Real Estate Information Archive

Good Monday Morning!

The Real Estate market in the Eugene and Springfield area remains fairly steady, with no significant swings in sales prices or inventory of homes for sale. Even though statistics are showing that there is no significant home market swing, those of us who are working in the Real Estate market in Lane County will tell you that there is a swing underway and the market is not heading in a good direction. There are far fewer buyers out looking at homes; the multiple offers that we saw in lower and median priced homes is for the most part a thing of the past, and price reductions on homes for sale is the rule and not the exception. The hope is that when the Fed meets on the 18th of this month, we might see a rate reduction of around 1/2 of a percent. This could happen, but the recent jobs report and other negative economic news of late could be the spoiler, and the Fed rate reduction could be much smaller if it happens at all. Economic uncertainty, the continuation of inflation, along with mortgage interest rates that have not decreased enough to have an effect on monthly payments, is taking a toll on the housing market. Without some positive change in the national economy, don't look for any sizable rebound in the housing market. Here are the home sales statistics for Lane County in August of 2024.

New Listings

New listings (485) decreased 9.0% from the 533 listed in August 2023, and decreased 4.3% from the 507 listed in July 2024.

Pending Sales

Pending sales (369) increased 3.4% from the 357 offers accepted in August 2023, and decreased 4.2% from the 385 offers accepted in July 2024.

Closed Sales

Closed sales (362) increased 2.8% from the 352 closings in August 2023, and increased 0.3% from the 361 closings in July 2024.

Inventory and Time on Market

Inventory held steady at 2.5 months in August. Total market time decreased to 46 days.

Year-to-Date Summary

Comparing the first eight months of 2024 to the same period in 2023, new listings (3,578) increased 5.1%, pending sales (2,698) increased 2.9%, and closed sales (2,492) increased 2.4%.

Average and Median Sale Prices

Comparing 2024 to 2023 through August, the average sale price has increased 0.8% from $472,700 to $476,500. In the same comparison, the median sale price has increased 1.1% from $435,000 to $439,900.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3469 River Pointe Dr, Eugene, OR 

Price: $1,125,000    Beds: 4    Baths: 3.2    Sq Ft: 3363

This is a Gorgeous and extremely well kept home in the highly sought after River Pointe neighborhood of North Gilham. This home not only has many high end extras, but it has a floor plan that suits many lifestyles. The spacious Primary Bedroom is on... View this property >> 

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Good Monday Morning!

Mortgage interest rates continue to decline, but at a snail's pace. Any relief in mortgage rates is a relief, but so far, the decline does not seem to be enough to kick off a revival in the housing market, either locally or nationally. The real truth is that home payment numbers need to come down. This is either going to happen with further rate reductions or with housing prices dropping. A combination of the two would be the best case, and that is what seems to be taking place right now. With the anticipation of the Fed lowering rates in September, this might just be the best time to make your move with a home purchase. My reasoning is that with a mortgage rate reduction creating more demand, this may halt home prices from coming down further with an inventory of homes that remains very limited. My suggestion is to not gamble and make your move on a home purchase soon. The following is a recent article from "NAR".

Some would-be home buyers are waiting for borrowing costs to drop even lower. Is that a wise strategy?

Mortgage rates have remained in the mid-6% range in recent weeks—the 30-year fixed-rate loan was at a 6.46% average this week, according to Freddie Mac. But some aspiring home buyers may still be waiting for even lower rates before they make a move, hoping to get a better deal on borrowing costs, even though rates are dramatically lower than they were a year ago, when they were above 7%.   

“Although mortgage rates have stayed relatively flat over the past couple of weeks, softer incoming economic data suggest rates will gently slope downward through the end of the year,” says Sam Khater, Freddie Mac’s chief economist. “Earlier this month, rates plunged and are now lingering just under 6.5%, which has not been enough to motivate potential home buyers. We expect rates likely will need to decline another percentage point to generate buyer demand.”

