This morning, mortgage rates for a 30-year fixed-rate conventional mortgage are 7.02%, nearly identical to the last several weeks, with no significant change on the horizon. In the housing market, when mortgage rates stay elevated, inventory rises. If inventory increases enough and buyer demand slips, prices soften. Increasing inventory is happening in Central Oregon, with softening less of a factor. However, many price points are becoming significantly more competitive, making accurate pricing more critical. Another factor of increasing inventory is an extended time on the market. During the peak buying frenzy of the pandemic, single-digit days on the market with multiple offers on a single property were prevalent. Today, most pending sales median days listed are a month or more, with the active inventory showing properties listed for three months or more. The old real estate axiom, "price cures all," rings true for properties that linger without offers.
Inventory levels in Deschutes County likely reached the bottom for 2025 at 750 single-family listings on February 5. In 2022, the bottom was 333, which didn't occur until April 20. In 2023, the number was 485 on March 1 and 550 on February 14, 2024. While population growth in Central Oregon continues, sales have dampened from the lofty peaks during the pandemic. From 2013-2022, annual sales of single-family homes in Deschutes County exceeded 4,000 (2013 - 3,948), with sales of houses eclipsing 5,000 in 2020 and 2021. In 2022, as mortgage rates escalated in the second half of the year, sales diminished while still reaching 4,130. In 2023, buyers purchased 3,162 homes and 3,343 in 2024.
Today, 769 single-family homes are actively listed in Deschutes County, with a median listing time of ninety days. A steady fifty-six properties are pending at a median sale price of $649,500. At this time of year, the trend of selling more modestly priced homes is likely attributable to buyers who are more motivated by a home they can afford and less inclined to hold out for unique or particular features. Interestingly, the median price change before securing a contract for this week's pending sales was only -2.45%. Today's housing market might not be as red-hot as the pandemic, but sales are still brisk.
Smaller Crook County is not experiencing the same inventory increases as neighboring Deschutes County. There are 144 single-family homes listed, down two from last week. Sales are strong, with eleven pending transactions at a median of $490,000. The median price reduction of the pending sales before securing a contract is -3.61%. Ten properties closed this week at a median of $437,000. The housing market in Crook County experiences very different dynamics from the rest of Central Oregon, with communities like Powell Butte and Brasada Ranch selling well above $1M, compared to downtown Prineville homes selling near the $300k mark in many cases.
Jefferson County inventory remains flat, with ninety-eight homes listed this morning, only one more from last week.Three houses are pending at a median of $299,950. Two of the three pending sales are new construction, and the median price change before securing a contract was an increase of 3.45%. Four properties closed at a median of $389,996.
The numbers in today's report show a very different dynamic between the three counties of Central Oregon. While looking at Crook and Jefferson County to learn the market is easy, larger Deschutes County requires a more specific approach. Bend, Redmond, parts of Terrebonne, Sisters, and La Pine are all within Deschutes County; each area deserves an independent analysis, particularly Bend, which is generally divided by the NW, NE, SW, and SE quadrants. Acreage properties, Cascade Mountain Views, and exceptional homes require a unique analysis to understand the market. No matter where in our region you are focused and whether you are buying or selling, understanding pricing in today's market is essential to any transaction.
