Real Estate Information Archive

Good Monday Morning!

The Eugene and Springfield area housing market remains robust, even with the lowest inventory of homes on the market for sale in history.  That level stands now at .09 months of inventory.  It seems that this story is being repeated across the nation at this time.  Here is an article from "Realtor.com" that talks about the national housing market.

The numbers: Existing-home sales rose for the fifth consecutive month in October, as the housing market finally made up for the pandemic-related downturn in sales this spring.

Total existing-home sales increased 4.3% from September to a seasonally-adjusted annual rate of 6.85 million, the National Association of Realtors reported Thursday. Compared with a year ago, home sales were up roughly 27%. It was the highest level of home sales in 15 years.

“Considering that we remain in a period of stubbornly high unemployment relative to pre-pandemic levels, the housing sector has performed remarkably well this year,” Lawrence Yun, the trade group’s chief economist, said in the report. “The surge in sales in recent months has now offset the spring market losses.”

Economists polled by MarketWatch had projected existing-home sales to rise to a median rate of 6.5 million.

What happened: Home sales grew in every region across the country, led by an 8.6% increase in the Midwest, the National Association of Realtors reported.

But the supply of homes on the market is a growing concern. By month’s end the total inventory of homes for sale dropped to a 2.5 months’ supply, the lowest on record. A six-month supply of homes is considered to be indicative of a balanced market.

As in September, 7 in 10 homes sold in less than a month. The fast pace of sales drove prices higher, with the median existing-home price was $313,000, up 15.5% from October 2019.

The big picture: A number of recent trends are supportive of growing home sales. Mortgage rates remain at all-time lows — dropping to the lowest level on record for the 13th time this week. Not only do low rates ease affordability constraints caused by the low supply of homes on the market, but they also serve as a catalyst spurring people to enter the market to lock in the cheap financing before it goes away.

Additionally, Americans are busy improving their homes. Both Home Depot and Lowe’s reported increasing sales in the third quarter as Americans spent money renovating their properties. Some of this was undoubtedly caused by people spending more time at home amid the pandemic — and therefore finding more flaws to fix. As economist Christophe Barraud notes, “home-improvement activity is closely correlated with existing home sales.” Sellers want to put their best foot forward, and that means doing things like touching up paint or fixing broken fixtures.

What they’re saying: “So far, the housing market appears immune to the virus due to record-low borrowing costs and teleworkers seeking roomier and cheaper properties outside of major cities,” Sal Guatieri, senior economist at BMO Capital Markets, said in a research note.

“While rising prices may be a drag on home sales, mortgage rates are contributing to affordability,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research note. “While demand for mortgages is likely to stay strong — despite job and income losses — tightening lending standards may be a constraint going forward.”

“With the recent good news on vaccines, it is likely many buyers and sellers are going to reevaluate their preferences as they imagine a world getting back to pre-pandemic conditions in the near future,” said chief economist at Keller Williams.

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THIS WEEKS HOT HOME LISTING!

Lot 3 Eagle View Dr, Eugene, OR 

Price: $299,000    Beds: 0    Baths: 0    Acres: 2.71

Don't miss this rare opportunity in SW Hills private Summit Glen subdivision. Build your dream home on this large 2.71 in-town acreage w/ expansive views of the coast range and city, and beautiful sunsets. Private, paved, gated community with only 4...View this property >> 

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Good Monday Morning!

It certainly is different times that we are currently living in.  Restrictions on everything we do, having to wear masks and maybe not being able to see or spend time with loved ones and friends.  But, one thing that has not changed is the fact that people still continue to need to buy and sell homes.  The Real Estate market that we are in changes, but the need for housing never changes.  Today, we are in a market like that I have never seen.  There is a high demand for homes, low inventory of homes for sale and historically low mortgage interest rates. This market has also taken the price of homes to all time high levels.  I am not sure how long this market will last, but for the time we are now in, this is the market that we have. The following is a report on the Eugene and Springfield Real Estate market for the month of October 2020.  Note that the inventory of homes for sale is currently the lowest on record!!

New listings (511) increased 20.5% from the 424 listed in October 2019, and increased 7.8% from the 474 listed in September 2020.

Pending sales (490) increased 24.4% from the 394 offers accepted in October 2019, and increased 9.6% from the 447 offers accepted in September 2020.

Closed sales (484) increased 18.3% from the 409 closings in October 2019, and increased 9.0% from the 444 closings in September 2020.

Inventory and Market Time

Inventory decreased to 0.9 months in October, which is tied with the lowest on RMLSTM record in July 2020. Total market time increased to 35 days.

