Sales volume last week declined further to 71 sold properties at a median sale price of 585k and 33 days on the market. The first week in December 2020 shows 120 sales against 113 deals in 2019 and 85 sales in 2018. This week, the national average for 30 year fixed rate mortgages remains flat at 3.11%, up from 2.71% a year ago. Is the slowdown in sales related to mortgage interest rates? Considering that mortgage rates the first week of December 2019 were 3.68% with 113 sold homes, it appears there is more slowing buyer demand than just interest rates. A culprit of lower sales volume may simply be rising prices. The median sales price of single-family homes in Deschutes County the first week in December 2019 was 406k, 505k in 2020, and 585k this week. Looking at sales from this week in 2018 shows a median sale price of 390k, further proof that Central Oregon real estate has witnessed an unprecedented increase in home prices. Is it any wonder that buyers are beginning to balk at home prices? Seeing the median sale price skyrocket in three years is enough to make anyone rethink where the housing market goes from here.
Where does the housing market go next? While the national market has remained robust, real estate is local, and smaller markets show early signs of change before larger markets. Could the majority of people that work from home or are retired have already purchased in Bend? Have current potential buyers been priced out of the market? While there may not be an easy reference to answer the first question, many buyers have confronted higher prices for any given property type than most anticipate. Single-family homes for sale in Deschutes County declined further this week to 409, down from 425 last week. Comparing the actively listed homes against the 611 pending deals this week indicates the inventory of available homes will decrease further through the end of the year. Considering that the lowest level of homes for sale in Deschutes County last winter fell to less than 270 properties is a telling indicator this season. Mortgage interest rates may not yet be moving higher, but all indicators show higher rates coming sometime in 2022. Keep in mind there are ~200,000 residents of Deschutes County and only 409 properties currently for sale! Active buyers should not be discouraged as most sellers are motivated and open to reasonable negotiation at this time of year.
If selling a home in Central Oregon is on your mind, the still-low interest rates and decreased competition from other properties are working in your favor. Why wait for the unknown when conditions are so favorable now? Please call me if you need help determining your best strategy!
