. They have been serving the Bend community since 1997 with a menu filled with coffee and non-coffee drinks. All their coffee is sourced locally, and they have a menu of vegan and gluten-free options. This is a local coffee shop with a loyal following, perfect for when you want that homey, comfortable coffee shop experience.

Looney Bean Coffee

Looney Bean has been roasting coffee and baking delicious pastries since 1992, making them a staple in downtown Bend. Located on the banks of the Big Deschutes River just behind the classic Pine Tavern, grabbing a cup of coffee at Looney Bean feels more like visiting a friend's house than going to a business. With an expansive riverside yard that is dog friendly, stopping in for a hot beverage after a walk through Drake Park is easy and fun!

Ready to plan a house-hunting trip in Bend? Contact us any time to get started. Here are some other great Bend things to do:

Best Brunch in Bend, Oregon

Favorite Restaurants in Bend

Are you the type to love Bend?

In one week of the Fed bailing out banks with over $300B (that's a billion, with a "B"), half of the Quantitative Tightening over the last several months was wiped out. In a last-ditch effort to show he is committed to "fighting inflation," I expect Jerome Powell to announce a 25 basis point hike of the overnight rate today. With the 30-year national average for a fixed-rate conventional mortgage yesterday at 6.75%, there is every chance the mortgage rate could climb further. However, with the value of many banks' Held to Maturity assets (primarily bonds) in decline, the contagion spreading through banks will likely be the beginning of the pivot Wall Street has been waiting for. Admittedly, the Fed has no good options at the moment. Many analysts are predicting lower rates for the second half of this year, with inflation as entrenched as ever.

Long-term, more than just investors are looking to invest in hard assets, as we've witnessed with solid buyer demand in the Central Oregon housing market, despite high mortgage rates. Whether lower rates materialize remains to be seen, along with a significant increase in inventory. However, higher mortgage rates have kept many buyers on the sidelines, creating pent-up demand. If rates at or below 6% become available as the year progresses, I anticipate a flood of buyers and the potential for an even more competitive real estate market. If you have a long-term focus on Central Oregon and the means to purchase over the next several weeks, now might be an excellent opportunity to secure your home or investment. 

A temporary rate buydown is a perfect strategy to lower your rate, with the benefit of any unused pre-paid interest returned to you when you refinance should lower rates materialize. On the other hand, a permanent rate buydown is a sunk cost most appropriate with a seller credit to the buyer at closing. I am happy to walk you through the basics of these programs, but the best advice I can offer would be some great local lenders that can guide you through the best approach for you.

Single-family homes for sale in Deschutes County increased again this week, now at 541, up fourteen from last week. In addition, there were nine more pending sales than the previous week, for a total of seventy-three. Total sales increased by twenty-four for a total of sixty-two. It looks like we are past the home inventory low for this year, which occurred on March first when there were 485 homes listed; Deschutes County median days on the market for pending sales decreased to ten this week, down three from last week, with a median price decrease of -3.45%. These numbers show strong buyer demand, especially for this time of year. 

While paying attention to the economy is essential to position yourself properly as either a seller or buyer, a long-term focus is the best strategy for housing, with several tools available to navigate interest rates. When rates decline in the future, a refinance solves that issue. For example, with a lower mortgage interest rate, you could refinance into a 15 or 20-year mortgage and have the same payment as the higher rate. Housing price dips have been few and far between over the last century, but steady appreciation has been nearly constant. The S&P 500 peaked in December 2021, while housing nationally peaked in June 2022. That said, the factors driving buyers to Central Oregon are unique to our area and not always in step with national trends. However, there is no question our economy is increasingly volatile, and a more significant increase than my expected 25 basis point hike or a hawkish tone from the Fed for future guidance could roil markets. Also, with nearly 200 banks identified as troubled, the banking crisis could still add to the economic uncertainty. When the current volatility is in the rearview mirror, Central Oregon will still be a great place to live, and housing will still be in short supply relative to how many people want to live here. 

Whether you need help finding a great lender, or an expert analysis on pricing your home for sale, I am here to help. So please reach out anytime, or jump on EnjoyBendLife.com and use the tools available 24/7!

