Reviewing the numbers from the last week in Central Oregon, it is immediately apparent that sales are increasing, and homes are selling for closer to the asking price than at any time over the last several months. The national average for a 30-year fixed-rate conventional mortgage is 7.06%, so better rates are not the contributing factor. Pent-up buyer demand is the culprit.
In Crook County, available homes dropped three to 111, with ten pending sales and nine closed transactions. Pending sales listed for a median of only fourteen days and 392k. Only three of the ten transactions reduced the asking price; the median reduction was -0.79%, and the average was -1.94%. The closed transactions also had three price reductions; the median closed price was 465k, averaging 574k.
Inventory in Jefferson County increased from one to 75, with three pending sales and eight closed transactions. Pending days on the market were a more reasonable thirty-four and ninety-six for closed transactions. The median price of active listings is $439,500, $433,000 for pending sales, and $496,221 for closed transactions this week. Active listings reflect a median price reduction of 4.27%, with pending sales at -6.94% and closed transactions at -3.24%.
While Crook and Jefferson counties are impacted by extremely low inventory, Deschutes County homes for sale continue to grow at a healthy pace. There were 692 listings this morning, up thirty-eight from last week. This week, last year, there were only 542 active listings of single-family homes in Deschutes County. The median numbers for active listings are forty days on the market, 795k list price, and -3.77% for price reductions, just under 34% of the market. One-third of the active listings showing a price cut is a typical number in a strong market, with 50% indicating conditions beginning to favor buyers. Eighty-two homes are in pending status this week, with only fourteen days listed, a median price of $691,266, and an average of $922,175. Less than 27% of the pending sales reduced the asking price by a median of -4.28%. Forty-five homes closed at a median of only ten days on the market, a median of $735,000, with fourteen reducing the price by a median of -5.04%. The average list price of single-family homes in Deschutes County is $1,165,045, for pending sales $922,175, and sold homes $948,488.
Many agents I am speaking with about listings have informed me of increased activity. The reduced days on the market for pending and closed transactions indicate strong buyer demand. Reading between the lines, many buyers have adjusted to rates near 7% and are taking advantage of more selection in the market. If rates were to spike, it might slow buyer demand, but there is no indication that rates are increasing appreciably. Conversely, a drop in rates would make what is becoming a hot market even hotter. However, with inflation numbers edging up, a June decrease in the overnight rate from the Fed is increasingly unlikely. Mortgage rates should remain stable throughout the summer selling season. Some Fed members still telegraph rate drops this year, a narrative based on improving inflation numbers which have not been cooperating.
Timing is the key to the Central Oregon housing market for buyers looking for specific properties. There is no guarantee that several great options will be available during the selling season, and with the market heating up, several buyers are circling the same property in most cases. In many neighborhoods throughout our region, I have watched all the options considered by some buyers go under contract in the last week, resetting those buyers' search to zero. New properties come up frequently at this time of year, and every buyer needs to move in a way that fits their needs. However, there are only four short months left in 2024 to put a home under contract to close before Labor Day. By every measure, except mortgage rates, this year is beginning to feel like the craziest part of the pandemic surge in buyer demand.
Sellers undoubtedly face solid buyer demand, but correct pricing is still imperative. Today, buyers have all the tools available to be knowledgeable about our market and typically know all the sales, pending, and active inventory for a particular neighborhood. Speaking of sellers, stay tuned for a great listing I have coming soon in SW Bend!