Central Oregon Versus the USA Real Estate Market

Lately, the real estate market has been anything but stable. In this article, we’ll outline how the market is doing overall in the nation, then zero in on Central Oregon, so you can get a general idea of how the two compare.

The US Real Estate Market

There is an index that gauges market conditions created by the National Association of Home Builders that goes from 0-100, and anything 50+ is seen as positive. In June, the rating dropped to 55 from where it stood at 67, which is the largest drop in about 37 years (with the exception of when COVID lockdowns first hit). 55 isn’t bad, but it’s not great compared to where we stood in March 2020, at 80. Only a few months ago, homes were barely listed for a day before being snatched up. What happened? Interest rates are a big factor. Buyers don’t have the same purchasing power, and they can’t afford their dream homes. Demand is low, and the interest rate has pushed the credit card and auto loan rates up as well. Inflation is also to blame. Not to mention skyrocketing gas prices – those don’t help, either. Right now, in the United States real estate market, there is a surplus of supply and not very much demand. Because of this, prices will most likely decrease to a more manageable level in the coming months.

The Market in Central Oregon

Central Oregon’s real estate market outpaces many others in the nation. While averages are still strong, we have seen some declines in listing prices. The reason sales prices remain constant is because Central Oregon is such an alluring location – people want to live here, and that helps the market.

In Bend, demand is especially high. As one of the most beautiful cities in the nation, people are itching to buy there even with increased interest rates. In Bend, homes have sold for 100% of asking price, and they typically sell within the span of two weeks.

In Redmond, listing prices have declined and the sale price is about 98.4% of asking. Interest rates continue to rise, which impacted Redmond’s land and acreage market, but it isn’t doing too bad.

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Comparing Apples to Apples

In Central Oregon, the real estate market is still clipping at the fast pace the nation was seeing a couple months ago, since demand is high and will likely remain that way. Since it’s such a covetable location, we predict that Central Oregon’s real estate market is unlikely to suffer too badly.