Real Estate Information Archive

Good Monday Morning!

WHAT WOULD 5% PLUS MORTGAGE INTEREST RATES DO TO THE 2022 HOUSING MARKET?

Back when mortgage rates were 12%, people still bought and sold houses, which cost 70% less. If rates were 12% today, no one could buy a house! Certainly, a 5% interest rate will put downward pressure on prices over time, but what will it do to the market in the near term?

The Good — Higher rates likely mean leveling prices in 2022. More owners and investors might sell now that prices are peaking, creating more housing inventory. Buyers who can still afford to be in the market can make offers on houses without quite so many competing offers, and they'll have more choices. Sellers are not likely to lose much (if any) value, though they won’t continue to see sharp rises.

The Bad — Higher rates mean the pool of buyers will shift around. Some sellers could get fewer and lower offers. Buyers will ask sellers to make more repairs. Some sellers will lose gains they made in the past year. Sellers who want to cash out at the peak may be running out of time.

The Ugly — Higher rates mean many buyers will scale back on the home price they could afford when rates were lower. They may need to drop into a lower price point, which could alter their location or home style plans, or they'll need to come up with a higher down payment.

The Next Wave? Real estate markets are like an uneven, undulating wave, going up and down like a mad roller coaster. The last up-swell has been meteoric. But that doesn’t mean the next down-turn will be just as steep. It is more likely to be a slow glide that levels off somewhere between 2016 and 2022 prices in the next 5 to 10 years (barring unforeseen circumstances). All we can ever do is make the best decision in the moment.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

531 T Street, Springfield, OR 

Price: $375,000    Beds: 3    Baths: 1.5    Sq Ft: 1090

This cute ranch style home has been nicely updated & is located in a convenient neighborhood close to the bus lines & shopping. Small RV parking, large 2-car garage, primary bedroom w/ large attached 1/2 bathroom, forced air heating, laminate floor...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

If you have been looking for a home to purchase and have become frustrated with our competitive housing market, things are about to change for you.  Yes, home prices remain high and mortgage interest rates have jumped. All of this has made buying a home difficult.  One of the largest issues has been competition and the competition level is going to change.  Soon, there will be fewer people in the housing market, which will end the bidding wars and multiple offers.  True, the home you are buying will have a higher interest rate, but for many who paid well above purchase price, the true cost of the home may be less.  The market is changing quickly, so if you have been frustrated in the past, jump back into the market.  You may be very glad that you did.  The following is an article from "Realtor.com" that talks about our current national market.

The interest rate on the country’s benchmark mortgage product edged downward for the first time since early March, but that doesn’t mean the housing market will see a reprieve.

The 30-year fixed-rate mortgage averaged 5.1% for the week ending April 28, according to data released by Freddie Mac on Thursday. That’s down one basis point from the previous week—one basis point is equal to one hundredth of a percentage point, or 1% of 1%.

Last week was the first time that mortgage rates had surpassed 5% since 2011. A year, the average rate on the 30-year home loan was below 3%.

The 15-year fixed-rate mortgage, meanwhile, rose two basis points to an average of 4.4% over the past week. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.78%, rising three basis points from the previous week.

The moderation in mortgage rates is a reflection of movements in the market for long-term bonds. Notably, the yield on the 10-year Treasury rose above 2.9% earlier in the week before settling lower, which indicated how concerns about the COVID situation in China were weighing on investors.

“Markets are increasingly weighing that with Beijing potentially following in Shanghai’s mass quarantine footsteps, the outlook for economic growth is darkening, which may affect the U.S. economy,” said George Ratiu, manager of economic research at Realtor.com.

Despite this brief setback, mortgage rates have risen at the fastest pace in over 40 years, Freddie Mac chief economist Sam Khater said in the report. And that trend is likely to continue, given that inflation remains hot.

