August 2023 Monthly Market Checkin

October 2, 2023

2023 is zooming by!  We hope you are doing well and enjoying tHere is a synopsis of our current market based on the most recent statistics.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)2469Up 6% from last month & up 12% from this time last year
Current Pending Listings1176Down 2% from last month & down 17% from this time last year
Sold Listings last Month780Down 13% from last month & down 17% from this time last year
New Listings last Month1121Down 11% from last month & down 21% from this time last year
Months of Inventory3.41Up 7.6% from last month & up 46% from this time last year
Absorption Rate32%*Down 17% from last month & down 27% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$451,000Up .44% from last month & down 4% from this time last year
Average Residential Sales Price$489,000**Up .6% from last month & down .2% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.9%***Up 1.3% from last month & up 26% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

Residential values continue to increase overall within this year, but the interesting fact is that on average we saw a high of approximately $493,000 back in September of 2022.  We did see a little drop in average values and research tells us that this is because the higher end properties were not keeping up with the pace of the lower end properties at the turn of the new year.  The lower end properties continue to be in high demand, as we’re talking about the $400,000 price range.  How can that be the lower end?!  This is the reality these days as this is a typical “Starter Home” in our market.  All of the big Real Estate research companies are showing appreciation rates from 5% on up to 10% nationwide to finish out this year at our current pace.  In our market by taking the starting residential values in January we are on pace for a 7% appreciation rate if everything continues on its current trend.  Real Estate continues to be a great investment!  Time is your biggest asset, so if you have many years ahead of you; don’t delay in buying as much as you can!

The jobs report that came out last week shows that most of the gains came from part time jobs.  Employers continue to decrease hours to make up the difference and save money.  268,000 household job gains appear to look good on the surface, but 585,000 full time jobs were cut and replaced by 972,000 part time jobs.

The CPI report that just came out and it shows that inflation increased .2% last month and up 3.2% YOY.  This shows to be a stronger number from the previous month so I expect the FED to raise rates again at their September 19th meeting.  We’ll hope for the best.  Shelter & rents continue to increase, but nothing close to their increases a year ago.  

The mortgage market experts are struggling to understand the FED’s actions as they threaten to continue raising interest rates in stride to reach their 2% CORE Inflation goal.  Many people fear they are going to push too hard to cause the economy to break.  Lagging effects, like rental rates, seem to have little influence on the FED members even though inflation has declined over 100% from its high of 9.1% in June of 2022.  Fitch’s credit rating of the US didn’t help matters either as they expect the US to deteriorate fiscally over the next few years.  It turns out that spending over your budget and then just printing more money isn’t sustainable after all.  Your vote matters.

Everyone is still expecting rates to decrease once the dust settles, but it appears it will be longer than expected.

We are seeing excellent success for our clients whether they are selling or buying in this current market.  Our buyers are having more opportunities to choose from and our sellers are maximizing their profits by strategizing intelligently.  

True value is gained or lost in negotiations.

If you know anyone planning to buy or sell, give us a call!  We know you have a lot of options as there are many hobbyists in our industry.  Don’t let your friends and family compromise one of their largest financial decisions to anyone.

Paramount Oregon Paramount Oregon
© 2024 Brian & Nina White
1008 12th St. SE Salem
Principal Brokers Licensed in the State of Oregon