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I would be remiss if I didn't mention the bank failures last week, with Silicon Valley Bank leading the way, followed by Signature Bank and Silvergate Bank. The ramifications of this are still unknown, especially since more banks will fail in the coming weeks. While most of the deposits held by SVB were more than FDIC insurance limits, the Federal Reserve and US Treasury said depositors would be made whole. Unfortunately, this is terrible news for the "fight" against inflation, as more government spending will only exasperate the problem. I haven't been shy about my skepticism of the Fed and its true motives for rate increases, which are not all about fighting the inflation they created. However, some analysts have predicted the Fed would raise rates until "something breaks," which seems to have happened. Before the failure of SVB, analysts expected at least a 25 basis point rate increase at the coming FOMC meeting or even a 50 basis point increase if job numbers came in strong. However, many now believe the Fed may hold firm and not raise rates. What a difference a week makes!

This tumultuous activity in the financial sector is driving even more people towards hard assets like real estate. As a result, it will likely apply downward pressure on mortgage interest rates, 6.75% for the 30-year fixed-rate national average yesterday, down from over 7% just a few days ago. 

I have documented the increase in buyer activity the closer rates get to 6% as buyers on the edge of affordability gain some breathing room. However, not every segment of the market is dependent on financing. For example, thirty-six homes are listed in Deschutes County at or above $2.5M, with nine more under contract. Since September 15, 2022, 26 have sold, with sixteen cash sales. 

Deschutes County inventory increased slightly to 527, up sixteen from last week. However, the days on the market for actively listed homes decreased again, now at fifty-two. Pending and sold homes exactly matched last week at sixty-four and thirty-eight, respectively, and in another sign of solid buyer demand, the days on the market for pending sales dropped to thirteen. As a result, the median price reduction for pending sales decreased to -2.9%, with only twenty of the sixty-four pending sales reducing the list price. Two-hundred-twenty-one active listings have reduced the list price (41%) as prices firm up and new listing prices more closely reflect today's market without adjusting. Sixty-six homes hit the market in the previous seven days in Deschutes County.

It is impossible to predict whether the current economic climate entices sellers to list their homes, although the steady demand and firm prices are good motivations. However, there is no indication that a flood of inventory is coming. On the contrary, if mortgage interest rates begin to cool, more buyers will make offers, and without enough homes for sale to satisfy demand, prices will likely stay firm. 

I regularly speak with buyers that expect a significant drawdown in home prices. Unfortunately, home prices have steadily increased for several years, and the current conditions are not applying downward pressure. Moreover, nothing in the data today indicates a change in the pricing dynamic. I understand buyers want a reasonable price on a new purchase, but a better question may be, "what will the home be worth in ten years?" 

Whatever your opinions on the market, I have tools readily available on my website and up-to-date knowledge of our current market. Don't hesitate to contact me for any of your real estate needs or if you think I am wrong about my interpretation of the market! Together we can strategize the best way for you to achieve your goals.

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Looking for a new place to get brunch in Bend? It should come as no surprise that this hip and friendly Central Oregon city has plenty of excellent brunch choices, especially if you're already aware of how impressive the Bend restaurant scene is. Whether you are looking for something sophisticated or a casual place to enjoy brunch with the kids, Bend has it all.

To learn about buying a home in Bend in 2023, let us know how we can help! Contact us any time.

For a list of brunch spots to try this year, consider some of these Bend favorites.

Cafe Sintra

Cafe Sintra is locally known as one of the best brunch spots, so make sure you get a reservation or arrive early when you plan to enjoy a meal with them. The restaurant is named after the owner's hometown in Portugal, and features Portuguese flavors in their dishes. Try an inventive and flavorful take on an Eggs Benedict or omelet and pair it with a signature cocktail or espresso. All their dishes come with their Sintra potatoes, a flavorful side featuring fresh herbs. Whether you love sweet or savory brunch items, you will love a morning at Cafe Sintra.

Blissful Spoon

Blissful Spoon is a European style bistro open for brunch and lunch, located in charming downtown Bend. They are known for "fabulous food with no guilt," offering an extensive gluten free menu and featuring fresh, locally sourced ingredients. They got their start in the Bend farmers market, and honor those beginnings by maintain connections with local farmers and purveyors.

Located just a block from Mirror Bond, Blissful Spoon is the perfect spot to enjoy a leisurely brunch before exploring outside.

Chow

Consistently ranking among the favorite brunch spots in Bend, Chow is known for their reliably delicious food. Located in westside Bend, guests can enjoy live music outside when weather permits, and the menu never disappoints. Order one of their creatives takes on a mimosa to pair with a honey truffle fried chicken sandwich or a fajita breakfast skillet.