Year-to-Date Summary

Comparing the first ten months of 2020 to the same period in 2019, new listings (5,009) decreased 4.7%, pending sales (4,323) increased 0.2%, and closed sales (3,982) decreased 4.7%.

Average and Median Sale Prices

Comparing 2020 to 2019 through October, the average sale price has increased 11.5% from $324,400 to $361,700. In the same comparison, the median sale price has increased 13.3% from $295,000 to $334,300.

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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 >> 

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Good Monday Morning!

Are we having fun yet?  I guess that in 2020 we should have expected the outcome of a natIonal election to be anything but ordinary!  How this all ends and who ends up in the Whitehouse for the next four years will shake out eventially, but until then we will live a state of uncertainty.  How is this going to effect the housing market?  That is is question that just might not be answered any time soon.  Uncertainty with any national situation typically has effects on the stock market, the housing market and other economic forces.  Just how much effect the outcome of this election has on all markets isquite  uncertain.  We do have somewhat of a track record of what the overall Real Estate market might look with a continued Trump presidency, because of what it has looked like over the past four years.  A Biden presidency with many changes in economic policy gives uncerainty to what would be ahead in the housing market.  How would tax increases, including a 3% federal tax on home sales effect the overall market?  We will find out if we end up heading in that direction.

For the present time, I woud suspect that we won't see any redical changes in the housing market either national or local.  Record low mortgage interest rates should keep housing markets active.  My only warning here is that if you are thinking of selling or buying a home, don't wait to see whats down the road. There is uncertainty ahead and we know that the current market is good for both buyers and sellers.  

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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 >> 

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Good Monday Morning!

Home sales in the Eugene and Springfield area remain strong and the inventory of homes for sale also remains at a historic low level.  Just as it has been for several months, the climate for home sellers could not be better.  High sales prices and short market times are the norm.  As I have repeatedly said, this market will not last forever.  Markets like this can change almost over night.  If you are considering selling your home within the next few months or within the year, don't wait.  Get your home on the market now if you want to take advantage of this seldom seen housing market.  The following article addresses the housing market nationally and gives you look at what is happening outside of our local market.

The National Association of REALTORS® reported Thursday that pending home sales—a forward-looking indicator based on contract signings—dipped 2.2% in September month over month. But contract signings are still up 20.5% compared to a year ago, which shows the fall housing market continues to be unseasonably hot this year amid the pandemic.

All four major regions of the U.S. posted double-digit year-over-year gains in pending home sales activity, led by the Northeast with a 27.7% annual increase.

“The demand for home buying remains super strong, even with a slight monthly pullback in September, and we’re still likely to end the year with more homes sold overall in 2020 than in 2019,” says Lawrence Yun, NAR’s chief economist. “With persistent low mortgage rates and some degree of continuing jobs recovery, more contract signings are expected in the near future.”

Yun predicts a second wave of home sales on the horizon as homeowners who had not considered moving prior to the pandemic begin to enter the market. “A number of these owners are contemplating moving into larger homes in less densely populated areas in light of newfound work-from-home flexibility,” he says.

Realtor.com®’s Housing Market Recovery Index shows that the metro areas that have recovered to their pre-pandemic levels or even above (as of Oct. 10) are Seattle-Tacoma-Bellevue, Wash.; Boston-Cambridge-Newton, Mass.-N.H.; Los Angeles-Long Beach-Anaheim, Calif.; Las Vegas-Henderson-Paradise, Nev.; and San Jose-Sunnyvale-Santa Clara, Calif.

NAR’s Pending Home Sales Index showed the following year-over-year gains in September broken down by region:

• Northeast: +27.7%
• Midwest: +18.5%
• South: +19.6%
• West: +19.3%

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THIS WEEKS HOT HOME LISTING!

4810 Center Way, Eugene, OR 

Price: $359,500    Beds: 3    Baths: 1.0    Sq Ft: 1248

Single story ranch style home nestled on a quiet street & in close proximity to the Amazon trails. Updated home with new garage door, newer windows, floors, cabinets, lighting, trim, paint, and much more. This single family home has a open layout wi...View this property >> 

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Good Monday Morning!

Sales of existing homes took off in September, jumping 9.4% from August to a seasonally adjusted annual rate of 6.54 million, the National Association of Realtors said in a report on Thursday. Compared to a year ago, sales are up 20.9%.

“Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season,” said Lawrence Yun, NAR’s chief economist. “I would attribute this jump to record-low interest rates and an abundance of buyers in the marketplace, including buyers of vacation homes given the greater flexibility to work from home.”

