With Thanksgiving just three weeks away, activity across parts of Central Oregon has slowed. After a big spike in mortgage rates a few weeks ago, rates have come down considerably, dropping 8 basis points since yesterday to 7.22%. Significant uncertainty remains about where the economy ends up over the next few months, but decisive mid-term results should help ease some anxiety. With mortgage rates down 25 basis points from recent highs, the affordability equation for buyers is improving as sellers make big moves to secure sales.
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Deschutes County supply decreased significantly this week to 1,263, down 63 from last week. Pending sales fell 7 from last week to 38, and 24 of those listings reduced their asking price by an average of nearly 8% before securing a contract. Fifty-nine closed transactions are up 2 from last week, with 32 of those listings reducing their asking price by an average of 8.25% before securing a buyer. The sold-to-original-list-price ratio was 93.34%, while the average closed sale price was $1,044,200.
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Crook County’s inventory drop was more modest than in Deschutes County, down 7 from last week to 264. Seven pending sales match last week’s activity, with 4 of those listings reducing their asking price by an average of 7.24% before securing a contract. Eight closed transactions are up by 3 from last week, with 5 of those listings reducing their asking price by an average of 14.49% before securing a buyer. The sold-to-original-list-price ratio was 86.3%, and the average closed sale price was $624,878.
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Inventory in Jefferson County fell by 6 to 142. Pending sales are up 5 to 8, and 5 of those listings reduced their asking price by an average of 12.83% before securing a contract. Closed transactions are down 1 from last week to 4, with 3 reducing the asking price by an average of 4.86%. The sold-to-original-list-price ratio was 95.52%, with the average closed sale price at $354,975.
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Double-digit price reductions have increased this fall as sellers do what is necessary to entice buyers. Combined with softening mortgage interest rates, buyer opportunities are plentiful. Supply remains elevated, giving buyers plenty of choices. If the Federal Reserve holds interest rates again in early December, with the next meeting not scheduled until January 28, 2027, the housing market can take a breath. December and January are the slowest months of the year for real estate sales in Central Oregon, but despite elevated mortgage rates, conditions are favorable to buyers. Still, sellers on the market today will need to take a hard look at price reductions or seller credits toward buyer closing costs. And sellers coming to market over the foreseeable future will need to price according to market conditions.
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