As Central Oregon begins to see its first flurries of the season, everyone seems to be getting into the holiday cheer. But snow isn’t the only frozen thing around here, with 2023 being the year of the market freeze. Could 2024 possibly be the “thaw” the housing market needs? Take a look at the December 2023 Beacon Report for Central Oregon and make your predictions for 2024.
And for all our Redmond friends–we have pulled the data and now are including Redmond within the December 2023 Housing Market Report for Central Oregon. Bend and Redmond are rapidly changing, and we are here to help you understand the numbers.
December 2023 Beacon Report for Central Oregon
As a quick reminder, The Beacon Report for December 2023, shows data on closed homes in November.
Just from looking at the data here, we can see little change except within days on the market. For Bend, median days on the market nearly doubled since October. While the number of closings wasn’t dramatically smaller, it does mean that houses are staying up longer during the cold season.
As for Redmond, closed homes spent 21% fewer days on the market, a welcomed improvement for sellers.
For both Bend and Redmond, we are seeing a decrease in median price and total number of closings. We are at an all-time low on volume, meaning many pent-up transactions are waiting to happen. Once we get through the holidays, consumers will realize rates are now one percent better than a month ago and start house hunting.
As you can see from the data provided here, for both cities, the months of inventory haven’t changed. This means more homes are not coming on the market. However, looking at next year, a benefit for the consumer means there should be much more inventory to choose from. And for buyers, it will likely mean lower payments on their loans.
This should reestablish some normalcy within the housing market and keep things moving. Zillow’s 2024 Housing Predictions included this insight: “Home buyers will have more options and a bit more affordability breathing room…” While the breathing room may not last forever, it’s a hope that many home buyers have.
MLS Data for December 2023
Heads up, it is important to remember that the MLS Data is more up-to-date than the Beacon Report, and it also represents all the properties on the market, unlike the Beacon Report, which only represents the properties that sold.
Ok, let’s dig in.
The data for Bend looks similar to last month’s report, but includes some insights worth exploring:
- The total number of listings has dropped by about 5%, which isn’t extreme but it isn’t an upward tick either.
- There are less listings with changed prices, which is interesting considering last month’s report showed an increase. But as the Beacon report reflected, there seems to be fewer closings, yet sellers aren’t dramatically dropping their prices.
For Redmond, there is a 21% drop in the average change from original pricing, meaning fewer sellers are changing their prices after listing. This could be a sign they are confident they will be able to sell their home in the new year.
It is difficult to pinpoint an exact reason for these numbers, but the winter season contributes to a slower pace in the market.
While some people may predict what the new year will look like, the housing market is a tough one to nail down. However, Zillow’s 2024 Housing Predictions should bring some insights to all buyers and sellers.
Here are a few of those predictions:
- More homes are likely to be listed as homeowners adjust and accept the mortgage rates
- The cost of buying a home should level out a bit, hopefully giving buyers a chance to catch up
- And rentals are on the rise. The new starter home will be a single-family rental. Zillow predicts that markets will follow New York City’s example with “rental demand surging near downtowns.”
However, in a rural area such as Central Oregon, things can get a bit more complicated. Only time will tell, but we will be here to help you navigate the market.
There’s truly no place like home for the holidays. Please don’t hesitate to reach out to us if you are considering buying or selling a home.