That will prompt the Federal Reserve to hike rates and adjust its holdings of mortgage-backed securities in the coming months, which will put pressure on mortgage rates. It’s tough to understate how disruptive the historic rise in mortgage rates over the past few months has been.

“Buyers were already constrained by low inventories, which have been driving prices higher,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research note. “Sustained increases in mortgage rates will be an additional headwind for home sales going forward.”

The most recent data for both pending home sales and mortgage applications released Wednesday painted a picture of weakening demand from home buyers. The combination of high prices and high interest rates has made purchasing a home significantly less affordable, and it’s likely that some families have been pushed out of the home-buying market—at least for the time being.

“Buyers of a median-price home are looking at a monthly mortgage payment that is almost 50% higher than it was a year ago, adding an extra $580 to their monthly expenses,” Ratiu said. “It is not surprising that many are stepping back from the market, hoping that conditions will improve.”

For those Americans who persist, they will be reward by a less competitive market, which could give them more homes to choose from and a lower likelihood of facing a bidding war.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

531 T Street, Springfield, OR 

Price: $375,000    Beds: 3    Baths: 1.5    Sq Ft: 1090

This cute ranch style home has been nicely updated & is located in a convenient neighborhood close to the bus lines & shopping. Small RV parking, large 2-car garage, primary bedroom w/ large attached 1/2 bathroom, forced air heating, laminate floor...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Mortgage interest rates continue their upward trend and new worries arise as the inventory of homes for sale continues to be at an all time low.  This is an unusual situation as in the past when mortgage interest rates rise, home inventories increase, because of lesser demand.  Could it be that the historic low mortgage interest rates of the past years have created a situation where homeowners are going to sit tight and not jump into a market with higher rates?  Time will tell, but at the moment, don't look for home inventories to increase significantly for some time.  Here is a recent article from "Realtor.com" that talks about the current Real Estate market nationally.

Mortgage rates have increased for seven consecutive weeks, creating openings for buyers who have managed to withstand this tough housing market.

The average rate on a 30-year fixed-rate mortgage was 5.11% as of the week ending April 21, representing an increase of 11 basis points from the previous week, Freddie Mac reported Thursday. One basis point is equal to one hundredth of a percentage point, or 1% of 1%.

It’s the first time since February 2011 that the benchmark mortgage product has exceeded the 5% mark. Mortgage rates now stand more than 2 percentage points higher than they were at this time last year. A year ago, mortgage rates were below 3%.

The 15-year fixed-rate mortgage rose 21 basis points to an average of 4.38%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.75%, rising six basis points from the previous week.

The most recent home-listings data from Realtor.com showed that the number of new listings was down 13% compared to a year ago. Researchers cautioned that the downturn could be a reflection of the Easter holiday, which coincided with spring breaks for many children, so families may be holding off on putting their properties on the market.

Still, it’s a worrying sign for buyers. “The short supply of for-sale homes remains one of the biggest obstacles faced by today’s buyers, so last week’s pause in inventory improvements may understandably be disappointing news,” Danielle Hale, chief economist at Realtor.com, said in the report.

It’s too soon to declare an end to the seller’s market that has dominated in recent years. Whether home listings rebound in the coming weeks will offer hints of whether sellers are holding back. Some economists have suggested that higher mortgage rates could create a “lock-in” effect, where homeowners are disinclined to sell their current home because it would mean buying a home at a higher interest rate.

Meanwhile, many buyers are facing severe affordability constraints due to the combination of rising prices and higher interest rates. For the buyers who can withstand this tough environment, they may be able to find openings for deals.

“While springtime is typically the busiest home-buying season, the upswing in rates has caused some volatility in demand,” Sam Khater, chief economist at Freddie Mac, said in the weekly rate report. “It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.”

