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No Better Time To Sell Than Now!!

by Galand Haas

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!!

Mortgage Rates Have Fallen Again

by Galand Haas

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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Home Appraisals

by Galand Haas

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!!

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Market Continues Trend Into The New Year

by Galand Haas

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.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Happy New Year 2021

by Galand Haas

Good Monday Morning!

2021 has arrived and I am sure that just like me, you are looking forward to making 2021 a great year.  Even with all of the hard situations we are dealing with as a nation, there are many things to be thankful for.  It is up to each and every one of us to take what we had in 2020 and improve on 2021. For many people, planning for retirement is at the top of that list.  The following article will give you some ideas for how to maximize on your retirement needs by using laws in place at this time.  I hope that this article helps many of you out!

The benefits of incorporating a Roth IRA into your retirement strategy are often praised by financial advisers, citing the ability for money to grow tax-free for decades and provide tax-free income in retirement. While a Roth IRA conversion is one way to take advantage of this savings tool, the tax implications of converting investments from a traditional retirement account to a Roth IRA typically deter most people. Yet the effects of new legislation and persistent market volatility make a Roth IRA conversion worth considering, and paying for it doesn’t have to break the bank.   

A Roth IRA conversion uses assets from a traditional or rollover IRA, 401(k), SEP or Simple IRA to fund a Roth IRA. Unlike regular contributions to a Roth IRA, which are constrained by income limitations and annual contribution caps, there are no restrictions when converting retirement assets to a Roth IRA. Any amount can be converted regardless of your age, income, or employment status. But the Roth IRA conversion doesn’t come without a cost. 

When you convert pre-tax assets in a traditional retirement account to your Roth IRA, the conversion is treated as income and you must pay taxes on the assets converted. The amount you pay in taxes depends on your income tax bracket for the year. In some cases, a substantial conversion in one year could boost taxable income by multiple brackets. To help manage that liability, a series of partial conversions over several years could be planned to keep the distributions within a targeted tax bracket.

For many retirees, income from a traditional IRA or 401(k) can create a tax headache, especially when required minimum distributions (RMDs) raise their tax bracket. That’s where a Roth IRA comes in.

A Roth IRA provides the flexibility to take tax-free withdrawals in retirement when you want and in whatever amount you want. This is unlike other retirement accounts that have RMDs beginning at age 72. The RMDs are taxable income, which means that in addition to your tax bracket they can also impact your Medicare premium bracket and the taxation of your Social Security benefit, whereas distributions from the Roth IRA will not.  

This year the CARES Act temporarily pauses RMDs from traditional retirement accounts. So, if you are 72 or older and you don’t take your RMD then your income will be lower. This provides a potential opportunity to make a larger conversion while maintaining the same income tax rate. 

Additionally, since the Secure Act of 2020 eliminated the stretch provisions for inherited retirement plans, the Roth IRA is also a great estate planning tool. Non-spousal heirs can no longer take distributions over their life expectancy, but rather all distributions must be taken within 10 years. While this is true as well for an inherited Roth IRA, the distribution would not be a taxable event. 

The cost of an IRA conversion can be daunting, but it doesn’t have to be. Conventional wisdom is to pay the resulting tax bill with non-taxable assets from outside the retirement plan. Using plan assets would defeat the purpose of the conversion as you will permanently give up a portion of the capital that is accumulating on a tax-free basis. In addition, if you’re under age 59 ½, the portion of plan assets used to pay for the conversion could also be subject to a 10% tax penalty. 

If you have the cash on hand, that’s likely the best way to cover the tax implications. But depending on the size of the conversion and your tax bracket, the up-front costs could be significant. Another option is to take out a loan against your life insurance policy. While this permanently reduces the policy value if not repaid, the loan doesn’t count as taxable income so long as the policy isn’t surrendered, doesn’t lapse, and the amount owed doesn’t exceed the premiums paid. If any of these do occur then the tax implications will likely be even larger than the taxes paid on the Roth IRA conversion.

Considering a reverse mortgage

Alternatively, tapping into your home equity can provide the means to pay the taxes. You could leverage current low interest rates and get a home equity line of credit (HELOC), though many banks have stopped accepting applications for HELOCs in recent months. Additionally, a HELOC will require a monthly mortgage payment, decreasing your cash flow.

