Real Estate Information Archive

Good Monday Morning!

Both the national and local housing markets are very interesting to watch right now.  Mortgage interest rates have just recently taken a large drop and are now hovering at just over 4%.  Mortgage rates are predicted to stay low and we may even see a further decline in rates ahead.  Typically, a decrease in mortage rates is followed by an increase in home sales activity.  This could take place, but nationally we saw a significant decrease in the number of home sales in Febraury. Home sales have been trending downwards and the mortgage interest rate decline could slow or even put a stop to the home sale trend.  Locally, home sales have slowed and the housing market in the Eugene and Springfield area feels to be very fragile. One of the largest concerns for our local market is the continued lack of home supply.  The number of active homes for sale remains extremely low and this situation does not seem to be easing.  The lack of inventory over the past several years has fueled home prices and now home affordability has become a huge factor in our local market.  Could we actually see a market with very low inventory and low demand as well.  This is quite possible and the next several months will certainly tell the story.

My advice to anyone thinking about selling a home in the Eugene and Springfield area in 2019 is to get your home on the market right now.  By waiting until late Spring or even Summer to sell your home, you are gambling with what price your home might sell for.  Right now the inventory of homes for sale in most local areas remains extremely low, especially in the $350,000 range and below.  Buyer demand in most price ranges other than the upper tier ranges remains good.  This however could change as we move through the year.  Right now just may be your best opportunity to sell at higher price

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2945 Ava Street  

Price: $350,000    Beds: 3    Baths: 2.0    Sq Ft: 1570 

New Construction. this home is sure to impress. Open Living, Dining, & Kitchen. Great for entertaining. Master suite with walk-in closet and master bath. Two additional bedrooms are on opposite side of house. This home includes a Laundry room and a...View this property >> 

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Good Monday Morning!

If you are considering the purchase of a home soon and you have been waiting for mortgage interest rates to drop, this could be your time to act.  Mortgage interest rates are down across the board and they may stay down for several months.  If you have been waiting for a window to buy, this is it. Lower rates mean lower payments and also can increase purchase power.  With Spring coming and more homes due to hit the market, the next couple of months could be the best time to purchase a home this year.  The following article is from "Realtor.com" and it talks about the current mortgage loan market.

Rates for home loans fell, with no bottom in sight as investors increasingly brace for slowing economic growth.

The 30-year fixed-rate mortgage averaged 4.28% in the March 21 week, mortgage guarantor Freddie Mac said Thursday. That was down 3 basis points during the week and a 13-month low for the popular product, which has managed a weekly gain only twice during 2019.

The 15-year adjustable-rate mortgage averaged 3.71%, down from 3.76%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.84%, unchanged during the week.

Fixed-rate mortgages follow the benchmark U.S. 10-year Treasury note, although they move with a bit of a lag. Investors have been piling into bonds over the past week, betting on a more dovish stance from the Federal Reserve.

That turned out to be the right call. After the release of the central bank’s statements, bond prices jumped, pushing yields down sharply. Freddie’s weekly mortgage survey captures activity through Tuesday, so the big bond market moves of this week will likely be reflected in mortgage rates next week.

This may be the sweet spot for borrowers. Lower rates are obviously a boon for the housing market, which has struggled in the face of a supply crunch, rising prices, and outsize demand. But the economy hasn’t slowed enough that people are losing their jobs. Americas are still showing signs that they want to try to become homeowners. Mortgage applications rose 1.6% over the past week as rates drifted down, the Mortgage Bankers Association said Wednesday.

But few of the other obstacles have been resolved. The average mortgage application size hit a fresh high for the third week in a row as the supply of entry-level homes dwindled, the MBA said. The upcoming spring selling season will be watched very closely for clues about how the market is doing.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2230 Comstock Ave  

Price: $575,000    Beds: 4    Baths: 4.5    Sq Ft: 2904 

Builder's home with only one owner. Quiet park-like backyard. Master with his/hers sinks, jetted tub, large dual head shower, private camode, walk-in closet, two sided/see-through fireplace. Upstairs hall closet laundry plus a full laundry room area...View this property >> 

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Good Monday Morning!

There are many mortgage loan option available today and choosing the one that is best for you is important.  One of the key things that you must consider if you are in the market to purchase a home and in need of a mortgage loan, is how much money do I need to have for my down payment and how much money should I put down.  Here is an article form "Realty Times" that give you some great information on down payments.

