Real Estate Information Archive

Good Monday Morning!

Yes, mortgage interest rates are on the rise.  This could just be a temprary blip or it could be the start of a change in rates that will lead to higher mortgage rates on a long term basis.  If this change is not short term, the increase will begin putting pressure on homes pricing that has been on a steady upwards trajectory for a long period of time.  If you are considering selling your home?  Don't wait! Higher rates may certainly mean less money for your home. Here is an article from  "Realtor.com" that talks about the current mortgage interest rate situation

The Federal Reserve is planning to stay the course in keeping interest rates low — but that isn’t necessarily music to home buyers’ ears.

On Wednesday, the Federal Reserve signaled that it won’t raise interest rates until 2023 at the earliest, even though some observers have voiced concerns about rising inflation. As of now, seven of the 18 Fed officials expect a rate hike to come in 2023, while four think one could happen next year.

Investors happily greeted the news, with the Dow Jones Industrial Average and the S&P 500 both notching intraday records Wednesday following the Fed’s announcement. Whether the Fed’s policy is similarly auspicious for home buyers or people looking to refinance their existing mortgages remains to be seen.

Since the start of the year, the benchmark rate on the 30-year fixed-rate mortgage has risen more than 40 basis points, according to data from Freddie Mac.

As of Thursday, the 30-year fixed-rate mortgage averaged 3.09%, up four basis points from the week earlier, Freddie Mac reported. It’s the highest level that the benchmark mortgage rate has hit since June of last year.

Meanwhile, the average rates on the 15-year fixed-rate mortgage and the 5-year Treasury-indexed adjustable-rate mortgage both increased by two basis points, to 2.4% and 2.79% respectively.

“The Fed funds rate itself has no impact on mortgage rates,” said Tendayi Kapfidze, chief economist at LendingTree, in explaining the Fed’s policy decision didn’t stem the rise in mortgage rates this week.

The Federal Reserve controls short-term interest rates. But mortgage rates are long term rates, and mortgage lenders take their cues from the bond market when setting the rates they charge to borrowers.

In particular, mortgage rates roughly track the direction of the 10-year Treasury. But even that relationship isn’t foolproof. “This relationship can vary,” Kapfidze said. “Ten-year Treasury rates were on an upward trend from August 2020, but mortgage rates were still falling until February.”

Mortgage rates have risen quickly in recent weeks, reaching the highest level since July, as investors grew increasingly concerned about inflation. With Americans now receiving the stimulus checks approved as part of the $1.9 trillion American Rescue Plan, some analysts expect people to rush out and spend that money, causing prices to go up for consumer goods and services.

Still, the Fed’s stance and policy decisions could have some influence on mortgage rates, even if the central bank doesn’t control them directly. Since the start of the pandemic, the Federal Reserve has ramped up its purchases of mortgage-backed securities in an effort to pump much needed liquidity into the market. Those purchases helped to push rates lower.

“Reaffirming its commitment to ongoing asset purchases while acknowledging that a tapering is on the horizon at some point — likely, pretty far off — should help slow the rise of mortgage rates,” said Danielle Hale, chief economist at Realtor.com. Hale noted that she expects the overall upward trend in mortgage rates to continue.

But if the Fed reverses its policy regarding mortgage-backed securities, rates could quickly rise as lenders face liquidity constraints. Alternatively, if the Fed were to opt to ramp up its purchases of 10-year Treasury notes to stem long-term rates, then mortgage rates could drop, Kapfidze said.

Either way, mortgage rates remain very low by historical standards even if they’re now above the 3% mark, and industry experts anticipate that demand for mortgages will remain strong.

The Mortgage Bankers Association “continues to see a very strong housing market, with mortgage applications to buy a home increasing, even as refinance demand wanes,” said Mike Fratantoni, the trade organization’s chief economist. “While mortgage rates are likely to move somewhat higher, the purchase market remains on track for a record year.”

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THIS WEEKS HOT HOME LISTING!

