What a great start to 2014. The 2014 real estate market is starting off with a bang. Reviewing the statistics from December 2013, and January-February 2014, there is great news. While the number of active listings is slightly lower than at the end of 2013, there are more new listings reaching the market and more houses are entering the market. Sellers are seeing a consistent demand from homebuyers and are answering that call by putting more homes on the market.
Having a balance between supply and demand is healthy—If there are too many buyers and not enough sellers (known as a seller’s market), it can create elevated prices and frequent multiple-offer situations. If there are too few buyers and a plethora of homes on the market (known as a buyer’s market), the opposite can happen where houses become under-valued in the market and the market can grow stale.
The number of pending listings has increased, representing a market that is active. Listings are moving from active to pending at a higher rate than in December 2013. Also, pending sales are showing an upward trend. This is a good indicator of a healthy market, as this trend can be used to project the future sales rate, as these pending listings go to closing. A strong number of transactions on deck to become completed sales helps the market remain balanced. If this number fluctuates greatly, it can cause fear and instability, stopping homes from coming onto the market or buyers writing offers.
The number of sold listings is remaining strong. This shows that transactions are proceeding to closing. Finished transactions provide strong statistics that the market is moving through the selling process. A high number of pending sales and a low number of closed sales indicates transactions are not moving far in the process. This can again cause apathy in the market which in turn can stall sales.
Average days on market are staying steady, demonstrating stability in the market’s balancing supply and demand. This number is healthy for a thorough sales process. Too quick of a closing can cause buyers to hesitate on making offers. Too slow of a closing can weaken pricing, allowing for more fluctuating in related markets (such as loan rate changes) to affect transactions in process.
The months of inventory have increased, but this is a good sign. This number indicates how long it would take, based on the current market movement, to sell all the homes currently active in the market. An average of 6 months is an accepted benchmark for a healthy market. There is also a perspective that for a resort town, 7-8 months is an indicator of a healthy market. The statistics are right in the pocket for a healthy market and pairing healthy demand with adequate supply.
Central Oregon is cultivating a market that has a balance between buyers seeking homes and sellers looking to sell. Homes are on the market an appropriate amount of time to enable thorough closing processes and sound deals.
With the current market statistics trending as they are, Central Oregon is maintaining a strong and growing market. This is a great gauge for a dynamic and vibrant real estate environment. It also contributes to a stable economy for the region. Stability is a great sign that current timing is highly favorable for buying or selling real estate in Central Oregon.
Duke Warner Realty was established in 1967 by Duke and Kitty Warner. Their philosophy was to establish a first-rate real estate company sensitive to their customers’ needs. They felt that if they treated the customers fair and square, they would keep coming back and bring others with them. That is exactly what happened.
Duke Warner Realty’s brokers share this philosophy, and today the firm is widely-known for its personalized service and reliability. With this kind of reputation, Duke Warner Realty’s success has endured through good times and bad. The company is here to stay, and its brokers are interested and actively involved in our wonderful community.Duke Warner Realty 541-382-8262.
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|
December 2013 |
January 2014 |
February 2014 |
|
# of Active |
513 |
461 |
457 |
|
# of New |
84 |
162 |
143 |
|
# of Pending |
97 |
152 |
161 |
|
# of Sold |
151 |
96 |
131 |
|
Avg Days on Market |
136 |
157 |
147 |
|
Months of Inventory |
4.7 |
7 |
6.3 |