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

1819 Hayden Bridge Rd, Springfield, OR 

Price: $395,000    Beds: 2    Baths: 1.0    Sq Ft: 1292

This cute ranch style home is in a convenient Hayden Bridge location & situated on .4 of an acre. Laminate & hardwood flooring throughout, family room w/ vaulted ceilings, gas fireplace & slider to the backyard. Bonus room in the backyard is perfect...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Our local market in the Eugene and Springfield area continues the trend of low inventory of homes for sale and increasing home prices.  Even with mortgage interest rates on the rise, our market continues to be a strong sellers market.  There are signs of change in the air though that have not yet been reflected in the market statistics.  It appears that home price inflation will slow as buyer demand begins to slow from higher rates.  This should be some relief to struggling home buyers down the road.  The big question is, will the inventory of homes for sale begin to increase.  At this time it looks doubtful, but maybe by Summer or Fall we will see some increase in the numbers of homes for sale.  Time will tell.  The following are the home sales statistics for Lane County for the month of March 2022.

New listings (530) increased 16.0% from the 457 listed in March 2021, and increased 24.1% from the 427 listed in February 2022.

Pending sales (471) increased 8.5% from the 434 offers accepted in March 2021, and increased 17.2% from the 402 offers accepted in February 2022.

Closed sales (406) increased 4.4% from the 389 closings in March 2021, and increased 53.2% from the 265 closings in February 2022.

Inventory and Market Time

Inventory decreased to 0.7 months in March. Total market time decreased to 28 days.

Year-To-Date Summary

Comparing the first three months of 2022 to the same period in 2021, new listings (1,302) increased 11.2%, pending sales (1,179) increased 6.3%, and closed sales (964) decreased 0.1%.

Average and Median Sale Prices

Comparing 2022 to 2021 through March, the average sale price has increased 16.2% from $395,600 to $459,800. In the same comparison, the median sale price has increased 15.9% from $365,000 to $422,900.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

2508 Hawkins Ln, Eugene, OR 

Price: $525,000    Beds: 3    Baths: 2.5    Sq Ft: 1864

This tastefully updated SW Eugene home is tucked away in a quiet cul-de-sac. Newer roof & heat pump, hardwood floors, vaulted ceilings, updated master bathroom w/ sliding barn door & nice separation of space. Kitchen has stainless steel appliances &...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday morning!

Mortgage interest rates continue an upward trend and it is having an effect on the Real Estate market in the Eugene and Springfield area.  Over the past several years, home prices have spiked in our local market.  Low mortgage interest rates took some of the pain from the home price increases.  Now, with inflation hitting mortgage loans, the affordability of homes in our area has diminished significantly.  This has had the effect of taking many would be home buyers completley out of the housing market and has caused many others to downgrade the size and price of homes they are looking at.  As of this time, the inventory of homes for sale remains quite low in Eugene and Springfield.  This is causing home values to remain high.  The combination of higher interest rates and home prices remaining high is a market condition that I have not seen in my 33 years in the Real Estate business.  The housing market can't stay here for long, so look for home prices to begin dropping as mortgage rates continue to rise in the coming months.  There will be a great deal of change over the next several months, much if it depending on how high rates go and what level of home inventory we experience.  The following is a report on this situation from "Realtor.com".

The steep upward climb in mortgage rates still isn’t showing any signs of stopping.

The average rate on a 30-year fixed-rate mortgage was 4.72% as of the week ending April 7, Freddie Mac reported Thursday, up from 4.67% a week earlier. The last time the interest rates on home loans were this high was in the fall of 2018.

This is the sixth consecutive week in which mortgage rates have increased. And over the past three months, they have risen 1.5 percentage points. This represents the fastest three-month increase in rates since 1994, Freddie Mac chief economist Sam Khater said in the report.

“The increase in mortgage rates has softened purchase activity such that the monthly payment for those looking to buy a home has risen by at least 20% from a year ago,” he added.

The 15-year fixed-rate mortgage is currently sitting at an average of 3.91%, according to Freddie Mac’s latest data, up eight basis points from a week ago. A basis point is equal to one hundredth of a percent, or 1% of 1%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage average was 3.56% for the most recent week, up six basis points from the week before.

