Real Estate Information Archive

Good Morning!

It is not common knowledge, but homeownership in the United States is at a 51 year low.  This is a frightening fact because the idea of homeownership is the foundation of the American Dream.  There are many factors that have contributed to this fall off on homeownership.  There is currenlty a large difference in what our two presidential candidates plan to do to stimulate the housing industry.  Do your homework and vote wisely. It is a very dangerous situation if homeownership continues to falter.  Here is a recent article from Realtor.com that talks about some of the conditions that are having an impact on homeownership.

Buying a home is hard enough these days as wannabe homeowners have to contend with a shortage of residences in some markets—along with ever-rising prices and plenty of drag-down, no-holds-barred competition. But guess what? It’s about to get even worse.

Builders and developers applied for fewer new-home construction permits in June, according to the U.S. Department of Commerce’s monthly new residential construction report. So get ready for a continuing decrease in the supply of new homes later this year and into the next. (It takes about six to nine months to complete a residence once a permit is secured.)

And, yes, that’s expected to drive prices up even higher.

The number of permits issued were down 15.4%, to just 114,000, in June compared with the same month a year earlier, according to the report. But before panic sets in, it’s helpful to realize that this was actually a 5.8% bump from May.

The numbers were not seasonally adjusted, meaning they weren’t smoothed out over a 12-month period to account for fluctuations.

The reason builders are holding off on putting up more homes is because they’re worried the number of buyers could drop off if the economy falters, says Jonathan Smoke, chief economist of realtor.com®.

“The presidential election poses a big wild card,” Smoke says. “At the same time, the world is teetering on entering a recession due to a number of factors, including most recently Brexit.”

It’s also important to note that those newly built abodes, often with state-of-the-art appliances and electronic systems, cost more than those which have been lived in—so developers have lots to lose if those properties don’t sell.

For example, the median price of a new home was $290,400 in May, according to the most recent Commerce data available. Existing (i.e., not new) homes went for a median of $239,700 in May, according to the National Association of Realtors®.It wasn’t just permits to build single-family homes that were down. Permits to put up sorely needed condo and apartment buildings, with five units or more, also dropped year over year by about 39.2%, to just 36,600 in June. But, on the bright side, the number was up nearly 4.9% from May.

“This environment is good for the landlord and property owner, but not so much for virtually everybody else,” Smoke says. “It’s going to be even harder to find an affordable place to rent than it has been.”

In a welcome bit of good news, June saw the completion of the greatest number of new residences over the past year, according to the report.

The number of finished abodes surged 16.5%, hitting 99,500 residences, in June compared with a year earlier, according to the report. It was also up 19% from May.

In addition, the number of completed condo and apartment buildings, with five units or more, were also up 14.5% from a year ago and 46.5% from May, according to the report.

But with permits down, the number of new homes hitting the market simply can’t—and won’t—continue.

“We’re just not seeing the growth in new construction that would be necessary to improve the shortage of apartments for rent and homes for sale,” Smoke says. So “we’re likely to see continued rent and home price increases.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

425 W 28th Ave

Price: $279,000    Beds: 3    Baths: 2    Sq Ft: 1586

Serene and secluded! Various beautiful trees provide privacy and great views. Features hardwood floor, two fireplaces, vinyl windows, ductless heat pump, built-in storage/shelves in home and in garage. Upstairs main level offers seclusion and mounta...View Home for Sale >>

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Good Monday Morning!

Today while the inventory of homes is low, I see buyers panic buying at times.  This does not always lead to the buyer getting the best house or even a house that will meet their needs.  If you are in the market for a home, take your time.  This might mean missing out on a few homes, but in the long run your patience will pay off.  Also, know what you are lookng for and think the process out.  Here is a checklist of things to think about when choosing a home.

If you're in the process of buying a house or are getting ready to, you may be overwhelmed by all the possibilities - and all the details. It can be easy to lose sight of some of the things that are important to you when you're seduced by pretty countertops or kids playing out on the street. Making a checklist of those must-haves will help keep you on track.

Is the bedroom count and general floorplan workable? You may be tempted by a house that's nicely staged and has that elegant-yet-warm feel you want. But look beyond the furnishings to make sure what you need is what the house has.

Is there a place for your dogs to hang out? And is there a place for the dog bowls to go? This only seems like a little thing until you're moved in and are constantly tripping over their food. When the dogs are part of your life, you'll want the house to accommodate them, and you.

Is there a place for your kitchen garbage can? See above. This "little thing" will drive you crazy. Is it enough to keep you out of the home? Probably not, but it's worth noting for situations where you can't decide between a couple of homes. It might be the little things that make the difference.

