Bend, Oregon Housing Market Update: What’s Happening in Early 2026?

If you tried to buy a home in Central Oregon a few years ago, you likely remember the frenzy—bidding wars, waived inspections, and homes vanishing from the MLS in hours. It was exhausted.

Fast forward to February 2026, and the conversation has changed. We aren't seeing the wild spikes of the pandemic years, but we also aren't seeing a crash. Instead, Bend has entered a phase of stabilization. The market finally feels like it has room to breathe, and for the first time in a long time, buyers have genuine options.

Whether you are looking for a primary residence near the Old Mill District or scouting an investment property, understanding the numbers right now is crucial. Let’s break down exactly what the data from January and early February 2026 is telling us.

Bend Housing Market Snapshot (February 2026)

If I had to summarize the current state of the market in one word, it would be "normalization." We are no longer in a boom, but we definitely aren't in a bust. We have settled into a rhythm that looks a lot more like a traditional real estate cycle.

For buyers, this is good news. You have more leverage now than you did throughout 2023 and 2024. The massive leverage sellers held—where they could dictate every term of the contract—has eroded. With interest rates trending down toward the low-6% range, affordability has improved slightly, sparking activity without causing a frenzy.

Here is what the landscape looks like right now:

• Market Temperature: We are in a balanced market. It leans slightly toward sellers in the most desirable pockets, but overall, it is much friendlier to buyers.
• Median Sold Price: Prices have remained relatively flat year-over-year, hovering between $700,000 and $730,000.
• Inventory: We are seeing about 3.5 to 3.8 months of supply, which represents the healthiest inventory levels we have seen since 2019.

This stability makes the logistics of moving to Bend much easier, as you aren't chasing a moving target on price while trying to coordinate relocations.

Home Price Trends: Is Bend Still Expensive?

Let’s be real—Bend is not a "cheap" place to live. However, the explosive, double-digit growth that priced so many people out has halted. When we look at the latest Bend real estate market reports, the trend line for pricing is essentially flat.

In late 2025 and January 2026, the median sale price bounced between $700,000 and $731,000. Year-over-year growth is sitting at roughly 0% to 1.6%. That lack of volatility is actually a strength; it suggests that values are holding firm despite economic headwinds, proving that Central Oregon real estate is a stable asset.

A major shift we are seeing is the "List-to-Sale" ratio. A few years ago, homes sold for 105% of the list price. Today, sellers are negotiating. On average, homes are closing at about 98% of the original list price. That means on a $700,000 home, buyers are frequently negotiating $10,000 to $20,000 off the top, or getting concessions for closing costs.

The price per square foot has also adjusted slightly, settling around $388 per square foot. While Bend remains premium compared to the national average, it is showing significantly more stability than some of the more volatile West Coast tech hubs.

Inventory & Speed of Sale: What Buyers Need to Know

The biggest relief for buyers in 2026 is time. The panic-buying era is over.

Inventory levels are normalizing. We are currently seeing between 650 and 750 active homes on the market in Bend. To give you context, during the inventory lows of the pandemic, that number dipped below 200. This increase means you can actually view multiple homes in a single weekend and compare them without fear that they will all be sold by Monday morning.

Days on Market (DOM) statistics tell a similar story. The median time a home sits on the market is now roughly 64 to 66 days. When you factor in the cumulative time from listing to closing, the average process is taking about 100 days.

We are approaching a 4-month supply of inventory. In the real estate world, 4 to 6 months of supply is considered a perfectly balanced market. We aren't quite there yet, but we are close. This environment allows you to write a thoughtful offer, keep your inspection contingencies in place, and make a decision based on logic rather than adrenaline.

Neighborhood Micro-Markets: East vs. West Side

While the broad numbers give us a general idea, Bend is really a tale of two markets: the East Side and the West Side. Trends vary significantly depending on which side of Highway 97 you are looking at.

The West Side: Areas like Northwest Crossing, Tetherow, and River West continue to command premium pricing. The median price here is generally above $900,000. Inventory remains tighter in these zones because the demand for walkability to downtown, parks like Drake Park, and the river is always high. These neighborhoods tend to hold their value aggressively, even when the broader market softens.

