Greetings:
ACROSS THE NATION, HOME SALES HAVE PLUMMETEDD TO THEIR LOWEST IN 13 YEARS AS 8% MORTGAGE RATES BATTER HOUSING MARKET, according to the latest news from National Association of Realtors. Existing home sales slid 15% nationwide over the past year, slumping to seasonal adjusted annual rate of 3.96 million, the NAR reported. That’s the lowest number of existing sales since 2010. “As has been the case throughout 2023, limited inventory and low housing affordability continue to hamper home sales,” NAR Chief Economist, Lawrence Yun, said in a statement. Also interest rates of 8% on a 30-year fixed rate mortgage represent the highest level since 2000, which adds to sagging sales. Mortgage rates are likely to stay elevated over the near term. The Fed’s policy rate is now 5.25%-5.5%, the highest interest rate since 2001. Many investors and the public alike are sitting on the sidelines because of the high-rate environment and turning to purchasing Treasury notes that yield 5-6%.
As the increase in mortgage rates continue to rise, many sellers are helping buyers in the purchase of their homes by paying all or part of their closing costs, buying down the interest rate, or lowering the price of their property to make it more affordable. In Oregon and Douglas County, we are 5-6 years behind demand for housing because builders did not build, and many sellers are staying in their homes causing inventory problems.
In our local real estate market, comparing 2023 to 2022 through September, the average sales price has decreased (-3.9%) from $359,000 to $345,000. In the same comparison, the median sales price has decreased (-3.1%) from $325,000 to $315,000. As we compared August 2023 to September 2023 home values have increased from $340,600 to $345,300 (+1.4%). The trend for increase in values in Douglas County is contrary to the national trends.
New listings for the month of September were 155, which is down from 167 in August of 2023. Year-to-date there are 1,419, which is down by (-15.2%) from last year at 1,673. Currently, there is a 3.9-month supply of listings on the market to sell. There were 31 houses sold last month in the $200,000 to $300,000 followed by the next closest price range $300,000 to $400,000 price range with 25 sold. There were 18 homes sold in the $500,000 to the $1,000,000 price range and two over the $1,000,000 price.
Our closed sales decreased in September 2023 to 103 compared to August 2023 at 128 (-19.5%). Comparing year-to-date, closed sales are also down (-18.1%) with 1,011 in 2023 compared to 1,234 in 2022. The real estate market continues to evolve and change.
Some areas continue to see increases in value. Both NW Roseburg and SW Roseburg continue to see values go up with the average sales price at $495,300 (+9.5%) and $459,800 (+12.5%) respectively. Myrtle Creek and South County saw an increase of (+5.3%) to $292,900. Some of these areas have higher average priced homes since many of these homes are on the river or have large acreages.
Please keep all the men and women that are serving in the military, or health care workers and our first responders along with their families, in your thoughts and prayers.
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