As 2021 comes to a close, the homes listed for sale in Deschutes County decrease by the day, at only 373 this morning. With 90 homes pending last week and 82 closed, the pace of buyer demand is only tempered by what is available to purchase. As a result, sales this week continue to lag last year's sales for this week and previous years' sales. Some of the decreases in sales volume can be attributed to higher home prices, while solid buyer demand accounts for the rest. In addition, recent reports that the Fed is considering raising interest rates may motivate buyers looking to lock in low mortgage interest rates now. Depending on your situation, now may be the right time to find your slice of Central Oregon while rates remain low.
Last year inventory of homes for sale in Deschutes County fell well below 300 during the winter, and this year looks to be no different. With approximately two hundred thousand people living in Deschutes County, the available homes for sale fall well short of demand. However, with the threat of rising rates looming, I expect buyers to remain engaged and inventory to remain low. Keep in mind that low inventory is a sign of solid buyer demand, not a lack of home sales. For example, in 2020, buyers struggled to find homes at any given moment, but total sales broke all previous records with 5,325 closed deals. 4,629 sales in 2019 show how much buyer demand increased during the pandemic home buying spree. There have been 5,023 sales in 2021, just shy of last year's record but still more robust than previous years. By the time 2021 wraps up, total sales of single-family homes in Deschutes County should be very near last year's sales volume.
While the inventory of homes for sale should remain low for the next several weeks, there is reason to believe an increase in mortgage interest rates will slow the pace of home purchases to some degree. However, since the threat of rising rates is still many weeks into the future, expect savvy buyers to purchase and lock in record-low rates now.
