Many lenders and real estate agents cling to mortgage interest trends as the only metric that matters when evaluating the market. While borrowing costs undoubtedly significantly impact affordability, inflation, real interest rates, and equity market trends all play a role in the decisions of many real estate buyers and sellers. In Central Oregon, selection, or lack thereof, has tremendously impacted the market over the last few years. Most buyers are more concerned with finding the right property than a minuscule rate adjustment. Judging by price growth trends with rates above 7%, if rates dropped 200 basis points, it is hard to imagine prices declining. Many buyers in 2022 had difficulty accepting prices, but in retrospect, that was still a great time to buy when you look at prices today. Every situation is unique, but waiting for a housing price drop in Central Oregon has not been an effective strategy.
There are thirty-seven more listings in Deschutes County this morning than last week, bringing the total to 1193. The days on the market for active listings remain stable at forty-eight, with the median list price at $840,750 and the average at $1,173,865. Nearly half (535) of the active market has reduced the asking price by an average of -5.11%. This week's numbers closely mirror last year's when the average actively listed property was $1,132,877, and the average price drop was -5.43%. Pending sales this week were down slightly at sixty-seven, most likely because of a shortened work week with a Federal Holiday. Fifty-five homes closed at a median of 17 days on the market and an average price of $863,456. Before securing a contract for the closed listings, the average price reduction was -2.39%, indicating desirable properties priced right. The closed sales totaled $47,490,102.
Crook County inventory is flat, with an increase of one to 142 active listings, 52 median days on the market, and an average price of $968,737. Nine homes are pending, with only 15 days on the market and an average price of $455,188, and only two price changes, averaging -1.65%. Five homes closed at 23 days on the market before securing a contract and an average sale price of $524,799. Of the closed sales, three homes reduced the asking price before finding a buyer by an average of -1.99%. The Crook County housing market remains remarkably stable, with sellers getting their asking price in most cases.
Jefferson County's active listings increased by three to 102, with a median listing time of fifty-three and an average list price of $611,683. One less work day didn't slow the activity in Jefferson County, with five pending sales at an average of $534,020 and eight closed sales at an average of $403,500. The median days listed were twenty-four and twenty-one, respectively.
Despite a large part of the real estate industry being hyper-focused on a rate pivot, I maintain that the chances of any change from the Federal Reserve are doubtful this year. The most recent almost imperceptible downtick in CPI was due to energy costs and housing, one of which isn't a part of the Fed's preferred measure, Core CPI. Both of those metrics will increase by the next CPI report. Nationwide, the median home sale price reached new highs at over $439,000, and Brent Crude Oil reached $85/barrel this morning. I want nothing more than to see real progress made on inflation, but the data doesn't show that as a long-term trend. Be cautious viewing graphs that zero in on a short timeline, making small changes look larger than they are.
The national trends and economics are always on my radar, but my specialty lies in the Central Oregon housing market. I am working with several clients to find the finest homes in our market, and I have first-hand knowledge of the fantastic homes available in the best locations in the area. No matter your budget, I am here to support you and help you make the best decision for your needs.