4577 Spring Meadow Ave, Eugene, OR 

Price: $399,900    Beds: 3    Baths: 2.0    Sq Ft: 1582

Don't miss this fantastic one owner home located in a quiet Santa Clara neighborhood! Oversized RV parking & 3rd car garage will fit all of your toys. Vaulted ceilings & large windows add to the open flow of the house. Large main level master bedroo...View this property >> 

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Good Monday Morning!

 February 2021 home sales numbers in the Eugene and Springfield area show that there is little change in our local housing market.  The inventory of homes climbed slightly from .8 months to .9 months.  This is not enough change to make any kind of real difference.  This number is also well below the 1.6 months of inventory that we had in February of 2020.  In a normal market, healthy home inventory numbers would be between 3 and 6 months.  So, we continue with a shortage of homes on the market and very high demand.  The following is a report from RMLS showing February 2021 homes sales in Lane County.

February Residential Highlights

New listings (352) decreased 6.6% from the 377 listed in February 2020, and increased 2.6% from the 343 listed in January 2021.

Pending sales (356) decreased 2.7% from the 366 offers accepted in February 2020, and increased 2.3% from the 348 offers accepted in January 2021.

Closed sales (270) decreased 4.9% from the 284 closings in February 2020, and decreased 6.3% from the 288 closings in January 2021.

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 2021 to the same period in 2020, new listings (703) decreased 12.9%, pending sales (692) decreased 2.3%, and closed sales (568) increased 5.6%.

Average and Median Sale Prices

Comparing 2021 to 2020 through February, the average sale price has increased 15.9% from $333,200 to $386,200. In the same comparison, the median sale price has increased 14.3% from $315,000 to $360,000.

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THIS WEEKS HOT HOME LISTING!

77442 Yearous Rd, Cottage Grove, OR 

Price: $399,000    Beds: 5    Baths: 2.0    Sq Ft: 2262

This country rural setting is a must see! So much potential on this wonderful property with a 1940's cottage style home just waiting for a personalized touch and updating. Fruit trees, grapes, garden area, Home has a pool that is a fixer, and a pool...View this property >> 

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Good Monday Morning!

Fannie Mae‘s Home Purchase Sentiment Index (HPSI), a composite index designed to track the housing market and consumer confidence to sell or buy a home, fell 1.2 points in February.

Fear not, experts say – better days are ahead. 

Overall, the HPSI hit 76.5 last month, down from 77.7 in January. A small drop was expected, according to Fannie Mae Senior Vice President and Chief Economist Dave Duncan, but optimism should be reflected in the coming months. 

“The HPSI remained relatively flat in February, but underlying data indicate growing job-related optimism among consumers, especially among lower-income and renter groups,” Duncan said. 

Duncan said the likelihood of COVID-19 lockdown restrictions easing as vaccination efforts ramp up, combined with the forthcoming warmer weather and another round of fiscal stimulus checks, will give consumers good reason to feel more positive about the labor market.

“However, other components of the index remain well below pre-pandemic levels, so we believe there may still be room for improvement in housing and economic attitudes in the coming months, depending in part on the future path of mortgage rates,” Duncan said. 

Borrowers remain relatively pessimistic on the state of home prices, as the HPSI reported 47% of respondents expect home prices will go up in the next 12 months – up from 41% last month. Those who believe it will go down increased for the second straight month, this time from 17% to 18%.

The percentage of HPSI respondents now believe mortgage rates will go up as well, from 45% to 47%. They were correct, as rates climbed above 3% for the first time since July. 

Since reaching a low point in January, mortgage rates have risen by more than 30 basis points as the economy works to recover, and according to Sam Khater, Freddie Mac’s chief economist, the impact on purchase demand has been noticeable.

“While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March, prior to the pandemic,” Khater said. “However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.”

