Lower, stable mortgage rates, increased inventory, and beautiful weather are helping keep the luxury market active, but the winter holidays are looming, along with inhospitable weather. More so than the broader market, the luxury markets tend to slow more during the winter months, and this week's data is showing early indicators of that seasonal trend. Still, there were some notable transactions, and the highly active $1 million to $2 million range remains consistent with past weeks. There is no question that market conditions favor buyers this fall, with many motivated sellers and great deals available.
The inventory of single-family homes in Deschutes County between $1 million and $2 million decreased by nine this week to 342 listings. Fourteen pending sales averaged $1,414,171, and seven of those properties reduced their asking prices by an average of 7.25%. Interestingly, the closed transactions were also fourteen, with seven price reductions. The average list price of closed transactions was $1,335,214, and the average decrease for the seven properties that dropped their list price was -10.09%. Eleven of the fourteen sales negotiated a further reduction from the reduced list price, ranging from -6.98% to 0.67% and averaging 3.64%. That equates to nearly a 14% reduction from the original list price!
The supply of single-family homes priced between $2 million and $3 million increased by 1, to 87 listings. There were no pending or closed transactions this week.
Single-family homes listed over $3 million in Deschutes County decreased by one to 48. The decrease is due to a single pending transaction: a beautiful home in North Rim listed for $3,995,000 and on the market for 222 days. However, this home has been on and off the market since 2022. There were no closed transactions this week.
Crook County single-family listings over $1 million decreased by one this week to 63. One pending sale was recorded in Brasada Ranch at $1,799,000, initially listed for $2,195,000. There was one closed transaction on Powell Butte at $1,725,000. The transaction initially listed for $2,100,000, but the seller reduced the list price to $1,950,000. That is a total reduction from the original list price to the final negotiated price of 17.86%!
There are thirteen active listings of farm property in Deschutes County over $1 million, averaging $4,552,923. One pending transaction on Innes Market Road occurred for $1,750,000, initially listed for $2,300,000, and on the market for 532 days. There were no closed transactions.
Crook County farm listings over $1 million are down by one, with ten active listings in the MLS. There were no pending or closed transactions.
Activity this week outside the $1 million to $2 million tranche was slow. Still, it is too early to tell whether this is the beginning of the seasonal decline or just an anomaly. Either way, sellers at this time of year are motivated, and buyers are negotiating some great deals. No matter the market conditions, fall is an excellent time for buyers in Central Oregon, and this year's conditions are better than in recent years.
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