June 2023 Monthly Market Checkin

October 2, 2023

I hope you are well and enjoying this beautiful and rare June we are having.

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 Listings (All Types)2207Up 11.8% from last month & up 28% from this time last year
Current Pending Listings1216Up 4% from last month & down 10% from this time last year
Sold Listings last Month767Up 17% from last month & down 26% from this time last year
New Listings last Month1245Up 19% from last month & down 8% from this time last year
Months of Inventory2.93Up 14% from last month & up 60% from this time last year
Absorption Rate35%*up 5.8% from last month & down 52% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$447,000Up 2% from last month & down 5% from this time last year
Average Residential Sales Price$481,000**Up .41% from last month & even from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.71%***Up 4.8% from last month & up 23% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

Interest rates are being so stubborn. They are still bouncing around in the upper 6% range, and even though CPI is showing a slowdown, the Fed continues to verbalize that their target PCE (Personal Consumption Expenditures) at 2%. They are currently at 4.7%, so it will take some drastic measures to get it down to their goal. Consumers continue to spend with used cars up .4%, shelter up .6% and ‘away from home lodging’ up 1.8%. People are still taking their vacations and getting away. CPI was up .1% overall, but the CORE CPI was up .4% which is without taking into account the food and energy sectors. Although they “skipped” their rate hike this month, they are signaling that they are going to continue to raise rates until something breaks.

We were expecting mortgage rates to start declining last month and then the excuses of the debt ceiling came into play, then the Saudi Arabian reduction of oil production, and it seems that there is yet another reason why rates are still being stubborn. This continues to be the leading issue with our reduction in sales in the Mid Willamette Valley, however prices continue to increase overall! There are some areas within the Mid Valley where prices have flatlined and decreased a bit over the last few months, but the issue really is house specific. Even though inventory continues to increase slowly, we continue to see high demand in quality housing. We are also seeing multiple offers and bidding wars in some sectors, especially when a home is nicely kept and updated. Buyers are cautious with properties that have challenges. Wallpaper, datedness, busy roads, dysfunction, poor condition, challenging location, etc are all issues that buyers are not settling with. Some items can’t be resolved, but it does pay off to spend some time and money updating and getting your home into great condition.

With rates climbing as much as they have, many buyers who are still in the market don’t have as many resources to do those updates and therefore expect a steep discount in lieu of them. The idea of allowing a buyer to do them as they wish does not give a seller the most profit. These projects take time and money, so it is beneficial to plan these out so there is enough time for completion. Contractors are busy and backed up. Supply costs continue to rise in most categories. As a general rule, the longer one waits the more expensive it is.

If you would like any advice on planning a sale and move, please don’t hesitate to reach out. We’d love to help. We always appreciate your business and referrals and believe no one else could serve you as well as we do. With the market slowing down, we are seeing that many agents who entered this business over the last 10 years when it was “easy” are struggling to close transactions. Our office continues to be busy because we are professionals, not hobbyists; and we see ourselves as Winter Soldiers.

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