This week in Deschutes County, the broader market saw a marked decrease in the inventory of single-family homes, a trend also evident in the luxury market. In Deschutes County in 2024, the shift towards decreasing supply occurred in the second week of August, following a peak of 1,322 homes listed for sale. This year's peak appears to have been last week at 1,582, nearly a month earlier than last year. As fewer sellers choose to list properties, and buyers grab what is available, the dynamic shifts heading into the fall season. List prices decrease, and negotiations below the asking price are common at this time of year. In most cases, the overall price trends are stable, with unrealistic sellers adjusting back to the market price being the bigger factor.
In Deschutes County this morning, there are 421 single-family homes listed between $1 million and $1,999,999, a decrease of thirteen from last week. There were nineteen pending sales at an average list price of $1,378,363, with thirteen of those homes reducing the list price before securing a contract. The average price decrease of those thirteen homes was -11.59%. Fourteen transactions closed with a median days listed of 28, and an average sale price of $1,311,642. Nine of the closed transactions negotiated below the list price.
Between $2 million and $2,999,999, there are 105 listings, down one from last week. Four pending sales, averaging $2,552,500, occurred this week, with only one of those properties reducing the sale price before securing a buyer. There was one sale on Theater Drive, along the Deschutes River in Bend, for $2.5 million, initially listed for $2,995,000. The sellers of the Theater Drive sale made a quick correction to the price, as the home had only been on the market for 33 days. This property last sold in 2019 for $2,035,000, a 22.85% gross increase.
Listings over $3 million in Deschutes County decreased by four, now showing 49 homes for sale. Three pending sales this week are the most since I started tracking this data in early March. The first of the three, initially listed for $3,495,000, was subsequently listed for $3,295,000 when it went under contract. The second, in Broken Top, listed for $4,195,000 and dropped to $3,390,000 before securing a buyer. The last in Tetherow was on the market for only eight days at $4,075,000.
Crook County inventory over $1 million increased by one to 73 listings, with the only activity coming from a single pending sale at $1,195,000 in Powell Butte. There were no closed transactions this week. While the Powell Butte and Brasada Ranch sales are steady, these areas account for the overwhelming majority of sales exceeding $1 million in Crook County. There is no question that these are beautiful, desirable locations, but I would caution anyone to strongly consider the overall market in Crook County luxury before making a decision. There are some fantastic values in these locations, but a long-term focus is required to achieve reasonable appreciation.
Deschutes County Farm listings over $1 million decreased by one to sixteen, with no pending or closed transactions. Crook County Farm listings remain at eleven with no pending or closed transactions.
A shift is taking place in our market, some of which is related to typical seasonal activity. However, many sellers today seem to understand that pie-in-the-sky pricing isn't working, and they are making adjustments to get back to prices that today's market will bear. After years of rising prices, I certainly do not blame sellers for trying to secure the highest price possible. Adjusting expectations in a changing market takes time for anyone to accept. This shift doesn't alter the demand for excellent properties, but there is a limit to what a buyer is willing to pay. While very desirable properties are selling quickly, there are still some fantastic opportunities for negotiation available in the market today. I anticipate steady activity through October, as this is really "peak selling season" in Central Oregon.
