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Inventory of homes for sale in Deschutes County increased by one to 553 this week, indicating we may have witnessed the low point for 2023. While it is likely that the number will bounce around for the next several weeks, an inventory low in late January is more in line with typical years, another sign that the pandemic buying frenzy is behind us. Interstingly, the days on the market for sold homes dropped considerably to 26 from last week's 65. The drop in days a home sits before securing a contract indicates that sellers have priced their homes correctly and buyers are stepping up to purchase. However, the median price reduction of the sold properties last week was -11.14% showing that sellers were willing to accept offers below asking at the end of 2022. Contrast that with the pending median price reduction of -4.61% this week, and it appears sellers made more minor concessions.
Mortgage interest rates hit a recent low earlier in the week before increasing slightly to 6.21% for the 30-year fixed-rate national average yesterday. This week's data shows sellers returning to the market, most likely because of more moderate interest rates and solid buyer demand. Although, for buyers, a growing number of homes for sale could help keep prices in check, particularly if the market slows. Although buyers have been reasonably active to date, well-priced homes are selling. As I've mentioned, the next several weeks will set the tone for the summer. To date, all the data points towards solid buyer demand, and the recent mild weather makes viewing properties easy. However, while sellers may see a strong market, there are considerably fewer buyers to start 2023 than in 2022. Since the first of the year, there have been 111 sales of single-family homes in Deschutes County compared with 233 for the same period last year. The decrease in sales impacts the inventory of available homes more than anything and will be something to keep an eye on.
Wednesday, February 1, the Fed is projected to raise rates again by 25 basis points, equal to the smallest increases since rates started rising last year. The mortgage markets may react to a more significant increase, but even a 50 basis point increase is unlikely to impact mortgage rates much. Not surprisingly, the best word describing mortgage rates this year is volatile, and keeping in close contact with your lender is critical as you navigate the home-buying process. I anticipate rates below 6% as we approach peak season and, in turn, reasonably strong buyer demand. Understandably, many buyers have felt the pinch of unaffordability from higher rates, but many loan programs can help. 2023 is shaping to be a more balanced year for Central Oregon real estate, but it still requires diligence to stay on top of prices and find the right home. Conditions will likely stay the same, and any home that is a good fit is worth considering, especially for unique properties in great locations.
Website Update: For those actively searching properties on EnjoyBendLife.com, you might have noticed some minor changes or glitches. I've been working on a rollout of the newest version of my site to streamline your home searching experience. Once the new site is live, you'll notice some market data visible on property search pages, a cleaner format, and easier access to the data you need. Also, everything will be optimized for your mobile phone, making it easy to search from any device. Like my recent designation of Principal Broker, updating my website is part of my ongoing effort to improve the service I provide continuously. I know you have many options in the real estate industry, and I am honored that so many of you rely on my website and weekly report to stay on top of the market. Please reach out to me at any time for all of your real estate needs!
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