March 2025 Market Update: Opportunity in a Shifting Landscape

Thoughts for Sellers

Continue to be aggressive on price due to higher rates and increased inventory putting pressure on home prices. With our market still fetching near all-time highs, pricing and marketing your home correctly will still fetch you a great result. 

Thoughts for Buyers

Buyers continue to be challenged by a higher rate environment, but with increased inventory and average days on the market, there are opportunities to seek deals for those who are ready to buy. Get creative with your financing to seek seller credits. 

Median Sales Price

Bend's Median Sales Price increased by 4% in February 2025, coming in at $727K. Our Median Sales Price has remained relatively stagnant since the Spring of 2022 rate hikes. Unless we see significant rate relief in 2025, we expect to see more of the same this year. Higher rates + more inventory (both of which are expected in 2025) put downward pressure on home prices. However, as tracked since Spring 2022's rate hikes, we are not tracking this "downward pressure" to be significant just yet -more so, we are seeing it cause "stagnation," which is also supported by pent-up Buyer demand. For Sellers? It is still a good time to fetch near all-time high prices for your home -although pricing your home correctly is important. For Buyers? There are deals to be sought on older inventory right now.

New Listings by Month

New Listings jumped by a whopping 40% YOY in February with 274, setting up for a Spring with increased inventory coming to market. Other than February of 2022, this is the most New Listings we have seen in February since 2018. We continue to expect more inventory as we inch towards peak Spring and Summer seasons.

Months of Supply

Months of Supply landed at 3.43 months in February 2025. Almost 1.25 months' worth of inventory more than February 2024 -and the most in February for at least six years. As forecasted, we are seeing inventories rapidly build in Spring 2025.

Homes Pending by Month

Pending units increased YOY for the 7th consecutive month by 11% YOY to 190 in February 2025. Despite the uptick in Pending Units over the last half-year, transaction volume is still down both to pre-pandemic and peak-pandemic volumes. All told we are still expecting there to be more transaction volume in 2025 than there was in 2023 or 2024, with lots of new inventory coming to market and pent-up Buyer demand.

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.