What direction does the house face? Facing west is great when it means you get to watch the sunset every day. It's not so great when it means your electric bill costs as much as your mortgage from May to September because your air conditioning is running 24–7.

Where are the structural walls? If you're planning an extensive renovation, it might be a good idea to bring in an engineer to make sure the walls you want to remove won't bring the house down.

Is there enough pantry space? A poor kitchen layout, and one that isn't easily remedied by a renovation, is a deal killer for many people.

What shape is the floor in? Look carefully. Replacing floors can be a big and expensive undertaking. Even if you have an inspection and the floors are in decent condition, they may not match your style. It'll be up to you to decide if you can live with them.

Where's the nearest Target? If location is important to you and the house you're looking at is over the mountain and through the woods, think hard about what you're willing to compromise. It might be that you start to hate being so far removed from amenities once the shine of a new house has worn off.

Where is the nearest Starbucks? Not a coffee drinker? Doesn't matter. The "Starbucks Effect" means higher home appreciation if you live within proximity.

Is there an HOA? This is important to know if you're looking to paint your home purple and display your collection of flamingos on the lawn.

How are the schools? Even if you don't have kids and never plan to, a good school district is important to home values. Pay special attention to the possibility of being rezoned. This happens quite often in growing areas, and, while you won't always know what's going to happen in the future, impacted schools and districts and chatter about coming changes might give you reason to pause.

What are the acoustics like? If there's a ridiculous echo coming from the upstairs bonus room, think about what that's going to sound like with two young kids playing.

Is the wiring what you need? If you need your home to accommodate all the latest technology, you may have some extensive rewiring to do. Checking it out before you buy will help you feel confident you can achieve your goals.

How's the yard space? Too little, or too much, space can make the day-to-day living less than ideal.

What's the neighborhood makeup? Seeing a lot of young couples on the street? Or maybe it's mainly older couples you're seeing. Spending a little time in your neighborhood you're considering can tell you a lot about who your neighbors could be, and whether you'll fit in.

Are there sex offenders nearby? Unfortunately, checking to make sure the people around you are decent is a reality today. Family Watchdog allows you to enter an address and see if there are any sex offenders in the area.

Did you schedule an inspection? You may be tempted to buy a home as is, especially in a hot market, but if you forgo an inspection, you'll be on the hook for any issues that arise with the home down the line.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1471 Barrington Ave

Price: $575,000    Beds: 5    Baths: 3    Sq Ft: 3756

Luxurious and grand! Great room with surround sound speakers, Brazilain cherry hardwood floor & gas fireplace. Huge theater/bonus room prewired for surround sound. Open kitchen with cherry stained cabinets, island, LED under & above cabinets & toe k...
View Home for Sale >>

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Good Morning!

For many new home buyers, the task of trying to find and purchase a new home can seem very complex.  The truth is that if you have good leadership and advice along the way from a Real Estate professional and mortgage lender, the process can be very easy and you can achieve home ownership very quickly and efficiently.  Here is an article from Realty Times that gives some insight into the process of home buying.

Home-buying is multi-tasking on steroids. Are you up for the challenge?

On the surface, buying a home seems simple: find your dream home and buy it.

In reality, this seemingly-simple task requires buyers to make a continuous stream of under-pressure decisions, often concerning issues and consequences they do not fully understand. Instead of one task, buyers are faced with hundreds of tasks many of which must be decided on simultaneously, on very short deadlines. This makes decision-making a challenge, but it's the knowledge gaps and "I've never thought about this before" perspectives revealed in smart home buying that add the real pressure. At its best, purchasing real estate is an exhilarating race through a labyrinth of snap decisions ending with the purchase of real estate. At its worst, home buying can become a multi-tasking nightmare culminating in the purchase of the wrong property, in spending too much, or in no purchase at all.

To swing the outcome in your favor, one key task is choosing the "best fit" real estate professional to guide you through the home-buying process. This real estate expert will keep you fully informed, so that even snap decisions are solid choices you will thrive on.

Face the complexity of successful home buying head on and it will not overwhelm you.

Purchasing real estate involves making a series of decisions which combine to address the essentials of successful real estate ownership. The "I've never thought about that before" perspectives that challenge decision making, especially for first-time buyers, can be categorized by the specialized knowledge required.

Here are Seven Insights into Successful Multi-Tasking:

#1. Investment: What is the value-appreciation potential of the property?