Overall, the surge in mortgage rates is beginning to encroach on home-buying demand. Mortgage application data shows that applications for loans used to purchase homes are down 9% from a year ago, according to the most recent numbers from the Mortgage Bankers Association.

But the rise in rates isn’t affecting all buyers equally. The Mortgage Bankers Association data showed that the most recent average interest rate for a 30-year mortgage backed by the Federal Housing Administration was 4.9%. The drop in FHA loan applications was greater than the decline across other loan types.

This, along with the increase in loan sizes, is “indicative of first-time buyers being disproportionately impacted by supply and affordability challenges,” said Joel Kan, associate vice president of economic and industry forecasting at the Mortgage Bankers Association, in the trade group’s application report.

FHA loans are more popular with first-time buyers because they have less onerous eligibility requirements in terms of down payments and credit scores than loans backed by Fannie Mae and Freddie Mac.

“The bottom line is that mortgage rates are on course to surpass 5%, a level not seen since February 2011, when the typical home in the U.S. was priced at just $166,000—less than half the price of today’s typical home,” said George Ratiu, manager of economic research at Realtor.com.

“For many American families, today’s mortgage rates are closing the door on being able to afford to buy a home this spring,” he added.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

1819 Hayden Bridge Rd, Springfield, OR 

Price: $395,000    Beds: 2    Baths: 1.0    Sq Ft: 1292

This cute ranch style home is in a convenient Hayden Bridge location & situated on .4 of an acre. Laminate & hardwood flooring throughout, family room w/ vaulted ceilings, gas fireplace & slider to the backyard. Bonus room in the backyard is perfect...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Conditions with the housing market in Eugene and Springfield are changing rapidly.  The change in mortgage interest rates is leading the charge.  Rates have increased significantly over the past several weeks and this trend will most likely continue.  How far rate increases go is anyones guess right now.  My guess is that as long as inflation continues to soar, mortgage rates will continue to rise.  Even more concerning is the fact that the yield curve, which reflects bond rates has inverted and this indicates that we are either in the beginning of a recession or close to entering into one.  Mortgage rate increases make it harder for buyers to qualify for financing, so look for the return of ARM loans, which allow buyers to qualify for a lower rate that will be in place for a period at the beginning of their home loan and then adjust to a higher rate, typically 5-7 years down the road.  If lenders begin offering these Arm loans, it may take some of the heat off of the interest rates spikes down the road.  The following is an article from "realtor.com" that speaks to the current mortgage rate situation.

Mortgages rates keep climbing, and that poses a major challenge for families looking to score a deal during the busy spring home-buying season.

The benchmark 30-year fixed-rate mortgage averaged 4.67% for the week ending March 31, according to data released by Freddie Mac on Thursday. That represents a one-fourth percentage point increase from the previous week.

This marks the highest level for mortgage rates since the end of 2018. Comparatively, at this time a year ago, the 30-year fixed-rate mortgage averaged just 3.18%.

The 15-year fixed-rate mortgage rose 20 basis points from the previous week to an average of 3.83%, and the 5-year Treasury-indexed adjustable-rate mortgage climbed 14 basis points to an average of 3.5%. One basis point is equal to one hundredth of a percentage point, or 1% of 1%.

“We’re at rates that we thought we might see at the end of the year, and here we are, at end of March, already seeing that kind of a jump,” said Michael Fratantoni, chief economist for the Mortgage Bankers Association.

To a large extent, the surge in mortgage rates over the last few weeks has mirrored movements in long-term bonds, including the 10-year Treasury. Those increases have come amid expectations that the Federal Reserve will continue to hike short-term interest rates throughout the rest of this year as it attempts to curb high levels of inflation.

The speed at which mortgage rates have increased though, Fratantoni said, could be indicative of the market’s volatility. And home buyers shouldn’t necessarily assume that rates will only be moving upward from here on out.