For homeowners age 62 or older, a reverse mortgage could pay the tax liabilities from the Roth IRA conversion, creating tax and cash-flow flexibility and potentially a higher net worth.

With a reverse mortgage, the available line of credit grows and compounds at a value that is tied to current interest rates. This can be particularly beneficial with a series of partial Roth IRA conversions as it provides a growing resource to pay future tax bills. The line of credit also provides flexibility to convert a greater portion of your retirement assets during market plunges, so you only pay taxes on the lower value at the time of the conversion and not on any gains in the Roth IRA when the markets recover. 

Since there are no principal or interest payments required for as long as you live in your home, the line of credit from a reverse mortgage provides the liquidity to pay for the Roth IRA conversion with no impact on household cash flow or the need to sell other invested assets.

A good rule of thumb is to use a reverse mortgage if your home equity is less than or equal to the value of the retirement assets you plan to convert. If the home represents a major portion of your net worth, a reverse mortgage may not be the best option to cover the tax bill. In this case, the reverse could better serve as a tax-free source of supplemental income, or to pay for in-home care, or other retirement expenses that distributions from the smaller invested assets may not be able to cover. 

Evaluating the use of a reverse mortgage also depends on the projected costs in comparison with the projected returns. For example, if interest rates on a reverse line of credit are at 3%, and your home appreciates at a 3% rate, you could borrow 50% of your home equity and still maintain a 50% retained equity position throughout the duration of the loan. Even if the home only appreciated at a 1% rate, you would still have a retained equity position. 

Projected returns on the Roth IRA conversion would also need to be evaluated. For simplicity’s sake, let us assume you borrow a total of $250,000 from your reverse line of credit to pay the tax bills on $1 million conversion. If you accrue interest on the line of credit balance at a 3% rate and the Roth IRA grows at a 6% tax-free rate, the return could be quite compelling over time. 

Of course, there are no guarantees on any projections, which is why you should consult a financial professional and evaluate your specific situation. A number of “what if” scenarios should be considered including changes in interest and tax rates, home and investment growth rates, and legacy desires. These considerations will help determine if using a reverse mortgage to take advantage of the benefits of a Roth IRA conversion could be a retirement strategy that makes sense for you. 

Happy New Year!

Stay Safe, Stay Healthy!!

 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Demand For New Housing Is Beginning To Slow

by Galand Haas

Good Monday Morning!

The price of new homes continues to soar as inventories remain low and home building materials continue to increase in costs.  I have been saying for some time now that we would reach a point where the cost of new housing will begin to surpass the ability of the buyers to purchase.  We may have met that time or be very close to reaching it.  Even with historic low mortgage interest rates the demand for new housing nationally is beginning to slow.  Here is an article from "Realtor.com" that talks about this current situation with new housing.

The numbers: Sales of newly built homes occurred at a seasonally-adjusted annual rate of 841,000 in November, the Census Bureau reported Wednesday. That was 11% below the downwardly-revised pace of 945,000 in October.

Analysts polled by MarketWatch had projected new-home sales to occur at a seasonally-adjusted annual rate of 875,000. Compared to last year though, November’s numbers remained elevated, up nearly 21% year-over-year.

What happened: New-home sales fell across all parts of the country, led by a 43% decline in the Midwest.

Inventory rose markedly by month’s end, up some 14% to a 4.1-month supply. A six-month supply of homes is generally considered indicative of a balanced market. The median price of new homes for sale was $335,300, down from October but up 5% from a year ago.

The big picture: The dip in sales in November is a sign that buyers are cooling on the market, in tandem with the cooler weather. “While buyers continue to favor larger homes with bigger backyards and better quality of life, steeply-rising prices are driving a wedge between their preferences and their wallets,” said George Ratiu, senior economist at Realtor.com.

Indeed, the rising cost of new homes points to the challenges buyers will face as we head into the new year. The increase in sales prices for newly constructed homes is a reflection mainly of higher building costs. Nevertheless, with the supply of existing homes so constrained, buyers will face tough competition for most properties, driving the prices higher.

Builders will face a challenge in 2021: There’s high demand for more affordable homes, but those homes offer less of a return for construction firms. “New home builders must navigate rising construction costs and shifting consumer preferences to boost the availability of affordable new homes,” Ratiu said.

