Greetings:
2023 was the slowest year for US Home sales in nearly 30 years according to an article by Alex Veiga from the Associated Press. Key factors that contributed to this were the higher mortgage rates, rising prices, and low inventory of homes to buy. The National Association of Realtors reported that existing U.S. home sales nationwide totaled 4.09 million in 2023 which is a 18.7% decline from 2022. This is the weakest year for home sales since 1995. However, the median price for homes edged up to $389,800.
There is a prediction for lower interest rates in 2024. That coupled with baby boomers beginning to sell their homes, should help drive inventory upward. If rates continue to decline, many economists expect sales to increase especially in the Spring and Summer of 2024. The average interest rate for a 30-year mortgage is currently 6.6%. This should come down but is still well above the 3.56% rate of 2 years ago. Buyers are still interested in purchasing since home ownership is still the “American Dream” for many.
Residential highlights for Douglas County continue to show the same signs as the national trends with listing inventory down, demand for housing is up, and higher average sales price. One encouraging sign is in Sutherlin, west of 1-5, a large apartment complex is being built, along with 60+ homes in various stages of development above the Golf course and 20 plus homes on the southside of Ft. McKay Road.
Our listing inventory in the month of January at 109 decreased by -12.1% from 124 listed in January 2023 but are up +36% from the 80 listed in December of 2023. The trend is upward in terms of more homes to choose from for the buyer. There is a 3.9-month supply of listings on the market available which is down from 4.6 months in December of 2023. Our pending sales at 100 decreased -20% from 125 offers accepted in January 2023. However, they increased +11.1% from the 90 offers accepted in December 2023. We follow pending sales because it is a good indication of how many sales will close soon. Closed sales at 80 decreased -4.8% from the 84 closings in January 2023 and increased +8.1% from the 74 closings in December 2023.
Residential sales by price range were 6 sold at under $100k; 14 from $100k to $200k; 16 from $200 to $300K; 25 from $300 to $400k; 7 from $400 to $500k; 7 from $500 to $600; 3 from $600 to $700k; 3 from $700 to $800k; and 1 from $800k to $900k. As you can see, most of the homes that were sold in January 2024 were in the $300k to $400K range with 25 sold.
Another interesting trend is to look at the average square feet of a home that was sold in our area (1550 sq.ft.) which is down from the highest (1770 sq. ft). Another fact is the average price per square foot is about the same as last year at $200/sqft. The area that saw the largest drop in the average sales price was Glide where prices decreased by -22.4% when comparing the last 12-month period.
Again, keep all our Veterans current and past, in your thoughts and prayers for remember our “FREEDOMS ARE NOT FREE!” GOD BLESS THEM AND GOD BLESS AMERICA!
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