You'd be a homeowner right now if it weren't for one thing: the down payment. Right? Even for those who have decent credit and make good money, the down payment is often the great homeownership killer.

For many others, who do have enough money set aside to make a substantial down payment, the question is: how much? Conventional wisdom—not to mention most of the banks and a good portion of homebuying and financial experts—will tell you that 20 percent is the standard bearer when it comes to down payments. But is it really necessary to put 20 percent down?

The short answer is: no.

Now for the long answer.

"Raising a 20 percent down payment isn't an easy thing to do. Fortunately, you don't have to. "It's a myth that all homebuyers must have a 20 percent down payment to buy a home," says Nancy Herrera-Siples, a Riverside, Calif., branch manager at Primary Residential Mortgage on U.S. News. "So why do you constantly hear that you need to put 20 percent down? Because if you don't, it usually means you'll have to shell out money for either private mortgage insurance or government insurance, which is usually financed by the Federal Housing Administration (FHA)."

And there's another rub for those who are already struggling to come up with the minimum down payment: that extra couple of hundred dollars per month feels like a penalty. It's not, of course—"Mortgage insurance protects the lender in case you can't make your payments and the house is foreclosed on," said U.S. News—but that money can make a significant difference for those who are stretching to buy a home.

Still, when your only option to buy is a low down payment, which can mean an FHA loan or one of the new low down payment loans from Freddie Mac and Fannie Mae—"At the end of 2014, the two government-backed companies announced plans to slash down payments from 5% to 3%," said CNN—PMI might literally be a small price to pay. Especially if swelling rents are making homeownership look more and more promising. Remember that PMI does go away eventually when your loan balance is 80 percent or less of the home's value. If you're in an area where homes are rising in value, this could happen sooner than you think.

Still confused about the ins and outs of down payments? Here are a few reasons to go high…or low.

When to make a substantial down payment

• When you're looking to keep your monthly payment as low as possible and have cash to spare
• When you just can't fathom paying PMI
• When your goal is to buy a forever home and own it free and clear
• When you are approaching retirement age and can envision a reverse mortgage sometime down the line
• When you want to buy your house and pay it off as quickly as possible
• When the rate is lower with a higher down payment. "The more you put down, the better position you are in for negotiating a lower interest rate with your lender," said Credit.com. Plus, a "low down payment might affect other loan features, such as…the points, which are upfront interest charges," said Banking My Way.
• If you're worried about being under water. If the market should drop in your area, you run the risk of owing more than your home is worth

When to go low

• When you don't have the funds for a higher down payment and can't earn or borrow them quickly enough
• When the rate on your FHA or Fannie or Freddie loan is comparable to that you'd get with a higher down payment
• When you need to escape a high-rent situation and the monthly payment on a house is lower than what you're currently paying, even with the PMI factored in
• When you're confident your home will appreciate quickly, allowing you to refinance and get rid of PMI quickly
• When your investments can't be touched without a penalty or are returning better than the interest rate you'll get on your home
• If you have something better to do with the money. "If you bought a $400,000 home, 5% down would be $20,000, while 20% down would be $80,000—a whopping difference. An immediate need such as a college tuition payment would make the smaller down payment more appealing," said Banking My Way.
• When you feel more secure setting money aside for emergencies instead of tying it all up in your house.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2230 Comstock Ave 

Price: $575,000    Beds:4     Baths: 3.5    Sq Ft: 2904

Quiet park-like backyard. Master with his/hers sinks, jetted tub, large dual head shower, private camode, walk-in closet, two sided/see-through fireplace. Upstairs hall closet laundry plus a full laundry room area. Guest bedroom with murphy bed set in beautiful cabinetry can double as bonus area... View this property >> 

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Good Monday Morning!

If you are purchasing a home, the home inspection is an integral part of this process. To protect your best interests, having the home you are purchasing inspected first can give you a look at the condition of the home and may save you from purchasing a home with unknown issues.  My advice to my clients is to never make a home purchase blindly and without having an expert look at all of the homes components.  Here is an article form Realty Times that gives you go information on home inspections.