Despite recent steadiness in rates, mortgage applications for home purchases fell 5% this week and are 8% lower than a year ago, the Mortgage Bankers Association reports. “Even with lower mortgage rates, potential buyers might be more selective now that there are more options,” says Joel Kan, an economist with the MBA.

The National Association of REALTORS® reported this week that For Sale inventory of existing homes has risen by 20% compared to a year ago, giving buyers more choices and increasing seller competition.

“The other point to note is that, yes, rates are lower—but they’re still 6.5%, which is not low for those borrowers out there with sub-5% rates,” Kan says. The majority of current mortgage holders have rates below 5%—many even below 3%—from when they purchased a home years earlier. This has made many homeowners reluctant to move.

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

THIS WEEKS HOT HOME LISTING!

2267 Willona Dr, Eugene, OR 

Price: $435,000    Beds: 3    Baths: 2.0    Sq Ft: 1248

This charming 1940's home has been tastefully updated from top to bottom. Features include beautifully refinished hardwood floors, new composition roof in 2019, new gas HVAC system with central air conditioning & new ductwork in 2020, new flooring i... View this property >> 

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Good Monday Morning!

Both the national and local housing markets are anything but stable right now. The anticipation of some possible further mortgage rate decreases has most home buyers sitting back and waiting, while home sellers are more anxious than ever to have those buyers looking and purchasing their homes. Even though mortgage rates are down slightly, it has not been enough to activate the masses of home buyers who are wanting to buy but either can't afford to buy right now or think that by waiting they might see both lower mortgage rates and lower home prices. Although this is a possibility, it is certainly a gamble.

The truth is that right now may be the best time to purchase a home. Rates are lower, and even though the inventory of homes for sale remains low, homes for sale are taking longer to sell, and many homes are just sitting. This is a far different scenario than what we saw last year and earlier this year, with homes selling rapidly and bidding wards being the rule.

Right now, home prices are coming down, and the potential for negotiating on the price and terms of a home purchase is the best it has been in years. The reality is that if we do see a sizeable reduction in mortgage loan rates in the near future, this will increase buyer demand, and with the already low inventory of homes, this may put us right back to where we were last year with high demand, bidding wars, and higher home prices that eat up any gains that buyers received with lower mortgage rates. My advice right now is that if you are looking to purchase a home, start looking actively again. You just might be pleasantly surprised at how much more affordable homes are right now.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

6883 Forsythia Street, Springfield, OR 

Price: $529,000    Beds: 4    Baths: 2.5    Sq Ft: 2037

This home offers a spacious main living area with soaring ceilings, a cozy gas fireplace, and large windows providing plenty of natural light throughout. The kitchen is fully equipped with quartz countertops, stainless steel appliances, a functional... View this property >> 

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Good Monday Morning!

The statistics for July home sales in Lane County just came out. The statistics show us what appears to be a fairly healthy home sales market in all categories, with the exception of the increasing inventory of homes for sale. The numbers show that home sales increased, that pending sales increased, and that there was only a moderate increase in home values. All of these are positive signs. The reality is that for anyone who works and is deeply involved with home sales in our local area, these numbers are not showing the true market. When we see the home sales numbers for August, maybe we will see a market reflection that is more indicative of the current state of home sales in Lane County. What I am seeing is a rapidly slowing market, far less home buyer enthusiasm, and one that reminds me of the last big dip in our local market in 2008–2010. Hopefully, this is just a short blip in the market, but I have to wonder if this is the beginning of a serious market downturn. The culprit here is the economy. Inflation has driven up home prices and, at the same time, kept mortgage interest rates higher. Inflation has also eaten up the average person's and their family’s money reserves and decreased their spending ability because of the increased living costs. Without some relief from inflation and mortgage interest rates, the housing market may continue to slide. There is a national shortage of housing, so any relief from inflation and higher mortgage interest rates could certainly bring about another housing boom. Time will tell which direction this market goes! Here are the home sales statistics for Lane County in July 2024.

New Listings

New listings (507) increased 10.9% from the 457 listed in July 2023, and increased 0.8% from the 503 listed in June 2024.

