February 2025 Market Update: Is Spring Waking Up Earlier Than Usual This Year?

Thoughts for Sellers

With inventory increasing and listings hitting the market earlier than in past years, we’re advising Sellers to price aggressively to stay competitive and attract more potential Buyers. If possible, consider listing sooner rather than later. That said, with both pending sales and median prices on the rise, we’re seeing early signs of a strong Spring selling season in Bend.

Thoughts for Buyers

Current data suggests Buyers should get comfortable with today’s interest rates. If you’re ready to purchase, you’ll find more homes on the market than we’ve seen in years, creating opportunities to negotiate deals or explore creative financing options, such as seller credits. Talk with your mortgage broker, or let us connect you with one of our trusted partners to learn more.

Median Sales Price

Bend's Median Sales Price jumped 6% in January 2025, coming in at $740K. Although at least some of this Median Sales Price increase is driven by higher price-point sales, we are off to a strong start in 2025 with both listings and pending listings on the rise. We are also noticing listings coming to market earlier this year, with the most listings in January since 2021. All told, January is consistently one of the lowest "listing months" historically, so this increase should be taken with a grain of salt. Moreover, although our current Months of Supply is higher than we've seen in recent years -it is still fairly low historically. In summary, with a solid amount of listings coming to market and listings going pending, mixed with an impressive Median Sales Price in January -our Spring season is off to a strong start.

New Listings by Month

New Listings jumped by a whopping 55% YOY in January with 215, setting up for a year with increased inventory coming to market. This is the most New Listings we have seen in January since 2021. That said, coming off several consecutive years of relatively lower inventory, this increase should be taken with a grain of salt for now.

Months of Supply

Months of Supply landed at 3.25 months in January 2025. Still a whole month's worth of inventory more than January 2024 -this is the lowest Months of Supply we've had since April of last year. We expect to see this dip for maybe one more month due to Winter, and then rise again in the Spring.

Homes Pending by Month

Pending units increased for the 5th consecutive month by 10% YOY to 147, continuing the improvement from the first half of 2024. Despite the challenging market, Buyers & Sellers are finding ways to make deals happen. However, our pending unit volume is still down roughly 20% to pre-pandemic volumes. We expect there to be more transaction volume in 2025 than there was in 2023 or 2024.

Financing Affordability

Affordability came in at a Median Monthly Payment (w/ 20% down @ average FRM) for January, which came in at $4,294. With rates continuing to trickle in the high 6's and low 7's, and indications from the Fed that any significant drops in rate are unlikely for the foreseeable future, Buyers are better off seeking a "deal" on home prices than waiting for rates to drop - if they are ready to buy. Seems like the use of Seller Credits is a great play right now as well.