The real estate market has slowed down slightly since we have rounded into the colder fall months. But even though things appear to have slowed down, September was a great month for listings, seeing one of the highest numbers in months. The Bend Real Estate market is still stronger than four to five years ago in the fall.
Benchmark Interest Rates
It was announced in September that the central bank would not raise its benchmark interest rate. The Federal Reserve chairwoman Janet Yellen made this announcement. This rate is used to set the rates of most bank loans. So how does this affect housing market in Central Oregon?
Fed Fund rates are currently at .50 percent, but they may not remain there much longer. Some economist polls have predicted that there will be an increase to .75 percentage points, sometime in the fourth quarter of the year.
The Federal Reserve hasn’t raised its benchmark rate since December 2015. Since then, conventional mortgage rates have fallen and are near three-year lows.So even if the Federal Reserve decides to increase their rate, it may not mean that mortgage interest rates will increase right away.
Some believe that the low interest rates have driven housing prices up. With a low interest rate, some homebuyers are able to afford higher priced houses.
There are so many variables associated with home buying and interest rates to accurately predict what will happen. Even with an expected rise to the Fed’s benchmark interest rate, it’s impossible to accurately predict what will happen to the housing market.
Number of Listings increases
In Central Oregon listings were up, even though there was a decline nationally. Building permits did see a rise nationally.This could indicate a growing trend of more home-building activity.
Locally listings continued to rise from August, going from 534 to 554 in September. The number of listings has continued to grow even from July, with September coming in as the highest number of listings per month since before February.
Pending listings did see a slight decrease, but it’s expected that sales will continue to come through in October. Sales fell from August to September slightly, as was expected after the summer sales rush was ending. The market is still more active than prior years, and is expected to stay busier in the coming months.
To keep track of the current real estate trends in Bend and the trends of fall as we head into colder months, keep in touch with Duke Warner Realty. We compile comprehensive market data that is available to home sellers and buyers. Learn about what we can do to help you with buying or selling real estate by visiting dukewarner.com, browsing our Facebook page, or calling us at 541-382-8262.