Pending Sales

Pending sales (385) decreased 1.0% from the 389 offers accepted in July 2023, and increased 0.5% from the 383 offers accepted in June 2024.

Closed Sales

Closed sales (361) increased 4.6% from the 345 closings in July 2023, and increased 13.2% from the 319 closings in June 2024.

Inventory and Time on Market

Inventory decreased to 2.5 months in July. Total market time increased to 48 days.

Year-to-Date Summary

Comparing the first seven months of 2024 to the same period in 2023, new listings (3,087) increased 7.9%, pending sales (2,354) increased 2.7%, and closed sales (2,116) increased 2.2%.

Average and Median Sale Prices

Comparing 2024 to 2023 through July, the average sale price has increased 1.9% from $467,800 to $476,800. In the same comparison, the median sale price has increased 1.9% from $431,000 to $439,300.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1640 Umpqua Ave, Eugene, OR 

Price: $1,100,000    Beds: 4    Baths: 3.5    Sq Ft: 2978

Beautiful custom Nordic home, with great attention to detail in the highly desirable Nine's neighborhood! Spacious lofty ceilings throughout the home, with two beautiful master suites on the main floor! Gourmet kitchen with commercial grade applianc... View this property >> 

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Good Monday Morning!

With all of the ugly economic news we are currently listening to, there has been a ray of hope with mortgage interest rates declining. Any reduction with mortgage rates is great news, as higher rates have been an instrumental part of the nation's sluggish home sales market. There has also been mention of the fact that the Fed may reduce rates in the near future. Time will tell the story here, but without further reductions in mortgage rates, don't look for any huge improvements anytime soon with home sales. The following is a recent article on mortgage rates from "NAR".

Real estate news and top headlines from major news sources into a real estate context each weekday, alongside breaking news from NAR, business tips, and industry trends.

Home buyers and refinancers had the opportunity to lock in the lowest mortgage rates since early February this week, averaging 6.73%. Plus, the average mortgage rate is now lower than a year ago.

The Federal Reserve also suggested this week that a possible cut to its key benchmark rate could take place this fall.

That may prompt some prospective home buyers to hold out for even lower mortgage rates. But Lisa Sturtevant, Bright MLS chief economist, says that hoping that rates to head much lower could be a miscalculation.

“The Federal Reserve will almost certainly cut rates in September—the first cut since 2020,” Sturtevant says. “However, there is no direct ‘cause-and-effect’ relationship between the Fed rate cuts and a drop in mortgage rates.” What’s more, “expectations about a September rate cut are already baked in, which is why we’re already starting to see mortgage rates start to come down.”

Still, Sturtevant does expect mortgage rates to continue to fall throughout the second half of the year and end the year at an average of about 6.4% for a 30-year fixed-rate mortgage. “Rates will continue to fall in 2025, though it is likely that they will remain above 6% through the end of next year,” she says.

Housing affordability will remain a top challenge for home buyers, who have been facing higher home prices, says Sam Khater, Freddie Mac’s chief economist. But “a recent moderation in home price growth and increases in housing inventory are a welcoming sign for potential home buyers,” he says.

Indeed, the National Association of REALTORS® recently reported that more opportunities for home buyers appear to be opening up in the market, and contract signings are already responding, rising nearly 5% in June.

Mortgage Rates This Week

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 1:

30-year fixed-rate mortgages: averaged 6.73%, dropping from last week’s 6.78% average. Last year at this time, 30-year rates averaged 6.90%.

