Bend Real Estate Market Overview: What to Expect in 2025

If you’ve been watching the Central Oregon housing landscape over the last few years, you know it’s been a bit of a rollercoaster. We went from the frantic, blink-and-you-missed-it pace of the pandemic years to a market that is finally taking a deep breath. As we settle into late 2024 and look ahead to 2025, the conversation has shifted from "how much over asking price do I need to bid?" to more grounded discussions about value and timing.

The headline for the coming year isn't about a boom or a bust; it’s about normalization. We are seeing a shift toward a more balanced landscape where inventory is rising and prices are stabilizing. While mortgage rates and affordability remain the primary drivers for 2025, the panic is gone, replaced by a market that allows buyers and sellers a little more room to think. For anyone thinking about relocating to Bend or making a move locally, this new pace offers opportunities that simply didn't exist two years ago.

Current Market Snapshot: Prices, Inventory, and Speed

Let's look at the numbers defining our market right now. If you are waiting for a massive drop in home values, the data suggests you might be waiting a long time. Instead of crashing, the median home price in Bend has largely flattened out. We are currently seeing median sold prices hovering in the $730,000 to $760,000 range. This stability indicates that despite higher borrowing costs, demand for the Central Oregon lifestyle remains strong enough to support current valuations.

Inventory is where we see the biggest change. During the peak of the frenzy, we barely had two weeks of supply. As of early 2025, we are looking at roughly 3.0 to 3.8 months of supply. While this is still technically below the 6-month mark of a "neutral" market, it feels significantly different on the ground. Buyers actually have options to compare, rather than scrambling for the only house on the block.

Consequently, the speed of the market has decelerated. The "Days on Market" metric is trending upward, sitting around 60 to 70 days on average. Homes are sitting longer, which is a natural result of buyers being more selective and math-conscious. For sellers, this means patience is now a requirement, not just a virtue.

Is Bend Currently a Buyer's or Seller's Market?

This is the most common question I get over coffee. The technical answer is that with under 5 or 6 months of inventory, Bend is still statistically a seller's market. However, ask any local agent, and they will tell you it feels much more balanced than those stats imply. We are in a shifting market.

The balance of power has moved significantly toward buyers. While you might not get a steal on the listing price, you have leverage that didn't exist recently. Buyers can now realistically ask for inspections, request repairs, and negotiate closing costs without being laughed out of the room. The days of waiving every contingency just to get an offer accepted are largely behind us.

For sellers, this means the strategy has to change. You must price competitively right out of the gate. If a home is priced too high, it risks stagnating, and a listing that sits for 90 days often invites lowball offers. Selling your home in this environment requires precision, not just optimism.

Bend Real Estate Forecast for 2025

Looking into the crystal ball for 2025, most economic indicators point toward a year of stability rather than volatility. We are predicting modest appreciation or potentially flat pricing throughout the year. The massive double-digit equity gains of the past are over, but the floor seems solid.

The biggest variable remains interest rates. We anticipate that as rates stabilize, buyer demand will creep back up. However, we are also dealing with the "lock-in effect." Many current homeowners in Deschutes County are sitting on mortgage rates of 3% or 4%. They are understandably hesitant to trade those rates for today's higher percentages, which is keeping resale inventory artificially low. This lack of flood in the market is one of the main reasons prices haven't dipped significantly.

Trends by Property Type: Single-Family vs. Condos vs. Luxury

Not all segments of the market are moving at the same speed. It helps to break it down by what you’re actually looking to buy.

Single-Family Homes This remains the core of the Bend market. Inventory here is rising, but demand is the steadiest. Families and remote workers moving to town generally want that classic Bend lifestyle—a yard for the dog and a garage for the gear.

Condos and Townhomes With the median single-family price remaining high, condos and townhomes are becoming a vital entry point for many buyers. We are keeping a close eye on this sector; often, when single-family homes become out of reach, the condo market sees faster turnover as people adjust their expectations to get a foothold in the area.

The Luxury Market High-end homes, typically those priced over $1 million, often operate in their own ecosystem. This segment is less sensitive to interest rate fluctuations because cash offers are more common. Demand for luxury homes in Bend remains robust, driven by wealth migration from higher-cost metro areas.

New Construction and Development in Deschutes County

If you are struggling to find a resale home that fits your needs, new construction is playing a huge role in filling the inventory gap. We are seeing developments popping up, particularly in Southeast Bend and on the edges of town where land is still available.

One major advantage of looking at new construction in Bend OR right now is the incentives. Builders are motivated to move units and are often offering rate buydowns that can significantly lower your monthly payment for the first few years. In many cases, buying a brand-new home might actually be more affordable on a monthly basis than buying an older resale home at the same price point, simply due to these financing incentives.

Seasonality: When is the Best Time to Buy or Sell?

Bend is a seasonal town, and our real estate market follows the weather. Understanding this cycle can save you money or help you sell faster.

Winter This is typically the slowest pace of the year. There are fewer listings, but the sellers who are active in January and February are usually highly motivated. If you are a buyer willing to brave the snow to view homes, this is often the best time to negotiate a deal.