If you're hiring someone to inspect the home you want to buy, or you're a seller trying to find out if there are any hidden problems that need fixing before you put your home on the market, here are five things you need to know:

1. You can choose your home inspector.

Your real estate professional can recommend an inspector, or you can find one on your own. Members of the National Association of Home Inspectors, Inc. (NAHI), must complete an approved home inspector training program, demonstrate experience and competence as a home inspector, complete a written exam, and adhere to the NAHI Standards of Practice and Code of Ethics.

2. Home inspections are intended to point out adverse conditions, not cosmetic flaws.

You should attend the inspection and follow the inspector throughout the inspection so you can learn what's important and what's not. No house is perfect and an inspection on any home is bound to uncover faults. A home inspector will point out conditions that need repair and/or potential safety-related concerns relating to the home. They won't comment on cosmetic items if they don't impair the integrity of the home. They also do not do destructive testing.

3. Home inspection reports include only the basics.

A home inspector considers hundreds of items during an average inspection. The home inspection should include the home's exterior, steps, porches, decks, chimneys, roof, windows, and doors. Inside, they will look at attics, electrical components, plumbing, central heating and air conditioning, basement/crawlspaces, and garages.

They report on the working order of items such as faucets to see if they leak, or garage doors to see if they close properly. Inspectors may point out termite damage and suggest that you get a separate pest inspection. The final written report should be concise and easy to understand.

4. Home inspectors work for the party who is paying the fee.

The NAHI Standards of Practice and Code of Ethics clearly state that members act as an unbiased third party to the real estate transaction and "will discharge the Inspector's duties with integrity and fidelity to the client." A reputable home inspector will not conduct a home inspection or prepare a home inspection report if his or her fee is contingent on untruthful conclusions.

The inspector should maintain client confidentiality and keep all report findings private, unless required by court order. That means it is your choice whether or not to share the report with others. If you're a seller, you don't have to disclose the report to buyers, but you must disclose any failure in the systems or integrity of your home.

5. Inspectors are not responsible for the condition of the home.

Inspectors don't go behind walls or under flooring, so it's possible that a serious problem can be overlooked. Keep in mind that inspectors are not party to the sales transaction, so if you buy a home where an expensive problem surfaces after the sale, you won't be able to make the inspector liable or get the inspector to pay for the damage. In fact, you may not be entitled to any compensation beyond the cost of the inspection.

As a buyer, you need the home inspection to decide if the home is in condition that you can tolerate. You can use the report to show the seller the need for a certain repair or negotiate a better price. You can also take the report to a contractor and use it to make repairs or to remodel a section of the home.

One thing you should not do when buying a home is skip having the home inspected because of cost or undue pressure by the seller. A home inspection is reasonable, it can save you money in the long run, and it's required by many lenders, particularly for FHA loans. There's a reason why buyers should beware, and a home inspection gives you the information you need to make a sound buying decision.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

39285 Upper Camp Creek Rd  

Price: $950,000    Beds: 5    Baths: 3    Sq Ft: 3520

New Construction. this home is sure to impress. Open Living, Dining, & Kitchen. Great for entertaining. Master suite with walk-in closet and master bath. Two additional bedrooms are on opposite side of house. This home includes a Laundry room and a ...View this property >> 

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Good Monday Morning!

Last month, homes sales were down nationally and home values also dipped slightly. This took place at the same time that home mortgage rates were down over the previous several months. It is too early to tell, but this could indicate the fact that the housing market is going to flatten out this year and the trend for home price increases could be over for now. We will certainly know more by mid year, but the trend over the last few months looks as if the housing market is going to slow from the fast pace of the last several years. This trend could be extremely favorable to would be homebuyers.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

3346 Roanoke Ave 

Price: $610,000    Beds: 4    Baths: 2.5    Sq Ft: 2577

This beautiful one level home features an open concept floor plan, tall ceilings, 4 bedrooms and 2.5 baths. Stainless steel Dacor appliances. Office space/den with french doors & builtins. Large island bar off kitchen, granite counters, and hardwood floors...... View this property >> 

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Good Monday Morning!

Good news for homebuyers in the Eugene and Springfield area!! The inventory of homes on the market for sale has increased slightly and believe it or not, the housing market has become slightly less competitive. This also means that pricing has become somewhat softer in some price ranges and areas. If you have been searching for a home and gave up due to the fact that you could not find a home, you should take advantage of this market change. Here are the home sales statistics for the month of November 2018 in Eugene and Springfield.