15-year fixed-rate mortgages: averaged 5.99%, falling from last week’s 6.07% average. A year ago, 15-year rates averaged 6.25%.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3469 River Pointe Dr, Eugene, OR 

Price: $1,169,000    Beds: 4    Baths: 3.2    Sq Ft: 3363

This is a Gorgeous and extremely well kept home in the highly sought after River Pointe neighborhood of North Gilham. This home not only has many high end extras, but it has a floor plan that suits many lifestyles. The spacious Primary Bedroom is on... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

We now find ourselves in a very strange Real Estate market. The inventory of homes for sale remains extremely low, both nationally and here in the Eugene and Springfield area. Typically, low inventory brings on a strong sellers market, but not right now. Even with few homes to choose from, buyers are slow to pull the trigger on home purchases. Mortgage interest rates remain elevated, but they are lower than the level we had at the same time last year. So, why do we have a more sluggish home sales market? The answer most likely comes from a lack of consumer confidence. High inflation rates over a long period of time have eaten away at savings and left most people with less money in their pockets at the end of the month. We just have not seen a great deal of positive news in regards to the economy, and the combination of the two is creating concern for would-be home buyers. There is a huge pent-up demand for housing, and most likely, any positive economic events will turn our current sluggish housing market into a much more active one. The following article is a recent article from "NAR" that describes our present national housing market.

Mortgage rates have been holding mostly steady this month, after dropping nearly a half percent from their peak earlier this year, Freddie Mac reports. “Despite these lower rates, buyers continue to pause, as reflected in tumbling new and existing home sales data,” says Sam Khater, Freddie Mac’s chief economist.

The National Association of REALTORS® reported this week that existing-home sales in June fell 5.4% compared to a year earlier. New-home sales also fell, down 7.4% compared to a year ago and the lowest pace since November 2023. 

“Many potential buyers are remaining in a holding pattern due to elevated mortgage rates that averaged near 7% in June,” says Carl Harris, chairman of the National Association of Home Builders. “However, moderating inflation suggests lower interest rates in the months ahead and that should bring more buyers off the sidelines.”

That could help home buyers handle the higher home prices, with existing-home prices surging to an all-time high in June, reading a median of $426,900. At this week’s average 30-year fixed mortgage rate of 6.78%, with a 20% down payment, a household would face a monthly mortgage payment on a median-priced existing home of $2,222, says Jessica Lautz, NAR’s deputy chief economist. Housing affordability and still-high inflation remain pressing issues holding many would-be home buyers back.

Indeed, real estate agents in the Mid-Atlantic region report that affordability was the main reason their clients paused their home search over the past six months, with about half citing high prices, not enough homes in their price range, or high mortgage rates.

“With mortgage rates hovering around 7% and home prices continuing to rise, financing is a growing challenge for buyers, and this is beginning to impact a buyer’s ability to make it across the finish line,” says Lisa Sturtevant, Bright MLS’s chief economist. Bright MLS data shows that a rising percentage of sellers—14%, as of June—had a contract fall through due to the buyer’s inability to secure financing.

Mortgage Rates This Week

Freddie Mac reports the following national averages with mortgage rates for the week ending July 25:

• · 30-year fixed-rate mortgages: averaged 6.78%, slightly higher than last week’s 6.77% average. A year ago, 30-year rates averaged 6.81%.
• · 15-year fixed-rate mortgages: averaged 6.07%, rising slightly from last week’s 6.05% average. A year ago, 15-year rates averaged 6.11%.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

5580 Tradition Alley, Eugene, OR 

Price: $465,000    Beds: 3    Baths: 2.0    Sq Ft: 1812

This single level home has been tastefully updated and is located in a quiet West Eugene neighborhood. Features include a newer 3-head ductless heat pump AC/heating system, a spacious living room, large bedrooms & a 2-car garage with built-in storag... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There is some good news on the national Real Estate front! Mortgage interest rates dipped slightly last week, and this could possibly lead to rates coming down even further. Both nationally and locally, the Real Estate market has become more sluggish as of late, and my thoughts are that the one thing to start bringing the Real Estate market back is mortgage interest rate decreases. We will know more in the weeks ahead. The following is a recent article from “Realtor.com”.

Mortgage rates dipped this week, with the average rate for a 30-year fixed home loan going from 6.89% last week to 6.77% for the week ending July 18, according to Freddie Mac.

“The 30-year fixed-rate mortgage fell to its lowest level since mid-March, dropping 12 basis points from last week,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Mortgage rates are headed in the right direction and the economy remains resilient, two positive incremental signs for the housing market.”

