This week's data in the luxury market is relatively subdued. While the activity is in line with what I expect for this time of year, it would be easy to assume the market is slow. Last week, I presented the year-to-date comparisons, which show that this year is outperforming 2024. While the equity markets may be experiencing volatility, the housing market is remarkably stable. With slightly longer marketing times for many homes, buyers are likely taking advantage of the slower pace to make a more informed decision. As I have mentioned before, the Fourth of July is typically a lull in the action, and many people are out enjoying the summer weather that has finally arrived. Despite the seemingly slow data, activity is consistent. I anticipate the second half of this year to be as consistent and steady as the first, resulting in numbers that exceed those of 2024.
Deschutes County single-family homes listed between $1M and $2M increased by eleven this week to 401 listings. The median days listed for the active inventory is 50. There were twelve pending sales this week, with a median days-on-market of 58. Five of those pending transactions reduced the asking price before securing a buyer. Eleven closed transactions occurred at a median of fifty-six days, with four sold below the asking price. This week shows a more significant reduction in price compared to previous weeks, with the average for pending sales and closed transactions at just over -10%. As the season progresses, buyers start picking away at homes listed for more extended periods, and any property with a longer marketing time is subject to price negotiations.
There are 101 homes listed between $2M to $3M, an increase of one from last week. The median days listed for this price tranche is 84, an expected metric since more expensive homes typically take longer to find the right buyer. Four pending sales, marketed for a median of 38 days, with two price reductions of an average of -5.04% occurring this week. One transaction closed in Bend's Westgate community at $2,822,000, listed for $2,995,000, and was on the market for 68 days.
Inventory in Deschutes County over $3 million increased by six this week, now at 47 listings. The median number of days listed for the active inventory is 71, with an average list price of $4,684,255. Two pending sales, one at $3,795,000 in Tetherow and another at $5,500,000 on Bachelor View Road overlooking the Deschutes River, occurred this week. The marketing times for these two spectacular homes were five days and eleven days, respectively. There were no closed transactions this week.
Crook County inventory priced over $1 million is stable at 71, the same as last week. Two pending sales, at $1,599,990 and $1,950,000, occurred, with both properties located in West Powell Butte Estates. While Powell Butte and Brasada Ranch dominate the high-end activity in Crook County, West Powell Butte Estates is experiencing a year with two pending sales year-to-date and two closed transactions, compared to zero sales at this point in 2024. There were no closed transactions in Crook County this week.
Just because the luxury market activity slows somewhat during the middle of summer doesn't mean buyers or sellers should take a break. Positioning for a fall sale by listing now is a smart move. And anytime buyers have the time to view homes without as much competition or pressure to write an offer immediately, it is positive. The stability of mortgage rates, increased availability, and a somewhat slower pace of sales are all extremely positive trends for buyers. However, sellers are also in a strong position, given the increased activity over the last two years. This year, the luxury market in Central Oregon is looking more normal than at any time in the previous several years.
