Thankfully, the Flat Creek fire, which has threatened Sisters for the last several days, is now more contained, with most homes out of extreme danger. Unfortunately, four structures were lost, but considering the devastating nature of desert fires, the firefighters did an admirable job protecting the community. While the fire activity undoubtedly slowed the Sisters' real estate market, most of the luxury market has been full steam ahead.
Deschutes County single-family homes listed between $1 million and $1,999,999 dropped by nineteen to 384 listings. The decline is attributable to fewer new listings and the biggest week of the year for pending sales, which totalled twenty-five. The average price reduction before securing a buyer for the 15 (of 25) pending sales was -10.52%. Fourteen closed transactions, averaging $1,358,071, show that buyers are focusing on the lower end of this price tranche. Ten of the closed transactions negotiated a lower price, with an average decrease of 11.48%. Not only does this data show robust activity, but it also reveals that sellers are negotiating!
Between $2 million and $2,999,999, listings in Deschutes County decreased by four, now at 97 single-family listings. There were five pending sales, tied for the most of the year, averaging $2,497,000, with three reducing the price before securing a buyer by an average of -8.59%. There were no closed transactions.
Inventory above $3 million in Deschutes County is flat at forty-nine. There were no pending sales, and one closed transaction at $3,285,000 in Broken Top. This property initially listed for a wildly unrealistic price of $4,195,000. The negotiated closing price indicates a 21.69% price drop. An analysis of Broken Top would reveal that the negotiated price is reasonable for the neighborhood and today's market, suggesting a "reaching for the stars" phenomenon rather than a market decline. However, the average sale price YTD over $3 million has declined from $4,036,665 to $3,762,403. I attribute much of the lower average sale price to increased inventory and competition, with YTD 2024 sales at 25, compared to 31 this year. Total sales exceeding $3 million are on pace to significantly surpass the 37 sales recorded in 2024.
The single-family inventory in Crook County, exceeding $1 million, decreased by four to sixty-five, with the average active listing at $2,005,415. There was one pending sale this week in Brasada Ranch for $1,850,000, and one closed transaction in West Powell Butte Estates for $1,399,000. Neither the pending nor the closed transactions show any price reductions.
Deschutes County Farm listings over $1 million decreased by one to seventeen, with no pending or closed activity this week. Crook County farm listings increased by one to thirteen, with no pending or closed activity.
The end of the third quarter and beginning of the fourth quarter are the busiest times of the year for the Central Oregon luxury market, and this week's pending sale data reflects that. The combination of increased selection, slightly reduced mortgage interest rates, and sellers' willingness to negotiate is keeping activity steady.
