With mortgage interest rates stuck above 7%, inventory remains higher than in the previous few years. However, pending sales are strong to start the year. While the days of multiple offers may be mainly in the rearview mirror, attractive, well-priced properties still sell quickly.
Recently, I have seen mortgage interest predictions from many sources, some of which are as low as 6.2%. With rates for a 30-year fixed-rate conventional mortgage at 7.08%, 6.2% is far away. In the last several months, the Fed lowered the overnight rate by 100 basis points, a move predicted to decrease mortgage rates. While that dynamic may have been true before our national debt was $36T, mortgage rates have increased as much as the Fed has decreased in that time frame. With commodities prices rising, bond investors demand higher yields to offset the expected rise in inflation, set to outpace 2024. The current situation, years in the making, isn't changing anytime soon. With the Fed backing off from further rate decreases the mortgage markets are stable.
This morning, 755 single-family homes are listed for sale in Deschutes County, a modest drop of ten from last week.The increase in inventory and higher rates are not slowing down buyers, with sixty-one pending sales this week, the most since October. A median price change for the pending sales of -4.1% shows that prices remain firm. However, the median days listed for the active inventory is ninety-eight, while the pending sale days on the market are fifty-one. Overpriced homes are lingering, and correct pricing is vital to attracting buyers. Forty-one transactions closed this week at an average price of $948,958.
In neighboring Crook County, inventory only declined two, now at 143 single-family homes for sale. Seven pending sales show solid activity at an average list price of $556,928. The median days listed for pending sales was 117, while the number for active listings was 113. Homes in Crook County, particularly at the higher price points, are taking longer to sell. The average price of the three closed sales this week was $515,333
Jefferson County inventory increased by four to 93, consistent with levels of the last several weeks. With back-to-back weeks of eight pending sales, preceded by back-to-back weeks of six, the pending activity to start 2025 is the strongest since mid-2024. One home sold for $485,000 and 156 days on the market.
With pricing primarily flat since 2022, an increase in homes for sale, and mortgage interest rates near recent highs, a candid assessment of a property's marketability and accurate pricing are paramount. Every buyer has access to the entire market, and overpriced homes are lingering. Economic conditions are not a doom-and-gloom scenario, as the flow of new residents to Central Oregon is consistent. However, a realistic approach is required to draw buyers in.
I regularly create detailed analyses for clients on specific, unique properties throughout our region. Whether you want to buy a starter home or list a legacy property on large acreage, I have experience evaluating prices for buyers and sellers. Don't hesitate to reach out; I am just an email or phone call away!
