Real Estate Information Archive

Good Monday Morning!

Anyone who has been keeping in touch with either the local or national housing market trends knows that 2016 was a record year for home sales.  2017 is starting off totally different than the previous year, though.  There are many questions as to what kind of Real Estate market 2017 will turn out to be.  Here is an article from Realtor.com that talks about the direction that the 2017 housing market will most likely take.

The days of multiple bids and offers that are typically way higher than a home’s asking price—you know, that stuff that we now consider to be normal in the housing biz—aren’t expected to disappear anytime soon. But here’s the good news: Things aren’t expected to get too much worse in 2017 either.

Rising mortgage rates, as well as a dearth of affordable, existing homes (i.e., previously lived-in residences) on the market, are expected to lead to a smaller increase in sales in 2017, according to the latest quarterly survey from the National Association of Realtors®.

The survey was of nearly 2,800 U.S. households and conducted from October through early December.

Existing-home prices are expected to go up 4% in 2017, slowing down just a bit from 5% in 2016, according to NAR.The pace of sales is also expected to slow, rising just 2% in 2017, compared with 3.3% in 2016

All in all, 2016 is expected to be the best year for existing-home sales since the height of the housing boom in 2006.

The challenges ahead2017 will “be a year of growth in both sales and prices,” says Chief Economist Jonathan Smoke of realtor.com®. “But that growth will be slower than what we’ve seen over the last three years.”

Those higher mortgage rates have already driven monthly mortgage payments up 7% since the presidential election, Smoke says. And those bigger bills are expected to make it harder for wannabe homeowners, particularly first-time buyers, to qualify for loans.

That’s in addition to the low inventory of available homes on the market that they need to contend with. In November, there were 12% fewer new and existing homes for sale on realtor.com than the same month a year earlier.

Still, the majority of households surveyed still believe now is a good time to buy a home, But fewer renters are getting the buying bug these days. That’s because housing prices are continuing to go up, making affordability an ever bigger challenge, says Lawrence Yun, NAR’s chief economist.

“Younger households, renters, and those living in the costlier West region—where prices have soared in recent months—are the least optimistic about buying,” Yun said in a statement.

According to the survey, about three-quarters of current homeowners who are over 45, make more than $50,000 a year, and live in the Midwest or South were the most confident that now is the time to close on the homes of their dreams.

They are typically the most financially stable or live in the most affordable regions of the country.

But for everyone else, it’s not all doom and gloom. Lenders are beginning to make more loans to buyers with lower credit scores and down payments as well as higher debt-to-income ratios as a result of rising mortgage rates, says Smoke.

That’s because fewer homeowners are likely to refinance their mortgages now that rates have gone up. To make up for that loss in business, lenders have to issue more loans. And higher rates can net mortgage makers higher profits, he says.

“Lenders are getting more aggressive,” Smoke says. “Credit access already appears to be improving because of the rates.”

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1615 Taney St

Price: $269,000    Beds: 4    Baths: 2    ｽ Baths: 1    Sq Ft: 1913

Brand new home! Great quality construction with plaster finished walls, maple hardwood & porcelain tile floor, hickory cabinets, granite counters, 9 ft ceiling, LED dimming lights, 3 skylights one of which opens. Great room layout with gas fireplace...View Home for Sale >>

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Good Monday Morning!

It appears that the combination of slightly higher mortgage interest rates and the lack of available affordable housing will have a slight negative effect on the national housing market in 2017.  This situation will most likely follow the national trend locally in the Eugene and Springfield area.  Our area currently has the second lowest inventory of homes from sale in the nation.  This is a statistic that is great for anyone wanting to sell a home, but not so favorable for anyone wanting to purchase a home.  Here is an article from "Realtor.com", that address the future of the 2017 housing market nationally.

The days of multiple bids and offers that are typically way higher than a home’s asking price—you know, that stuff that we now consider to be normal in the housing biz—aren’t expected to disappear any time soon. But here’s the good news: Things aren’t expected to get too much worse in 2017 either.

Rising mortgage rates as well as a dearth of affordable, existing homes (i.e., previously lived-in residences) on the market are expected to lead to a smaller increase in sales in 2017, according to the latest quarterly survey from the National Association of Realtors®.

Existing-home prices are expected to go up 4% in 2017, slowing down just a bit from 5% in 2016, according to NAR.The pace of sales is also expected to slow, rising just 2% in 2017, compared with 3.3% in 2016

All in all, 2016 is expected to be the best year for existing-home sales since the height of the housing boom in 2006.

