April Monthly Market Check In

Activity is always expected to pick up in the Springtime, however this year it appears to be either delayed for the most part, or we won’t see the big activity increase like we typically do.  We are seeing the number of sales increase a little, however with it being an election year and interest rates as high as they are comparable to over the last 15 years, it wouldn’t be surprising if our Spring and Summer selling seasons were pushed down a bit.  We will probably see a selling season similar to last year.The CPI Report that came out yesterday shows inflation rose .04% in March and 3.5% from this time last year, which is higher than the FED was hoping for.  The PCE, another factor considered by the FED, rose 2.5% in February.  This data is more than likely supporting the expectation that the FED won’t make any rate cuts anytime soon; thus delaying relief for many home buyers.  Mortgage News Daily is reporting the average 30 year fixed mortgage rate at 7.34% at the time of this writing.  Many buyers who are waiting on the fence for rates to come down might be waiting there longer than they expected.  Unfortunately homeownership costs continue to increase with the recent changes required by the NAR Settlement Agreement allegedly coming in June of this year.  If you missed our response to this and all of the media reporting, 

you can read it here.  Fortunately we are finding ways around some of the challenges for the benefit of buyers.  Stay tuned, though because the Department of Justice will weigh in to influence the direction that the industry will ultimately take.
Homeownership continues to see new challenges, but we are doing everything we can to promote this amazing privilege that creates healthy & stable families and encourages wealth for all.  In the midst of it all, people are still moving around as we saw over 600 transactions last month.  Pending listings are up and we are experiencing more showings throughout the market.  Warmer weather is on the way and us Oregonians will get tired of being cooped up from the rain.
We continue to strive to bring the highest level of knowledge, service and professionalism.  We go the extra mile to take care of the people you care about.  There are a lot of moving parts and we are happy to spend the time discussing everything in further detail. Let us know if you have any questions or need any additional information.

Current Active Listings (All Types)2320Up 3.5% from last month & up 16.7% from this time last year
Current Pending Listings1073Up 16% from last month & up 5.6% from this time last year
Sold Listings Last Month622Up 15% from last month & down 16% from this time last year
New Listings Last Month1129Up 28.5% from last month & up 14% from this time last year
Months of Inventory3.46Up 5% from last month & up 35% from this time last year
% List to Sold Ratio98.16%Down 0.2% from last month & down 0.5% from this time last year
Absorption Rate
*Based on current active listings vs sold listings for the past month
27%*Up 11.7% from last month & down 31% from this time last year
Average Sales Price in All Categories$456,000Down 0.2% from last month & up 2.7% from this time last year
Average Residential Sales Price
**Based on Willamette Valley Multiple Listing Statistics
$487,000**Even from last month & up 1.7% from this time last year
Average Owner Occupied Interest Rates
***Based on Freddiemac.com Statistics of 30 year fixed mortgage
6.82%***Down 0.9% from last month & up 8.2% from this time last year
Consumer Price Index (CPI)
**** FED’s Goal is 2%
3.5%****Up 9% from last month & down 35% from this time last year

+Some numbers are rounded

February Monthly Market Check In

With the inventory still very low historically, our experience is that many sellers are still expecting their homes to sell quickly.  Some homes are still receiving multiple offers and moving quickly, however most of them are taking some time to move.  The ones that are well prepared, detailed-clean, and have amenities that every buyer wants are the ones that get the most attention.  However, buyers are moving much slower these days.  Interest rates have held pretty flat over the last two months, so many buyers are holding tight waiting to see if they are going to drop even further.  The average Days on Market for Residential listings is 120 days from listing to closing.  Compare that with January of 2023 which was only 85 Days!  An average time for a transaction in Escrow is somewhere between 30 and 45 days.  
We are seeing more activity on our listings, which has been a very encouraging sign.  As the weather warms, we will see that activity pick up substantially.  Showing activity within the WVmls has increased 40% in the last 3 weeks alone!  We can always expect people to start moving around the closer we get to the Summer months with school & job changes, and the fact that people get the itch for adventure during the Summer months.  We would expect the market to slow down again the closer we get to the Fall, but that is speculation.  The last CPI report made the Federal Reserve hold rates again and the recent jobs report shows the “experts” that the economy is still moving along.  It is an election year, so expect the headlines to be increasingly positive on the economy!  It will be a very interesting year.
Our sales for January in the WVmls was 524 units, which is the lowest we’ve had in the Month of January since 2015 when we had 487 sales.  In 2017 we had 768 sales in January to give you a better frame of reference.  Since we specialize in Residential units, we have brought our attention that we only had 330 Single Family Residential detached homes sold in January.  The average sales price did tick up since the end of last year and the List/Sold price ratio is still holding very strong.  There are a number of price reductions on the market so it is important to note that the advertised price is the standard being used for that statistic.  Many sellers are having to reduce their asking prices in order to encourage more activity.  Pricing is critical in this current market.  The days of “testing the market” are over for most people, however timing can always be a surprise.  We have witnessed a number of homes sit for quite some time and then receive a bunch of activity.
It is so important for sellers to take the time to prepare their homes for the market.  Detail cleaning baseboards, window tracks, and all the cracks and crevices are where the smells hide.  Replacing end of life appliances and systems and roofs are going to make the home more sellable and worth more to buyers. Washing windows, caulking and painting, removing moss and all of the cosmetic items are so important to give buyers confidence that they are buying a home that has been taken care of.  Most of the consultations before listing take quite a bit of time and some investment.  The sooner a seller gives those details attention, the better experience it will be; and it usually costs less.  Waiting to go to market or until a buyer ties up the property usually costs the sellers more money and a less than desired experience.
Our goals are always to focus on our main points of emphasis:  

  1. Advanced Marketing, Presentation & Exposure
  2. Valuable & Success Negotiations
  3. Keeping our Clients protected through a Smooth Transaction

You have a lot of options, but we believe we are the best to serve you.  You always get what you pay for.

Current Active Listings (All Types)2261Down 1.9% from last month & up 11.4% from this time last year
Current Pending Listings844Up 14.3% from last month & down .4% from this time last year
Sold Listings Last Month524Up 4.5% from last month & up 5.7% from this time last year
New Listings Last Month814Up 35% from last month & up 6.3% from this time last year
Months of Inventory3.33Down 2% from last month & up 32% from this time last year
% List to Sold Ratio99.10%Up .7% from last month & up 1.3% from this time last year
Absorption Rate23%*Up 4.4% from last month & down 8.3% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$467,000Up 2.4% from last month & down 2.1% from this time last year
Average Residential Sales Price$495,000**Up .8% from last month & up 5% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.63%***Even from last month & up 8% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage+Some numbers are rounded

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Paramount Oregon Paramount Oregon
1008 12th St. SE Salem OR 97302
(503) 385-1518
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Principal Brokers & Brokers Licensed in the State of Oregon