This should come as good news, but Khater also points out the following: “Homebuyers have yet to respond to lower rates, as purchase application demand is still roughly 5% below Spring, when rates were approximately the same. This is not uncommon: sometimes as rates decline, demand weakens, and the apparent paradox is driven by buyers making sure rates don’t decline further before they decide to purchase.”

Mortgage rates take a turn

For the past few months, inflated mortgage rates have sidelined both buyers and sellers, leaving them in a state of limbo.

“This week’s data revealed a housing market in a holding pattern,” notes Realtor.com® economist Ralph McLaughlin in his analysis. “The small movements we do observe this week favor buyers: no price growth, a slower market, and more price reductions.”

“Mortgage rate relief has not arrived as quickly as many expected,” adds Realtor.com economist Jiayi Xu. “But the recent downward trend is encouraging news for homebuyers who have been hindered by high rates.”

The 10-year Treasury fell last week on better than expected inflation readings, and rates also fell by 7 basis points on a year-over-year basis—the first such decline in nearly three years.

“Fortunately, June’s more moderate jobs report and cooling [consumer price index] were solid readings that should help the Fed gain more confidence that the economy is moving in the right direction and could raise hopes for a rate cut signal in the July FOMC statement,” Xu explains.

Xu says this development should help interest rates, including mortgage rates, continue to drop, especially if the economy keeps making progress.

Home prices remain flat

In June, the median home cost $445,000.

Listing prices were flat year over year for the week ending July 13, and marked 25 consecutive weeks of price growth below 1%.

Yet since the median price per square foot grew in June by 3.4%, McLaughlin says, “buyers shouldn’t necessarily rejoice just yet.”

“Price growth per square foot continues to be positive, suggesting homes are still more expensive than they were last year,” he explains.

Housing stock is up

The number of homes actively for sale continued to grow, with buyers seeing 35.8% more listings for the week ending July 13 than last year.

For the 36th straight week in a row, there were more homes listed for sale versus the previous year.

Fresh listings were also up by 8.8% for the week ending July 13 compared with 12 months ago.

New listings have increased 14 out of the past 15 weeks—which McLaughlin says should help keep prices in check.

“Looking ahead, we expect the rising inventory to gradually exert downward pressure on price growth and falling mortgage rates to help lower borrowing costs, providing more relief to potential homebuyers,” McLaughlin says.

While the number of newly listed homes increased by 6.3% annually in June, this rate is roughly half of what it was two months ago. And buyers still see more than 30% fewer homes for sale compared with before the COVID-19 pandemic.

“Broadly speaking, the number of new homes for sale remains historically low and is still below the 2017 to 2022 levels, even with recent improvements,” says McLaughlin.

Although buyers might see more houses on the market this summer than last, they will ultimately have fewer options than were typical before 2023.

The pace of home sales slows

The typical home spent 45 days on the market in June.

For the week ending July 13, the average home for sale spent five more days on the market compared with the same period last year.

This ties with last week, marking the longest additional time on the market since August 2023, according to McLaughlin.

“A longer time on the market means buyers won’t have to move as quickly as last year, while sellers will need to be more patient,” says McLaughlin.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3469 River Pointe Dr, Eugene, OR 

Price: $1,169,000    Beds: 4    Baths: 3.2    Sq Ft: 3363

This is a Gorgeous and extremely well kept home in the highly sought after River Pointe neighborhood of North Gilham. This home not only has many high end extras, but it has a floor plan that suits many lifestyles. The spacious Primary Bedroom is on... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Some good news for homebuyers has finally arrived. Mortgage rates took a slight dip last week, and this is welcome news for anyone looking to purchase a home. Homes listed for sale are also beginning to take longer to sell, and price reductions are beginning to become the rule and not the exception. This could possibly indicate a further slowing of home sales, and lower-priced homes could be the new trend. Here in the Eugene and Springfield market area, we are seeing many homes that sold quickly just a few months ago sit and have to reduce the asking price to attract buyer interest. Home showings across the board have slowed significantly over the past few weeks as well. My guess is that this indicates a major market shift is under way. Stay tuned, because anything is possible right now. The following is a national Real Estate market update from "Realtor.com".