What they’re saying: “Inventories are tight — down 14.2% year-over-year in October — and could be a constraint for home sales going forward,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics, in a research note.

Market reaction: Market reaction: The Dow Jones Industrial Average and S&P were up Wednesday, despite confusion as to the fate of the latest stimulus package..

Meanwhile, shares of home-building firms PulteGroup, LGI Homes, and Lennar Corp. were all down upwards of 2% following the release of the new-home sales report.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

5415 Royal Ave, Eugene, OR 

Price: $425,000    Beds: 3    Baths: 1.5    Sq Ft: 1366

Beautiful Danebo Property With Views. Large living room with wood burning fireplace. Views from living room and kitchen that looks over meadows and territorial hills. Kitchen has wrap around counter and lots of cabinet space. Patio access from two b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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What Are Rates Doing Now?

by Galand Haas

Good Monday Morning!

It looks like we are going to finish 2020 with a bang in regards to mortgage interest rates.  We started 2020 with extrmely low rates and we are finishing the year with even lower rates. Right now, I would bet for this trend to continue well into 2021 at a minimum.  Here is a recent report on end of year mortgage rate trends.

This week marked the 15th record low for mortgage rates this year. The 30-year fixed-rate mortgage dipped further to an average of 2.67%, the lowest rate ever recorded by Freddie Mac, with records dating back to 1971.

“The housing market continues to surge higher and support an otherwise stagnant economy that has lost momentum in the last couple of months,” said Sam Khater, Freddie Mac’s chief economist. “Mortgage rates are at record lows and pushing many prospective home buyers off the sidelines and into the market. Homebuyer sentiment is sanguine and purchase demand shows no real signs of waning at all heading into next year.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 17:

  • · 30-year fixed-rate mortgages: averaged 2.67%, with an average 0.7 point, falling from last week’s 2.71% average. This time last year, 30-year rates averaged 3.73%.
  • · 15-year fixed-rate mortgages: averaged 2.21%, with an average 0.6 point, falling from last week’s 2.26%. A year ago, 15-year rates averaged 3.19%.
  • · 5-year hybrid adjustable-rate mortgages: averaged 2.79%, with an average 0.3 point, unchanged from last week. A year ago, 5-year ARMs averaged 3.36%.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

Lot 2 Laurelwood Ln, Eugene, OR 

Price: $179,000    Beds: 0    Baths: 0    Acres: 0.29

Ready to build large lot located a highly desirable area near Laurelwood Golf Course. Lot has recently been partitioned to increase size and add a highly attractive building site. Utilities are to the lot line...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Inventory At Lowest Level In History

by Galand Haas

Good Monday Morning!

The Real Estate market in the Eugene and Springfield area continues along the same path that it has for some time now.  The inventory of homes for sale continues to be at a low point and is setting records.  The inventory now sits at .8 months.  This is the lowest level in history for the Eugene and Springfield area and well below the level for what would be considered a healthy market.  Low inventory means difficuty for buyers finding homes, fast sales for home sellers and also tough pricing for buyers.  I am in hopes that after Christmas time and coming in to the new year, this situation will begin to change. The following are the numbers for home sales in Lane County for November of 2020.

November Residential Highlights

New listings (311) increased 19.2% from the 261 listed in November 2019, and decreased 39.1% from the 511 listed in October 2020.

Pending sales (398) increased 22.1% from the 326 offers accepted in November 2019, and decreased 18.8% from the 490 offers accepted in October 2020.

Closed sales (392) increased 12.6% from the 348 closings in November 2019, and decreased 19.0% from the 484 closings in October 2020.

Inventory and Market Time

Inventory decreased to 0.8 months in November, the lowest on RMLSTM record. Total market time decreased to 33 days.

Year-to-Date Summary

Comparing the first eleven months of 2020 to the same period in 2019, new listings (5,325) decreased 3.6%, pending sales (4,701) increased 1.6%, and closed sales (4,388) decreased 3.2%.

Average and Median Sale Prices

Comparing 2020 to 2019 through November, the average sale price has increased 11.8% from $325,200 to $363,500. In the same comparison, the median sale price has increased 13.6% from $295,000 to $335,000.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

5415 Royal Ave, Eugene, OR 

Price: $425,000    Beds: 3    Baths: 1    Sq Ft: 1366

Beautiful Danebo Property With Views. Large living room with wood burning fireplace. Views from living room and kitchen that looks over meadows and territorial hills. Kitchen has wrap around counter and lots of cabinet space. Patio access from two b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

v

Good Monday Morning!

