All three counties in Central Oregon saw modest inventory growth this week, with Deschutes County surpassing the one-thousand mark for the first time in years. While growing inventory has created a considerably larger selection for buyers, it has yet to soften prices. However, many sellers have reconsidered the lofty asking prices of late and come down to reality. Price reductions are good for buyers, but reducing the price from extreme highs does not necessarily make a property's price appealing. It may indicate seller motivation, a good indicator for buyers to follow.
This morning, the Deschutes County inventory of single-family homes is 1018, up twenty from last week. Four hundred active listings have reduced the asking price, 39.3% of the market. In a typical healthy market, approximately one-third of active listings will reduce the price at any given moment, so an increase to nearly 40% is noteworthy. Activity remains consistent, with 79 pending sales this week and only 25 median days on the market. The percentage of price reductions of the pending sales sits at 29.1%, well within a healthy range. Forty-one sales for the week with fifteen reductions equates to 36.6%, also within a healthy range. The median days on the market for the properties sold was twenty-two. Reading between the lines, it is clear that more sellers have reduced the asking price before securing a contract. Remember, the price reduction metric shows price drops before securing a contract; the negotiated price revealed after the sale may be lower still.
As of this writing, the national average rate for a 30-year fixed-rate mortgage is 7.28%, within the range of the last several months and showing signs of stability. Even a single rate pivot in 2024 from the Federal Reserve seems highly unlikely. Jerome Powell appears content to use his continued dovish narrative to ease financial conditions and leave rates untouched. In light of continued inflation, the real interest rate is closer to neutral than many would have you believe and far from the position necessary to create restrictive economic policy. Unless you are refinancing a bond on commercial real estate, but that is another topic.
Single-family homes in Crook County jumped thirteen to 124, with six pending and six sold properties this week. Four of the six sales reduced the asking price, with a median of fifty-three days listed. Buyers are scooping up these properties as sellers get more realistic about price. Three of the six closed transactions reduced the price with only seventeen median days on the market. Well-priced homes are still moving quickly.
Jefferson County inventory increased by one to 93, with nine pending sales. Four of the pending sales reduced the asking price, and the median days on the market were only fourteen. None of the three sold properties took a price cut, with the median days listed at thirty-one.
Analyzing the data and based on my experience in the field, today's market seems uneven regarding the impact on our growing inventory. Well-priced properties are moving fast, with many homes that did not sell last year coming to market and finding a buyer quickly this spring. We are building an increasing number of homes lingering on the market, with more price reductions across the active inventory. Desirable homes are still experiencing high demand, with fewer, more minor price changes. This fall could be an excellent opportunity for buyers as inventory builds and sellers adjust to market conditions. As always, in Central Oregon, finding the right property can be more challenging than finding the right price, and the low days on the market for pending and sold homes prove that buyers are not holding back when they find what they want.
In addition to my work on my computer analyzing the market, I have also been in-person at properties all over Central Oregon. Please reach out if you have any questions about our housing dynamics. I have answers!