The East Side: If you are looking for better affordability and more space, the East Side is where the activity is. Neighborhoods like Larkspur and Mountain View have more inventory and are the primary landing spots for first-time homebuyers. The median price point here sits in the mid-$500,000 to $600,000 range. You get more square footage for your dollar, and recent commercial developments are making the East Side more self-sufficient regarding dining and shopping.

Redmond and Surrounding Areas: It is also worth noting that many buyers priced out of Bend are finding great options in Redmond. With a median price closer to $520,000, it serves as a strong alternative for those willing to commute 20 minutes.

If you are trying to decide on the best neighborhoods in Bend for your specific lifestyle, driving these distinct zones is the best way to feel the difference in density and vibe.

Investment Outlook: Short-Term Rentals & Rules

For investors, the landscape in Bend has become much trickier. If you are thinking about buying investment property in Bend specifically for Airbnb or VRBO use, you need to navigate the regulations carefully.

The city strictly enforces "Type II" whole-home rental permits. There is a cap on how many of these permits can exist, and right now, there is a significant waitlist in most areas. Furthermore, there is a mandatory 250-foot to 500-foot buffer zone (depending on zoning) between short-term rentals. This density buffer is strictly enforced, meaning you cannot get a permit if a neighbor within that radius already has one.

Because of this scarcity, homes with transferable permits command a massive premium. However, do not assume a permit is automatically transferable—always verify with the city planning department during your due diligence period.

Many investors are pivoting to mid-term rentals (30+ days). These rentals, often serving traveling nurses or remote workers relocating to Central Oregon, generally do not require the same Type II land use permit, making them a lower-barrier entry point for investment.

New Construction & Development Watch

One reason inventory has improved is the steady flow of new construction. Builders are active, particularly in Southeast Bend.

Master-planned communities like Petrosa and Easton are bringing significant new supply to the market. Unlike individual sellers who might be emotionally attached to their price, builders are motivated by volume. Right now, they are offering aggressive incentives to move homes.

It is common to see builders offering rate buydowns—sometimes offering promotional mortgage rates as low as 5.5% for the first year or two—to combat the current interest rate environment. While new construction often comes with a higher price tag than resale homes, the ability to secure a lower monthly payment through builder incentives can sometimes make the math work better for budget-conscious buyers.

2026 Forecast: What to Expect in the Next 12 Months

So, where is this all going? Based on current economic indicators, here is what we expect for the remainder of 2026.

We anticipate slow, steady price growth in the realm of 2% to 4% by year-end. The days of 20% appreciation are gone, and frankly, that is healthier for the community. We expect interest rates to stabilize in the low-6% range. This stability will likely keep demand steady—enough to absorb new listings without causing prices to spike.

Migration into Deschutes County is continuing, primarily from Seattle and California, though the "Zoom town" intensity has cooled. People are still moving here for the lifestyle, the access to Mt. Bachelor, and the high desert climate.

For buyers, the advice for 2026 is simple: Marry the house, date the rate. If you find a home that fits your life and budget now, it is generally safer to secure it than to wait for rates to drop further, which would likely just increase competition and drive prices back up.

Frequently Asked Questions

Is housing inventory increasing in Bend, Oregon?

Yes, inventory is actively increasing. As of early 2026, active listings have risen to between 650 and 750 homes, providing about 3.5 to 3.8 months of supply, which gives buyers significantly more choices than in previous years.

Will home prices in Bend drop in 2026?

A significant price drop is unlikely. The market has stabilized rather than corrected, with median prices holding flat around $700,000 to $730,000, and forecasts suggest slow growth of roughly 2-4% rather than a decline.

What are the rules for buying an Airbnb in Bend?

Bend has strict regulations for whole-home short-term rentals (Type II permits), including a cap on total permits and a required buffer zone between rentals. New permits are extremely difficult to obtain due to waitlists, so investors often look for homes with existing, transferable permits.

How much do I need to earn to buy a house in Bend?

With a median home price near $730,000 and current interest rates in the low-6% range, a buyer typically needs a household income of at least $160,000 to $180,000 to comfortably afford the monthly payments, assuming a 20% down payment.