November Residential Highlights

Lane County saw an uptick in new listings this November. At 393, new listings outpaced November 2017 (345) by 13.9%, despite cooling 16.2% from the 469 new listings also entered last month in October 2018. The last November with more new listings in Lane County was in 2007,when 467 new listings were o ered.

Pending sales, at 351, ended 4.1% cooler than in November 2017 (366)and 22.9% cooler than October 2018(455).

Closed sales, at 370, similarly cooled 6.1% from November 2017(394) and 12.1% from October 2018(421).

Inventory in Lane County showed a slight increase in November, ending at 2.2 months. Total market time rose to 52 days in the same period.

Year to Date Summary

Comparing the first eleven months of 2018 to 2017, closed sales (4,848) have increased 0.8% and new listings(6,155) have increased 0.2%. Pending sales (4,952) have decreased 0.3%.

Average and Median Sale Prices

Comparing 2018 to 2017 through November of each year, the average sale price has increased 7.1% from $288,300 to $308,800. In the same comparison, the median sale price rose 8.3% from $260,000 to $281,500.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

825 SAND AVE

 Price: $535,000    Beds: 3    Baths: 2    Sq Ft: 2344

Grand very well-maintained home! Light filled vaulted open layout w/ large windows & skylights. Living rm w/ gas fireplace opens to dining area. Office/bonus rm w/ exterior entrance & Shoji sliding dr/rm divider. Massive kitchen w/ cook island, pant...View this property >>

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Good Monday Morning!

Here are the home sales numbers for October of 2018.  For the most part, there is little change taking place over previous months this year. This reflect on a market that has flattened out and maybe starting to decline slightly. This actually is good news and may help us maintain a strong housing market going into 2019.  Here is the report for Lane County in October of 2018.

October brought mixed numbers to Lane County, but new listings saw a gain over October 2017. At 469, new listings rose 5.2% ahead of the 446 new listings last year in October 2017, despite a 2.9% cooling from last month in September 2018 (483).

Closed sales (421) were 5.5% warmer than last month in September 2018 (399) but fell 1.6% short of the 428 closings recorded last year in October 2017.

Pending sales fared similarly,warming 6.1% over the 429 offers accepted in September 2018, but falling 4.6% short of the 477 accepted last year in October 2017.

Total market time rose to 43 days in October with inventory decreasing slightly to 2.1 months from 2.4 months in September.

Year to Date Summary

Comparing the first ten months of 2018 to 2017, closed sales (4,451) have increased 1.9%. Pending sales (4,611) have decreased 0.4% and new listings (5,753) have decreased 0.5%.

Average and Median Sale Prices

Comparing 2018 to 2017 through October of each year, the average sale price has increased 6.9% from $288,200 to $308,200. In the same comparison, the median sale price rose 8.5% from $260,000 to $282,000.

Have An Awesome Thanksgiving Week!

THIS WEEKS HOT HOME LISTING!

1849 Crescent Ave 

Price: $329,900   Beds: 3   Baths: 2  Sq Ft: 1344

Wonderful updates in this N. Gilham home! Great Rm layout, hickory cabinets, granite counters, engineered wood flr, recessed lights, stone gas fireplace, vinyl windows & French drs w/ built-in blinds. Kitchen w/ under-mount sink, island & eating bar......

 View this property >> 

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Good Monday Morning,

The national home sales statistics for October 2018 indicate that the national housing market remains flat.  There was little change in home sales numbers and home prices from the month of September.  Mortgage interest rates were up slightly, but still remain favorable.  These numbers indicate that the national housing market remains healthy.  With little change going into the Fall months, this suggest that we should see a very healthy and stable national housing market into the first quarter of 2019.

The housing market in the Eugene and Springfield area remains very robust for the price ranges of $300,00.00 and under, but drops off considerably in the upper end price ranges over $500,000.00 and above.  The housing market for homes that work for first time home buyers remains a strong sellers market, but changes considerably from a sellers market in the upper end market.  This trend should remain unchanged going into 2019.

View video HERE.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

 88139 KEOLA LN

Price: $495,000   Beds: 4   Baths: 3   Partial Baths: 1   Sq Ft: 2794

Gorgeous & private rural living! Serene tree views surround 1.37 acre estate. Well-manicured gardens w/ paths, sitting areas & huge patio. Finished 3-car garage & half bath, w/ guest suite above. Features media rm, open layout & private master suite...View this property >>

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Good Morning!

