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After the national average for a 30-year fixed-rate mortgage hit a low this week of 6.34%, bond yields spiked yesterday, and mortgages closed out the day at 6.52%. Considering rates were 7.14% on July 1, 2024, and 6.91% on the 25th, the overall trend has helped buyers tremendously. The consensus is that the Fed will lower the overnight rate at the September meeting, but how much remains a question. I've read speculation that rates could come down 50 basis points, with further reductions in November and December. If rates drop a whole point by the end of the year, I expect the spring real estate market to look very different than the last couple of years. Rising inventory has created significantly more options for buyers, and if these trends continue, sales volume should increase. Lower rates help, but I do not see these trends softening prices. However, seasonal price reductions are in full effect, and inventory is up. Combined with lower mortgage rates, late summer is shaping up to be the best opportunity of the recent past for buyers in Central Oregon.
Deschutes County Listings
This morning, Deschutes County inventory reached 1322, an increase of twenty-seven from last week. The county's median list price is $799,900, with an average of $1,150,799. Seventy-one homes are pending sales at a median of $775k, with sixty-seven closed transactions at a median of $710k. The average pending and closed sales price was $930k and $935k, respectively. Active, pending, and sold properties show nearly half reflecting price decreases, with the average sold-to-original price ratio at 96.18%.
Crook County Listings
Crook County inventory decreased nine this week to 160. A robust fourteen pending sales at a median price of $485k and only 30 days listed reflect solid activity for the week. Five homes closed this week at a median price of $564,500, and only sixteen days on the market before securing a contract. Seventy-three active listings have reduced the asking price, seven of the fourteen pending sales, and only one of the closed transactions.
Jefferson County Listings
In Jefferson County, inventory remains stable at 107, down one from last week. Activity was moderate for the week, with three pending sales at an average of $316k and three closed transactions at $470k. 44.8% of the active inventory has decreased the asking price, with two pending sales and one closed transaction reducing the asking price before securing a contract.
Bend Ultimate Guide
With mortgage rates' recent decline, the second half of 2024 is the best buyer opportunity in the last few years. Inventory in Deschutes County is 52.8% higher than this week last year, and mortgage rates are down .58%. In addition, last year, mortgage rates climbed to a peak in late October of 7.91%, while this year, rates are trending downward and could be closer to 6% before long. If you are considering a purchase in Central Oregon but have been on the sideline, now is a great time to re-engage the market and look around. You might be surprised at the opportunities available.
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