This morning, the 10-year Treasury is down slightly at 4.662%, but mortgage rates are still at the highest levels since May of 2024, with the national average for a 30-year fixed-rate conventional mortgage at 7.25%. Higher rates are keeping inventory levels up, and buyer demand remains steady. Over the last several days, a healthy dose of sunshine has helped after weeks of winter weather that helped build a snowpack in the Cascade Mountains. Mt. Bachelor has the most significant snowpack of any West Coast resort, and the flow of skiers and snowboarders to Central Oregon is noticeable. Not every visitor is looking at real estate, but many are, as growth in this corner of the world remains steady.
Deschutes County inventory increased two this week to 765 single-family homes listed for sale. It is too early in the year to call out the bottom on inventory, but growth this week is bucking trends of the last few years. There is little doubt higher mortgage interest rates are the culprit. However, sales are also steady, with fifty-six pending sales at a median list price of $676,000 and an average of $819,918. Thirty-four closed weekly transactions at a median of $667,000 and an average of $930,426 are substantial numbers for early January. All indications indicate increased inventory in 2025, while mortgage rates remain stubbornly high.
Crook County inventory is stable at 144, down just two from last week. Only one closed transaction, new construction for full price at $412,900, occurred this week, with a robust eleven pending sales for an average of $563,873. There were double-digit pending sales numbers in sixteen weeks of 2024 in Crook County, with the first in mid-February. Buyer activity is starting strong for 2025.
Jefferson County inventory declined three to eighty-nine single-family listings. Eight pending sales at an average of $493,674 is the highest since July. Two closed sales this week at $534,990 and $650,000 shows steady, consistent activity. Most people consider Madras the bulk of Jefferson County real estate, but parts of Terrebonne and the desirable Camp Sherman fall within the county's borders. Camp Sherman is an idyllic community at the headwaters of the Metolius River, across the highway from the Black Butte Ranch Resort. Jefferson County is a growing part of the Central Oregon Community and worth a look for anyone considering options in the area.
In real estate circles, mortgage interest rates are a hot topic. While I speak with many buyers attempting to navigate today's higher rates, many are motivated to find the right home in Central Oregon and are prepared to act when they do. I've also heard speculation about potential transplants coming to our area after being displaced by fires in Southern California. The devastation in Los Angeles County is an ongoing tragedy, and I suspect some local activity could occur. But, the push of new residents to Central Oregon has been consistent for years, with no end in sight. The increase in home prices, particularly at the higher price points, continues, and a volatile stock market, unrest in larger cities on the West Coast, and a failing commercial real estate market are all fueling the push to acquire desirable residential real estate. Most transactions in Central Oregon are for full-time residents, but a growing number of speculative and second-home owners are entering our market. I strongly encourage anyone waiting for prices to decline to reconsider the market.
I specialize in market analysis and price opinions for buyers and sellers. If you would benefit from a professional analysis of a specific segment of our market, don't hesitate to contact me anytime.