There can be some confusion in the minds of the average consumer about interest rates, especially as it relates to the Federal Open Market Committee, or FOMC, meetings. About every six weeks, the FOMC meets to discuss the current state of the economy with an eye toward the future. One important task is to monitor and adjust the cost of funds. In general, the “Fed” tries to keep inflation in check and in theory raise or lower the cost of funds. They do so by adjusting the Federal Funds rate and this is the rate that gets so much press each time the FOMC meets.

The Federal Funds rate is the rate banks can charge one another for short term lending. Short term as in overnight. Why does a bank need to borrow money on such a short notice? Banks are required to keep a certain amount of liquid capital, in other words “cash,” at the end of each business day. These funds are essentially demand funds. When a consumer wants to withdraw some cash either at the bank or at any automated teller, there needs to be cash available to meet those withdrawal requests. If the bank sees their reserves to meet these requests do not meet the reserve requirements, banks seek out a short term loan from another depository institution to meet the reserve requirements. This is what the Fed adjusts, the overnight lending rate. But the Fed doesn’t directly impact the everyday 30 year conforming fixed rate mortgage.

When lenders set their rates each day, they refer to a specific mortgage bond. For example, with a 30 year fixed conforming loan underwritten to Fannie Mae standards, the lender will review the current yield on the FNMA 30-yr 3.0 mortgage bond. Just like any bond, with the price of the bond goes up, the yield will fall. And when the price goes down, the yield will rise. Investors buy bonds, all types of bonds, as a safe place to park cash. When the economy appears to falter, investors can get a little skittish and pull some funds from the stock market and transfer those funds into bonds, including mortgage bonds. If on the other hand the economy is healthy and improving, the opposite will occur.

When the Fed makes an announcement at the end of their two-day meetings, investors are anxious to hear if the Fed raised, lowered or kept rates the same. If the Fed announces they decided to raise the cost of funds by 0.25%, it can tell investors the FOMC decided the economy is doing rather well but to hold of any potential inflation, it will raise the cost of funds that banks will pay for short term lending. It’s not a direct affect on mortgage rates, but definitely an indirect one.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

825 SAND AVE

Price: $550,000    Beds: 3    Baths: 2    Sq Ft: 2344

Grand very well-maintained home! Light filled vaulted open layout w/ large windows & skylights. Living rm w/ gas fireplace opens to dining area. Office/bonus rm w/ exterior entrance & Shoji sliding dr/rm divider. Massive kitchen w/ cook island, pant...View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Finally, some bright news for would-be homebuyers. Mortgage interest rates are holding steady and may even see a decline. This trend may help take heat off of a housing market that continues to be over priced for many buyers.

Borrowers saw a slight cool down in mortgage rates this week following last week’s seven-year high. The 30-year fixed-rate mortgage dipped for the first time after five consecutive weeks of increases, averaging 4.71 percent.

But the higher rates may be deterring some would-be home buyers. “The strength in the economy has failed to translate to gains in the housing market as higher mortgage rates have contributed to the decrease in home purchase applications, which are down from a year ago,” says Sam Khater, Freddie Mac’s chief economist. “With mortgage rates expected to track higher, it’s going to be a challenge for the housing market to regain momentum.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 4:
(Scroll over interactive data chart)

• 30-year fixed-rate mortgages: averaged 4.71 percent, with an average 0.4 point, falling slightly from last week’s 4.72 percent average. Last year at this time, 30-year rates averaged 3.85 percent.

• 15-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.4 point, decreasing from last week’s 4.16 percent average. A year ago, 15-year rates averaged 3.15 percent.

• 5-year hybrid adjustable-rate mortgages: averaged 4.01 percent, with an average 0.3 point, rising from last week’s 3.97 percent average. A year ago, 5-year ARMs averaged 3.18 percent.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

6997 GLACIER DR

Price: $359,900    Beds: 4    Baths: 2 ½   Sq Ft: 2406

Completely remodeled! Fresh interior & exterior paint. All new carpet, vinyl wood floors, LED lights w/ Decora switches, heat pump, furnace, hot water heater. Large lower level bonus space (not included in SF) w/ lots of potential; could make a grea... View this property >>

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