So what’s happening at the front lines of real estate right now? I get asked some variation of this question every week, if not multiple times a week. Honestly, it’s always a good question because things are constantly changing. My hope is that I provide some clarity as to what is happening right now, but don’t count on this, if you are reading this much beyond May 2022.
The Bend Real Estate market is always hot, meaning people are constantly looking into it and wondering “what if we bought a place in Bend?” For those of us that live and/or play here we know this is because it’s gorgeous year round, even with the unpredictable Spring weather :). There is industry here, but the main driver is the beauty around us, and that is not going anywhere, so demand will always be high for Bend and surrounding areas.
That said, our market has begun to change, to shift, to soften, whatever you want to call it. I’ve been telling people for weeks now that I believe we are in the midst of our market change… right now! I don’t have any idea what the end result will be, but we are “in it”.
Changing can mean a number of things: lower buyer demand, less homes with multiple offers, more days on market, etc. There are more homes coming off the market without selling, and that has been nearly non-existent for the past 2 years. While these adjustments may appear small on their own, they add up and contribute to an overall change for Central Oregon Real Estate.
The overarching theme that has popped up in many of our office meetings for the past couple months is the idea of waning consumer confidence. With everything that we as individuals, a country, and a planet are facing, we are more reluctant to do big things. We aren’t reluctant to buy milk, but we may be a little more reluctant to buy a car or a home. Things that put debt on us right now, especially with volatile interest rates, are causing hesitancy. As a fairly conservative person, I think that’s pretty smart. In the short term, does it slow things in Real Estate down? Yes. Does it cause some people that are spooked about another huge recession to get more spooked? Again, yes.
Overall I think what we are experiencing, specifically in Central Oregon Real Estate, is some wise hesitation as things fall out across our country and beyond. Do I think that things will topple? No. I think there will be a pullback that is felt by many industries (and that is what we are in now) and then, assuming our train is not blown off the tracks by something enormous and unforeseen, I think we will begin again to pump our way down the track. Appreciation will slow, inventory will rise, buyers will be fewer (given rates) but they will still be many.
I see a small drizzle ahead but, by the end of the summer, I see calmer waters.