After briefly sitting below 6% early in 2026, the national average for a 30-year fixed-rate conventional mortgage this morning is 6.21%. A 20-basis-point increase is relatively small, but it will certainly have an impact. Still, mortgage rates are trending lower, nearly 100 basis points below January 2025 levels. Inventory levels are up slightly from this time last year across all three counties of Central Oregon, while lower mortgage interest rates are easing some of the pressure on buyers. While significantly lower mortgage rates may not be on the horizon anytime soon, increased competition amongst sellers creates many opportunities. All in all, the housing market today is more balanced than in recent years.
The Deschutes County inventory this morning shows 771 single-family homes listed, down 8 from last week. The average price of actively listed homes is $1,193,038, and 417 listings have reduced their asking prices by an average of 6.17%. Sixty-three sales are pending, an increase of seven from last week, and continuing the trend of increasing activity as 2026 progresses. The average pending sale price is $791,858, and 34 of those pending sales had reduced their asking price by an average of 5.95%. Thirty-three transactions closed this week, averaging $995,333, with 16 reducing the price before securing a contract, an average of 6.51%. The sold-to-original-list-price ratio was 95.14% this week.
The inventory in Crook County this week is up by 2 to 152 single-family listings. The average list price for the active inventory is $980,154, and 85 listings have reduced their asking prices by an average of 6.61%. Growth in actively listed homes has increased for two consecutive weeks, possibly signaling an early inventory buildup for 2026. Four sales are pending this week, averaging $943,475, with all four reducing the asking price before securing a contract, an average of 7.02%. Four transactions closed this week, averaging $396,575, with no price reductions before securing a buyer. The sold-to-original-list-price ratio was 98.31%.
Jefferson County inventory increased by three this week to 116, with the average list price at $538,750. Sixty-seven of the active listings have lowered the asking price by an average of 3.9%. One sale is pending this week at $399,000 in Crooked River Ranch, reducing the asking price before securing a contract by 10.34%. Five transactions closed, averaging $361,300, with two listings reducing the asking price by an average of 10.91% before securing a contract. The sold-to-original-list-price ratio was 91.12% this week.
Early activity and inventory levels to start 2026 point to a more productive year than 2025, which was better than 2024. Total sales are down from what might be considered "normal" levels of over 4,000 sales of single-family homes in Deschutes County. However, sales this year are likely to come very close, if not surpass, that threshold. Trends and thresholds help determine where we are in the current cycle, but carry little meaning for buyers or sellers in the big picture. Timing is personal for every individual, and timing the market is impossible. When you are ready to buy or sell, evaluating the market to position yourself properly is the key, as waiting is always an unknown. No matter your timing or needs, I am always available to help shed some light on the Central Oregon housing market. Reach out anytime!
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