The Challenges Ahead

2017 will “be a year of growth in both sales and prices,” says Chief Economist Jonathan Smoke of realtor.com®. “But that growth will be slower than what we’ve seen over the last three years.”

Those higher mortgage rates have already driven monthly mortgage payments up 7% since the presidential election, Smoke says. And those bigger bills are expected to make it harder for wannabe homeowners, particularly first-time buyers, to qualify for loans.

That’s in addition to the low inventory of available homes on the market that they need to contend with. In November, there were 12% fewer new and existing homes for sale on realtor.com than the same month a year earlier.

Still, the majority of households surveyed still believe now is a good time to buy a home, But fewer renters are getting the buying bug these days. That’s because housing prices are continuing to go up, making affordability an ever bigger challenge, says Lawrence Yun, NAR’s chief economist.

“Younger households, renters, and those living in the costlier West region—where prices have soared in recent months—are the least optimistic about buying,” Yun said in a statement.

According to the survey, about three-quarters of current homeowners who are over 45, make more than $50,000 a year, and live in the Midwest or South were the most confident that now is the time to close on the homes of their dreams.

They are typically the most financially stable or live in the most affordable regions of the country.

But for everyone else, it’s not all doom and gloom. Lenders are beginning to make more loans to buyers with lower credit scores and down payments as well as higher debt-to-income ratios as a result of rising mortgage rates, says Smoke.

That’s because fewer homeowners are likely to refinance their mortgages now that rates have gone up. To make up for that loss in business, lenders have to issue more loans. And higher rates can net mortgage makers higher profits, he says.

“Lenders are getting more aggressive,” Smoke says. “Credit access already appears to be improving because of the rates.”

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

Lot 8 Vineyard Hill Dr

Price: $250,000    Beds: 0    Baths: 0    Lot Size: 5 acres

Spectacular setting in The Vineyards At Gimpl Hill. Five acres of level and rolling hills in the heart of wine country. Private gated community offers gorgeous valley and tree views. Only a 7 minute drive to town....View Property for Sale >>

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Good Monday Morning!

The 2016 election season has been one of the most divisive presidential races in this country's history and unfortunately, that unrest has been something of a wet blanket on the housing market nationally. While many areas in the nation have enjoyed a boom market, the sense of unease and nervousness has convinced many Americans to wait before buying or selling a home. This is not a new scenario for our country, even in years with less chaos and uncertainty, Realtor associations nationwide have noted that consumers tend to be more cautious during an election year. The question is:

Should prospective sellers and buyers hit the pause button during an election year?

A recent study showed that housing prices tend to drop slightly, approximately 1.5 percent, during an election year. But even if that is the case, many real estate experts agree that consumers shouldn't feel the need hunker down until after the show is over and a new president is chosen. The fact is that real estate values locally and nationally are determined by only one factor: Supply and Demand.

The great Warren Buffet said "Be fearful when others are greedy and greedy when others are fearful". Translated for the general public, that means that we should do the opposite of what others are doing.

When the media is predicting gloom and doom, many buyers and sellers will make the decision to sit on the sidelines. What does that mean for sellers? Often it means lower housing inventory which equals less a smaller pool of buyers and possible multiple offer situations. For buyers it can add up to less competition and the opportunity to find a bargain. Added to that the fact that mortgage rates are still at historic lows, now is definitely the right time to get the most bang for your buck.

Have an awesome week!

THIS WEEKS HOT HOME LISTING!

3686 Yogi Way

Price: $250,000    Beds: 3    Baths: 2    Sq Ft: 1776

Spacious and bright! Lovely one level home on corner lot with RV parking. Stamped concrete in front walkway. Wonderful entertaining space in the huge vaulted Great Room. Living room opens to kitchen and dining area with slider. Well-sized master sui...
View Home for Sale >>

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Good Morning!

