The storm slated to hit Central Oregon starting tomorrow has fizzled somewhat, which isn't surprising given this year's weather patterns. While the weather this week may slow down real estate activity, all indications point toward a build-up of inventory beginning, as expected for the season. The segments of the market that will take a bit longer to gain momentum are above $3 million and farm property. Mortgage rates are moving lower, which will undoubtedly help increase activity this summer. This morning, the national average for a 30-year Jumbo loan is 6.27%, and the 15-year fixed-rate is 5.61%, both significantly improved from this time last year.
This morning in Deschutes County, listings between $1 million and $1,999,999 are at 204, down two from last week. Pending sales are at 14, double last week's activity, with only 5 of those properties reducing their list prices before securing a buyer. Ten transactions closed this week, more than triple the three closings from last week. Four of the ten closings reduced the list price before securing a contract by an average of 7.82%. The sold-to-list-price ratio was 93.27%.
The Deschutes County $2 million to $2,999,999 tranche has five more listings than last week, bringing the total to one short of the high so far this year. One sale is pending in North Rim on Awbrey Butte, Bend, at $2,973,000, and on the market for just 13 days. Two transactions closed this week at $2,015,000 on Starview Drive in Awbrey Butte and at $2,325,000 on Fairway Lane in Sunriver. Both properties reduced their asking prices before securing a contract, with the Starview Lane home initially listed at $2,200,000 and the Fairway Lane home at $2,688,000.
Deschutes County listings over $3 million are down by one this week to 27. There were no pending sales, but for the second week in a row, a transaction closed in this price tranche. The closed sale was on Congress Street in Bend near Drake Park, and sold for $3,200,000. This property was listed throughout last year, but was off-market and shows zero days listed. The Drake Park Historic District is a small area with large, older homes that are very desirable. These properties defy the trend toward modern, light-and-bright architecture and are hidden treasures a short distance from downtown Bend.
Crook County homes listed over $1 million decreased by one this week to 36. The decrease was due to a pending sale at Brasada Ranch on Ranchview Road for $1,395,000. The home had been on the market 142 days, with no price reductions before securing the contract. There were no closed transactions this week.
Farm listings over $1 million in Deschutes County decreased by one to 11, with no pending or closed transactions.
In Crook County, farm listings increased by one to 12. The increase in inventory was due to a legacy listing on Wolf Creek, a 35,000-acre site listed for $61,500,000. The Wolf Creek property is more of a ranch with timber land than a farm, even though it shows up in the farm category of the MLS. Known as Ochoco Ranch, the property borders the Ochoco National Forest and is a legacy property by all measures. There were no pending or closed transactions this week.
For the luxury market in Central Oregon, it all comes down to location. The diversity of structures on these properties is all over the map, but each stands out because of the neighborhood, parcel size, and in many cases, both. As prices rise, the combination of attributes is typically stunning, but location trumps structure across the board. Market analysis for legacy properties on acreage is a specialized endeavor, and I take pride in evaluating this unique segment of the market. The skills involved in establishing a price opinion for legacy properties apply equally to all price points, and I am always happy to create a report directly tailored to your needs.
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