Mortgage rates inched higher today, with the national average for a 30-year fixed-rate Jumbo loan at 6.90%. All but one segment of the Luxury market saw modest inventory declines, and activity was steady but somewhat underwhelming. However, activity was notable at higher price points, showing that buyers are still looking and acting when the right property comes along. This week I saw a sensationalized video talking about the high volume of price reductions in Bend, which have been hovering around 50%. While I report on the number of price reductions weekly, I have purposely avoided using the percentage of price decreases because I feel that number doesn’t tell the whole story. Sure, a lot of sellers are dropping their asking prices to attract buyers. But the sales volume, and average and median sale prices are stable, if not up ever-so-slightly. While this trend could eventually play out with falling prices, that is not what is happening today. And in the Central Oregon Luxury market, high-priced sales are steady and continuing. I always take the sensationalized click-bait reporting with a grain of salt. A thorough, personalized market analysis will reveal actual conditions without resorting to hyperbole.
Deschutes County listings between $1 million and $1,999,999 are up by 2 from last week to 372. Two hundred thirteen active listings have reduced their asking price by an average of 7.84%. Pending sales are up by 3 this week to 16, with 9 of those listings reducing the asking price by an average of 5.62% before securing a contract. Sixteen transactions closed this week, double last week's total, with 6 of those listings reducing the asking price by an average of 12.18% before securing a buyer. The sold-to-original-list-price ratio was 93.29%.
Listings in Deschutes County between $2 million and $2,999,999 are down by 4 from last week to 73. Thirty of the active listings have reduced their list prices by an average of 8.37%. No sales are pending this week. Three transactions closed this week, with all three reducing their asking price by an average of 11.31% before securing a buyer. The sold-to-original-list-price ratio was 81.25%. One sale on Pacific Heights Road off O.B. Riley Road closed at $2.4M, originally listed for $2,597,000; a Sunriver sale on Sparks Lane closed at $2,525,000, initially listed at $2,950,000; and a Tetherow listing on Hosmer Lake Drive closed at $2.6M, initially listed at $3,850,000.
The supply of Deschutes County homes listed over $3 million decreased by 2 to 38. Eighteen of the active listings reduced the asking price by an average of 11.1%. Two pending sales occurred: one in the sought-after North Rim community on Wild Rye at $3,150,000, and the other on Hosmer Lake Drive in Tetherow, also listed at $3,150,000. No transactions closed this week over $3 million.
Crook County inventory over $1 million is flat at 70 this week. Forty of the active listings reduced their asking price by an average of 6.89%. Two sales are pending; one at $1,685,000 in Brasada Ranch, originally listed at $1,849,000; and another on Powell Butte Highway for $15M. The Powell Butte listing is on 435 acres, with 344 acres of water rights, nearly 10,000 square feet of living space, was originally listed at $33,000,000, and has been on the market for 2,582 days. Two Brasada Ranch homes closed this week; the first on Seven Peaks Loop at $1,500,000, initially listed at $1,850,000; and the second on Vaqueros Way at $2,800,000, originally listed at $2,895,000.
Deschutes County farm listings over $1 million are steady at 12, with 6 of those listings reducing the asking price by an average of 13.68%. No transactions went pending or closed this week.
Crook County farm listings over $1 million decreased by 1 to 16, with 11 of those listings reducing the asking price by an average of 4.78%. The pending farm sale was the $15M Powell Butte listing mentioned in the Crook County sales above, which was listed in our MLS under both the residential and farm categories. No transactions closed this week.
Whether you are buying or selling, each property needs its own analysis to determine an asking or offering price. While a high percentage of price reductions in the active market can feel alarming, sales volume and average/median closed prices are a far better metric for determining where the market is today. The broader market is nearly balanced, if not slightly favoring sellers. But the relatively low number of luxury homes in Central Oregon has benefited sellers and kept prices stable. Given the run-up to the 2022 peak, it is a testament to our region's desirability that prices have held at that level, especially considering significantly higher borrowing costs.
Sign Up for the Central Oregon Market Report
Sign Up for the Central Oregon Luxury Market Report
Your Bend Real Estate Agent is here to help
Reed Melton serves Bend and surrounding areas
Whether you are searching in Bend or any of the close by areas, I want to help you find the perfect property. Even if you are in the beginning stages of your search, I always like to be a resource, no pressure ever.