The percentage of HPSI respondents who say it is a good time to buy a home decreased from 52% to 48%, while the percentage who say it is a bad time to buy increased from 37% to 43%. Likewise, the percentage of respondents who say it is a good time to sell a home decreased from 57% to 55%, while the percentage who say it’s a bad time to sell increased from 33% to 35%.

A turnaround might be on the horizon, though. Mortgage applications for a 30-year fixed rate experienced its largest single-week increase in almost a year, reaching 3.23% in the week ending Feb. 26.

Job security did see an uptick in last month’s responders, as the percentage of respondents who say they are not concerned about losing their job in the next 12 months increased from 75% to 82%. The percentage who say they are concerned decreased from 24% to 17%.

Expect these numbers to continue trending upward, as most economists agree the housing market will be one of the driving factors in buoying the economy post-COVID. 

But a comprehensive vaccine rollout remains key, Duncan said.

“The best policy for economic recovery is the broad distribution of an effective vaccine, which is underway,” he said. “The sooner this can be successfully accomplished the sooner growth can accelerate, and our thought is that by mid-year vaccine distribution efforts will be well-established, allowing for a strong second half.”

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THIS WEEKS HOT HOME LISTING!

37791 Wheeler Rd, Dexter, OR 

Price: $310,000    Beds: 2    Baths: 1.0    Sq Ft: 840

Wonderful hidden gem, close in country property (15 min to Eugene). Meticulously cared for home on over 1/3 acre with fantastic views of the hills. Open floorpan featuring a fireplace, luxury vinyl flooring, newer ductless heat pump, oversized garag...View this property >> 

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Good Monday Morning!

Last week, mortgage interest rates began ticking up.  The result was an immediate decline in the number of new mortgage applicatons.  This shows just how sensitive our current market is to mortgage rates.  The question at this time is whether we will see a continuation in rates increasing, whether they stay put or decline back to the historic low levels they have been at.  The next several weeks may show us how 2021 trends in regards to mortgage rates and how the housing market is effected.  The following is an article on mortgage current rates from the "Wall Street Journal".

Mortgage rates reached their highest level since November last week, cooling off home purchase and refinance applications ahead of the all-important spring selling season.

The average rate on the 30-year fixed-rate mortgage rose to 2.81% in the week ended Feb. 18, the highest since the second week of November, according to mortgage-finance giant Freddie Mac. A measure of mortgage applications fell 11.4% over the same week, according to the Mortgage Bankers Association.

Improving Covid-19 vaccination rates in the U.S. and expectations of a large federal stimulus package in the coming weeks drove benchmark 10-year Treasury note yields, which are closely tied to mortgage rates, to their largest weekly gains in more than a month last week. Demand in safe-haven assets such as government bonds weakens when investors feel optimistic about the economy.

“Higher rates are a signal of expectations of faster growth and a stronger job market ahead,” said Mike Fratantoni, the MBA’s chief economist. “This last week, rates have turned faster than many people had anticipated.”

Rising rates sometimes prompt borrowers to put their mortgage plans on hold for a few weeks, Mr. Fratantoni said. Measures of purchase and refinance activity fell 11.6% and 11.3%, respectively, in the week ended Feb. 19, according to MBA data.

If mortgage rates begin to increase at a faster pace, some borrowers could be discouraged from attempting to buy a home during the crucial home-selling months of March through June. In a typical year, more than 40% of annual home sales are made during this period, according to the National Association of Realtors.

Still, rates remain historically low, and more people are applying for purchase mortgages and refinances than at the same time in 2020. Last year was a banner one for the housing market, thanks in large part to mortgage rates, which fell below 3% for the first time last summer.

Mortgage lenders originated a record $3.6 trillion worth of mortgages last year, according to the Mortgage Bankers Association, an increase of more than 50% from 2019. Refinances accounted for about 59% of that volume. With the 30-year rate near 2.81%, between 16.7 million and 18.1 million Americans could lower their monthly mortgage payments through a refinance, according to mortgage-data firm Black Knight Inc.

