The Consumer Price Index was unchanged in July compared with the June report, which many analysts will interpret as good news. However, June and July numbers are at forty-plus year highs, and celebrating may be premature. Pending and sold single-family homes in Deschutes County declined last week to sixty-five and sixty-nine, respectively, but days on the market for those properties also dropped slightly. However, the inventory of homes for sale increased by only two, and this morning shows 972 single-family homes actively listed in Deschutes County.
A strong jobs report typically provides inflationary pressure on the economy. Yet, a closer look at the breakdown of multiple job holders and other more granular data shows the economy is still facing challenges. On a positive note, the national average for 30-year fixed-rate mortgages is steady at 5.35%, and home buyers seem to take it all in stride. Moreover, of the sold homes in Deschutes County last week, the sale price to original list price ratio was 98.93%, while the median price reduction was -5.69%. Whichever number you focus on, the data shows homes are, in most cases selling for at or very near the asking price. Although 518 houses of the 972 listed have reduced the asking price, showing that sellers are motivated to sell, the market overall is not as frothy as it was only a few months ago.
Of the 134 homes that were either pending or sold last week, six were over $2M; twenty-six were between $1M-$1,999,999; forty were between 750k-$999,999, and sixty-two were below $749,999. A sign that stable, reasonable mortgage rates, increased inventory, and motivated sellers show in the fifty pending and sold homes last week between the 500k-$749,999 price range.
Labor Day signals a shift in the marketplace with schools back in session and summer vacations relegated to the memory banks. In communities like Central Oregon that experience winter weather conditions, the fall up until Thanksgiving is tantamount to a second summer when looking at sales activity. The combination of fewer buyers, motivated sellers, and looming winter weather makes for excellent buying conditions, and this fall is likely to be the most favorable for buyers since 2019. Housing sales continue through the winter, although inventory will naturally decline, and depending on snow levels, viewing acreage properties is challenging. After the holiday season, many buyers begin their research anew, focusing on purchasing in spring as new listings hit the market.
No matter your schedule, EnjoyBendLife.com has the tools to track the market so you can be confident that the price you offer or ask for your property is appropriate. In addition, I am here to apply my boots-on-the-ground knowledge of Central Oregon to assist you whenever you are ready!