May 2025 Housing Market Report for Central Oregon

Bend: Breaking Records, Confusing Economists

April was a month of contradictions. We saw record-high sale prices—the highest ever recorded in Bend, in fact. Donnie Montagner, the author of the Beacon Report, highlighted:

“The Bend SFR market set a new record in April with a $832K median SFR sale price. Of the 146 SFR sales that took place in Bend, 34% were properties that sold for over $1,000,000.”

Now, if you’re scratching your head and wondering, “Wait, aren’t we supposed to be in a soft market?”—you’re not alone.

Here’s the twist: while inventory is up (a 4-month supply), and many homes are sitting unsold, the ones that do sell? They’re flying off the shelves in just 23 days on average and closing at record prices. It’s like being at a dance where only the best-dressed get to boogie, and the rest stand around sipping punch.

This market has a big “supply illusion” energy. It feels like there are tons of options, but most are wallflowers—sitting out while the market waltzes on without them.

So yes, more listings are hitting the market, but only the best-priced and best-quality homes are selling. In fact, a staggering 38% of listings don’t sell at all, just sitting there inflating the inventory number and making other homes look better by comparison.

Redmond: Subtle Strength

Over in Redmond, things are looking… familiar—in a good way. Sales volume increased in April, and homes are moving faster, echoing the seasonal upswing we’d expect. Prices have held steady, aligning with the mid-2024 market.

Donnie summed it up clearly:

“The SFR median sale price in April is in line with the median sale prices seen in March to July 2024. The SFR market also experienced a short marketing time in April and an increase in the number of sales when compared to March 2025.”

In other words, Redmond is staying calm while Bend hogs the spotlight.

Advice for Buyers: Be Picky, Be Ready

With interest rates potentially trending downward due to recessionary signals, we could see increased buyer activity in the coming months. And that means competition.

The good news? There’s a lot of inventory. But remember—only some of it is actually competitive. If a home is well-priced and shows well, be ready to move fast. Get pre-approved. Know your “must-haves” vs. “nice-to-haves.” And above all, don’t chase overpriced listings thinking they’ll magically drop later.

Think of it this way: just because a home is listed doesn’t mean it’s dancing. Don’t get stuck slow dancing with the wrong one just because it was the last one left on Zillow.

Advice for Sellers: It’s Not 2021 Anymore

Yes, homes are selling for record prices—but only if they check all the boxes. If your home has been sitting for 60+ days, it’s time to revisit your price or presentation.

Buyers are savvy. They’re seeing dozens of listings. To stand out, your home needs to offer either best price or best quality—ideally both. That means decluttered spaces, professional photos, competitive pricing, and yes, maybe even fixing that wonky fence panel out back.

And don’t let the market fool you—just because median prices are high doesn’t mean your home will sell high unless it earns that valuation.

Recession = Opportunity?

While the R-word (recession) might sound scary, it historically brings falling mortgage rates, not falling home prices. The current trend hints that a drop in rates could spark another frenzy—so if you’re waiting for “the bottom,” you might miss the best buying window.

Volatility may feel chaotic, but it’s often where the best opportunities hide. The key is to have an experienced agent who can help you cut through the noise and spot the gems before someone else does.

Final Thoughts

The May 2025 Beacon Report paints a tale of two markets: one where premium homes sell fast and high, and another where less desirable listings stagnate. Whether you’re buying or selling in Bend or Redmond, the key is understanding where your property (or potential purchase) fits into that spectrum.

Our advice? Don’t go it alone. A savvy, local real estate expert can help you identify opportunities and avoid landmines in this nuanced market. And hey, if nothing else—at least now you know which homes are getting invited to the dance.

Need help navigating it all? The Bend Relo team is here when you’re ready.

Read the full Beacon Report for Central Oregon May 2025