“Given the speed of the increase we’re still not quite settled on whether this is volatility and you will see rates moving in both directions, or whether this is just a level shift and we will stay here at the higher level,” he said.

‘There’s a lot of capacity in the mortgage industry.’

Tendayi Kapfidze, chief economist at U.S. Bank

In the coming weeks, the Fed will release the minutes of the March meeting of the committee that sets its interest-rate policy, and those notes will provide more clarity of the central bank’s intentions.

The good news for the housing market is that so far, home-buyer demand has held up in the face of skyrocketing mortgage rates, Frantantoni said. Data on mortgage applications from the Mortgage Bankers Association shows that the number of applications for loans used to purchase homes has only slightly declined, as compared with a major downturn in the number of refinancing applications.

That’s a major shift for the mortgage industry. Since the start of the COVID-19 pandemic, lenders were able to rely on a steady stream of refinances to keep their business afloat.

“Refinancing is now at a three-year low,” said Tendayi Kapfidze, chief economist at U.S. Bank. “What that means is that there’s a lot of capacity in the mortgage industry.”

Many lenders are going to be looking to make up for the lost refinancing business. That provides them with “some impetus” not to raise rates as quickly as they might otherwise choose to, Kapfidze said.

It also underscores the importance for comparison shopping. “If you’re a borrower, you want to be very diligent in terms of comparing rates to see where you might find that advantage from a lender who maybe is trying to reduce the speed at which their business is shrinking,” Kapfidze said.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

1699 N Terry St Spc 192, Eugene, OR 

Price: $149,900    Beds: 3    Baths: 2.0    Sq Ft: 1456

Every part of this home has been beautifully and tastefully upgraded and updated. New paint inside and out, quartz counter tops, new appliances, new luxury vinyl flooring, new lighting, new HVAC, new carpet and new landscaping and newer roof. Beauti...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The Real Estate market that we have been experiencing for the past several years has been rough for first time home buyers.  Even with historic low mortgage interest rates, the escalation in home prices has simply driven many first time home buyers out of the housing market.  Now to add fuel to the fire, inflation has reared its ugly head and has hit levels that have not been seen in many decades.  In an attempt to cool inflation, the Fed has initiated the beginning of what will be a long stream of interest rates increases.  The current low inventory of homes is holding home prices steady, while mortgage rates climb. This combination of events is making our current housing market even tougher than before for home buyers and especially first time home buyers.  The following is a very informative article on this subject from "Realtor.com".

Mortgage interest rates and home prices are continuing to surge, turning the American dream into what seems like an impossible goal for many first-time homebuyers. Welcome to the already fraught spring housing market.

Rates jumped to an average of 4.42%—the highest they’ve been in more than three years—and they’re expected to keep climbing. The rates were for 30-year fixed-rate loans in the week ending on March 24, according to Freddie Mac. Just a year ago, rates were more than a full percentage point lower, at 3.17%.

While that might not seem like much of an increase, it adds about $375 a month to a buyer’s mortgage payment. Over a 30-year loan, buyers will pay about $135,000 more than they would have just a year ago. This assumes they purchased a median-priced home of $392,000 with 20% down and a 30-year fixed-rate loan. The rate changes will cost buyers who take out larger loans even more.

“We are approaching a tipping point for housing markets, as an increasing number of buyers are being priced out by rising rates, stagnating real wages, and fast-paced inflation,” George Ratiu, manager of economic research for Realtor.com®, said in a  statement.

“The window of record-breaking mortgage rates has closed, and the road ahead points to a return toward rates more typical of the past two decades,” Ratiu continues. “For buyers and sellers, this spring will offer a period of transition, in which high prices will combine with rising interest rates to challenge budgets already contending with high inflation.

“Median home list prices haven’t slowed down in response to the increasing rates—and housing experts are divided on if they will,” he adds.

