The Federal Reserve meets today with the consensus expecting a 50 basis point rate increase. Mortgage News Daily shows the national average 30-year fixed-rate mortgage at 5.54%, up from 2.79% at the end of December 2021. As we approach peak summer real estate season, 6% or higher rates will be in the future. So how have rising rates impacted sales? So far, not at all. Since last Wednesday, 109 homes have been placed under contract, with 107 closed, increasing from the end of April. Inventory of homes for sale has also increased, accounting for increased sales, with 442 single-family homes currently listed in Deschutes County. The median sale price remains steady at 780k, with 30% of last week's sales paid in cash. In many deals, cash sales and strong buyer demand allow sellers to get or exceed their asking price, even though the median price change for all sales last week was -3%. As expected, more expensive properties see more all-cash deals. Twenty-eight homes sold last week for over $1M, with 43% accepting cash offers. Between $1M and 500k, there were 68 sales with 26.5% cash, and eleven properties sold under 500k with 18% (2) not financed. Last week, the least expensive home sold went for 322k and was in the Bend 97702 zip code.
During the last housing correction centered around 2008, smaller communities like those in Central Oregon suffered earliest and hardest. This time around, that dynamic has reversed as buyers flee larger cities in favor of locations with clean air, easy outdoor access, and the benefit of technology allowing a work-from-home lifestyle. Some buyers are retiring, keeping the pipeline of motivated buyers full. Mortgage brokers are getting creative with adjustable-rate mortgages that are, in some cases, an entire percentage point less than a 30-year fixed-rate term, helping buyers achieve an affordable loan. Will Rogers is credited with the quote, "don't wait to buy real estate, buy real estate and wait, "which holds today. While prices may fluctuate over the next several years, many buyers are more concerned with the quality of life and the community they choose to call home. Looking around Central Oregon, it is easy to see why many are doing what it takes to move here and start Enjoying Bend Life!
