This morning the available single-family homes for sale in Deschutes County is 947, up sixty from last Wednesday. Pending sales are down five to sixty-five, while sold homes are up sixteen at eighty-one. Mortgage News Daily shows the 30-year fixed-rate mortgage at 5.72%, showing steady mortgage rates for the last several weeks. With the next Federal Reserve meeting still seven days away, I do not anticipate much rate change until after the meeting. With buyers pulling back, anyone that feels housing prices will not decline dramatically has reduced competition and a growing inventory of homes to select. Sellers are more open to offers below asking than at any time in the last couple of years, and with still low inventory from a historical standpoint, it isn't easy to see much changing this selling season. Some sellers may have a sense of urgency, but to date, there have been enough motivated buyers to keep the equilibrium.
The median list price is $779,950, with 462 price changes at a median of -5.18%. The properties sold over the last seven days were on the market for a median of eight days, with the average sale price at $962,050. Of the sold homes, 24 lowered the price before securing a sale by -5.29%, well within the range of a normal market. The biggest takeaway for buyers looking to purchase this selling season would be that 48.8% of the actively listed properties have reduced the list price. While many believe further price declines are on the horizon, many experts expect the Fed to begin lowering rates in the first quarter of 2023. If those predictions come true, don't expect housing dynamics to favor buyers for long!
This spring, a flood of buyers motivated to leave large cities and take advantage of lower rates seems likely. With Labor Day only six weeks away, the rest of 2022 might be the best buying conditions for housing for quite some time. Many properties on the market are over-priced, and the current environment is applying downward pressure to those prices. However, the high-end inventory of homes in Central Oregon has a location and build quality that set them apart, making a steep decline unlikely. While the current conditions may seem like a significant change, the median days for sold homes from January 1, 2014, through January 1, 2019, was thirty-five compared to eight last week. Deschutes County home sellers are used to longer list times, and we are still a long, long way from market conditions that would make anyone panic. While supply chain issues and currency debasement keep retail prices and energy costs high, the same dynamics drive home prices. If you are waiting for a complete economic collapse before purchasing in Central Oregon, this report will reveal those shaping trends first. Stay tuned!