One of the best measures of the characteristics of a real estate market is the concentration of
sales by price segments.
Analyzing unit sales in various price ranges can reveal
demand trends and provide clues to future market direction.
As examples, these “metrics” can answer such questions as
to whether the luxury market is growing, static or declining. Or they can
identify the price ranges attracting the most sales activity.
Builders, brokers, lenders, home sellers and buyers all
benefit from the information in making real estate decisions.
So what do the price ranges show in Bend and Central
Oregon for the first nine months of 2014? (see the table below)
·
More than half
of all sales in both Bend (59.81%) and all of the region (52.42%) are homes in
the $200,000 through $399,000 category.
·
By far the the
most sales in Bend (39.60%) and all of Central Oregon (34.85%) are in the
$200,000 to $299,000 price range.
·
But the numbers
diverge for the next highest sales range. In Bend 20.81% of sales are from
$300,000 to $399,999. In all of the region, including Bend, the 2nd
highest category is $100,000 to $199,000.
Moving farther up in the pricing ladder sales in Bend
alone account for another 24.04% in the $400,000 through $699,000 range, but
only 17.83% for all of Central Oregon.
And, significantly, sales beyond the $700,000 level to
the highest priced closings in the region (three above $2,000,000) only amount
to 5.63% and 4.24% in Bend and the region, respectively.
The number of sales above $1,000,000 are a very thin slice of the
overall market, with only 1.65% in Bend and 1.25% throughout the area in that
range.
Altogether there were 31 sales in Bend at more than
$1,000,000 through the third quarter of 2014, compared with 25 in the
comparable period of 2013 -- a nice percentage gain but a relatively small number
of units. Of the Bend sales, two were in the Pronghorn resort between Redmond
and Bend, which has a Bend address.
There
were another 10 sales in 2014 above $1,000,000 elsewhere in the region--three
near Sisters, two each in Crosswater and Sunriver and one each in Black Butte
Ranch, Aspen Lakes and Vandevert Ranch.
The
three sales of more than $2,000,000 were a 560 acre property on Wychus Creek
north of Sisters, at $3,335,444; a 342 acre property bordered by Forest Service
land west of Sisters, $2,400,000; and a
home in Crosswater, $2,100,000.
