September 2025 Housing Market Report for Central Oregon

National & Local

Looking at history, every real estate slowdown has a rhythm:

• In the 1980s, sales dropped nearly 50% and took four years to recover.

• During the Great Financial Crisis, it was the same story—three long years before sales picked back up.

• Even during COVID, the market dipped but rebounded in just eight months.

Now, here we are: four years into this current slowdown (2022–2025). Based on history, it feels like we’re poised for a rebound as we head toward 2026. And the data supports it—mortgage applications are rising, inventory is still strong, and buyers are cautiously stepping back into the market.

Rates, Demand & the Fed

Interest rates are the hot topic—again. After hitting last year’s peak, we’re back near that low point buyers were chasing in late 2024. The Fed is expected to cut rates two (maybe even three!) times before year’s end. That’s exactly the kind of easing real estate has been waiting for. If rates slip into the 5% range, 2026 could be a very busy year.

Bend Market Snapshot (August Closings)

• Median Sale Price: Up slightly, driven by strong luxury activity.

• Inventory: 4 months (567 active listings).

• Days on Market: Closed homes are selling in just 31 days, while unsold homes are sitting for 85 days. The gap is clear: well-priced, well-presented homes move quickly.

• Luxury Market Surge: Nearly 28% of Bend’s August sales were over $1 million, a major driver of median price movement.

As Donnie Montagner, the author of the Beacon Report, puts it:

“SFR inventory levels in Bend and Redmond declined slightly in August. The SFR median sale prices increased slightly in Bend and Redmond last month, and approximately 28% of all SFR sales in Bend were over $1 million.”

Redmond Market Snapshot

• Median Price: $530K.

• Inventory: 2.5 months (tight compared to Bend).

• Days on Market: 33. Redmond continues to offer relative affordability and faster turnover, making it attractive for buyers priced out of Bend.

Seasonal Trends & Advice

The market is behaving seasonally—sales strong through summer, days on market creeping up as we head into fall. Historically, winter brings slower activity, but with demand finally stirring, this year could be a bit different.

For Sellers:

• Price smartly. If your home is sitting, buyers are telling you something.

• Invest in presentation—buyers are choosy, and “best price, best quality” homes are moving in under a month.

For Buyers:

• This fall could be your window before rates dip further and competition heats up.

• Don’t let “perfect timing” keep you on the sidelines—focus on finding the right home and locking in while inventory is healthy.

Bottom Line

We’re in a pent-up demand market. After four years of suppressed sales, buyers and sellers alike are itching to make moves. With rates easing, luxury homes trading in high numbers, and inventory beginning to tighten, fall 2025 is shaping up to be more active than many expected.

So, whether you’re considering selling or buying, remember this: real estate isn’t just about timing the market—it’s about making the right move for your life. And if you want to be in that “sold in 31 days” camp instead of the “sitting at 85 days” crowd, let’s connect and strategize the right path forward.

Read the full Beacon Report for Central Oregon September 2025