Mortgage rates for 30-year fixed-rate loans yesterday were 7.03% for the national average, but there was an uptick in applications from the previous two weeks. However, applications compared with one year ago are down 42% nationally. In Crook and Jefferson County, available homes for sale have remained low but stable, with one hundred seventeen and sixty-eight active listings, respectively. Both counties have median days on the market of ~90 for active listings and ~70 for pending sales. The median sale price in Crook County was 459k, and 347k in Jefferson County. Pending and sold price reductions vary dramatically from week to week in these counties but are generally higher than in Deschutes County. The largest cities in these counties, Prineville and Madras, are good options for buyers constrained by budget and lending costs.
In Deschutes County, active inventory has increased by twenty-six to 511, a trickle of new listings as spring approaches. The median sale price was $627,500, slightly above the median for the first eight weeks of 2023 and in line with recent weeks. While price decreases have slowed, 42.8% of the active listings have taken a price cut, and 42.2% of pending sales. Of the thirty-eight sales last week, 52.6% reduced the asking price. The median price reduction for sold homes in the previous week was -5.81% or a median of $32,707. The median numbers are an excellent way to get a feel for the market but do not apply equally. Attractive, well-priced homes are selling quickly without price reductions. Sellers have also zeroed in on appropriate pricing, with the median reduction for active listings in Deschutes County listed for thirty days or less at -1.53%. There are 184 homes listed for thirty days or less with a median asking price of $727,500. Jumping up to homes listed between 30-90 days shows 128 listings at a median price of 650k and a median decrease of -3.05%. Finally, 207 homes have been listed for ninety days or more at a median of 780k with a median price reduction of -6.01%.
Three hundred sixty-one homes currently listed in Deschutes County are at or below $999,999, with the median days listed at forty-nine and the median reduction at -4.38%. That leaves 153 listings above $1M at a median of ninety-one days listed and a median decrease of -6.69%.
My goal wasn't to bore you with minutia but to break down the market and give you a clear picture of where the most significant price decreases and opportunities lie. For many of the homes lingering on the market, the list price is more of a wish-price, and I suspect many of these sellers would be open to lower offers. There is a strong chance for buyers looking at these properties to get a seller credit towards an interest rate buy-down or a lower price for cash or well-qualified buyers. Remember that jumbo loan rates are approximately 100 basis points lower than conventional rates.
Over the previous week, fourteen of the sixty-four pending sales were over $1M, with twenty-six median days listed and a median price decrease of -7.88%. Conversely, the pending sales under $1M took twenty-one days to secure a contract with a median price decrease of -5.42%. For higher-end homes, pricing is complicated, as many of these properties are unique. Whether it is large acreage, special finishings, or a spectacular view, the pricing of the many stunning homes in Central Oregon can be tricky. Ultimately, it takes a willing buyer to make a deal happen at any price point. If a home you are interested in has lingered on the market, there is a good chance the seller is willing to look at offers. As interest rates rise, fewer sellers are listing their homes. Considering a home that makes sense for you is a good plan, as there are no guarantees another suitable home will come to market in a reasonable amount of time.
Whether you are waiting out the economy or ready to sell or buy this year, I am available to help. In many cases, those waiting out the current conditions have much to gain from staying engaged in the market. Please do not hesitate to ask questions about specific properties, no matter your timeframe.