Dear Friends and Clients,
There has been another significant change in the market place so I just wanted to bring you up to date. The last 30+ days the market has slowed dramatically. I believe it is a reaction to the large jump that interest rates have taken in the past weeks. At this time a 30 year fixed loan is at 4 ½ % just weeks ago it was 3 ¼%. I think that just like when the gas prices took large jumps people reacted by changing their driving patterns and buying as little gas as they could. Gas was $3.25 a gallon all of a sudden. Then $3.50. Now those prices look great to us as gas is over $4.00 at the pump today.
I think that once people digest the fact that interest rates under 4% may not ever been seen again and that under 6% rates were the norm for many years, they will start to take action to select a house and get under contract before they go up more. At the moment it is just a reaction to a very sharp incline in rate.
January through most of April of 2013 has been very active. It is still activity for houses in town but we have seen some of the higher end properties being sold this year including investment lake property and higher end homes on small acreage. That segment of our market has been nearly non-existent for quite a few years. Vacant land is still experiencing lack of activity with very few calls/inquiries and few sales. Overall the market in Wallowa County is hopeful as property values have not started to recover as yet, unlike areas of Portland, Bend, Seattle etc that have noted 10% or more price increases since January of 2013. I will keep you updated on any other market changes.
Please contact me if you have comments or questions.