After an (un)expected rise in inflation with last week's Consumer Price Index Report, the 10-year Treasury closed trading yesterday at 4.654%. The 10-year Treasury closely correlates to 30-year fixed-rate mortgages, and the rise in bond yields also increased mortgage rates, with the 30-year fixed-rate conventional mortgage national average at 7.5% this morning. While the impact on housing is yet to be determined, some signs are emerging in this morning's data. The shift in the market is significant for the seller's out there.
The inventory of single-family homes in Deschutes County increased to 746, up twenty-seven from last week. The pace of new listings and "coming soon" announcements has been brisk in the Realtor back channels. Median list price in the county is 807k, with 254 price reductions, well within a typical range for a healthy market. Sixty-six pending sales at a median price of 660k, with twenty-two price reductions at an average of -4.3%, show typical ranges of price reductions, but sales volume has decreased from a couple of weeks ago by a small margin. Sixty-five closed transactions at a median price of 715k and only twelve days on the market reflect the strong buyer demand thirty to forty-five days ago. The average price reduction was -6.74% for closed sales. The average sold-to-original list price percentage for the week was 98.1%, and the average sold price per square foot was $406.
Correct pricing is paramount in today's market, especially as mortgage rates climb. Price reductions will undoubtedly attract buyers if they are large enough, but getting the price right immediately and finding a willing buyer is a better strategy. It can be challenging to nail the price immediately, especially for unique properties and locations. Sometimes, an adjustment is required to be well-positioned for the coming peak selling season.
The inventory level in Crook County remained stable at 112, with the median list price at 644k. Thirteen homes are pending this week at only fourteen days on the market and a median price of 440k. The average price reduction for these pending sales was -4.22%. Three homes closed this week at an average of 382k, with only one price reduction. In smaller Crook County, there is more variation from week to week, so don't read too much into the lower sales number. This week, the sold-to-original list price ratio in Crook County was 92.62%, and the average sold price per square foot was $237.
Last week, I had the opportunity to evaluate several commercial and investment properties in Crook County, and some very interesting properties are available. Whether you are looking for high-traffic exposure in the heart of downtown Prineville or a sizeable industrial parcel near the airport, investors looking into Central Oregon would be hard-pressed to find more upside potential than Prineville and Crook County. Many turn-key investments in Prineville show cap rates over 6%, almost unheard of in Deschutes County, where higher property prices drag cap rates in many cases below 4%. Prineville could be a fantastic opportunity for the right business and investor.
Jefferson County inventory decreased by five to seventy-four this week, with the median list price at $437,750. Seven pending sales were on the market for a median of thirty-three days and a median price of 436k. Three homes sold at 479k, 435k, and 400k, and a sold-to-original list price ratio of 91.29%. The average sold price per square foot was $259.
While regular readers of my reports may be more educated than most, every buyer and seller in our technologically advanced era has access to more data than ever. Most buyers are knowledgeable about the neighborhoods and geographic areas they are interested in and recognize well-priced properties. Higher mortgage rates may temper buyer demand, but active, well-qualified buyers are still engaged in finding the right property for them. I encourage sellers to consider the entire market when pricing their homes and regularly work with clients to provide comprehensive market analysis to help them make good decisions. Different price points require a different approach, and no two homes are the same. Contact me if you need anything related to Central Oregon real estate!