Holiday Slow-Down

Active listings of single-family homes in Deschutes County dropped to 782, the first time homes for sale have been below 800 since June. In addition, pending sales were down dramatically from last week at twenty-nine, with sold homes also down significantly at thirty-four. With Title offices closed on Thanksgiving, I read very little into the drop in sold and pending houses since we only had a couple of business days in the previous week. However, the next few weeks will be a good indicator of buyer demand with full work weeks. Additionally, between the Christmas and New Year holidays, some short weeks and personal vacation schedules make this time of year far slower than typical weeks. 


Mortgage interest rates have been steady with yesterday's 30-year fixed-rate national average of 6.65%. The Federal Reserve doesn't meet for another two weeks, so I'd expect the current mortgage rates to be relatively stable. In addition, many buyers are struggling with affordability because of the interest rate spike that started this fall. Still, the recent decline from previous rate highs combined with motivated sellers at this time of year could make for great buying opportunities. For example, in Crook County, each of the five pending sales reduced the asking price before going under contract. Four of the five sold homes in Crook County also reduced the price with the sold price to the original list price at 91.26%. 


For those of you waiting out the market, the best number to keep an eye on, other than mortgage interest rates, will be the volume of active inventory. In April 2022, the number of actively listed single-family homes in Deschutes County was 333, far below even today's low number. Many would-be sellers have mortgage interest rates well below the current level, keeping them on the sidelines. In the past few years, strong buyer demand kept inventory low; a steep reduction in new listings may create a dearth of inventory again this coming season. Either way, with very few homes listed for sale, prices tend to stay elevated. Although, even if our inventory stays near today's volume, there is every reason to believe mortgage interest rates will be higher than today and remain elevated through 2023. If mortgage rates rise and stay elevated, sellers will need to accept lower prices. While I have no way of knowing what mid-year 2023 will bring, I can confidently say that 6.65% mortgage interest rates, reduced prices, and motivated sellers make right now an opportunity many may look back on as the "good times" once 2023 starts rolling. Check out this video from August if you are looking for a reminder of how quickly things change!

Property Search Links

La Pine
Sunriver
Redmond
Sisters
NW Crossing
Bend
New Construction
Terrebonne
Prineville
Tetherow
Madras
Caldera Springs
Vacant Land
Horse Property
Pronghorn

Clicking on the Market Action Index chart below will show how parts of Central Oregon behave in today's market. The Market Action Index for La Pine shows a balanced market, creating the best buying scenario seen in years! Every zip code, town, neighborhood, and price range has a unique dynamic, and the Market Trend Reports are a big help in seeing how your community is performing. Please view these reports weekly to follow trends or have me run a detailed analysis for a better view of price activity.

Madras
Sisters
Bend 97701
Bend 97702
La Pine
Redmond
Bend 97703
Powell Butte
Terrebonne
Bend 97707
Prineville
Sunriver
Investor Search
Multi-Family
Investment
Commercial

Active-Pending-Sold Market Reports

Redmond
Bend 97703
Prineville
NW Crossing
Bend 97701
La Pine
Sisters
Tetherow
Bend 97702
Madras
Bend 97707
Pronghorn

Reed Melton

(541) 408-6625

Allow me to put my knowledge and

expertise to work for you!

Facebook  Instagram  Linkedin  
Contact Reed
Business Card
Sitemap
Testimonials