With home values soaring over the past several years, many people have not made adjustments with their homeowners insurance policies.  This is a huge problem with many homeowners that I speak with and one that you should look at immediately if you feel you may be under insured.  The cost of rebuilding a home or repair is at an all time high and with high home values, I feel most households are currently under insured.  Another issue is with the current trend for remodels. A remodel can leave you under insured if you do not make an adjustment for your homes increased value from that remodel.  The followiong article speaks about this situation.

Many homeowners have spruced up their homes during the pandemic. But major remodeling upgrades could result in homeowners needing to update their insurance, too. Otherwise, the home may be under-insured if a disaster ever strikes.

“Remodeling your home can lead to higher insurance rates, since a home remodel often increases the rebuild cost of a home,” a new report from QuoteWizard.com states. “Your dwelling coverage limit should match the rebuild cost of your home.”

In general, expect to pay about an extra $36 for every additional $10,000 of added rebuild cost after a remodel, QuoteWizard.com’s report notes. Broken down by project, insurance rates likely will increase by an average of $54 after a $15,000 upper-grade bathroom renovation. After a $50,000 kitchen upgrade, insurance rates could increase by $180. Further, a home addition of about $48,000 for, say, a 20-by-20 family room (or 400 square feet) could increase rates by $173. A deck upgrade of about $10,000 could increase insurance rates by an average of $36 a year, the report notes.

The quality of the updates could also have an impact on premiums. For example, an updated roof that uses low fire resistance or window update with weak window panes could also result in an increase in home insurance premiums, the report notes.

Homeowners may want to talk to insurers before they start a major remodeling job so they can brace themselves for any added premium costs. Insurance companies factor in several variables when setting premiums, such as your claims history, home’s value, the home’s age and material, safety features, climate, and local property crime rates, and more, QuoteWizard.com notes.

Property damage comprises more than 98% of all homeowner insurance claims. Of property claims, wind, hail, fire, and lightning are the most common reported damages, the report finds.

If you are uncertain about your homes current value, you can go to one of my wbs sites, www.forhomesellers.com and recieve a free online analysis of your homes current market value.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

5415 Royal Ave, Eugene, OR 

Price: $425,000    Beds: 3    Baths: 1    Sq Ft: 1366

Beautiful Danebo Property With Views. Large living room with wood burning fireplace. Views from living room and kitchen that looks over meadows and territorial hills. Kitchen has wrap around counter and lots of cabinet space. Patio access from two b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Conforming Loan Limits Are Up

by Galand Haas

Good Monday Morning!

Due to rising home prices, the Federal Housing Finance Agency announced Tuesday that it would raise loan limits for mortgages backed by Fannie Mae and Freddie Mac.

In most of the country, the 2021 maximum conforming loan limit for single-family properties will be $548,250. That marks a 7.4% increase from last year’s limit of $510,400. The FHFA’s loan limits define the maximum amount that Fannie and Freddie can finance for a one-unit single-family home.

In more expensive markets, such as California and New York, the new limit will be $822,375, up from $765,000 in 2000.

“With home prices setting records in many U.S. markets, the National Association of REALTORS® is pleased to see the FHFA raise its national conforming loan limits for 2021,” NAR President Charlie Oppler said in a statement. “With an assurance that loan limits will align with home price growth, this decision will help ensure homeownership remains within reach for countless American families.”

U.S. home prices have continued to rise during the COVID-19 pandemic. The latest NAR report on existing-home sales showed that median home prices were up 15.5% in October compared to a year ago.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

Lot 2 Laurelwood Ln, Eugene, OR 

Price: $179,000    Beds: 0    Baths: 0    Acres: 0.29

Ready to build large lot located a highly desirable area near Laurelwood Golf Course. Lot has recently been partitioned to increase size and add a highly attractive building site. Utilities are to the lot line...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Haas Real Estate Team
Keller Williams Realty Eugene and Springfield
2645 Suzanne Way Suite 2A
Eugene OR 97408
Direct: (541) 349-2620
Fax: 541-687-6411

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