Drake

Another popular downtown Bend brunch spot is Drake, so popular in fact that you almost have to have a reservation to get a table. This hip and sophisticated restaurant occupies a busy corner and features trendy menu items that will make it hard to choose. Try their housemade ricotta donuts, cornmeal waffle, Carolina shrimp & grits, or a fennel sausage and egg sandwich on brioche. The cocktail menu is sure to satisfy, too.

Bo's Falafel Bar

Every Thursday through Sunday, Bo's Falafel Bar has a pop-up bagel shop you simply cannot miss. Few simple eats satisfy like a fresh bagel or bagel sandwich, and that's exactly what you will find at Bo's. Try a salted rosemary honey bagel with homemade cream cheese, or for something more filling you can opt for a bagel sandwich with homemade apple and herb sausage, fried eggs, and melty cheese. Enjoy your bagels on the patio with a house made cocktail, or take some with you for brunch on the go as you enjoy a hike or bike ride around Bend.

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Mortgage rates for 30-year fixed-rate loans yesterday were 7.03% for the national average, but there was an uptick in applications from the previous two weeks. However, applications compared with one year ago are down 42% nationally. In Crook and Jefferson County, available homes for sale have remained low but stable, with one hundred seventeen and sixty-eight active listings, respectively. Both counties have median days on the market of ~90 for active listings and ~70 for pending sales. The median sale price in Crook County was 459k, and 347k in Jefferson County. Pending and sold price reductions vary dramatically from week to week in these counties but are generally higher than in Deschutes County. The largest cities in these counties, Prineville and Madras, are good options for buyers constrained by budget and lending costs. 

In Deschutes County, active inventory has increased by twenty-six to 511, a trickle of new listings as spring approaches. The median sale price was $627,500, slightly above the median for the first eight weeks of 2023 and in line with recent weeks. While price decreases have slowed, 42.8% of the active listings have taken a price cut, and 42.2% of pending sales. Of the thirty-eight sales last week, 52.6% reduced the asking price. The median price reduction for sold homes in the previous week was -5.81% or a median of $32,707. The median numbers are an excellent way to get a feel for the market but do not apply equally. Attractive, well-priced homes are selling quickly without price reductions. Sellers have also zeroed in on appropriate pricing, with the median reduction for active listings in Deschutes County listed for thirty days or less at -1.53%. There are 184 homes listed for thirty days or less with a median asking price of $727,500. Jumping up to homes listed between 30-90 days shows 128 listings at a median price of 650k and a median decrease of -3.05%. Finally, 207 homes have been listed for ninety days or more at a median of 780k with a median price reduction of -6.01%.

Three hundred sixty-one homes currently listed in Deschutes County are at or below $999,999, with the median days listed at forty-nine and the median reduction at -4.38%. That leaves 153 listings above $1M at a median of ninety-one days listed and a median decrease of -6.69%.

My goal wasn't to bore you with minutia but to break down the market and give you a clear picture of where the most significant price decreases and opportunities lie. For many of the homes lingering on the market, the list price is more of a wish-price, and I suspect many of these sellers would be open to lower offers. There is a strong chance for buyers looking at these properties to get a seller credit towards an interest rate buy-down or a lower price for cash or well-qualified buyers. Remember that jumbo loan rates are approximately 100 basis points lower than conventional rates.

Over the previous week, fourteen of the sixty-four pending sales were over $1M, with twenty-six median days listed and a median price decrease of -7.88%. Conversely, the pending sales under $1M took twenty-one days to secure a contract with a median price decrease of -5.42%. For higher-end homes, pricing is complicated, as many of these properties are unique. Whether it is large acreage, special finishings, or a spectacular view, the pricing of the many stunning homes in Central Oregon can be tricky. Ultimately, it takes a willing buyer to make a deal happen at any price point. If a home you are interested in has lingered on the market, there is a good chance the seller is willing to look at offers. As interest rates rise, fewer sellers are listing their homes. Considering a home that makes sense for you is a good plan, as there are no guarantees another suitable home will come to market in a reasonable amount of time. 

Whether you are waiting out the economy or ready to sell or buy this year, I am available to help. In many cases, those waiting out the current conditions have much to gain from staying engaged in the market. Please do not hesitate to ask questions about specific properties, no matter your timeframe.

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