Happy Thanksgiving! We have officially arrived at the holiday season, with Christmas and a new year just around the corner. I hope you and your family have a great day celebrating old traditions or creating new ones! Our weather has become considerably milder recently, bringing plenty of options for anyone with a long weekend ahead. Unfortunately, the mild weather has pushed back the opening of Mt. Bachelor a bit, and like me, I'm sure snow-sport enthusiasts are praying for snow!
Mortgage rates also moderated from recent highs, with the national average for 30-year fixed-rate loans at 6.65%. While rates may have decreased from earlier in the fall, the housing market has slowed considerably, creating opportunities for buyers now. Holiday real estate sales always slow down; this year is no exception, with forty-two pending sales of single-family homes in Deschutes County and sixty-four sold. The sold number increased by three from last week, while pending homes are down eleven. More importantly, inventory increased by two properties, which is insignificant in terms of an increase but still bucking typical trends for the season. A high volume of homes available for sale works in favor of buyers, and an indication of that is the median price reduction of pending properties last week at -9.62%. Another factor helping buyers is the drop in the median price of pending properties to 535k, down from 685k the previous week. Thirty-four of the forty-two pending homes last week were listed for $1M or less, with just two pending properties above $2M. There were also two sales above $2M in the previous seven days.
Sales, in general, may have moderated, although the high-end market in Deschutes County shows continued strength with 120 sales over $2M year to date, compared with 115 for the same period of 2021. The median sale price above $2M increased slightly this year to $2,462,903 from $2.4M last year. However, the average price in this range decreased to $2,712,646, a drop of less than 40k from 2021 sales.
The most significant change year-over-year shows up in sales equal to or less than $1M. In 2021, there were 4,062 sales in this range, with a median price of $558,480. Compare 2022 sales at 3,063 with a median of 625k, and more price reductions in our available inventory are likely.
As you would expect, I will continue my weekly breakdown of the Central Oregon real estate market, along with a complete 2022 report, on the first Wednesday of January 2023. So stay tuned, and please reach out if there is anything I can do to help! I will be available throughout the holidays and the remainder of the year.