|
With Labor Day just around the corner, seasonal price and inventory reductions are in full swing. In addition, yesterday afternoon, the national average for a 30-year fixed-rate conventional mortgage was 6.49%. This combination of factors creates the best buying conditions of recent times. While reduced mortgage interest rates are unlikely to alter the housing market in Central Oregon significantly this year, the trend is setting up to increase home prices in 2025. Lower rates are likely to bring more buyers to the market, and without an increase in sellers, the demand will outstrip supply and put upward pressure on prices. Personal circumstances are more important than market dynamics when purchasing a home. Still, for those of you positioned to buy, this fall is shaping up to be fantastic for buyers needing financing.
Deschutes County Listings
Inventory in Deschutes County this week fell by eighteen to 1300 single-family homes listed. Pending sales remain steady, with eighty-eight homes under contract at an average of $820,768 and thirty-six days on the market. Sixty-three closed transactions at an average of $778,800, and twenty-nine days listed round out the week. The median price per square foot was $355, with the average at $385. The average price change for sold homes was -4.23%, with twenty-six closed transactions taking a price cut before finding a buyer. The ratio of price reductions in the sold inventory is in line with healthy market dynamics.
Crook County Listings
Crook County's inventory is 161 single-family homes, down seven from last week. Seven pending sales, at an average of $682,400, and three price reductions, at a median of -3.43%, indicate steady activity in the county. Four transactions closed this week at an average of $466,250, and only one price reduction.
Jefferson County Listings
Jefferson County inventory remains unchanged at 110, with an average list price of $620,650. Five pending sales, at an average of $321,550, and two price reductions averaging -4.54% align with recent weeks. Three transactions closed this week, averaging $618,300, with all three reducing the asking price before accepting a contract. However, two of the three closed above the list price. The average sold-to-list ratio was 100.08%, with the sold-to-original-list ratio at 95.54%.
Bend Ultimate Guide
Homes listed in the early summer typically push the asking price a bit, with sellers still on the market in late summer often lowering the asking price to try and secure a sale. However, as the season winds down and inventory declines, many buyers are motivated to purchase before the holiday season, and competition between fewer homes increases. Often, homes with price reductions sell for more than the asking price. The negotiated price may be less than the original asking price, but the dynamic is interesting and muddies the narrative of "falling prices." The fourth quarter is the second busiest time of year in real estate, and with mortgage rates providing some breathing room, I expect this fall to be no different. Winter weather in Central Oregon creates a defined seasonal element to our housing market, with the time between Thanksgiving and early April showing the lowest inventory. If selection is important, May through September will provide the most opportunity. For those shopping purely on price, winter is typically the best time of year to shop for homes. If mortgage rates continue to fall, this winter will provide housing options, especially with inventory levels increased over the past few years. If mortgage rates continue to fall, sellers this spring will price their homes accordingly, setting Central Oregon up for another year of above-average price growth.
| 
