There are 500 single-family homes listed for sale this morning in Deschutes County, up from 487 last week. The increase in homes for sale points to the housing market returning to typical seasonal patterns. However, don't count on a retreat in prices just yet, as the factors driving demand are still in place, namely low-interest rates and strong buyer demand. The median sale price in Deschutes County last week was $640,000, and only six days on the market, with 27 of those listings changing the asking price. In 2020, 1,687 homes lowered the asking price before selling, with 5,326 total transactions. Since January 1, there have been 2,779 sales, with only 493 of those reducing the price before selling.
The national average 30-year fixed-rate mortgage dropped to 2.88% from a 2021 peak of 3.18% on April 1. Anyone paying more than 3.5% on a mortgage needs to call a lender! With real interest rates in negative numbers, is it any wonder that investors are snapping up everything in sight? While inflation runs hotter than anticipated, the Fed maintains that it will not raise interest rates until late 2023. Considering that current inflation has beaten the high-end predictions at every measure, it will be interesting to see if the Fed changes its tune on interest rates.
