May Monthly Market Real Estate Update
May 9, 2024
The weather is turning warmer and activity is picking up, although dampered a bit from a ‘normal’ Spring selling season. Real Estate is local. Here is a summary of our market over the last month.
| Current Active Listings (All Types) | 2513 | Up 8% from last month & up 24% from this time last year |
| Current Pending Listings | 1148 | Up 7% from last month & down 1.5% from this time last year |
| Sold Listings Last Month | 750 | Up 19% from last month & up 14% from this time last year |
| New Listings Last Month | 1276 | Up 12% from last month & up 21% from this time last year |
| Months of Inventory | 3.70 | Up 6.7% from last month & up 37% from this time last year |
| % List to Sold Ratio | 98.6% | Up .44% from last month & down 0.2% from this time last year |
| Absorption Rate *Based on current active listings vs sold listings for the past month | 30%* | Up 10.5% from last month & down 9.5% from this time last year |
| Average Sales Price in All Categories | $460,000 | Up .87% from last month & up 4.4% from this time last year |
| Average Residential Sales Price **Based on Willamette Valley Multiple Listing Statistics | $489,000** | Up .4% from last month & up 2% from this time last year |
| Average Owner Occupied Interest Rates ***Based on Freddiemac.com Statistics of 30 year fixed mortgage | 7.09%*** | Up 3.9% from last month & up 10.3% from this time last year |
| Consumer Price Index (CPI) **** All items-FED’s Goal is 2% | 3.4%**** | Up .3% from last month & down 36% from this time last year |
+Some numbers are rounded
Trends are an important factor to acknowledge for projections. We continue to trend sideways, which makes this ‘flat’ market very interesting; and potentially volatile for the future. We continue to keep an eye on the record high credit card debt and record low savings that Americans have, and can only determine that sooner or later something has to break. Even though the financial markets are seeing record highs, the economy is showing signs of cracks. Credit Card delinquencies are on a rise as people continue to struggle to pay for their needs. With the resilient home values holding on we continue to see most people enjoy high equity values in their Real Estate inventories. The Notice of Defaults in our area have not increased, which is encouraging that people are still able to afford their investments. Unfortunately one of those cracks is that many people are having to carry multiple jobs; and a record amount of women are working as well. Some see this as a blessing, but others recognize the strain it puts on families to pay for the necessities.
Housing inventory continues to rise slowly, but gradually. Average prices are holding fairly level overall however we are seeing some segments of the market increase with rather healthy gains, and some segments suppressed. Location, Location, Location. This still remains the most important desire for home buyers. The sideways interest rates are expected to continue for quite some time hovering around 7%. Is this the new normal? Many economists have suggested that a healthy rate should be in the 5s; and that is what we are hearing is the hope for many as the realization of the 3% mortgage in the near future goes by the way of Bigfoot. As inventory increases to come closer to a flat “buyer and seller” market, typically around 5 to 6 months; it opens up the conversations of a potential buyer’s market that might be around the long bend in the corner. Supply and Demand are at the core of this discussion.
Who do you refer your friends and family to? We’d love to help them. Statistics show that each person knows up to 4 people who will make a move each year. There is a lot of competition in the Real Estate industry. We strive to be professional, knowledgeable and believe we are the best option for the people that you care about.