February 2023 Monthly Market Checkin

October 2, 2023

I want to thank you for your continued business, and I always want to bring you great value in the Real Estate market. I spend time evaluating our local market so that you are well educated to make a wise decision.

Here 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 Listings2018Down 3.7% from last month & up 67% from this time last year
Current Pending Listings848Up 19% from last month & down 39% from this time last year
Sold Listings last Month495Down 26% from last month & down 35% from this time last year
New Listings last Month764Up 20% from last month & down 18% from this time last year
Months of Inventory2.41Down 1% from last month & up 102% from this time last year
Absorption Rate25%*Down 22% from last month & down 58% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$477,000Up 2.5% from last month & up 5% from this time last year
Average Residential Sales Price$470,000**Down 4% from last month & up 4% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.12%***Down 5% from last month & up 66% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

One month of statistics doesn’t necessarily give us an accurate statistical assessment of the market, but 2023 started where we left off in 2022 in that our inventory still remains incredibly low and rates on the higher side.  Activity was slower overall in January in many areas of our valley, but we did see an uptick in activity a few weeks ago when interest rates dipped below 6%.  We have noticed more competitive bidding war situations lately, and the lower rates go the more sidelined buyers will jump back into the game.  Lately we have seen rates increase a bit more above 6% in the last week, so that has stagnated some activity.  The CPI figures that came out this week showed that inflation continues to be an issue with an overall increase of 1/2% overall.  Although goods and services have increased costs significantly over the last 9 months, people are still spending.  Retail did very well in January so that has the markets concerned for a longer than expected corrective trend.  The Federal Reserve meets the third week in March and it can be expected that they will probably raise rates again.  Most expect them to raise another 25 basis points or .25% at that time, but we will see.  We are still expecting Mortgage rates to settle down this Spring, but inflation will be the determining factor.  This overall inflation reduction plan will probably take some time.

Cash buyers are continuing to keep our Real Estate market strong as well.  People have more cash than they ever have and that stability has really helped weather the storm.  People also continue to enjoy record numbers of equity in their homes.  Many are using this equity to leverage against the markets and purchase investment homes.  Rents continue to remain strong and can be a very effective portfolio strategy.  We recommend that every person diversifies with as much investment Real Estate as they can acquire.

We need a lot more inventory.  Builders are managing increased costs, new state and local building codes & laws; which can slow down incentivization as risk increases.  Many other homeowners are not interested in making the transition from one home to another in a market with limited supply.  It also takes quite a bit of motivation for someone to move from a 3% mortgage rate to a 6% mortgage rate.  We continue to see the benefits of a buyer’s ‘Winter Window’, but that may be closing quickly.  As Spring draws closer and it begins to warm up; people will get energized to make a move.  One thing that we can count on is that activity will pick up in the Spring and Summer.  The question will be, will there be any inventory to choose from?

If you or anyone you know is planning on making a move, give me a call.  Every situation is different and I can help them gain the knowledge they need to make a wise decision.

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