September 2023 Monthly Market Checkin

October 2, 2023

I continue to be immersed in our Real Estate market and absolutely love giving you updated information so you can be well prepared.  If you have any questions, please give me a call to discuss details. 

Current Active Listings (All Types)2568Up 4% from last month & up 11% from this time last year
Current Pending Listings1062Down 10% from last month & down 19% from this time last year
Sold Listings Last Month863Up 10% from last month & down 11% from this time last year
New Listings Last Month1123Up .2% from last month & down 9% from this time last year
Months of Inventory3.55Up 4% from last month & up 43% from this time last year
Absorption Rate34%*Up 6% from last month & down 21% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$470,000Up 4% from last month & even from this time last year
Average Residential Sales Price$493,000**Up .8% from last month & up .2% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates7.12%***Up 3% from last month & up 31% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage
Some amounts are rounded up or down

The average homeowner has around $200,000 in equity in this current US Real Estate market.  That is great news because it allows people to work with that equity to help in other areas if needed.  Many people are pulling funds out through HELOCs to purchase more Real Estate, but this flexibility might just be an added unintended insurance policy at a bad time.  As consumer spending continues to increase dramatically, many people are putting those purchases on credit cards and not intentionally saving money for a rainy day.  

The difference between credit card debt and savings is a whopping amount!  It has been reported that the average credit card debt surpasses $10,000 for each cardholder and the average credit card interest rate is over 28%!  It doesn’t take long for people to run out of options with those numbers and they will look to other means to help remedy the problem.  That is where Real Estate can benefit.  It is no surprise that many people are holding tight to their 3% mortgage rates, however, when inflation finally catches up and their credit cards max out; their Real Estate portfolio might be the best thing to turn to.  Mortgage refinances have slowed to molasses rates, but that might change soon.  Consolidating debt to a 7.13% rate sure sounds better than 28%, doesn’t it?  

The CPI report just came out and it shows that Core Inflation (excluding food and energy) rose .3%, which is higher than expected.  Inflation rose .6% for all items, which is the highest monthly increase this year.  The Fed has mentioned that they will consider raising rates if the inflation reports are not encouraging.  This is another sign that the economy continues to grow and I expect the FED to take more action on rates when they meet on the 19th and 20th of this month.  This is not encouraging for mortgage rates.

Unfortunately we continue to see the market trending towards more challenging times in the short term.  With interest rates continuing to increase, the challenging economy, and updated jobs numbers suggesting that the initial jobs reports are not as strong as they indicated; the shift continues.  This market is definitely not great for borrowing buyers and it is argued that it is not the best for sellers either.  The people who are taking advantage of this market are cash buyers.  It is also important to note that we have been accustomed to lower than normal rates for many, many years.   We have been spoiled, but the average mortgage rate over the last 30 years is around 7.74%.  You don’t have to look very far to find someone who paid 18% back in the early 80s.

If you know anyone who might be experiencing challenging situations ahead and need a good lender or Real Estate consultation regarding any matters, contact us right away.

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