Sales of existing homes in Central Oregon picked up in December. It could be that the unusually mild weather we are having was at least partially responsible for the increase. There were 310 homes sold in December 2011 compared to 271 in November. A 14.4 percent increase in homes sold from November to December is very unusual. In fact, looking back over the last six years I found no instance where sales increased more than three (3) from November to December. That’s three homes not three percentage points. So you can see that the increase in homes sold this December is significant.
One number that doesn’t appear to be significant is the number of homes for sale. It is the norm for inventory in December to be lower than November and this year was no exception. There were 1870 homes for sale in December compared to 2012 in November. What could make the inventory number significant is the law of supply and demand. With more demand for homes and fewer homes available, sellers will be able to raise their asking prices. I believe we are already seeing this although it isn’t fully reflected in December’s sales figures. Most of the homes sold in December went into contract in November and earlier (especially short sales) when inventory wasn’t as tight as it is now. The average price per square foot of homes sold was up 5.4 percent in December to $118. If demand stays (relatively) strong and inventory doesn’t keep up you can expect prices to continue to rise.
You can read more monthly sales reports: Bend Home Prices.
Real Estate Sales information courtesy of Central Oregon MLS
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