Today's real-estate market finds itself in challenging waters.

Fueled by a stubborn inflationary rate, continued "supply-chain" shortfalls, higher mortgage interest rates, and lack of consumer confidence (to name a few of these challenges) — we find ourselves in a declining market.

The Comparison Numbers

One might say — how declining is this market?

Here are a few statistics to help you grasp the current status. The period of comparison is Q1 2022 to Q1 2023.

  • In total dollar volume sold — a 43% decrease 2022 to 2023
  • In total units sold — a 47% decrease 2022 to 2023

Those are dramatic declines. For sellers who timed the market by listing in 2021 or early 2022, they sold into a peak. For sellers in Q1 2023, the buyer pool is dramatically smaller.

The Silver Lining

There is, however, a silver lining.

Due to low inventory, the Average Sale Price is up 7% — from $260,000.00 in 2022 to $278,000.00 in 2023.

That's a meaningful detail. While the volume of transactions is dramatically lower, the homes that ARE selling are selling for more money than the year before.

For Klamath sellers willing to be patient, that's reassuring — the market hasn't collapsed price-wise. It has simply slowed in transaction volume.

Why Klamath Is Different From Many Markets

Now, let's talk about the potential of the Klamath Market.

In a recent state economy report, Klamath County is leading the state in growth rate — something our community has never attained.

That's a remarkable headline. In a moment when most rural Oregon counties are losing population or stagnating, Klamath is growing faster than any other county in the state.

Why Klamath is on the upswing

Should the local efforts solve even partially the lack of housing, our region will experience continued growth.

With some of the bedrock employers ready to grow:

  • Kingsley Field
  • Sky Lakes Medical Center
  • Oregon Institute of Technology
  • Klamath Community College

Couple that with:

  • Pump Storage (the planned multi-billion-dollar pumped-hydro storage facility)
  • Klamath River dam removal soon to begin

— and we have a recipe for great things to happen.

What This Means for Buyers

For prospective Klamath Basin buyers in this environment:

  • More inventory than 2022 — but still constrained
  • Higher interest rates mean larger monthly payments
  • Less buyer competition — fewer multi-offer scenarios
  • Time to negotiate — sellers more willing to discuss price, closing costs, inspection items
  • Long-term outlook is strong — Klamath County growth narrative is real

For buyers willing to navigate higher interest rates now, the acquisition environment is more favorable than it was in 2021-2022.

What This Means for Sellers

For Klamath Basin sellers:

  • Pricing must reflect current market — not 2022 peak pricing
  • Homes must show well — buyers are more selective
  • Marketing matters more — fewer buyers in the pool mean each one must be reached effectively
  • Patience is required — average days-on-market is longer than the peak market
  • Average sale prices remain at peak levels — the homes that sell are getting strong prices

Sellers who price correctly and present well will still get good outcomes. Sellers trying to chase the 2022 peak prices will sit.

What This Means for the Basin Long-Term

A declining transaction volume in a declining national market doesn't tell the Klamath story.

The Klamath story is:

  • Population growth when most rural Oregon is shrinking
  • Major employers expanding capacity over the coming years
  • Major regional projects (Pump Storage, dam removal) creating construction and operational employment
  • Quality-of-life proposition that attracts remote workers and retirees

The Q1 2023 numbers are a snapshot of a moment — not a trajectory.

A Recipe for Recovery

It's all in how you bake the bread.

With:

  • Strategic positioning by sellers
  • Patience by buyers
  • Continued investment by employers
  • Major-project momentum building

— we should see continued moderate growth and prosperity well into 2023.

Thank You

Thank you so much for your support of this great magazine, Klamath Living.

For Klamath Basin buyers and sellers navigating this market, I'm here to help interpret what the numbers mean for your specific situation — whether you're buying, selling, holding, or investing.

Contact

Randy L. Shaw · Owner & Principal Broker Coldwell Banker Holman Premier Realty (541) 884-1343 · ColdwellBankerHPR.com

Statistics provided per the Klamath County Association of Realtors Multiple Listing Service.

Whatever your real-estate questions are this season — we're here.

Klamath is growing. The basin is on a real upswing. Even in a national market correction, our local fundamentals are strong.

Choose Klamath. It's still the place to be.