Lissette Gomez will close this week on a new loan that lowers the mortgage rate on her Cleveland-area condo to 2.75% from 4.125%. Ms. Gomez, a special-education teacher, said she decided to refinance after she watched her boyfriend get a much lower rate on his mortgage.

Have An Awesome Week!

Stay Healthy! Stay Safe! Trust in God!

THIS WEEKS HOT HOME LISTING!

77442 Yearous Rd, Cottage Grove, OR 

Price: $399,000    Beds: 5    Baths: 2.0    Sq Ft: 2262

This country rural setting is a must see! So much potential on this wonderful property with a 1940's cottage style home just waiting for a personalized touch and updating. Fruit trees, grapes, garden area, Home has a pool that is a fixer, and a pool...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

It looks as if most of the country has a similar housing market to that of the Eugene/Springfield and surrounding area.  Low inventories of homes for sale and high demand are fueling the market and making for a difficult situation for home buyers.  Historic low mortgage interest rates are driving demand, but last week rates began to creep up.  Could this be the beginning of a change?  For sellers, time is running short to take advantage of this market.  If you are considering the sale of a home this year, don't wait!  Here is an article from "Realtor.com" that talks about the national housing market.

The numbers: U.S. existing home sales inched up 0.6% to a seasonally-adjusted annual rate of 6.69 million, the National Association of Realtors said Friday. Compared with a year ago, home sales were up 23.7%.

Economists polled by The Wall Street Journal had forecast that existing home sales would fall to a median rate of 6.66 million.

What happened: The median existing-home price rose to $303,900 in January, up 14.1% from a year ago.

The inventory of homes for sale fell to a record low 1.04 million units by the end of January. That’s a 25.7% decline year-over-year. The market had a 1.9-month supply of homes for sales. A 6-month supply is considered a sign of a balanced market.

The South and the Midwest showed an increase in sales in January.

Big picture: Sales have been moving sideways since setting a cycle high in October. Economists think that low mortgage rates will continue to boost housing demand in coming months. Buyers are also looking for more room and more remote locations in the wake of the pandemic.

What the NAR said: “Home sales continue to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market. Sales easily could have been even 20% higher if there had been more inventory and more choices,” said said Lawrence Yun, NAR’s chief economist.

What economists are saying? “In general, record low mortgage rates and families fleeing more crowded living situations are fueling demand for single family homes in spite of ongoing turmoil in the labor market and higher home prices. Indeed, this is one sector which is coming out of the crisis stronger than it went into it,” said Josh Shapiro, chief U.S. economist at MFR Inc.

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THIS WEEKS HOT HOME LISTING!

640 Flamingo Ave, Springfield, OR 

Price: $305,000    Beds: 3    Baths: 1.0    Sq Ft: 1269

Cute 1 story home in the Game Bird park area!! This lovely home has a living room and a connected spacious family room. Family room features a wood burning fireplace, built in bookcase. Sliding glass door leads to covered patio and large private bac...View this property >> 

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Good Monday Morning!

January 2021 home sales numbers are in and there are some slight changes, but for the most part our trend of low home inventory high demand continues, .8 months for January.  Even though there were some slight improvements in the number of homes for sale in January over December, the inventory remains at a historic low level.  Most concerning is the fact that home prices continue to escalate and the average home sale price in Lane County for January was over $380,000.  My concern is that the price of homes continues to spiral upward, but incomes levels in Lane County do not.  At some point in time and it will be sooner than later, the price of homes will exceed the appetite of the market and homes sales will begin to slump.  Inventory will then increase and pressure will be put on home prices.  This is a trend that repeats itself over and over again with real estate markets.  I am still stating that we are at the top of the market for home values and demand.  If you are thinking of selling a home, don't put this off.  You will be selling at top market value, which may not be the case soon.  Here are the numbers for Lane County home sales in January 2021.

January Residential Highlights

New listings (343) decreased 19.3% from the 425 listed in January 2020, and increased 30.9% from the 262 listed in December 2020.

