Merry Christmas! I hope you and your family have a wonderful holiday and enjoy quality time together as the year winds down. I have much to be thankful for this year, particularly all of my wonderful clients who rely on me to help them with their real estate needs. I feel blessed that so many of you trust me with your questions and tasks in the Central Oregon housing market!
As the year winds down and we begin speculating on what the housing market will look like in 2025, mortgage interest rates play a big part in the equation. This morning, after a week of spiking bond yields, particularly for the 10-year Treasury, the national average for a 30-year fixed-rate conventional mortgage is 7.1%. Today's higher mortgage rate sits on the heels of another 25 basis point decrease in the Federal Fund Rate; the short-term rate banks charge each other for overnight loans. While reducing the Federal Funds Rate may take a bite out of credit card interest rates or car loans, long-term mortgage interest rates are not correlated. Looking ahead, the Federal Reserve plans to hold steady at the current rate. Hopefully, as spring unfolds, mortgage rates will soften. Although, with current economic conditions, I do not anticipate mortgage rates below 6.5% anytime soon.
The inventory of single-family homes in Deschutes County dropped again this week, now at 848, with the average listing price at $1,096,544. Pending sales remain consistent at 45 for the week, at an average price of $726,792. Closed transactions also remain steady at 46, averaging $849,754. The median price change for pending sales was -8% and -5.44% for the closed transactions. The median sold price per square foot was $321, and the average was $383. Several weeks of 2024, the average sale price per square foot was well above $400, showing how volatile this metric is weekly.
Crook County inventory decreased by eleven to 156, with the average active listing priced at $903,080. Eleven pending sales are the highest since August, averaging $742,725. Just three homes closed this week at an average price of $364,000. The median price change from the original list price for pending sales was -6.33%, while the closed transactions averaged -11.76%. Remember that the negotiated price for pending sales is not revealed until the transaction closes. This week, the median sold price per square foot was $229, and the average was slightly higher at $231.
This week, activity in Jefferson County was subdued with an increase in actively listed homes of one, now at 99. There were no pending sales and just one closed transaction at $390,000. The closed transaction went for the full listed price, 89.66% of the original list price. This home sold for $247 per square foot. Sold prices compared to the original list price are important considerations when looking at the prices of actively listed homes. In many cases, sellers bring the asking price down until a buyer steps up and then tries or succeeds in getting the "full price." Homes selling at full price often indicate the true market price, with several adjustments along the way before finding a buyer.
Whatever the market brings for 2025, I will continue researching our inventory and staying current on the economy's essential metrics. In addition, working with buyers and sellers gives me necessary insight into home prices and what motivates people on both sides of a transaction. I am grateful to all of you who lean on me for help navigating our diverse market.
I look forward to seeing you in 2025!
