Just as my fellow blogger, Duncan, suggested a few months ago would happen, Bend is now seeing a seasonal bounce in the local real estate market. The preliminary May numbers bear this out.
According to Farmer Doug (one of the only public sources for local real estate info.): Days on Market declined and prices soared in May taking them back near the record highs of last June.
However, sales declined an stunning 43% from May last year and inventory exploded 197% to a new all-time high. The supply of homes in Bend now stands at over 13 months worth of sales.
Supply and demand is an unbending economic principle that still strongly suggests lower prices are on the horizon (see Bend Real Estate Meets Econ 101). As for the recent rebound in prices, the “dead cat bounce,” is a market principle that is just as well known as the economic one.
Anyone with any experience with markets knows: “even a car being driven by a cat off a cliff will bounce before it hits the canyon floor.”
Bend, meet Toonces…