Pending sales (348) decreased 2.2% from the 356 listed in January 2020, and increased 18.0% from the 295 offers accepted in December 2020.

Closed sales (288) increased 18.0% from the 244 listed in January 2020, and decreased 35.3% from the 445 closings in December 2020.

Inventory and Market Time

Inventory increased to 0.8 months in January. Total market time decreased to 34 days.

Year-to-Date Summary

Comparing the first month of 2021 to the same period in 2020, new listings (343) decreased 19.3%, pending sales (348) decreased 2.2%, and closed sales (288) increased 18.0%.

Average and Median Sale Prices

Comparing 2021 to 2020 through January, the average sale price has increased 17.0% from $328,000 to $383,700. In the same comparison, the median sale price has increased 16.3% from $305,000 to $354,700.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

37791 Wheeler Rd, Dexter, OR 

Price: $299,000    Beds: 2    Baths: 1.0    Sq Ft: 840

Wonderful hidden gem, close in country property (15 min to Eugene). Meticulously cared for home on over 1/3 acre with fantastic views of the hills. Open floorpan featuring a fireplace, luxury vinyl flooring, newer ductless heat pump, oversized garage...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home prices continue to rise in the Eugene and Springfield area as demand for housing hits a fevered pitch.  An extremely low inventory of homes for sale along with historic low mortgage interest rates are driving home prices higher in our local Real Estate market area and around the country.  This trend cannot last forever, but at this time I do not see a quick end to this market in our area.  As I have been saying for months, if you are considering the sale of your home, there is no better time to sell than right now.  This sellers market cannot last forever, so take advantage of it while you can.  The following is an article from "Realtor.com" that gives further details on our current natonal housing market.

The numbers: Home prices rocketed at a fast pace yet again in November, according to two separate indices released Tuesday, making it increasingly more difficult for buyers to navigate the housing market as many states began reopening businesses from shutdowns related to the coronavirus pandemic. Recent data suggest price appreciation should gain steam in the latter half of the year.

The S&P CoreLogic Case-Shiller 20-city price index posted a 9.1% year-over-year gain in November, up from 8% the previous month. On a monthly basis, the index increased 1.5% between October and November.

Additionally, the broader S&P CoreLogic Case-Shiller national price index, which covers the entire country, demonstrated a 9.5% gain year-over-year in November, up from 8.4% the prior month.

What happened: Prices rose in at least 19 of the 20 large cities tracked by Case-Shiller. Detroit, which is typically included in the 20-city index, was again excluded because of issues collecting data during previous coronavirus-related shutdowns.

Phoenix experienced the largest price increase for the 18th consecutive month with a 13.8% increase, followed by Seattle (12.7%) and San Diego (12.3%).

Separately, the Federal Housing Finance Agency released its own monthly home price index for November. According to that report, home prices were up 1% from the previous month and 11% from November 2019. This is the sixth consecutive month in which home prices have risen, and annual gains are now outpacing the price growth seen during the last housing boom before the Great Recession, said Lynn Fisher, deputy direction of the division of research and statistics at the FHFA.

The big picture: While there may be evidence that demand among home buyers is waning from the heights reached this summer — as evidenced by lower mortgage application volumes — it still remains very strong. Plus, the supply of homes for sales is all but exhausted. The lack of inventory should continue to fuel home-price increases for foreseeable future, especially in popular markets such as Phoenix and Boise, Idaho.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

37791 Wheeler Rd, Dexter, OR 

Price: $299,000    Beds: 2    Baths: 1.0    Sq Ft: 840

Wonderful hidden gem, close in country property (15 min to Eugene). Meticulously cared for home on over 1/3 acre with fantastic views of the hills. Open floorpan featuring a fireplace, luxury vinyl flooring, newer ductless heat pump, oversized garage...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Yes, mortgage interest rates have fallen again.  Just when you think that rates can't go any lower, they drop again.  Many experts think that this may be short term and could actually be the low point this time.  There is actually pressure to begin raising mortgage interest rates and some experts argue that a raise won't effect home sales.  My position is that the housing market is fragile at this time.  Home prices are inflated and the economy is uncertain.  With the new administration proposing harsh tax increases on middle America, look out.  This could signal the end of the strong sellers market we have seen for years.  An increase in mortgage rates would only speed up this process.  The following is a recent report on mortgage rates from "Realtor.com".

