The Federal Reserve delivered the highly anticipated rate decrease (25 basis points) that everyone had been waiting for, but mortgage interest rates initially rose. Mortgage rates align with the trends of the 10-year Treasury note, rather than the Fed's overnight rate, and bond investors have concerns about inflation and other economic aspects that have driven yields higher. However, a closer inspection reveals that mortgage rates are lower on average than they were in the last several weeks. Whenever consensus opinion expects rates to decrease, mortgage rates come down in anticipation of the event, and preceding the Fed meeting, rates adjusted to the lowest level in years at 6.13%. While today's rate is up at 6.37%, overall rates are still lower than the trend leading up to the Fed's rate cut. All in all, conditions this fall favor buyers, with increased selection and moderate interest rates.
There are seven fewer listings in Deschutes County this week than last, now at 1,388. Sixty-six pending sales, at an average of $1,089,557, represent an increase of six from last week and a slight decrease from the volume seen since mid-July. Sixty-five transactions closed at an average of $784,693. The average price reduction for pending sales before securing a buyer was -9.81%, and the average for closed transactions was -6.78%. The sold-to-list ratio for the closed transactions was 97.86%.
Crook County inventory is down twelve from last week, now at 230 single-family listings. Eleven pending sales, averaging $640,882, are consistent with the volume of the past several weeks. Six closed transactions occurred this week, averaging $727,233. The sold-to-list ratio of the closed transactions was 100.07%, with two of the six closed transactions showing price reductions averaging 3.14%.
The inventory of single-family homes in Jefferson County has decreased by one, now standing at 136 listings. Four pending sales occurred, averaging $449,675, with three price changes resulting in an average decrease of 9.52% before a buyer was secured. Two transactions closed at $500,000 (list price $540,000 = 7.4% decrease) and $624,000.
While transaction volume is steady considering the time of year, the decrease from summer highs is keeping inventory elevated. Sellers motivated to move their property this year will need to consider accepting a lower price, which will significantly benefit buyers. Nothing in our diverse market is equally applicable across all properties, but generally speaking, the fall is a great time to purchase.
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