It’s hard to believe it is the Labor Day weekend, which marks the unofficial end of summer in Central Oregon and the beginning of the last busy period for the real estate market before the holiday season. Activity in the luxury market is down slightly this week as people focus on the long weekend, though a few bright spots remain. Mortgage rates are continuing to climb, with the national average for a 30-year Jumbo loan at 7.06%, up from 6.40% this day in 2025. Inventory is down in all tranches over this week in 2025, with the lone exceptions of Deschutes County homes over $3 million and Crook County farm listings over $1 million.
Deschutes County listings between $1 million and $1,999,999 are down 4 to 368 this week. Two hundred fourteen of the active listings have reduced the asking price by an average of 8.14%. Eight listings are pending this week, half of last week’s total, with 3 of those properties reducing the asking price by an average of 10.1% before securing a contract. Closed transactions are down 2 from last week, with 8 of those properties reducing the asking price by an average of 8.36% before securing a buyer. The sold-to-original-list-price ratio was 90.3%, with the average sold price per square foot at $480.
Listings in Deschutes County between $2 million and $2,999,999 are flat this week at 73, with 31 of those properties reducing the asking price by an average of 8.89%. Three pending sales, up from zero last week, show that buyers are still out there. One pending transaction reduced the asking price by 4.01% before securing a contract. Three closed transactions match last week’s volume, with 1 listing reducing the asking price by 3.34% before securing a buyer. The sold-to-original-list-price ratio was 97.09%, with the average sold price per square foot at $796.
Supply of luxury homes in Deschutes County over $3 million increased by 2 this week to 40, with 19 of those listings reducing the asking price by an average of 13.12%. Two pending sales match last week’s activity, with one listing reducing the asking price by 3.82% before securing a buyer. One pending sale was in Caldera Springs, listed at $3,150,000, and the other was on Wild Rye Circle in North Rim. The Wild Rye Circle listing was originally listed for $3,275,000, then $3,150,000, before securing a contract. No transactions closed this week.
Crook County listings over $1 million decreased by 2 this week to 68, with 37 of those listings reducing the asking price by an average of 7.05%. No transactions went pending or closed this week.
Inventory of Deschutes County farm listings over $1 million remains unchanged for the third consecutive week 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 are unchanged from last week at 16, with 11 of those properties reducing the asking price by an average of 5.84%. No transactions are pending or closed this week.
Don’t let the lull in activity this week fool you; we are entering the busiest time for Central Oregon housing, particularly for the luxury markets. However, higher and increasing mortgage rates could have an impact. Still, transaction volume is up slightly from 2025, as is the average sale price. The increases are incremental, but this marks the third consecutive year of increases since activity dropped after the market peaked in 2022. Measured against inflation, the increases in the median sale price are not very impressive. But growth in Central Oregon continues, and buyers are moving on desirable properties. Fall is the best time of year for buyers to negotiate a deal and for sellers to sharpen their pencils to secure a year-end closing. No matter which side of a transaction you are on, I am available to help, starting with a comprehensive market analysis. Reach out anytime!
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Reed Melton serves Bend and surrounding areas
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