Over the last few days I have been asked frequently about what effect the economic situation in Europe is going to have on the U.S. housing market.  The gut reaction of the UK leaving the EU is that the stock market here in the U.S. has responded negatively.  This in turn puts pressure on the Fed to continue the current pattern of holding low interest rates and to put any near future rate increases on the back burner.  We may see some immediate reductions in mortgage interest rates as a result, but the sure thing for now is that mortgage rates most likley will not change much until the dust settles in Europe and the economy picks up some momentum here at home.  If other European countries follow the UK, then it could all change.  The reality is that we still have a a economy here at home and with worldwide economic turmoil, mortgage rates may remain low longer than anyone anticipated.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1615 Taney St

Price: $299,000    Beds: 4    Baths: 2    ｽ Baths: 1    Sq Ft: 1913

Brand new home! Great quality construction with plaster finished walls, maple hardwood & porcelain tile floor, hickory cabinets, granite counters, 9 ft ceiling, LED dimming lights, 3 skylights one of which opens. Great room layout with gas fireplace...View Home for Sale >>

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Good Monday Morning!

As usual the Real Estate market in the Eugene and Springfield area slowed slightly coming into October.  The real news though is that the market here continues to improve over the market we had in 2014.  All signs are that this improving Real Estate market should continue right into next year.  Here are the highlights for October 2015.

October Residential Highlights

October brought a little seasonal cooling to Lane County, but all measures are still ahead compared to October 2014. Pending sales (436) ended 17.8% ahead of the 370 offers accepted in October 2014, although 5.4% lower than the 461 offers accepted last month in September 2015. Closed sales (441) fared similarly, cooling 0.5% from 443 in September 2015 but 9.2% ahead of the 404 closings posted in October 2014. New listings (418) cooled 14.0% from September (486) but were still 6.1% ahead of October 2014 (394).

Total market time remained steady in October at 71 days, and inventory fell to 2.7 months during the same period.

Year to Date Summary

Activity was up during the first ten months of this year compared to the same period last year. Pending sales (4,491) were up 28.2%, closed sales (4,114) were up 26.2%, and new listings (5,829) were up 9.8% this year compared to the first ten months of 2014.

Average and Median Sale Prices

Comparing 2015 to 2014 through October of each year, the average sale price rose 3.1% from $236,000 to $243,200. In the same comparison, the median sale price rose 4.5% from $211,000 to $220,500.

Have an Awesome Week!

THIS WEEKS HOT HOME LISTING!


 

2685 Valley Forge Dr

Price: $524,900     Beds: 3     Baths: 2    Half Baths: 1     Sq Ft: 2302

Anslow & DeGeneault 2015 Tour of Homes model home. Gas forced air 92% efficiency, exquisite single level, located in beautiful Hawthorne Estates. Easily entertain in Great Rm overlooking backyard. Escape to luxurious owner's ste w/ tray ceilin...
View this property >>

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Good Monday Morning!

Nationally, home sales were up slightly for October of this year as home prices declined slightly.  Mortgage interest rates for 30 year conventional financing actually dropped slightly and rates remain well below 4%.  I can't stress enough to anyone who is thinking about purchasing their first home, thinking about purchasing a larger home or a smaller home that time is running out to take advantage of this favorable market.  The Feds continue to artificially manipulate rates to help bolster a sluggish economy.  This can't last forever and when rates do start to rise, there may be no end in site for a while.  The mortgage rate that you can obtain today is going to make you very happy down the road.  

If you are contemplating a home purchase and you would like to just explore how this all might look for you, please call me for a no obligstion consultation.  I have helped thousands of Eugene and Springfield residents with their home purchase and I can give you the exact information you need to make the best decision.

Have An Awesome Week!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-November-2015

THIS WEEKS HOT HOME LISTING!





 

2231 Sandy Drive

Price: $330,000     Beds: 3     Baths: 3     Sq Ft: 2720

In highly desirable Ferry St Bridge area! Delightful 0.21 acre property on quiet street. Features recessed lights, skylights, vaulted ceiling and Pergo wood floor. Huge master suite with 3 closets and 5-piece bath. 3 bedrooms plus additional room th...
View this property >>

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Good Monday Morning!

Homes sales dipped in October and first time buyers sales were a big part of this slump.  Competition caused by low inventories of homes in first time buyer price ranges was the primary cause.  Here is information on our current national housing market with statistics from the National Association of Realtors.

A month-over-month dip in home sales last month caused real estate watchers to ponder—gasp—a potential cooling of the market. But on Thursday the National Association of Realtors® reported that sales are up again.

Existing-home sales—completed sales of single-family homes, townhomes, condominiums, and co-ops—rose 4.7% from August to September, reaching 5.55 million. That’s the 12th consecutive month to see year-over-year growth, and the second-highest peak since February 2007, when sales totaled 5.79 million.

