Mortgage rates have softened as the year winds down, with the national average for a 30-year fixed-rate conventional loan at 6.78% this morning. Today's rate is nearly identical to rates at this time last year. The Consumer Price Index data coming out today will be the final piece of the puzzle before the next Federal Reserve meeting regarding another potential rate cut. While recent Fed rate cuts haven't equated to lower mortgage rates, another overnight reduction couldn't hurt.
Year-to-date sales for single-family homes in Deschutes County show 3,177 transactions, up slightly from last year's 3,054 sales by this day. Year-to-date, in 2022, there were 4,005 sales, and in 2021, 5,013. Inventory of available homes for sale has increased, while transaction volume has decreased, mainly due to higher interest rates. While rates may have softened demand, prices have been flat since 2022. With inventory experiencing typical seasonal decline, it will be telling for the spring market how low the number of homes for sale drops before the spring build-up begins.
In Deschutes County, the number of homes listed for sale decreased again, now at 925, down thirty-nine from last week. Pending sales picked up to 48, with a median list price of $742,400. Closed transactions more than doubled from last week to 55, with a median closed price of $617,500. The median sold price per square foot was $361, with the average at $391.
Crook County experienced a slight decline of three in the number of homes for sale, now at 171. Again this week, there was only one pending sale at a list price of $172,000. Five transactions closed this week at an average of $548,360 compared to zero closed transactions last week. The median sold price per square foot was $313, and the average was $330.
Jefferson County homes for sale dropped below 100 for the first time since June and are now at 99. Two pending sales, at an average of $414,995, and zero closed transactions are typical for this slower time of year. Last week, the two closed transactions averaged $246 per square foot.
There is little doubt this is an excellent time of year for buyers. However, finding the right property can pose a challenge with declining inventory. Mortgage rates may not drop significantly in 2025, but we also seem clear of the threat of rates above 7%. One thing is clear: the housing market in Central Oregon is showing more stability than in the last few years and looks more like a typical market. Demand from an excess of 5,000 new residents a year moving to Deschutes County puts a floor under housing prices, which would require a big shake-up to change significantly.