That surge in potential buyers, however, may be met with what Yun says is historically low inventory. At the end of September, housing inventory totaled 1.47 million units, down 1.3% from August and down 19.2% from one year ago when inventory sat at 1.82 million.

Unsold inventory measured as a “months supply” number that gauges how long it would take to sell all the homes if nothing else came on the market, was 2.7 months, NAR said. That’s down from three months in August and four months a year ago.

An improving job market, low rates, and families looking for more space played key roles in the recent activity spike, according to Mortgage Bankers Association senior vice president and chief economist, Mike Fratantoni.

“The primary constraint to even more sales is the plummeting inventory of homes on the market, which is leading to bidding wars and spikes in home prices across the country. Fortunately, we are seeing a pick up in the pace of construction, which should bring more inventory onto the market for next year’s buyers,” Fratantoni said.

The median existing-home price last month was $311,800, up 14.8% from this time last year, and prices rose in every region. According to the report, 71% of homes sold in September were on the market for less than a month at an average of 21 days – an all-time low.

However, risk still remains in the market, said Ruben Gonzalez, chief economist at Keller Williams.

“As long as unemployment remains elevated, there is a possibility that we see layoffs spill into the higher-paying sectors that are currently propping up the housing market”, said Gonzalez. “That broader recovery will likely hinge on medical progress toward ending the pandemic, as well as a strong fiscal stimulus that helps families maintain their incomes while the economy remains at reduced capacity.”

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THIS WEEKS HOT HOME LISTING!

289 Terra Linda Ave, Eugene, OR 

Price: $335,000    Beds: 3    Baths: 2.0    Sq Ft: 1417

Beautiful One-Level Home in Santa Clara. New paint inside. Living Room has gas fireplace & new laminate flooring that is also in hallway. Large Family Room w/ gas fireplace insert. Beautiful shared bath w/ walk-in shower & sliding glass door. Vinyl...View this property >> 

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Good Monday Morning!

The low inventory of homes for sale is an issue that does not just affect the Eugene and Springfield Real Estate markets.  This is an issue that is national and most likely is not going to ease any time soon.  Here is an article from "Realtor.com" that talks about this issue nationally.

The coronavirus pandemic has left a “gaping hole in the U.S. housing inventory” that is triggering property price growth, according to a report released Thursday from realtor.com.

In the roughly six months between the start of the pandemic in March and mid-September, 2.91 million homes have been put on the market, roughly 390,000 fewer than the same time in 2019, the online real estate portal said.

In the week ending Sept. 19, there were 39% fewer homes on the market compared to last year, and any upcoming uptick is unlikely given the typical seasonal slowdown on the horizon.

The lack of supply has been the catalyst for heated market conditions as median listing prices last week grew at a record 11.1% year-over-year—more than double January’s pace—marking the 19th consecutive week of increasing price tags, the report said.

“Sellers are more reluctant to list their home given the uncertainty over the economy and the pandemic environment,” Javier Vivas, director of economic research for realtor.com, said in the report. “Buyers on the other hand, especially hungry first timers, remain largely unfazed by the challenges, and are motivated by low mortgage rates and the fear of missing out on the right home.”

“The majority of sellers are also buyers, so even as new listings hit the market, another buyer is also added,” he said.

Demonstrating the appetite of buyers is the speed in which homes are selling.

Last week, properties changed hands in an average of 53 days, which is 12 days faster than this time last year, and one day faster than the week prior.

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THIS WEEKS HOT HOME LISTING!

5415 Royal Ave, Eugene, OR 

Price: $439,000    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 >> 

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Good Monday Morning!

Even though the inventory and sales numbers vary slightly from month to month, the Eugene and Springfield area remains in the midst of an extrmely strong sellers housing market.  This means that the low inventory of homes for sale favors anyone putting their home on the market. This situation has also brought about a continued increase in home prices.  The average home sale price in Lane County is now at $357,00.00.  Here are the numbers for home sales in Lane County for September of 2020.

September Residential Highlights

New listings (474) increased 6.3% from the 446 listed in September 2019, and decreased 19.0% from the 585 listed in August 2020.

Pending sales (447) increased 6.4% from the 420 offers accepted in September 2019, and decreased 20.7% from the 564 offers accepted in August 2020.

Closed sales (444) increased 3.5% from the 429 closings in September 2019, and decreased 8.8% from the 487 closings in August 2020.

Inventory and Market Time

Inventory increased to 1.1 months in September. Total market time decreased to 32 days.