Mortgage rates fell this week, with the average rate for a 30-year fixed home loan going from 6.95% last week to 6.89% for the week ending July 11, according to Freddie Mac.

“Following June’s jobs report, which showed a cooling labor market, the 10-year Treasury yield decreased this week, and mortgage rates followed suit,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

Despite the drop, the stubbornly high interest rates over the past months have largely left the market in limbo as buyers and sellers hit the pause button.

Yet one key metric shifted for the first time in almost two months: Home prices fell 1.1 % year over year for the week ending July 6, after nine weeks of steady or rising prices.

However, this buyer-friendly good news might be short-lived.

While this decrease might provide some relief to homebuyers, it could be a temporary shift due to Independence Day unless further data can provide persistent evidence of a new trend,” says Realtor.com® economist Jiaya Xu in her latest analysis.

Here’s a breakdown of the latest housing market data and what it means for homebuyers and sellers in our latest installment of “How’s the Housing Market This Week?”

Lower mortgage rates predicted

Though the rate has not risen above 7% for six weeks now, that number is still too high for many would-be buyers who are hanging back until rates fall even further.

However, if the economy and job market continue to improve, the Federal Reserve might decide to cut rates, causing mortgage rates to follow this downward path. (While mortgage rates are distinct from Fed rates, they tend to reflect the same patterns.)

“This means buyers may see lower mortgage rates in the second half of 2024 and be more likely to jump back into the market,” Xu explains.

Realtor.com senior economist Ralph McLaughlin agrees that mortgage rates should slowly decline throughout the rest of the year and into 2025.

“The downward trend will certainly be welcome news to homebuyers, who have been stymied by high rates and low inventory,” he says. “Falling mortgage rates should help lower monthly mortgage payments for new borrowers.”

While this decrease might provide some relief to homebuyers, it could be a temporary shift due to Independence Day unless further data can provide persistent evidence of a new trend,” says Realtor.com® economist Jiaya Xu in her latest analysis.

Here’s a breakdown of the latest housing market data and what it means for homebuyers and sellers in our latest installment of “How’s the Housing Market This Week?”

Lower mortgage rates predicted

Though the rate has not risen above 7% for six weeks now, that number is still too high for many would-be buyers who are hanging back until rates fall even further.

However, if the economy and job market continue to improve, the Federal Reserve might decide to cut rates, causing mortgage rates to follow this downward path. (While mortgage rates are distinct from Fed rates, they tend to reflect the same patterns.)

“This means buyers may see lower mortgage rates in the second half of 2024 and be more likely to jump back into the market,” Xu explains.

Realtor.com senior economist Ralph McLaughlin agrees that mortgage rates should slowly decline throughout the rest of the year and into 2025.

“The downward trend will certainly be welcome news to homebuyers, who have been stymied by high rates and low inventory,” he says. “Falling mortgage rates should help lower monthly mortgage payments for new borrowers.”

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

766 S 47th Pl, Springfield, OR 

Price: $799,900    Beds: 3    Baths: 2.5    Sq Ft: 2840

This beautifully updated home is nestled on a private 3/4 acre lot with filtered views through the trees. Designed for either main level living or a great setup for separation of space with additional bedrooms and a bonus room upstairs and a large fam... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There is a slight bit of welcome news in the world of Real Estate. Mortgage interest rates have slowly trickled down slightly. In this housing market, any news like this is welcome. The lower mortgage interest rates will certainly help, but the other issues that continue to haunt the housing market are that home prices have not come down enough to make a real difference, and the overall national economy, along with inflation numbers, has not changed. This has led to a consumer confidence crisis that may stick around for a while. Never the less, home sales are still taking place in the Eugene and Springfield area and even though the market here may be slower than several months ago, I still believe that it is a good time to sell your home. The following is a recent article from "Realtor.com" that talks about where our national housing market is today.