Does it seem strange to think about resale value when you haven't even purchased yet? This perspective is important since it reveals current value deficits. In addition, after paying off the mortgage (and many thousands in interest), and maintaining and improving the property over the years ahead, you'll want to recover these costs and make a profit to finance the next phase of your life. Even a "forever home" should be purchased with investment in mind since the future is full of surprises. Location is key to resale value. The best strategy is to buy the least property in the best neighborhood you can afford.

#2. Lifestyle: Which lifestyle values should the chosen property reinforce?

Are you determined to spend your time, money, and effort on accumulating "stuff" and teaching your children to do the same? If so, square-footage, lots of storage, and a bedroom each may be essential. If your values go beyond materialism, the size of the building may not be as important as highly-functional interior design, the surrounding community, and local amenities and green spaces. Shop neighborhood before you start looking at individual homes.

#3. Benefits: How do you expect ownership to benefit you and your family?

We addressed investment and its links to your financial future in #1. How else do you expect the home and neighborhood to benefit your family? For instance, locating near select schools has taken priority over locating adjacent to work for many buyers, but make sure the school in question is not so over-populated that its standards are slipping. Compare the cost of alternatives schools to the premium that real estate in "star school" neighborhoods demands. If a private school or home schooling is intended, "star" amenities may take priority over neighborhood schools.

#4. Time Management: How should your real estate support income earning?

Jobs tend to be more plentiful in urban areas. Real estate prices are usually lower and appreciation slower further away from urban centers. The expense of commuting to work goes up the further away you live. Do the math to determine what you'll net in salary after deducting the cost of commuting. Add a calculation of how many extra hours the distance will take from your family, interests, health, and fun. Only you can determine what this time is worth when you evaluate the value of buying a larger home further from city center.

#5. Property Management: How much time and money will maintaining and regularly modernizing your property require?

Gardening can be a great joy, but mowing a large lawn can be a great responsibility—and an expense if you pay someone else to mow. The larger the house, the higher the taxes, the bigger the roof, the more plumbing and wiring involved, more windows to decorate, more furniture to buy, and more space to heat and cool…. The costs attached to maintenance are annual, increasing expenses and should be considered when setting the budget for a purchase.

#6. Borrowing: How much will the cost of borrowing add to the overall cost of home ownership?

Mortgage interest and related costs are not the cost of real estate since not everyone needs a mortgage. These expenses relate to borrowing, but they can be large enough to make you house rich and cash poor. Financially stretching for a dream home, may be your choice knowing your earning power is on the rise.

#7. Backup: How will I find reliable, accurate, unbiased answers to my questions during the buying process?

GoogleTM should not be your "go-to" resource during home buying because it holds no liability if you get the wrong information or if you don't know what you don't know and should know about a topic. Settle on a real estate professional with the knowledge and experience relevant to the locations and type of real estate you are interested in. When you ask this local expert a question, they will know the complete answer or know how to get it. Real estate professionals understand that they carry fiduciary responsibilities to provide the right information at the right time, so their client (that's you) can consistently make confident decisions to achieve their stated goals.

The more you understand the home-buying process before you start, the better prepared you'll be for a multi-tasking decision-making marathon. The many small decisions about style of home, mortgage term, closing date, garbage and mail services, side of the street, distance to medical services and the firehall etc... will be manageable. You'll be ready to confidently make significant decisions about which property, how much to spend, and which responsibilities to commit to in the offer to purchase.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

5151 & 5153 Trevon St

Price: $239,000     Beds: 4     Baths: 2     Sq Ft: 1879

Wonderful updated duplex! Each unit has 2 bedrooms and 1 bath, vinyl windows, garage with roll-up door and large fenced backyard with patio. This 0.23 acre lot located on the corner of a culdesac is within 2 miles of schools, shopping and bus route....
View this property >>

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Good Morning!

The sky might be ready to fall in regards to mortgage interest rates. But for now, it is time to act if you have been considering a home purchase.  The home affordability that you have today is going to be short lived.

Consider this a gift to home buyers: Mortgage interest rates dipped to 3.78% this week, just in time for the spring housing market.

For people who are in the process of buying a house, our best advice is to lock in your rate now. “This is the last call before the bar closes at these historically low levels,” said Jonathan Smoke, chief economist at realtor.com®.

Currently, rates are low, but they are expected to rise. On Wednesday the Federal Reserve issued its first warning that rates will increase in the near term, because the economy has stabilized. The Fed has been propping up the economy by keeping rates at zero since late 2008, when the housing market collapsed. Now that employment is up, gas prices are low, and consumers are feeling more confident about the future, interest rates are sure to rise. Observers expect the Fed action to happen as early as June.

