Interest rates continue to fall as buyer activity picks up in anticipation of new listings in what hopes to be a less volatile market for buyers and sellers.
Median prices in Bend ended the year about where they started at the beginning of 2022, landing at $678,000 for the month of December. Redmond median prices not only dipped below where they started in 2022, but well below the record highs seen in the spring and summer. Days on market continue to climb for most of the Central Oregon region, with the average listing taking more than a month on the market to finally go pending.
Mortgage rates saw a significant drop to start 2023 and will drive the market. “Mortgage application activity sunk to a quarter century low this week as high mortgage rates continue to weaken the housing market. While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023. Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of Millennial renters will provide support to the purchase market. Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates.” says Freddie Mac.
“Prices should do their January bounce with fresh inventory in the next week. Keep on the watch for how big (or small) this annual jump is - that'll be leading transaction prices all year,” said Mike Simonsen of Altos Research. “Price reductions have been declining pretty quickly. If this gets under 35% in Q1, that'll be a positive sign of buyer activity.”
BEND AREA
$678,000
Median Price
30 Days on Market
REDMOND AREA
$425,000
Median Price
40 Days on Market
JEFFERSON COUNTY
$401,000
Median Price
72 Days on Market
SUNRIVER
$1,180,000
Median Price
8 Days on Market
LA PINE
$390,000
Median Price
24 Days on Market
SISTERS
$650,000
Median Price
44 Days on Market
CROOK COUNTY
$400,000
Median Price
59 Days on Market
Thank you to Beacon Appraisal Group for compiling this report. Prepared by Donnie Montagner with information from the MLS of Central Oregon with permission from COAR.
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