Greetings:
Nationally total existing home sales continue to drop. In November of 2021 sales reached 6,330,000 compared to 3,790,000 through October 2023. There are several reasons for this trend, but the most predominant are the higher interest rates and affordability. Most households are having more trouble making ends meet and they are spending over 35% on house payments. The Fed’s war on inflation going into 2024 could end but it will take some time. While the Feds don’t set mortgage rates, lenders do, and they keep an eye on what the Federal Reserve Board is doing with rates. However, it is predicted rates will stay in the 7-8% range for the early part of 2024 but are expected to drop lower mid-year.
In our local real estate market, comparing 2023 to 2022 through November, the average sales price has decreased (-4.4%) from $359,000 to $343,200. In the same comparison, the median sales price has decreased (-2.8%) from $324,000 to $315,000. The median sale price reflects the home price sales with half of the houses sold above $315,000 and half selling below. Douglas County is following the national trend of home prices decreasing.
New listings for the month of November were down to 104 from 138 in October 2023 (-24.6%). Year-to-date there have been 1,669 new listings, which is down by (-14.2%) from last year at 1,946. Currently, there is a 4.2-month supply of listings on the market to sell, which is the same amount as last month. This means that if we do not take another listing, it would take 4.2 months to sell the inventory. This is up from the first of the year at 3.7 months. You can see that the market is shifting to favoring a buyers’ market. It takes about 77 days to sell a home which is up by (+58.5%) year-to-date compared to 2022.
There were 24 houses sold last month in the $200,000 to $300,000 and 26 houses sold in the $300,000 to $400,000 price range. There were 10 homes sold in the $500,000 to the $1,000,000 price range and 1 over the $1,000,000 price and one house selling for over $1,100,000.
Our closed sales for November 2023 were 92 which was the same amount as October 2023. However, comparing year-to-date, our closed sales are down (-16.9%) 1,204 in 2023 vs 1,449 in 2022. Less sales are another example of the market trending toward a buyers’ market.
Our local real estate market continues to evolve, and we are seeing a downward trend. Some areas continue to see increases in average sales price, most notably SW Roseburg at $458,600 and Myrtle Creek at $294,600. Overall, Douglas County November prices have decreased to $343,200 or (-3.8%).
The average square footage of homes that are selling today is 1600 sqft, which is smaller than 5 years ago when they were close to 2400 sqft. Many large builders are now starting to build homes in the 1000 sqft to make homes more affordable. With the average price per square foot at a little over $200, it makes more sense to construct smaller and tiny homes. As I mentioned in an earlier newsletter, there are many manufacturers of tiny homes with several in Oregon. You may want to investigate them as a way for you to get into an affordable home.
WE WANT TO WISH YOU AND YOUR FAMILY A VERY MERRY AND BLESSED CHRISTMAS. WE HAVE ALL BEEN THROUGH A LOT IN 2023 SO LET’S BE THANKFUL FOR WHAT WE HAVE IN THIS GREAT NATION. REMEMBER, THANK A VETERAN FOR THE FREEDOMS YOU ENJOY BECAUSE “FREEDOM IS NOT FREE!”
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