Mortgage rates dipped slightly over the past week, as investors sought a safe haven amid volatile markets and concerns about the economy. But the era of persistently falling rates has likely passed, which is bad news for home buyers.

The 30-year fixed-rate mortgage averaged 2.73% for the week ending Jan. 28, down four basis points from the week prior, Freddie Mac reported this week.

The 15-year fixed-rate mortgage fell one basis point to an average of 2.2%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage held steady at 2.8%.

The slight decrease in rates was a testament to investor activity, according to Realtor.com senior economist George Ratiu.

“With COVID cases still elevated amid the vaccine rollouts, investors remained worried about high unemployment claims, volatile earnings and lingering concerns about the economic outlook from the Federal Reserve,” he said. “The mood kept them funneling funds into mortgage bonds.”

Despite the decline, Ratiu argued that rates will rise this year. If that prediction plays out, what will happen to home sales? It depends on who you ask.

“As we look at 2021, we expect rising mortgage rates to dampen the pace of activity in the next couple of months, as many buyers will be priced out,” Ratiu said. He noted that as the youngest millennials are entering their 30s and the economy is expected to improve from the coronavirus pandemic, both factors that should keep the pace of home sales elevated in the spring and summer.

Others argue that rising interest rates won’t necessarily hurt home sales or prices. “Historically, when mortgage rates rise, existing-home sales don’t necessarily fall,” Mark Fleming, chief economist at title insurer First American, wrote in a recent report.

Fleming examined previous eras where rates were rising. In two cases — the 2005-2006 period and the 1994 period — home sales did fall after interest rates increased. But in the other time periods he examined, home sales actually increased. The difference came down to why rates were rising.

“Rising interest rates reduce house-buying power and affordability, but are often a sign of a strong economy, which increases home buyer demand,” Fleming wrote.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

88770 Heritage Ln, Springfield, OR 

Price: $650,000    Beds: 3    Baths: 2.0    Sq Ft: 1808

One of those rare homes and properties that combines a closeness to town with the serenity and beauty of the country. Just under 5 acres of fenced pasture and wooded hillside. A gorgeous creek runs right through the property. Beautiful hillside and...View this property >> 

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Good Monday Morning!

For most home buyers, obtaining financing for a home purchase is an important part of the home purchase process. Part of obtaining that financing depends upon the home being purchased meeting the approval of the lender for value and possibly condition.  To obtain this information, an apraisal is ordered from a licensed apraiser by the lender.  The report from this apraiser is what the lender uses to assure that the property they are lending money on is a solid risk opportunity.  The following is an article from "Realtor.com" that will give you some information about apraisals and the apraisal process.

If you’re buying a home, one of the (many) things you must check off your list is hiring a professional to do a home appraisal to assess the property's value. But what if you check it off your list and then, for whatever reason, the home sale falls through—who pays the appraisal fee then?

Let’s take a look.

What is a home appraisal anyway?

A home appraisal is a professional assessment of how much a property is worth. Unless you’re paying for your home in cash, it’s a non-negotiable in the process. Most lenders require an appraisal before they’ll grant you a mortgage. Your home is their collateral, and if you can’t pay your mortgage, they want to make sure they can get back as much of their money as possible. An appraisal also helps protect you from buying an overpriced property.

The appraiser will take an unbiased look at a home, the condition it’s in, any repairs it needs, and other factors, and will also likely compare it to other similar properties in the area before providing an estimate of what they think it's worth. An appraisal goes deeper than the comps your real estate agent likely gathered and presented to you when you were first considering the property—but not as deep as a home inspection, which you’ll also want to have completed in most cases before the sale is final.

