(Scott Asla)
“The market is very up and down right now,” said Scott Asla of Windemere Real Estate. “Homes used to sell in 24-48 hours with multiple offers, while 60-90 days is now typical. And what had been a seller’s market as far back as COVID started to shift around November-December 2024 to what is definitely a buyer’s market today.”
Reinforcing his contention is the fact that “inventory in Deschutes County is the largest I’ve seen at 5.4 months (which means that if no homes are added to the existing inventory, it would take 5.4 months to deplete).”
Asla primarily blames high interest rates on the large inventory, asserting that they “are taking a huge toll. The Federal Reserve has been saying since last September that it will drop interest rates, which creates unrealistic expectations. Yet the federal funds rate has held steady.” (He compared current interest rates of 8% to the 2020-2023 pandemic period when a record number of homes were sold at interest rates between two and 3.5%.)
“If interest rates could be below 6%,” said Asla, “banks would make money, and potential buyers wouldn’t be shocked — leading to a more balanced market” (which is characterized by an equilibrium between the supply of homes for sale and the demand from buyers).
He pointed out that larger builders are less affected by high interest rates, as “they can add interest to the cost of homes — e.g., offering 4.9% to 5.5% interest on 30-year mortgages — and still get their money back. Middle and small developers, however, are scared to death to move. Building four homes at a time, for example, entails a $2.2 million investment, and many won’t take that risk.”
Looking ahead, Asla predicted that “it’s going to be a pretty bright future. People want and like to move, and as soon as interest rates go down sufficiently, the housing market will take off.”
Asla is also optimistic about the commercial market in La Pine, which he characterizes as “really good and heating up. The town has always been underbuilt, and never had all the retail buildings that were needed.”
Having owned multiple auto parts stores before moving from Portland to La Pine in 1995 to open a new Baxter Auto Parts location, Asla is as conversant in the commercial side of the business as he is in the residential. A current client plans to build an ARCO gas station at Huntington and Burgess — eventually adding a car wash and retail store — a deal that was cemented when the client (who already owns two locations in Bend) visited the site with his two sons and “couldn’t believe the traffic. Once they observed the high numbers, it was a no-brainer,” Asla said.
Also coming are a Starbucks and an Auto Zone near La Pine’s City Hall. Asla believes that “this will definitely open the door for other small- and medium-size retailers — who recognize that these larger entities spend millions on market research to determine new locations.”
Asla said that he had “always wanted to do real estate,” the appeal being that “I like people and dealing with them.” He estimated that “over the course of time I’ve been an agent in Central Oregon, 65% of my residential sales have been in south county, and 100 percent of my commercial sales. We try to stay from Bend south but have sold quite a few in Redmond and Prineville.”
He chose to affiliate with Windemere several years ago. “The company has been owned by John Jacobi and his descendants since being founded in 1972, and I enjoy being part of the family.”
