5 Real Estate Trends to Watch in 2025

What Buyers, Sellers & Investors Should Know in Central Oregon

As we move further into 2025, the real estate landscape in Central Oregon—and across the country—is shifting in some noticeable ways. Whether you're buying, selling, or investing this year, these five trends are shaping how deals get done.

1. 📉 Affordability Pressure is Driving Buyer Behavior

Home prices in Central Oregon have remained relatively stable, but affordability is still a major concern for many buyers. With mortgage rates hovering in the 6–7% range and home prices still high, first-time buyers are either:

• Expanding their search to Redmond, La Pine, or Prineville

• Choosing smaller homes or fixer-uppers

• Relying on down payment assistance or shared equity programs (like RootedHomes or Habitat)

🟢 Why it matters: Buyers are becoming more strategic, and sellers need to price realistically to stay competitive.

2. 🌱 Eco-Friendly Features Are No Longer Optional

Buyers in Bend and surrounding areas are prioritizing energy efficiency. Features like solar panels, heat pumps, smart thermostats, and energy-efficient windows are topping wish lists.

🟢 Why it matters: Homes with green upgrades are selling faster—and often for more—than comparable homes without them.

3. 🔄 Inventory is Rising, but Prices Are Holding (for now)

The number of active listings is growing slowly in Central Oregon, but not fast enough to fully shift to a buyer’s market. Prices are leveling off rather than dropping significantly, though days on market are increasing.

🟢 Why it matters: Sellers must be patient and price wisely. Buyers should be ready to act when the right home appears—but lowballing may not work in many neighborhoods.

4. 🧱 Multifamily and Infill Housing Are Gaining Steam

With Bend updating its zoning and state laws pushing for more housing diversity, we’re seeing more:

• Duplexes, triplexes, and fourplexes

• Accessory Dwelling Units (ADUs)

• Tiny home and cabin developments

These offer affordable living options and attractive income potential for investors.

🟢 Why it matters: Buyers and investors alike are paying attention to properties with multi-use potential or zoning flexibility.

5. 🏘️ New Construction is Shifting to Smaller, More Efficient Builds

Builders are adapting to affordability concerns by developing smaller, more energy-efficient homes and townhomes. Expect to see continued growth in new neighborhoods on the outskirts of Bend, Redmond, and Sisters that offer compact homes with smart layouts and community amenities.

🟢 Why it matters: These new builds appeal to first-time buyers and downsizers alike—and may include incentives not available with resales.

📝 Final Thought

2025 is shaping up to be a transitional year for Central Oregon real estate. With rising inventory, changing buyer priorities, and affordability challenges at the forefront, success will come to those who stay informed, realistic, and flexible.

FAQs

Q: Will home prices drop significantly in 2025?

A: Most experts (and current data) suggest prices will remain mostly flat, with some softening in overvalued segments.

Q: Is now a good time to sell?A: It can be—especially if your home is updated and energy-efficient. But pricing and presentation matter more than ever.

Q: What’s the biggest mistake buyers are making in 2025?

A: Waiting too long for prices to drop drastically. Inventory is rising, but there’s still competition for quality homes.

Q: Are fixer-uppers worth it in this market?

A: Yes, especially for buyers priced out of move-in-ready homes. Renovations can also build instant equity.

Q: Where are the best opportunities for investors right now?

A: Duplexes/triplexes, lots zoned for ADUs or infill development, and underpriced rural properties with income potential.