Home prices were 14.2% higher than they were just a year ago in the week ending March 19, according to the most recent Realtor.com data.

The number of homes for sale remains so low that prices could remain high. Inventory was down 18% from the same time last year, when the nation was already grappling with a severe shortage of homes on the market, according to Realtor.com. Homes also sold 10 days faster than they did the same time a year ago.

In addition, home sellers aren’t exactly lowering prices in response to the higher rates. Instead, more buyers are being priced out of homeownership. This is likely to result in fewer sales.

“As mortgage rates surge and buyers drop out of the market, housing will go through an adjustment period with sticky home valuations, while sellers will be reluctant to let go of record-high prices,” says Ratiu.

Rates are expected to keep rising as well. That’s because they typically follow the federal short-term interest rate. And the U.S. Federal Reserve recently raised those rates and is expected to raise them several times more this year to combat soaring inflation.

“Rising inflation, escalating geopolitical uncertainty, and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “In short, the rise in mortgage rates, combined with continued house price appreciation, is increasing monthly mortgage payments and quickly affecting homebuyers’ ability to keep up with the market.”

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

1699 N Terry St Spc 192, Eugene, OR 

Price: $149,900    Beds: 3    Baths: 2.0    Sq Ft: 1456

Every part of this home has been beautifully and tastefully upgraded and updated. New paint inside and out, quartz counter tops, new appliances, new luxury vinyl flooring, new lighting, new HVAC, new carpet and new landscaping and newer roof. Beauti...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sale numbers for February 2022 are in and they don't reflect much change with the exception of home sales prices.  The price of homes in the Eugene and Springfield area continues to escalate.  The sellers market of the last couple of years continues as the inventory of homes for sale remains extraordinarily low.  February had .9 months of inventory. This means that if no new homes were to hit the market, our current inventory of homes for sale would be gone in about 3 weeks.  A healthy market would have 3-6 months of inventory.  With mortgage interest rates rising and inflation continuing to plague us, the market you see today will not be the market of the near future. Here is the home sale report from RMLS for Lane County in the month of February 2022.

Residential Highlights

New listings (427) increased 21.3% from the 352 listed in February 2021, and increased 26.7% from the 337 listed in January 2022.

Pending sales (402) increased 12.9% from the 356 offers accepted in February 2021, and increased 20.0% from the 335 offers accepted in January 2022.

Closed sales (265) decreased 1.9% from the 270 closings in February 2021, and decreased 2.9% from the 273 closings in January 2022.

Inventory and Market Time

Inventory increased to 0.9 months in February. Total market time decreased to 33 days.

Year-To-Date Summary

Comparing the first two months of 2022 to the same period in 2021, new listings (763) increased 8.5%, pending sales (726) increased 4.9%, and closed sales (544) decreased 4.2%.

Average and Median Sale Prices

Comparing 2022 to 2021 through February, the average sale price has increased 18.3% from $386,200 to $456,900. In the same comparison, the median sale price has increased 15.8% from $360,000 to $416,900.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

2630 Bowmont Dr, Eugene, OR 

Price: $750,000    Beds: 3    Baths: 2.5    Sq Ft: 3002

Don't miss this well maintained executive home located on a quiet dead end road across from the Hawkins Heights neighborhood park. Enjoy the private backyard w/ mature landscaping from the deck & covered hot tub. Office w/ built-ins on the main leve...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sale numbers for February 2022 are in and they don't reflect much change with the exception of home sales prices.  The price of homes in the Eugene and Springfield area continues to escalate.  The sellers market of the last couple of years continues as the inventory of homes for sale remains extraordinarily low.  February had .9 months of inventory. This means that if no new homes were to hit the market, our current inventory of homes for sale would be gone in about 3 weeks.  A healthy market would have 3-6 months of inventory.  With mortgage interest rates rising and inflation continuing to plague us, the market you see today will not be the market of the near future. Here is the home sale report from RMLS for Lane County in the month of February 2022.

