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What Happened With Redmond Oregon Real Estate Sales in 2023?
Redmond Home Sales Dropped in 2023
Redmond has been among the best locations in Central Oregon for middle class homeowners to reside. Situated only 20 minutes north of Bend on Hwy 97, Redmond has been a more affordable option for many looking to purchase in Central Oregon and its close proximity to Bend has made Redmond a town from which many who work in Bend can fairly easily commute.
Redmond experienced the same real estate market trends Bend did during the Covid pandemic with limited inventory and great demand pushing prices up. Low interest rates enabled many to purchase Redmond homes at lower prices than seen in Bend. However, when interest rates doubled in 2022, this greatly impacted the buying power of would-be Redmond homebuyers and in 2023, median home prices dropped in Redmond by over 4%.
Besides sales price, rising interest rates impacted Redmond new listings by keeping resales off the market. Why list your home when your mortgage rate is under 5% and the replacement home you need to purchase will be financed over 7%? Lack of inventory was a real problem for Redmond home sales in 2023. For two years in a row, Redmond new listings were down over 15% from the year before.
Lack of New Listings Leads to Lack of Closings for Redmond Real Estate
With limited listings and high interest rates, fewer Remond homes sold in 2023. In fact, when compared with 2021, 45% fewer homes sold. However, with mortgage interest rates dropping and now reflecting a rate last seen in May, 2023, we are starting to see an uptick in new listings and buyers are looking to buy once again. In fact, in the first 19 days of 2024, 24 Redmond homes have sold and 41 have gone into pending status with a ratified sales contract.* Many real estate experts are predicting additional mortgage interest rate cuts in 2024. If these do come to fruition, we can anticipate an uptick in Redmond home sales in 2024.
*Data from Central Oregon MLS 1-19-24.
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