Year-to-Date Summary

Comparing the first nine months of 2020 to the same period in 2019, new listings (4,485) decreased 6.9%, pending sales (3,865) decreased 2.1%, and closed sales (3,476) decreased 7.2%.

Average and Median Sale Prices

Comparing 2020 to 2019 through September, the average sale price has increased 10.1% from $324,900 to $357,800. In the same comparison, the median sale price has increased 11.9% from $295,000 to $330,000.

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THIS WEEKS HOT HOME LISTING!

1075 Linda Ln, Springfield, OR 

Price: $585,000    Beds: 4    Baths: 3.0    Sq Ft: 2292

Beautiful Home With Views and Acreage In Town. Beautifully updated Kitchen w/ granite countertops, peninsula w/ cooktop & area for seating, SS appliances, walk-in pantry, & high laminate floors. Living room/ Dining room combo w/ wood burning firepla...View this property >> 

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Good Monday Morning!

In the Eugene and Springfield area, home prices continue their upward trend.  Even with the Corona Virus caused economy slow down, demand for housing has never been greater and this continues to fuel a hot sellers market for housing.  The shortage of houses on the market for sale, especially those houses that would fit the price needs of first time buyers and record low mortgage interest rates are fueling this market.  This is taking place not only in our local area, but around the country,  Here is an article from "Realtor.com" that addresses this situation.

Home-price growth began accelerating in July, a sign that the slowdown in home prices caused by the coronavirus pandemic may be reversing.

The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 4.8% in the year ending in July. On a monthly basis, prices rose 0.8 percentage points from June to July, after staying flat during the previous month.

Meanwhile, sales of existing homes have surged, rising 10.5% on an annual basis in August, according to the National Association of Realtors. That included a 44% increase in the sales of homes costing more than $1 million.

Home sales during the pandemic have been boosted by more families deciding to buy single-family homes where they can more comfortably work from home and have their children do remote learning. Their purchases have been aided by historically low mortgage interest rates.

“With buyer demand showing no signs of a slow down, as well as limited inventory, more price increases are inevitably on the horizon,” said Danielle Hale, chief economist at Realtor.com. News Corp, parent of The Wall Street Journal, operates Realtor.com.

The Case-Shiller 10-city index gained 3.3% over the year ended in July, compared with a 2.8% annual increase in June. The 20-city index rose 3.9%, after an annual gain of 3.5% in June.

Seattle, Phoenix and Charlotte posted the highest price gains of all major U.S. cities. “Prices were particularly strong in the Southeast and West regions, and comparatively weak in the Midwest and Northeast,” said Craig Lazzara, a managing director at S&P Dow Jones Indices.

A separate measure of home sales price growth by the Federal Housing Finance Agency found that prices rose 1.0% in July from June and rose 6.5% on an annual basis.

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THIS WEEKS HOT HOME LISTING!

1719 Victorian Way, Eugene, OR 

Price: $395,000    Beds: 3    Baths: 2.0    Sq Ft: 1709

Beautiful Ferry Street bridge Home. Large carpeted front Family Room. Kitchen has a cook island and a wraparound counter. Carpeted Living Room with a gas fireplace and access to covered deck in back yard. Carpet in all bedrooms. Master has attached...View this property >> 

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Good Monday Morning!

The inventory of homes for sale in the Eugene/Springfield area continues to be at record low levels.  Currently there is just slightly over 1 months inventory of homes for sale.  This means that if no new homes hit the market, the current inventory of homes for sale would be exhausted within a month.  To give you some perspective, a heathy market has 3 or more months of inventory.  Not only does this kind of market frustrate home buyers, but it drives home prices up.  We are experiencing all of this in Eugene and Springfield.  This kind of market, however is exciting times for homesellers, as homes for sale sell in short time periods and at inflated prices. This situation is not unique to the Eugene and Springfield area and exists in most of the country right now.  The following is an article from "Realtor.com" that gives details on what. is happening with the nations housing market.

The coronavirus pandemic has left a “gaping hole in the U.S. housing inventory” that is triggering property price growth, according to a report released Thursday from realtor.com.

In the roughly six months between the start of the pandemic in March and mid-September, 2.91 million homes have been put on the market, roughly 390,000 fewer than the same time in 2019, the online real estate portal said.

In the week ending Sept. 19, there were 39% fewer homes on the market compared to last year, and any upcoming uptick is unlikely given the typical seasonal slowdown on the horizon. 

The lack of supply has been the catalyst for heated market conditions as median listing prices last week grew at a record 11.1% year-over-year—more than double January’s pace—marking the 19th consecutive week of increasing price tags, the report said.

