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On October 10, 2023, the national average for a 30-year fixed-rate mortgage was 7.11%, nearly identical to this morning's rate of 7.16%. Except for a brief peak in late October to 7.91%, rates have remained within a few basis points of today's rate for several months, bringing stability to the housing market. A modest rise in inventory throughout Central Oregon has provided buyers with more selection for the first time in years, keeping activity consistent. Year-to-date, in 2023, there were 1,267 sales of single-family homes in Deschutes County compared to 1,333 this year. Granted, total sales in 2023 were down considerably from the robust activity of the early 2020s. However, there appears to be a floor for activity in Central Oregon as the area continues to see an influx of new residents. You may have noticed that the marketing from the real estate industry has all but abandoned the "rate pivot" messaging that dominated the second half of 2023 and early 2024. The likelihood of mortgage rates changing significantly or the Federal Reserve pivoting even 25 basis points this year is almost nonexistent. The year-to-date median sale price in Deschutes County in 2023 was $629,900; this year, it is $692,619, an increase of 9.9%.
Deschutes County Listings
Inventory in Deschutes County increased again this week, now at 1078 single-family homes listed, up fifty-two from last week. The average list price in the county is $1,205,373, an increase of nearly 39k since the previous week. The active listings' median days on the market is forty-seven. As more new listings hit the market, prices have increased with solid buyer demand. There were seventy-six pending sales, a slight drop from last week but well within the typical range for the last couple of years. Fifty-two closed sales at thirteen median days on the market and an average sale price of $903,615 round out the weekly statistics. The average price reduction for the closed sales was -1.5%. Remember, the reduction reflects changes before a buyer and seller come to terms, not the final negotiated sale price.
Crook County Listings
Crook County homes for sale increased by seven to 137, with a median listing time of fifty-one days and an average price of $958,168. Ten sales are pending this week, with five of those transactions in Powell Butte. Five of the eleven closed transactions were in Powell Butte, with the average sale price at $766,772.
Jefferson County Listings
Jefferson County inventory declined two this week, now at an even 100. Five pending and five closed transactions have average prices of $476,730 and $503,952, respectively. None of the closed transactions reduced the asking price before finding a buyer, but two sold for the full asking price, two sold for less than asking, and the last sold over the list price.
Testimonials
Contrary to popular belief and activity in some areas of the country, sale prices are up in Central Oregon. Check out these year-over-year increases:
Bend: 2023 YTD Sales 913, Median Price $675,000
2024 YTD Sales 948, Median Price $735,000 +8.9%
Sisters: 2023 YTD Sales 77, Median Price $637,500
2024 YTD Sales 69, Median Price $739,999 +16.08%
Redmond: 2023 YTD Sales 329, Median Price $464,520
2024 YTD Sales 378, Median Price $529,808 +14.05%
Prineville: 2023 YTD Sales 168, Median Price $410,000
2024 YTD Sales 164, Median Price $424,947 +3.6%
Finding the right property for your needs can be the biggest challenge in Central Oregon. Past performance does not indicate future gains, but waiting for prices to drop or interest rates to decline has yet to be an effective strategy for buyers. Additional inventory today gives buyers more selection than in the past few years, and buyers are paying what it takes to secure those properties. With no expected changes in mortgage interest rates this year, the second half of 2024 is shaping up to look very much like the first.
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