The last several days in Central Oregon have been gorgeous, with sunshine and temperatures approaching or surpassing 70 degrees. Weather at this time of year can cover the gamut, and I do not expect conditions to remain this mild, as it is only March. However, the nice weather may have helped a solid week of pending sales. Mortgage rates have remained steady at 7.11% for the national average on 30-year fixed-rate loans, a factor that doesn't seem to be deterring buyers.
As expected at this time of year and with such beautiful weather, new listings increased in Deschutes County to 623, up twenty-eight from last week. Pending sales for the week were seventy-two, the highest since late September, and up substantially over the previous few months. Fifty-two sales were recorded last week at a median of $689,500 and an average of 840k. The median days on the market for closed transactions were twenty-three, but looking through the sales reveals many properties with marketing times exceeding 100 days. Winter sales are typically slow, but spring activity has buyers scrutinizing every option and taking advantage of recent price reductions or motivated sellers. Buyers waiting for conditions to shift are dealing with constant changes in available inventory and, in some cases, are disappointed to see homes they have been watching go under contract. As always, finding the right property is the challenge in Central Oregon.
Crook County inventory declined three this week to 111, with the median list price at 640k and the average at 941k. Twelve homes are pending, with an average list price of 585k and only fourteen days on the market. Seven sales averaging just under 500k round out the week. As long as inventory remains low in Crook County, I expect prices to remain stable.
Jefferson County available listings have remained stable, with seventy-five homes for sale this morning, down one from last week. Twelve pending transactions at an average list price of 446k and five sold homes at an average of 408k reveal solid activity for the week. The median days on the market for pending sales were 116, with 124 days for sold homes. The median days for active listings is seventy-two, at an average of 534k and a median of 436k. Like Deschutes and Crook Counties, Jefferson County listings that have lingered through the winter are getting snapped up by buyers eager to secure their place in Central Oregon.
More buyers recognize that mortgage rates are unlikely to change drastically soon and are tired of waiting on the sidelines. With inflation steadily increasing month-over-month, a rate cut in the late April Fed meeting seems increasingly unlikely. The base effect of monthly increases is catching up and showing in year-over-year increases in inflation, forcing the "sun is always shining" crowd to report on how today's number is less than peak inflation reported at 9%. With many analysts comparing today's trends to those of 1973 and 1974, further increases in inflation seem more likely than not. If the Fed passes on rate cuts in late April, the next opportunity would be at the June meeting. Unless the Fed makes a political move (gasp!) on rates, I expect mortgages to stay close to today's levels. The good news is that higher rates help increase inventory and tamp down rampant price increases, even in our low-inventory environment, which is good news for buyers.
No matter the neighborhood or price point you are targeting, I am always available to run a detailed analysis of past sales, trends, and opinions on pricing for any home you are considering. My experience applies equally to buyers and sellers, and the depth of my analysis is unmatched. Do not hesitate to reach out if you have any questions about pricing in today's market.