The median existing-home price for all housing types was $221,900 in September, 6.1% more than September 2014. This is the 43rd consecutive month that we’ve had year-over-year gains. Single-family home sales increased 5.3%, with a median price of $223,500, while condo and co-op sales remained unchanged, with a median existing-condo price of $209,200.

All-cash sales rose, too: They represented 24% of transactions in September, up from 22% in August. Short sales stayed on the market for an average of 135 days, but short sales and foreclosures are still down from a year ago—7% now and 10% then.

Why the reversal on sales in general? These are seasonally adjusted numbers, so they don’t reflect the typical fall slowdown. August sales, however, were affected by the stock market dips that shook buyers’ confidence.

“Sales are impacted by major stock market declines, since at least one in five buyers funds at least a portion of their purchase with stock or retirement funds,” said realtor.com® chief economist Jonathan Smoke. “But barring stock corrections that reflect real economic downturns—which we are not experiencing—homes sales typically return to the prior trend after stock values stabilize.”

But not all numbers were up: Inventory decreased 2.6% and is 3.1% lower than a year go. There’s a 4.8-month supply of unsold housing—in August, it was 5.1 months.

Maybe it’s counterintuitive—how can there be more sales when there’s less inventory?

It’s all that pent-up demand. Unfortunately for first-time buyers, all that competition has driven house prices up; you’re more likely to buy a home if you already have one.

“First-time buyers fell to 29% of sales in September after climbing to their highest share of the year in August (32%),” according to the NAR. “A year ago, first-time buyers represented 29% of all buyers.”

That’s the biggest surprise, Smoke said, but “despite that decline, we estimate from the monthly sales data this year that first-time buyers have been responsible for 45% of the growth in sales over last year.”

Whether the rise in existing-home sales continues depends on one thing: jobs. The 6% rise in prices is just about double the pace of wages. We need more, and better-paying, employment to keep sales up. That’s complicated by the fact that most future job growth is rooted in the relatively low-paying service sector. Sales may be up, but we’ll need inventory to rise with them.

Regional breakdown

Northeast: September existing-home sales rose 8.6% to an annual rate of 760,000, 11.8% above a year ago. The Northeastern median price was $256,500, 4% above September 2014.

Midwest: September existing-home sales rose 2.3% to an annual rate of 1.31 million, 12% above a year ago. The Midwestern median price was $174,400, 5.4% above September 2014.

South: September existing-home sales rose 3.8% to an annual rate of 2.21 million, 5.7% above a year ago. The Southern median price was $191,500, 6.2% above September 2014.

West: September existing-home sales rose 6.7% to an annual rate of 1.27 million, 9.5% above a year ago. The Western median price was $318,100, 8% above September 2014.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

 

52494 McKenzie Hwy

Price: $280,000     Beds: 3     Baths: 2    ∏ Baths: 1     Sq Ft: 1945

Riverfront retreat with many upgrades! Relax on over half an acre and 200ft of river frontage on a large partially covered deck overlooking the McKenzie with no neighbors across. Fenced with yard, garden and 2 driveways with room for RV/toy parking,...
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Wow!  Mother nature put on her own fireworks display Sunday with a rare lightning storm in the Eugene and Springfield area. It was quite a show.

Home values in our area continue to slide downwards.  Even though the rate of decline has slowed, homes in the Eugene and Springfield are generally worth much less than they were at the peak of the market back in 20006.  It is difficult to say if we will continue the decline in home values here or if we will plateau and then begin a slow increase again in a year or two.  Much of the answer here rests with what happens with both mortgage interest rates and the local economy.  At this point I will go out on a limb and speculate that we will continue to lose home value here for another 6 to 12 months.  The amount of that decrease will depend on the factors mentioned previously.  For that reason the selling of your home right now may be a decision that you really want to weigh out.  If you would like help with that process, I would be more than happy to consult with you and help you analyze the situation.  Just like selling stocks or other investments it is wise to seek professional help to determine your best options.

You can also receive a detailed look at your homes current value by visiting the web site www.forhomesellers-nonSmartZip.com.  At this site you can enter in details about your home and then a complete value analysis will be e-mailed to you.  You will also receive updated value reports on your home by e-mail each month.  This is free and it is a great way to keep in touch with the local housing market and with the value of your home.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Sincerely,
Galand