Today's big economic news from the Bureau of Labor Statistics shows the consumer price index higher than expected at 8.3%, higher than analysts' expectations of 8.1%. Unsurprisingly, shelter and food were critical contributors at 5.1% and 9.4%, respectively. Housing data in the CPI charts comes from a survey using "owners equivalent rent" by asking homeowners what they think their homes would rent for in today's market. As you can imagine, OER is not an exact measurement, and for anyone tracking Bend real estate, clearly far lower than reality. While diesel supply on the east coast of the United States is a paltry three days of capacity, with new highs in the average cost per gallon. High diesel prices will undoubtedly increase the shipping costs of the goods we all consume daily. Diesel isn't the only commodity rising, with gasoline prices surging, just in time for the summer driving season.
Unfortunately, the predictions of inflation peaking in April did not come true, meaning the likelihood of further Federal Reserve rate increases in June. While the inventory of single-family homes for sale in Deschutes County grew to 481, up from 442 last week, the volume of available homes is still far below a number that would ease prices significantly. Although this week's median sale price dropped substantially to 665k from 780k the previous week, median days on the market remain at five, indicating continued insatiable buyer demand. Anecdotally, more and more real estate agent homes are hitting the market, a sign that at least some agents see peak pricing in the rearview mirror.
Despite rising rates and strong buyer demand, these numbers could be a welcome relief for many buyers. Financing a home is getting more expensive, but as these trends continue, expect more homes to linger on the market, opening the door for offers accepted below the asking price. Of the active inventory of single-family homes in Deschutes County, the median number of days listed is twenty-one, with the median price change negative 4.28%. Last week, the sold homes saw a small median price change of negative 1.13%. Still, the median sale price decline could be an early indicator of the market adjusting. Correct pricing is vitally essential to a quick sale for sellers as buyers are chomping at the bit for more reasonable home prices. So, are we entering a buyer's market? That isn't easy to answer until we get further into the selling season, although the factors I described contribute to softening prices. The most significant factor impacting buyers remains low inventory.
I am here to help you list and price your home for today's market to ensure a quick sale, so please do not hesitate to put me to work!