“Sellers are more reluctant to list their home given the uncertainty over the economy and the pandemic environment,” Javier Vivas, director of economic research for realtor.com, said in the report. “Buyers on the other hand, especially hungry first timers, remain largely unfazed by the challenges, and are motivated by low mortgage rates and the fear of missing out on the right home.”

“The majority of sellers are also buyers, so even as new listings hit the market, another buyer is also added,” he said.

Demonstrating the appetite of buyers is the speed in which homes are selling.

Last week, properties changed hands in an average of 53 days, which is 12 days faster than this time last year, and one day faster than the week prior.

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THIS WEEKS HOT HOME LISTING!

986 S 71st St, Springfield, OR 

Price: $595,000    Beds: 4    Baths: 3.0    Sq Ft: 2649

Beautiful well built and cared for home nestled in the tall fir and maple trees of the Thurston Hills. Open concept throughout. Kitchen features SS appliances & island with bar level seating. Living room has large windows for a great view & gas fire...View this property >> 

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Good Monday Morning!

The national Real Estate market remains strong.  Even with home building costs soaring and the price of existing homes on the rise, low mortgage interest rates are keeping buyers in the market.  The question is, how long will low interest rates be abe to overcome the increasing home prices.  This article from "Realtor.com" sheds some light on this issue.

Home builders are more confident about the state of their industry than ever before as foot traffic of prospective buyers continues to improve, according to research from a trade group released Wednesday.

The National Association of Home Builders’ monthly confidence index rose five points to a reading of 83 in September. The index reading was the highest on record in the 35-year history of the data series, surpassing the previous month’s record high.

“The suburban shift for home building is keeping builders busy, supported on the demand side by low interest rates,” Robert Dietz, chief economist for the National Association of Home Builders, said in the report. “In another sign of this growing trend, builders in other parts of the country have reported receiving calls from customers in high-density markets asking about relocating.”

index readings over 50 are a sign of improving confidence. The index had fallen below 50 in April and May as concerns about the impact of the coronavirus pandemic mounted.

What happened: The main indicators underpinning the overall index all increased notably this month.

The index that measures sentiment regarding prospective buyer traffic soared nine points to a record high of 73. The index of expectations for future sales over the next six months increased six points to 84, and the index of current single-family home sales increased four points to 88.

Regionally, the Midwest index signaled the biggest increase, rising nine points to 78, followed by the South’s six-point increase to 85. The regional index for the West dropped one point to 87, but the three-month moving averages for all four regions were higher in September.

The big picture: The real-estate sector — and the market for new homes in particular — has been a bright spot in the country’s economic recovery from COVID-19.

The jury may still be out whether the nation is truly seeing an exodus from major cities, yet demand in the suburbs has notably risen across many parts of the country, according to economists. Buyers in these areas may have been planning to buy in March or April and were delayed by the pandemic — or they may have been planning to buy in the next few years and have been coaxed to speed up those plans thanks to record-low mortgage rates. (Though, low mortgage rates may not be available to all Americans.)

Buyers, however, are encountering a dearth of existing homes for sale in a continuation of a trend that was seen at the beginning of the year before the pandemic. With few existing homes available, more people are turning to the market for new homes.

Still, builders do face headwinds, including the rising cost of building materials. Lumber prices are up more than 170% since April, Dietz said, a reflection of production constraints caused by the pandemic. Up till now, builders have passed that cost on to consumers, but it could become a burden.

“While thus far builders have been able to pass along higher costs in the form of higher prices for finished new homes, there is a limit to their ability to do so, even if we can’t precisely peg where that limit is,” Richard F. Moody, chief economist at Regions Financial Corp., wrote in a recent research note.

And while low mortgage rates create a buffer for high home prices, as home prices continue to rise that buffer is shrinking, Moody said. Over time, if rates increase, affordability will become an even bigger constraint for buyers.

What they’re saying: “Housing continues to be an outlier in that the sector has rebounded strongly after a reopening of the economy,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research note. “This has occurred even as the labor market remains weak and the economic outlook uncertain.”

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THIS WEEKS HOT HOME LISTING!

1036 Lupine St, Springfield, OR 

Price: $539,000    Beds: 3    Baths: 2.0    Sq Ft: 1940

New Construction In gorgeous Osprey Park development. Signature Home by Anslow & DeGeneault. Open floor plan perfect for entertaining. Kitchen features Quartz countertops, custom cabinets, kitchen island w/ sink & stainless high end steel appliances...View this property >> 

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