Mortgage rates sank further this week, with the average rate for a 30-year fixed home loan falling from 6.87% last week to 6.86% for the week ending June 27, according to Freddie Mac.

“The 30-year fixed-rate mortgage continues to trend down, hitting the lowest level in almost three months,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

Despite the slight tick down, the consistently high mortgage rate has effectively put the housing market in a holding pattern for months, leaving potential buyers and sellers in limbo.

Real estate experts agree the market can’t seem to move forward lately, with economists at Bank of America remarking this week that the housing market is “stuck and we are not convinced it will become unstuck until 2026 … or maybe even later.”

A recent Gallup poll also found that just 21% of Americans think it’s a good time to buy a house—tied as the worst reading in the record’s history—while 76% said it’s a bad time to buy.

What will it take to jump-start the market? Significantly lower mortgage rates.

“Although mortgage rates continue to trend lower, the declines have not yet been big enough to have an impact on most housing metrics,” says Realtor.com® Chief Economist Danielle Hale in her latest analysis. “The key weekly data we track has been remarkably stable relative to the prior June, with pricing flat, listings up, and time on market somewhat slower.”

Here’s a breakdown of the latest housing market data and what it means for homebuyers and sellers in our latest installment of “How’s the Housing Market This Week?”

The mortgage rate doldrums

Mortgage rates are on a continued long run of remaining stubbornly high.

The Federal Reserve, which was once poised to cut base interest rates three times this year, expressed reluctance to do so at its last meeting. (Though mortgage rates aren’t tied to interest rates, the two numbers generally move in the same direction.)

That leaves the future of mortgage rates teetering on coming economic reports. If inflation falls to a certain point, the Fed will likely cut rates. If inflation rises more than expected, rates will likely remain the same or perhaps even rise further.

“For home shoppers and sellers, peak mortgage rates are likely behind us, but the risk of volatility remains, complicating moving decisions,” says Realtor.com economist Jiayi Xu. “In addition, with only one rate cut expected before the end of 2024, relief may come too little and too late for many first-time homebuyers.”

Home prices remain unchanged

The median list price remained the same compared with the previous year for the week ending June 22, marking the fourth week in a row when the home list price matched the exact level as the prior year. (In May, the median home cost $442,500.)

The good news is that while the median home price remains high, according to Hale, there are “more abundant affordable options” on the listing pages these days.

“In recent months, a growing share of smaller homes on the market have helped keep the market median price in check even as the price per square foot continued to rise,” explains Hale.

Housing stock rises

One housing data point that did see real movement for the week ending June 22 was housing stock, with fresh listings rising by 7.4% compared with the year prior.

Overall, the total number of homes for sale (including newly listed and those that have lingered on the market) jumped 36.1% above year-ago levels, marking 33 weeks in a row with an increase in the number of listings.

“Seller activity is up compared to one year ago, but momentum has waned from recent weeks and earlier this year,” says Hale.

Indeed, active inventory in May was down more than 30% from typical pre-pandemic levels.

Getting more sellers to list their homes depends on when mortgage rates start to cool. Realtor.com analysis shows that 87% of outstanding mortgages have a rate below 6%, meaning many homeowners are reluctant to trade in a low rate for a higher one if they become buyers.

“If these homeowners sell, they are relinquishing relatively inexpensive debt for today’s roughly 7% mortgage rates, a costly proposition,” says Hale. “As rates ease, they will cause less drag on the ‘move or stay’ calculus, and we are likely to see an increase in seller interest.”

Homes are lingering longer

Real estate listings sat on the market longer for the week ending June 22 compared with this time last year.

“The typical home for sale spent two more days on the market this past week compared to last year, continuing the trend observed in recent weeks,” says Hale. “Longer time on market means selling may require more patience while buyers may have more time to make a decision, a buyer-friendly trend.”

Some buyers might be waiting out the market, hoping for lower mortgage rates and lower prices before they pounce.