“From here, rates should go up more than down, which means affordability declines rapidly,” Smoke said. “It also means that navigating mortgage choices becomes simultaneously more important , but also more complex as higher rates would cause qualifications to be harder and some options will fall off the table.”

It goes to reason that as interest rates increase, affordability decreases. Home prices are rising and now that rates are indicated to follow suit, your buying power will not be as great as it once was. These are the waning days of remarkably low rates.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

775 N 8TH ST

Price: $155,000     Beds: 3     Baths: 1     Sq Ft: 1040

Charming ranch style home on dead end street. Features large windows for lots of natural light, wainscoting, laminate wood floors, well sized closets, all on 0.18 acre lot. Living room opens to dining room with slider to back. Master bedroom with ja...
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

With mortgage interest rates remaining historically low, the number of home buyers has accelerated over the past several years.  If you or your family fit into the group of those thinking about a home purchase, here are some great tips to help you with the purchase of your home.  This article was taken from Realty Times!

You're ready to make an offer on the home of your dreams. But before you do, make sure you're really ready. Ask yourself and your household members if this is the home for the next five or so years. Make sure everyone is on board with commitments to make it work, from putting off the dream vacation to putting in the elbow grease to clean, paint and do the yard work.

Have your real estate agent pull up the most recent sold comparables (CMA) within a reasonable radius of the home, so you can compare the home with other similar homes in terms of location, size, features, and amenities.

Next, consider the most current market conditions, so you can choose the right offer strategy.

In a buyer's market, discounts are common because there are fewer buyers, more properties for sale, and home prices are soft or falling so offers under list price are common.

In a seller's market, homes sell quickly for full price or higher because there are plenty of buyers and few homes for sale.

Whether you are in a buyer's market or a seller's market, your goal is to buy the home at a fair price. If you were the seller, what is the lowest possible price you'd accept?

To show the seller you're serious, include a copy of your lender's pre-approval letter, along with a cover letter summarizing your strengths as a buyer in terms of creditworthiness, flexibility in closing, and why you love this home. Include a copy of the comparables you used to show why your offer is a fair price for the property.

If the seller's home is offered at a reasonable price, don't waste time. Pay asking price or close to it. A home priced to sell will sell quickly and you'll lose it if you mess around.

Offering too little for a property is risky. If the seller feels insulted by your offer, you've lost the opportunity to negotiate. On the other hand, some sellers are simply unrealistic about their home's value. Maybe your offer will be their wake-up call. The seller will probably respond with a face-saving still-high offer, but at least they're negotiating with you.

If your offer is conditional, such as your need to sell another home before closing on the seller's, you'll have to find a way to sweeten the deal, such as a full-price offer. Few sellers will accept a discount and a contingency.

Your real estate professional will help you draft the offer with a price, estimated closing date and terms, including earnest money (a guarantee that you'll perform as a buyer in good faith,) final approval by your lender and your right to have an inspection. Your earnest money check will be forwarded to the escrow agent when your offer is accepted.

You'll have a brief period to get your home inspections completed. Your home inspector will go through the home with you and point out the condition and potential lifespan of all systems and appliances. You should only renegotiate when a problem wasn't obvious before, or when a system is found to be unsafe or not functioning.

Once you and the seller have agreed to terms, your offer is now a binding contract and you're on your way to owning a home!

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

33970 VAN DUYN RD

Price: $995,000     Beds: 4     Baths: 2    ½ Baths: 1     Sq Ft: 2930

Live where the eagles fly. Gorgeous valley and coast range views from a serene lofted location in the elite Country View Estates gated community. An elegant, top quality home offering spacious rooms, built-ins, and beautiful views, including spectac...
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Do you ever wonder how mortgage interest rates effect your ability to purchase a home, your home payment and what you actually pay over the term of the home loan? The following will give you an idea as to just how much impact mortgage interest rates have.

National average 30-year fixed rate mortgage interest rates have been under five percent for over five years. They should stay low forever, right?

Economists predict that the soaring economy, improved job outlook and ebullient consumer confidence will cause the Federal Reserve to start raising overnight borrowing rates to banks. Mortgage interest rates will become volatile, and things can change quickly for consumers.

To illustrate changing mortgage interest rates and their impact on your monthly payment, consider what a difference even a small dip and rise in interest rates means to you.

In December 2014, the median-priced home in the U.S. was $209,500, according to the National Association of REALTORS®. If you purchased this home for $200,000 and with 20 percent down and a benchmark fixed-rate mortgage with the December national average commitment rate of 3.86 percent (Freddie Mac), your payment would be $751.01 a month.

