Turning the Tables: Why Deschutes County's Top Spot for Homes Selling Under List Price Benefits Sellers Over Buyers
A few days ago, the local media shared an article about how Deschutes County was leading in the number of homes selling below their original list price. At first glance, this might seem like a positive development. In a county primarily filled with high-priced homes, particularly in the Bend area, the title of the article could give readers the impression that prices are decreasing (or that this is the beginning of a hoped-for crash). However, I'm here to clarify that while it's beneficial to live in a county with this distinction, the situation isn't entirely favorable for potential home buyers.
Every month, I track the percentage of the local market selling above, below, or at their original sales price (O.S.P.), graphing it to observe changes over time. I'm particularly interested in comparing this statistic to the market before, during, and after the COVID-era housing frenzy.
When examining the visual above, you'll notice that towards the end of 2023, the market share of homes selling below their original sales price rose to its highest level since nearly a year before (Jan '23). After peaking at 78% in December 2023, the share of homes selling for under asking price has gradually decreased. In other words, the market is shifting in favor of sellers. While there is certainly a seasonal pattern to this trend over time, it will be intriguing to observe how the recent increase in mortgage rates influences this graph into April and beyond, particularly if the elevated rates (7%+) persist for an extended period.
Before concluding, it's essential to inject some optimism for potential homebuyers. Amidst the current market conditions, it's not all doom and gloom for buyers. In fact, there are several reasons to feel optimistic if you're in the market for a home right now.
In the current landscape of increased mortgage rates, many are feeling the strain. However, if you come across a home that you like and notice it's been lingering on the market for a while, there's certainly room for negotiation.
Fortunately, the lending industry has acknowledged the affordability challenge and offers various programs to structure loans in a way that assists with monthly payments.
For those who might find themselves priced out of Bend but still wish to stay in the vicinity, there's good news. Surrounding areas like Redmond offer plenty of attractive homes at lower price points, with nearly 75% of its active market priced under $600,000. Often, you'll find that you can get a better house in Redmond compared to Bend, all at a more affordable price. Additionally, La Pine continues to emerge as a growing city, offering even more favorable prices than Redmond.
If you're a seller aiming to capitalize on this upward trend, it's essential to prioritize good preparation and accurate pricing. This ensures that you avoid being part of the 54% selling for under the asking price. This is particularly crucial if your home falls within the price range currently experiencing the most strain. If you're unsure about which price range I'm referring to, I recommend checking out this article for more information.