Spring and Summer As the weather warms up, inventory peaks. The gardens look great, the mountains are shining, and everyone wants to move. This is when competition is highest, and prices often hit their annual peak. The outdoor lifestyle drives moving trends here; people visit for a summer vacation and decide they want to stay, fueling the summer demand.

Regional Comparison: Bend vs. Redmond vs. Sisters

For many relocators, the search starts in Bend but expands to neighboring towns once they crunch the numbers. Here is how the local landscape compares.

• Redmond: Historically the more affordable neighbor, Redmond has seen massive industrial and commercial growth. It offers a lower entry-level price point and is a great option for commuters. It feels more like a working town than a resort town, but it has its own distinct charm and growing brewery scene.
• Sisters: If you want that small-town, western-themed feel, Sisters is the spot. However, don't expect it to be cheaper. The price point in Sisters is often comparable to or higher than Bend due to very limited inventory and a high concentration of vacation homes and luxury estates.
• Bend: This is the cultural and economic hub. You pay a premium for living here, but you get the highest variety of amenities, healthcare access, schools, and immediate access to the Deschutes River and trails.

Affordability and Cost of Living Considerations

We have to address the elephant in the room: affordability. There is a well-documented disconnect between local service-industry wages and home prices in Central Oregon. Much of the market is driven by remote workers bringing salaries from Seattle, the Bay Area, or Portland, which sustains the higher price floor.

When calculating the cost of living in Bend, you need to look beyond the mortgage. Property taxes are generally reasonable compared to the East Coast, but they are rising. Utilities can vary wildly depending on the age of the home and its heating source—winters here are real. Crucially, interest rates currently have a massive impact on purchasing power. A shift of 1% in rates can change your buying power by tens of thousands of dollars, so staying in touch with a lender is vital.

Investment Potential: Rentals and Second Homes

For investors, the landscape is tricky but navigable. If you are looking at short-term rentals (Airbnbs), be aware that regulations within the Bend city limits are very strict. Obtaining a permit can be difficult and is tied to specific zones and density buffers.

However, long-term rental demand remains incredibly strong. With many would-be buyers priced out of purchasing, the pool of high-quality tenants is deep. If you can make the numbers work with current interest rates—or if you have significant cash to put down—holding a long-term rental in Deschutes County is still a solid play for asset appreciation and steady cash flow.

Strategic Advice for Homebuyers in 2025

If you are planning to enter the market this year, here is my best advice:

• Don't wait for a crash. The data just doesn't support a massive price drop. If you find a home you love and can afford the payment, it’s often better to buy now and refinance later if rates drop, rather than trying to time the bottom.
• Use the "Days on Market" to your advantage. If a home has been listed for 45 days, the seller is likely ready to make a deal. Use this leverage to negotiate repairs or ask for credits to cover your closing costs.
• Get local pre-approval. Sellers and listing agents trust local lenders. Having a pre-approval letter from a recognizable Bend mortgage broker can make your offer stand out against someone using a big-box online lender.

Strategic Advice for Sellers in 2025

For those looking to sell, the strategy is all about preparation.

• Pricing is critical. You cannot price your home based on what your neighbor got in 2022. Overpricing leads to stale listings, and once a listing goes stale, buyers assume something is wrong with it.
• Staging matters. Buyers are choosier now. Your home needs to look turnkey. A well-staged home photographs better and justifies the asking price.
• Be open to concessions. To get a deal across the finish line, you might need to offer a rate buydown for the buyer. It often costs you less than a price reduction but adds more value to the buyer's monthly budget.

Frequently Asked Questions About Bend Real Estate

Will home prices in Bend, Oregon drop in 2025?

Significant price drops are unlikely. While we may see minor fluctuations, the market is stabilizing rather than crashing. The continued demand for the Central Oregon lifestyle, combined with limited inventory, supports steady pricing in the $730K–$760K range.

Is now a good time to buy a house in Bend?

Yes, if you value less competition. While interest rates are higher than in previous years, you don't have to fight through ten competing offers or waive inspections. It is a much friendlier environment for buyers who want to make a thoughtful decision.

What is the average days on market in Bend right now?

As of late 2024 and heading into 2025, homes are averaging about 60 to 70 days on the market. This is a return to a more normal pace, giving buyers ample time to view homes and make decisions without feeling rushed.

How does the cost of living in Bend compare to Portland or California?

Bend is generally more affordable than major California markets like the Bay Area or Los Angeles, which is why we see so much migration from those regions. Compared to Portland, home prices are competitive and sometimes higher in Bend, but many residents find the trade-off worth it for the lifestyle, safety, and access to the outdoors.

Conclusion: Navigating the Market with Confidence

While the Bend real estate market has certainly cooled from its fever pitch, it remains one of the most desirable places to live in the Pacific Northwest. We aren't seeing a crash; we are seeing a return to sanity. Whether you are looking for homes for sale in Bend, considering a move to Redmond, or just curious about your home's current value, the key is to base your decisions on current data, not old headlines.

If you are ready to get a clear picture of what this market means for your specific situation, reach out. We can look at the latest Deschutes County market data together and figure out your best move.