January 2025 Real Estate News…

If you’re navigating the world of real estate or mortgage lending, staying informed is crucial. As of January 24, 2025, the mortgage landscape remains dynamic, with updated figures reflecting a mix of challenges and opportunities. Here’s a closer look at current mortgage rates, housing trends, and what it means for buyers, sellers, and investors.

Mortgage Rates Update: A Slight Shift

The 30-year fixed mortgage rate has seen some movement recently, dropping slightly to 7.12% as of January 24, 2025. This marks a modest improvement from the recent high of 7.44% in April 2024 and offers some relief compared to the 7.24% rate earlier this month.

However, this rate is still significantly higher than the low of 6.12% recorded in September 2024. The bond market’s reaction to fiscal policies, including potential tariffs and anticipated economic growth strategies, has kept upward pressure on rates. Both inflation concerns and revenue shifts are contributing factors, leaving prospective homeowners in a tight spot.

Central Oregon Housing Market Snapshot

“The Beacon Report” provides valuable insights into Central Oregon’s real estate trends. Median home prices and sales figures for Bend, Redmond, and Crook County highlight how these regions are adapting to current market conditions.

Median Home Prices:

• Bend:
  • Median Price: $700,000 (unchanged month-over-month, -4% year-over-year).
  • Prices have softened from the peak of $800,000 in October 2024.
• Redmond:
  • Median Price: $498,000 (+1% month-over-month, -2% year-over-year).
  • Redmond’s housing market remains relatively stable, with consistent demand.
• Crook County:
  • Median Price: $358,000 (-10% month-over-month, -29% year-over-year).
  • A sharp year-over-year decline reflects a cooling market, with prices at their lowest since Q4 2024.

Sales Activity:

• Bend: 105 homes sold (-12% month-over-month, +16% year-over-year).
• Redmond: 60 homes sold (+9% month-over-month, +22% year-over-year).
• Crook County: 15 homes sold (-7% month-over-month, -25% year-over-year).

While sales are rising in Bend and Redmond compared to last year, Crook County faces a more challenging environment, with transactions down 35% year-over-year.

What Does This Mean for 2025?

The Central Oregon housing market reflects broader national trends: higher interest rates, shifting home prices, and fluctuating sales activity. Here’s what to keep in mind:

1. Buyers:
   With mortgage rates hovering in the low 7% range, affordability remains a challenge. However, softening home prices in markets like Crook County could provide opportunities for those looking to buy at a discount.
2. Sellers:
   In high-demand areas like Redmond, rising sales and stable prices suggest it’s still a good time to list your property. In slower markets, patience and competitive pricing will be key.
3. Investors:
   With sales down in some areas but stable or growing in others, the importance of local market knowledge cannot be overstated. Redmond and Bend offer signs of resilience, while Crook County may present long-term value opportunities.

Looking Ahead

As we move deeper into 2025, all eyes are on how fiscal policies, inflation trends, and the Federal Reserve’s actions will influence mortgage rates and housing demand. While uncertainty remains, Central Oregon continues to show pockets of resilience, making it a region to watch in the months ahead.

Whether you’re buying, selling, or investing, staying informed is the key to making the right moves in today’s complex real estate market.

By: Bob Layne, Principal Broker Licensed in Oregon
Date: January 24, 2025