This is the week we usually talk about the Central Oregon housing market! One of the things we wanted to bring up this week is that even though the market is slowing, it's still not a bad time to buy. Interest rates have come down a little bit and that is always helpful! The followin is a report called the ALTOS report that is area specific.
This week the median list price for Bend, OR 97701 is $719,450 with the market action index hovering around 65. This is less than last month's market action index of 77. Inventory has increased to 116
This week the median list price for Bend, OR 97702 is $774,000 with the market action index hovering around 53. This is less than last month's market action index of 66. Inventory has increased to 211.
This week the median list price for Bend, OR 97703 is $1,212,500 with the market action index hovering around 44. This is less than last month's market action index of 49. Inventory has increased to 140.
This week the median list price for Redmond, OR 97756 is $623,612 with the market action index hovering around 55. This is less than last month's market action index of 58. Inventory has increased to 138.
This week the median list price for Sisters, OR 97759 is $975,000 with the market action index hovering around 49. This is less than last month's market action index of 59. Inventory has increased to 45.
This week the median list price for Madras, OR 97741 is $447,343 with the market action index hovering around 41. This is less than last month's market action index of 42. Inventory has increased to 43.
This week the median list price for Prineville, OR 97754 is $545,000 with the market action index hovering around 40. This is about the same as last month's market action index of 40. Inventory has increased to 103.
This week the median list price for La Pine, OR 97739 is $574,900 with the market action index hovering around 41. This is less than last month's market action index of 44. Inventory has increased to 81.
This week the median list price for Bend, (Three Rivers South) is $874,450 with the market action index hovering around 46. This is less than last month's market action index of 53. Inventory has increased to 38.
We continue to have low inventory but rising interest rates have resulted in cautious buyers and many looking for a deal. The rising mortgage rates have been the biggest challenge recently as it can be difficult to find an affordable home. Higher mortgage rates mean that many people can no longer afford homes in a specific price range.
The problem is that even modest single-family homes cost as much as lavish high end homes did a few years ago.
Buyers are either stuck waiting for more inventory to come on the market or moving to a more affordable area. The Central Oregon areas may be La Pine, Madras, or Prineville. It makes for longer commutes, but house prices are lower in these areas than Bend and Redmond. Many are hoping prices will drop dramatically—but that is not likely to happen anytime soon.
Director of operations, Tabitha Mazzara at the Mortgage Bank of California said recently: “If you’re waiting for prices to suddenly plummet to what they were in the past, you’re making a mistake. The Fed has promised another interest rate boost. If you’re ready to buy, don’t wait because prices aren’t headed dramatically downwards to what our parents paid. Things might dip a bit, but there’s no cliff dive that’s going to happen.”
According to the latest S&P CoreLogic Case-Shiller Index. Higher mortgage rates added almost $600 to the monthly payment for the average cost of a buying a home.
Rates are predicted to stay at an average interest rate around 6%. Higher mortgage rates recently have put a lot of pressure on the housing market. A lot of people are not happy about this, but it was bound to happen because we were accelerating so rapidly during 2020-2021.
The Mortgage Bankers Association (MBA) reported a steep decrease in mortgage applications in the last two months to buy and refinance and this has pushed the market index down to its lowest level in 22 years.
This is pricing many people out of the market and has caused home sales to begin falling resulting in home price reductions up to 10% or for some buyers to simply back out of the market.
The average monthly payment is up nearly $600 since the start of the year. Many buyers are in a wait and see mode as to whether they should purchase a home now. Trying to time the market or predict what might happen next year is not the best homebuying strategy. It’s better to buy based on your budget and needs. If you find a home you love in an area you love and it also fits your budget, then chances are it might be right for you.
Your first step is to start with a budget and make a pact with yourself to stick with it. The scarcity mentality in the market has driven people to make fast decisions, which can quickly turn into buyer’s remorse and the problem is you can’t just return the house if you realize you bought a place you don’t like.
A seller’s costs can run up to 10% of the home’s sale price, so you could end up losing money if you immediately turn around and try to sell it.
When purchasing a home it is important to first review your personal finances and long-term economic stability.
Ask yourself:
Are you debt-free? (Work on getting your payments down)
Do you have an emergency fund for three to six months of expenses?
Will your monthly house payment be 25% or less of your monthly take-home pay?
These are the three things you need to make sure of and you will find you are ready to buy! This may take a few months or it may take a few years. Feel free to contact us for help!
541-408-6333