Greetings:
The Chief Economist for the National Association of Realtors, Lawarence Yun, projects that the Federal Reserve will adopt a gradual approach to the lowering of interest rates in 2025. However, he expects them to be around 6%. This stabilization is expected to reignite market activity with existing -home sales projected to reach 4.5 million units in 2025. Homes prices are expected to increase approximately 2.0%. NAR forecasts housing starts to reach 1.45 million units, close to the historical annual average of 1.5 million units. Yun says, “homebuyers will find better opportunities in 2025.” He feels that “the worst of the affordability crisis is behind us, an improving and stable mortgage rates, continued job growth and more inventory.”
There continues to be a “SERVERE HOUSING CRISES IN THE STATE OF OREGON,” according to the recent Housing report from the Oregon Housing and Community Services (OHCS). The report went on to say, “Oregon must add 500,000 housing units over the next two decades to begin addressing the supply issues.” There are several reasons why housing demands are so acute in our state, such as the unprecedent growth (Oregon grew by over 733,000 residents or 21% in the last 2 decades), the costs of development and building, government fees, lack of buildable land, affordability, and lack of cooperation by all stakeholders. Up to this point, I have seen very little cooperation from the government or private sector.
It appears since Governor Kotek declared her war on solving the housing crises, little or nothing has been done, except for the tri-county area in the Portland Metro area. The Governor needs to do a better job reaching out to all parts of the state AND needs to persuade local governments to relax their zoning, building, and utility fees by either waving them or cutting them in half to help make development projects more affordable. WE NEED SOLUTIONS AND WE NEED THEM NOW. Our state is going to continue to grow because of its natural beauty and we need to be ready.
In Douglas County, the new listing inventory increased by (+62.4%) in January 2025 to 138 from 85 last month. Our year-to-date inventory is also up (+26.6%) to 138 from 109 in 2024. We currently have a 5.9 months’ supply of listings available to sell. The total market time is 79 days, which is up slightly over last month when it was 74 days. Pending sales in January 2025 increased to 127 (+51.2%) compared to last month when there were 84 new offers written. Our year-to-date pending sales at 127 shows an increase (+27.0%) over the 100 sales accepted in January 2024. We follow pending sales because it is a good indicator of how many closings we will have in the next 30-60 days.
The average sales price for our area decreased to $324,800 in January 2025 from the previous month when it was $351,200 or (-7.5%). Year-to-date the average sales price is down (-3.6%) to $324,800 compared to 2024 at $337,100! Comparing 2025 to 2024 through January the median sales price has increased by (+2.9%) from $320,000 to $329,300. 68 closed sales in January 2025 decreased (-31.3%) from the 99 closings in December 2024. The year-to-date closings are down (-15.0%) compared to January 2024 from 80 to 68.
I want to encourage you to think about volunteering your time and talents to what you feel is your passion! REMEMBER, TO MAKE OUR COMMUNTIY BETTER, YOU NEED TO BE INVOLVED. (SHARE YOUR TIME AND TALENTS). Also, please keep all our Armed Forces men and women who are serving, our First Responders, and Veterans in your thoughts and prayers for remember our “FREEDOMS ARE NOT FREE!” GOD BLESS THEM AND GOD BLESS AMERICA!
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