Greetings:
“High prices and mortgage rates have plagued the housing market! However, we are seeing a welcome shift!” according to Medora Lee, a reporter for USA Today. She went to say, “In May 2024, more affordable houses came on the market compared to May 2023.” Also, the median priced home nationwide increased by +0.3% to an all-time high of $442,500! Inventory, of homes priced between $200,000 and $350,000 have increased by 46%, which is generally recognized as an affordable home, according to Realtor.com. This is great news for home buyers.
Even though higher interest rates still plague the housing market, they are starting to come down to just under 6.9% from a high of 7.6%. The Federal Reserve Board feels that they are starting to get their arms around inflation with favorable job growth.
In Oregon, home prices were up +3.7% year-over-year to $513,500, which is considerably higher than in Douglas County where the price was $315,000. We often hear from clients they chose to purchase here because of affordable home prices. The direction and pace at which housing supply changes indicates whether the options for buyers are increasing or decreasing. In Oregon, options for buyers are increasing with over 51,057 homes for sale, which is up by +13.0% compared to May 2023.
Our new listing inventory in the month of May (207) increased by +7.3% from (193) new listings in May 2023. New listings year-to-date have also increased by +14.3% from (719) in 2023 to (822) in 2024. As you can see, the trend is upward in terms of more homes to choose from for the buyer. Earlier I noted that inventory is increasing nationwide as well. There is a 3.2-month supply of listings on the market available, which is the down from 3.9 months at the beginning of 2024.
Pending sales in May are up to (153) 3.4% in compared to May 2023 (148). Year-to-date for 2024 pending sales increased to (608), which is up +4.3 from 2023 (583). We follow pending sales because it is a good indicator of how many closings will occur in the next 30-60 days. In May 2024 closed sales (125) increased by (+0.8%) from the (124) closings in May 2023. So far, the year-to-date closings for 2024 (520) are up by +4.8% compared to 2023 (496).
The average year-to-date sales price of a home in Douglas County increased by +1.3% to $339,300 up from $334,800 a year ago. The average price per square foot is just over $200, which is down from a year ago when it was $215. The average square foot home that is selling is 1600 sq.ft., which is down from the high of 1750 sq.ft. I have read that the average sq.ft. of a new home is going down to 1200 sq.ft. to make it more affordable for first-time home buyers.
We want to congratulate everyone that just graduated from high school - all 2.9 million of you nationwide. Many more graduates are choosing to enter a trade school which is up from last year because they can become wage earners immediately! Also, many are choosing other entry level jobs in the health care or service industry. In fact, 2 weeks after I graduated from Roseburg High School in 1964 I joined the Marine Corps. SEMPER FI….it was my only economic ticket to get out of Roseburg and off to a new adventure in my life.
I would encourage you to think about volunteering your time and talents to what you feel is your passion or ask what agencies need help. I often find that volunteering gives you meaning and self-worth plus it helps our local community thrive and prosper. Again, keep all our Veterans in your thoughts and prayers for remember our “FREEDOMS ARE NOT FREE!” GOD BLESS THEM AND GOD BLESS AMERICA!
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