March 2023 Monthly Market Checkin

October 2, 2023

WE NEED MORE SELLERS! 

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 Listings (All Types)1970Down 2.4% from last month & up 62% from this time last year
Current Pending Listings973Up 15% from last month & down 28% from this time last year
Sold Listings last Month523Up 5.7% from last month & down 28% from this time last year
New Listings last Month836Up 9.4% from last month & down 13% from this time last year
Months of Inventory1.48Down 39% from last month & up 29% from this time last year
Absorption Rate27%*up 8% from last month & down 55% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$451,000Down 5.5% from last month & down 3.4% from this time last year
Average Residential Sales Price$474,000**Up .85% from last month & down 1% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.732%***Up 10% from last month & up 75% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage

Interest Rates and Inventory. These two issues continue to dominate the Real Estate Market. Inflation is showing its cracks, which tells us that the Federal Reserve has done enough work in raising rates; and they just need to be patient as lagging indicators catch up. As we see banks fail, it is clear that some of our financial systems are fragile. Hopefully the FED will adjust policies to temper the fears and stabilize the markets.

The recent jobs reports show an interesting tale. Seasonal adjustments have kept the jobs reports stronger than expected, but the report last week showed some signs of a shift. ‘Less than 5 week jobless claims’ rose dramatically and average hours worked have adjusted down slightly. The CPI report shows inflation slowing from 6.4% to 6% so we are trending in the right direction. Many people are still spending money. Shelter costs along with some other indicating factors like airlines, travel, lodging and apparel have kept the numbers higher. These are expected to curve and some experts are saying that May is going to be a deciding month where we see rates stabilize to move in the other direction.

At this moment our inventory is staggering low. We are seeing numbers similar to what we saw in 2021. In fact, when we separate out just Residential properties, that number greatly decreases. IT IS CLOSER TO HALF THAT NUMBER! As interest rates are expected to decrease we are going to see more buyers back into the market, but if inventory does not increase substantially then they are going to be fighting over the most desired homes. We are seeing evidence of this already. The homes that are priced, maintained, and staged well are experiencing increased demand; and sometimes even driving the sales prices over asking price. As we get closer to Spring and the weather turns warmer, more people will get out and start planning to move. It is inevitable that people are discontent and warmer temperatures bring people into the market.

If you are planning a move, then get ready. If you are a seller, then you will want to strategize a transitory plan. If you are a buyer, you’ll want to position yourself to compete at the highest level.

Give me a call as I can help you navigate through all of these moving parts.

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