August Monthly Market Check In- Trend Setting
August 15, 2025
We continue to analyze our market and are excited to share some encouraging developments that signal a continuing shift in favor of buyers. While every market is unique, several key indicators are showing positive trends. Our office has seen an increase of activity over the past month as we have facilitated a number of sales in our area. Our office currently sits at 22nd out of 284 firms selling Real Estate in our area. Thank you for all of your support! We are very honored and hope that you are confident in referring us to the people you care about.
1. Inventory is Continuing to Grow even all so slightly
We’re seeing a slight but steady increase in available homes. More choices mean less competition for each property, giving buyers more leverage in negotiations. We are currently at 4.94 months of inventory on the available market. If you remember that our flat buyer/seller market is somewhere between 5 and 6 months, although buyers are acting like it is a stronger buyers market. They have many more homes to choose from so it is very important for sellers to not overprice their homes.
2. Interest Rates are Easing – and May Drop Further
Mortgage rates have dipped slightly in recent weeks, and with inflation cooling and economic conditions stabilizing, the Federal Reserve is expected to lower rates in September. The FOMC continues to tolerate pressure from President Trump and others in his administration to drop rates. Although the FED’s goal has always been 2% inflation, they are still above that at 2.7%, so it will be interesting to see if they buckle under the pressure. If that happens, it could further improve affordability and increase buying power for those ready to make a move; however that may reflect continued higher pricing for goods and services. Remember that short term interest rates do not directly affect mortgage rates. The bond market is a better indicator to measure rates in our industry.
3. Prices are Holding Steady
Sales prices remain relatively flat. Our average sales price has increased 1.6% since January, but that has leveled off recently. Homes are not appreciating like they did just a short time ago. Our average Residential sales price is currently at $512,833. This stability allows buyers to shop with confidence and without the urgency of rapidly rising prices. We continue to feel confident that we are not going to see market values drop, although we are seeing some really nice pricing opportunities for buyers.
4. Economic Outlook is Brightening
The economy is improving modestly, with inflation trending down. This combination supports long-term stability for both buyers and sellers. Unfortunately the jobs market is flattening out with little gains over the past few months, but the unemployment rates continues to hold steady at 4.2%
This site is very interesting to view different metrics within the past number of years under the past few administrations. Here is one example…
5. Buyer Sentiment is Improving
The widely watched Fear & Greed Index is leaning toward “Greed,” signaling a shift toward optimism and opportunity in the market. It currently sits at 63, but it wasn’t long ago back in April when the index was down to 3! That measured extreme fear among the CNN metrics. One thing has proven to be true, is that confidence and fear can change on a whim.
Taken together, these trends are creating a more balanced environment where buyers can explore opportunities with more confidence, better affordability, and a wider selection of homes. Many buyers are still sitting on the fence, but we suspect that if rates dip down to the low 6’s and certainly into the high 5’s, then buyer activity will increase substantially. The inventory at that time will be a big factor in determining if it will spur on another high activity selling season or not. If inventory reaches over 6 months or more at that time, then we can see buyers still patiently continue to take control of the speed of their decisions within the Real Estate Market.
Here is a snapshot of our Real Estate trends in the valley…
| Current Active Listings (All Types) | 3357 | Up .4% from last month & up 11% from this time last year |
| Current Pending Listings | 1115 | Up 2 % from last month & up 1.5% from this time last year |
| Sold Listings Last Month | 748 | Up 1.8% from last month & down 7% from this time last year |
| New Listings Last Month | 1234 | Down .8% from last month & up 14% from this time last year |
| Months of Inventory | 4.94 | Up 1.2% from last month & up 10% from this time last year |
| % List to Sold Ratio | 98.50% | Down .4% from last month & down .4% from this time last year |
| Absorption Rate *Based on current active listings vs sold listings for the past month | 22%* | Even from last month & down 19% from this time last year |
| Average Sales Price in All Categories | $465,000 | Even from last month & even from this time last year |
| Median Residential Sales Price Average Residential Sales Price **Based on Willamette Valley Multiple Listing Statistics | $460,000** $512,833** | Even from last month & up 1.8% from this time last year. Up .25% 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 | 6.63%*** | Down 1.6% from last month & up 2.5% from this time last year |
| Consumer Price Index Average (CPI) **** FED’s Goal is 2% | 2.7%**** | Even from last month & down 7% from this time last year |
+Some numbers are rounded
If you’ve been thinking about buying, the coming months could present an excellent opportunity—especially if interest rates do indeed move lower in the months to come. We’re here to help you position yourself to take advantage of these changes.