If the appraised value is higher than the cost of the home you want to purchase, good for you! You’re making an investment that’s paying off from the get-go. If, however, the appraised value is lower than the price of the house, then you have a variety of options—including negotiating with the seller, challenging the appraisal, and/or getting a second one. Or, of course, you could walk away from the deal completely.

The cost of a professional appraisal varies depending on where you live; but in general, you can expect to pay somewhere around $300 to $400 for one.

Who pays the home appraisal fee when a deal falls through?

In most cases, even though the appraisal is for the benefit of the lender and the appraiser is selected by the lender, the fee is paid by the buyer. It may be wrapped up into closing costs, or you may have to pay it upfront.  There are some cases, however, in which a seller will offer to pay the appraisal fee to make the deal more attractive.

So, back to the original question: When a sale falls through, who’s on the line for the fee? In most cases, it’s still going to be the buyer.

“The buyer is usually required to pay the appraisal fee upfront, and it is owed even if the lender does not move forward with a loan,” says Lee Dworshak, a real estate agent with Keller Williams LA Harbor Realty in Rancho Palos Verdes, CA. “While the seller may have agreed to pay all closing costs, if the closing does not occur and the property is not conveyed, the seller is not required to pay your appraisal fee.”

If a buyer doesn’t pay the appraisal fee upfront and instead rolls it into the rest of her closing costs, that doesn’t mean she's off the hook if she doesn’t close.

“It has nothing to do with the seller; it is ordered by your lender, and payment is due regardless of the outcome,” says Maria Jeantet, a real estate agent with Coldwell Banker C&C Properties in Redding, CA. “It is typically paid by the buyer unless specifically negotiated ahead of time to be paid by the seller.”

Having a home sale fall through is usually a bummer for both the seller and the buyer, and having to pay for an appraisal on a home you’re not going to buy adds a bit of insult to injury. Just know that while the appraisal fee can sting, it can save buyers from a much bigger financial wallop that comes with buying an overpriced home.

In the grand scheme of things, it’s a small price to pay when it comes to finding the right house at the right price.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

88770 Heritage Ln, Springfield, OR 

Price: $650,000    Beds: 3    Baths: 2.0    Sq Ft: 1808

One of those rare homes and properties that combines a closeness to town with the serenity and beauty of the country. Just under 5 acres of fenced pasture and wooded hillside. A gorgeous creek runs right through the property. Beautiful hillside and...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

v

Good Monday Morning!

As we get rolling into 2021, it is evident that the Real Estate market in the Eugene and Springfield area continues on from where it left off in 2020 and on the same trajectory.  We still are seeing record low numbers of homes on the market for sale, record low mortgage interest rates, high buyer interest and increasing home prices.  At this time, it appears that this trend will continue on at least in the near future.  Here are the home sale statistics for December of 2020.

December Residential Highlights

New listings (262) increased 25.4% from the 209 listed in December 2019, and decreased 15.8% from the 311 listed in November 2020.

Pending sales (295) increased 23.4% from the 239 offers accepted in December 2019, and decreased 25.9% from the 398 offers accepted in November 2020.

Closed sales (445) increased 37.3% from the 324 closings in December 2019, and increased 13.5% from the 392 closings in November 2020.

Inventory and Market Time

Inventory decreased to 0.6 months in December, the lowest on RMLSTM record. Total market time increased to 44 days.

Year-to-Date Summary

Comparing the twelve months of 2020 to the same period in 2019, new listings (5,596) decreased 2.6%, pending sales (4,982) increased 2.7%, and closed sales (4,843) decreased 0.6%.

Average and Median Sale Prices

Comparing 2020 to 2019 through December, the average sale price has increased 12.2% from $325,700 to $365,500. In the same comparison, the median sale price has increased 13.3% from $296,900 to $336,500.

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Stay Safe, Stay Healthy!!

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