Looking at reports on national statistics relating to the recent home sales decline, I took another look at the inventory levels for September 2017 and compared the figures to September 2018.
Both last year and this year, Bend single family residences on 1 acre or less and priced under $400,000 had the highest number of sales, reflecting what locals could afford. A comparison of the number of listings available in that price range gave further light on the sales decline volume: In September 2017, for homes under $400,000, there were 193 active listings and 93 sales, whereas in September 2018, there were only 137 listings and 81 sales of homes in that price range.
It appears that the decline in inventory in the mid-price range is related to the decline in sales volume. The figures suggest there is good demand in this price range, but lack of supply. Homes in this price point are not being built to keep up with the demand because builders cannot afford to build in this price range with current costs of land, materials, increases in labor costs and city fees.