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THIS WEEKS HOT HOME LISTING!

5580 Tradition Alley, Eugene, OR 

Price: $477,500    Beds: 3    Baths: 2.0    Sq Ft: 1812

This single level home has been tastefully updated and is located in a quiet West Eugene neighborhood. Features include a newer 3-head ductless heat pump AC/heating system, a spacious living room, large bedrooms & a 2-car garage with built-in storag... View this property >> 

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Good Monday Morning!

It now feels as if the housing market is beginning to cool off in the Eugene and Springfield area. Homes are now taking longer to sell, and for the most part, the rush of buyers looking at new homes coming on the market seems to have gone away. At the same time, home prices remain stubbornly high, and mortgage interest rates have increased instead of decreased. If the inventory of homes for sale does continue to increase, it's a sure bet that home prices will begin to decrease. Within a few more weeks, we will certainly have a very good idea as to where the housing market is heading in the forseeable future. The following is a recent update on the national housing market from "Realtor.com."

The spring housing market is officially over, and home sales fizzled out in the last full month of the season.

Sales of existing homes shrank by 0.7% in May compared with April, according to a recent report from the National Association of Realtors®.

Sales also fell annually, dipping 2.8% from May 2023 to a seasonally adjusted annual rate of 4.11 million homes.

Yet low inventory might be the least of homebuyers’ hurdles as the summer market heats up. Median home prices skyrocketed 5.8% annually from $385,800 in May 2023 to $419,300—the highest home price ever recorded. May also marks the 11th month in a row of annual price increases.

“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” said NAR Chief Economist Lawrence Yun in a statement. “The mortgage payment for a typical home today is more than double that of homes purchased before 2020.”

Stubborn mortgage rates continue to toggle above and below the 7% benchmark, averaging 6.87% for 30-year fixed loans in the week ending June 20, according to Freddie Mac.

Sluggish sales can be traced back to these high rates, which have many sellers “locked in” to their existing low mortgage rates and unwilling to trade them for a rate that could be double what they currently pay.

“The combination of high home prices and elevated mortgage rates has proved to be challenging for the housing market, weighing down sales activity,” Realtor.com® Chief Economist Danielle Hale said in a statement.

Who bought homes in May

High mortgage rates did not deter first-time homebuyers in May, who accounted for 31% of sales compared with 33% in April and 28% in May 2023.

Of the total home sales, 28% were all-cash buyers, the same percentage as last month’s. Individual investors or second-home buyers, a large percentage of cash buyers, bought 16% of existing homes in May, which matched the 16% seen in April and up from 15% in May 2023.

Only 2% of sales were foreclosures and short sales, a number that remained unchanged from last month and last year.

Where home sales are rising and falling the most

Sales slipped modestly from April to May in the South, yet remained exactly the same for the same period in the West, Northeast, and South. The Midwest was the only region that saw home sales rise year over year.

Sales declined by 1.6% in the South month over month, falling 5.1% from the prior year. The median price in the South was $374,300, up 3.6% from last year.

The Northeast saw sales slip 4% from May 2023. The median price was $479,200, up 9.2% from the prior year.

The existing-home sales in the West dropped 1.3% from the year prior. The median price reached $632,900, a 5.5% jump from May 2023.

In the Midwest, existing-home sales were unchanged from April to May but were up 1% from one year ago. The median price was $317,100, up 6.4% from May 2023.

“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” said Yun.

An opportunity for buyers

The total number of unsold existing homes increased by 6.7% from the previous month, reaching 1.28 million at the end of May. Based on the current monthly sales pace, this amount represents a 3.7-month supply of available homes.

“Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions,” said Yun.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

93048 Hwy 99 S, Junction City, OR 

Price: $450,000    Beds: 3    Baths: 1.0    Sq Ft: 1205

Great potential. House is in good shape but needs cosmetics. Sale includes a 3 bay, 35'X 55" shop. Property is currently in county, but in UGB. Could easily be annexed and connected to city services. Potential for being re-zoned to commercial. The l... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!