Residential Highlights

New listings (427) increased 21.3% from the 352 listed in February 2021, and increased 26.7% from the 337 listed in January 2022.

Pending sales (402) increased 12.9% from the 356 offers accepted in February 2021, and increased 20.0% from the 335 offers accepted in January 2022.

Closed sales (265) decreased 1.9% from the 270 closings in February 2021, and decreased 2.9% from the 273 closings in January 2022.

Inventory and Market Time

Inventory increased to 0.9 months in February. Total market time decreased to 33 days.

Year-To-Date Summary

Comparing the first two months of 2022 to the same period in 2021, new listings (763) increased 8.5%, pending sales (726) increased 4.9%, and closed sales (544) decreased 4.2%.

Average and Median Sale Prices

Comparing 2022 to 2021 through February, the average sale price has increased 18.3% from $386,200 to $456,900. In the same comparison, the median sale price has increased 15.8% from $360,000 to $416,900.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

2630 Bowmont Dr, Eugene, OR 

Price: $750,000    Beds: 3    Baths: 2.5    Sq Ft: 3002

Don't miss this well maintained executive home located on a quiet dead end road across from the Hawkins Heights neighborhood park. Enjoy the private backyard w/ mature landscaping from the deck & covered hot tub. Office w/ built-ins on the main leve...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

For many Americans, a 4% mortgage rate has gone from a possibility to a reality in the span of a few weeks.

The 30-year fixed-rate mortgage averaged 3.92% for the week ending Feb. 17, up nearly a quarter of a percentage point from the previous week, Freddie Mac reported Thursday. It’s the highest average rate for the 30-year loan since May 2019, the last time mortgage rates were above 4%.

The 15-year fixed-rate mortgage, meanwhile, rose above 3% for the first time since March 2020, increasing 22 basis points over the past week to an average of 3.15%. The 5-year Treasury-indexed adjustable-rate mortgage averaged 2.98%, up 18 basis points from the previous week.

To be sure, other surveys gauging mortgage-rate movements have shown median rates already crossing the 4% mark.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances was 4.05%, while the average for 30-year loans backed by the Federal Housing Administration was 4.01%. That’s according to the most recent data from the Mortgage Bankers Association released Wednesday,

The climb in rates has tracked a similar rise in long-term bond yields, including the 10-year Treasury note. And it’s prompting questions about the strength of the housing market in the process.

“As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers, especially as inflation threatens to place a strain on consumer budgets,” Freddie Mac chief economist Sam Khater said in the report.

The increase in rates is likely to have an effect on home prices, which skyrocketed in recent years thanks to the extra runway granted by rock-bottom interest rates.

The long-term implications of the strain of higher mortgage rates have yet to materialize. Thus far, there’s evidence that rising rates have encouraged buyers who were perhaps hesitant to enter the markets to leap into action.

“At a time when the prospect of a sustained increase in mortgage rates has drawn fence sitters into the market, this means that the supply/demand imbalance in the single family segment of the market will become even more pronounced,” Richard Moody, chief economist for Regions Financial Corp., wrote in a research note Thursday.

The increase in rates is likely to have an effect on home prices, which skyrocketed in recent years thanks to the extra runway granted by rock-bottom interest rates. Whether it will also cause buyers eventually to back out of the market, rather than simply adjust the budget for the homes they wish to buy, will be the deciding factor for the housing market’s strength in the months ahead.

Have An Awesome Week!

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THIS WEEKS HOT HOME LISTING!

2630 Bowmont Dr, Eugene, OR 

Price: $750,000    Beds: 3    Baths: 2.5    Sq Ft: 3002

Don't miss this well maintained executive home located on a quiet dead end road across from the Hawkins Heights neighborhood park. Enjoy the private backyard w/ mature landscaping from the deck & covered hot tub. Office w/ built-ins on the main leve...View this property >> 

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