You'll make 360 total payments of $270, 362.59, with $110,362.59 in interest over the term of the loan.

The same home with the same loan on February 5 would be very different. The national average commitment rate is 3.59 percent, your payment is 726.53 and your total payments add up to $261,552.16 and 101,552.16 in interest.

The difference isn't much -- just under $25 a month and $8,810 in round numbers.

But what if interest rates go up as economists predict? The January 2015 outlook by Kiplinger's predicts that interest rates could go as high as 4.9 percent. What would your monthly payments look like then?

Your monthly payment would be $849.16, for a total of $305,698.59, and interest payments of $145,698.59, a difference of $122.63 monthly and $44,146.43 in interest by the end of the loan.

If you're interested in buying a home, mortgage rates are unlikely to stay low much longer. If you would like to see just how affordable a home purchase might be with the current low mortgage interest rates, please contact us. We would be more than happy to furnish you with a complete home purchase analysis.  This costs nothing and there is certainly no obligation.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

48808 MCKENZIE HWY

Price: $225,000     Beds: 2     Baths: 2     Sq Ft: 1034
Riverfront retreat on 1.65 Acres! Enjoy river views spanning entire south side of property from large deck overlooking an island. Privacy from every direction! Sunlight floods into this updated home with 3 french doors. Relax in the master suite jet...
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

Purchasing a home is a big deal.  With home ownership there are many things to think about.  Here is an article from Realty Times that talks about some of the things you will need to consider with your home purchase.

The American dream of owning a home is something everyone should have if they want it. You should be able to live where you want and enjoy the features of your environment that help you relax, entertain, play, and do more of the things you enjoy without the restrictions imposed by a landlord.

You can own a pet, build a treehouse, paint the walls your favorite color, and play music and videos as loud as you like without disturbing your neighbors. That's the essence of the dream -- independence.

For most first-time buyers, it's better to accept that for dreams to come true, you have to do the groundwork. Yes, you will be far more independent than you would as a renter, but you will still have some very real responsibilities to make homeownership work. Here are the top three responsibilities you'll have as a homeowner.

Financial responsibilities

You owe your lender timely payments. Paying on time helps you build your credit. With great credit, you can take on more projects such as remodeling, or you'll be able to buy furniture, cars or other things you want with lower interest on your payments.

Your debts should never be more than 40 percent of your income. If you get overextended, you'll have problems meeting the minimum payments. Instead, limit the amount of credit you actively use and pay off balances every month. Don't add new charges until you've paid off your balances.

You should also be in a position to save money, which you can do several ways. You can put money in your 401K, you can pay extra on your principal every month, or you can buy bonds or invest in the stock market, according to your tolerance for risk. You can put money in a safety deposit box or under the mattress as long as you are saving rather than overspending.

Common wisdom is to build six months of cash so you can continue to make your house payments if you lose your job or become ill. You need savings for emergencies, large expenses such as student debt, and retirement.

Neighborhood responsibilities

When you buy a home, your household becomes part of the neighborhood. You can influence whether or not the neighborhood prospers or declines simply by the way you treat your neighbors and your home. It's up to you to uphold or to set a higher standard for the neighborhood by keeping your lawn and trees trimmed, your home freshly painted, and toys and trash picked up from the entry.

This is the way you can protect your investment and those of your neighbors. It's one of the reasons many neighborhoods have homeowners associations -- to protect values by standardizing safety and maintenance for the community.

To get the benefits the HOA provides such as higher and consistent home values, you have to pay your dues and obey the covenants. You can volunteer to help or you'll have to abide by the decisions others make. Before you buy a home in a HOA-managed community, read the covenants so you'll know what you're getting into. If not being able to use certain exterior paint colors bothers you, then don't buy the home. Find something else.

Household responsibilities

You owe yourself and the other members of your household the best life you can possibly provide. Buying a new home is a great time to step up your lifestyle and enjoy what your new home and the community has to offer.

Your home should help you be who you want to be. That's the purpose of shaping your environment. You have control over whether you entertain like Martha Stewart, paint in your studio like the next Picasso, or grow a lawn as sleek as the Augusta fairways.

Choose a home that meets as many needs as you can within your means. Separate bedrooms for the kids may be doable, but you may have to compromise on a Jack and Jill shared bath. This is an excellent opportunity to teach your older children about prioritizing, delayed gratification, give and take and winning and losing gracefully.

Make sure the area you select offers amenities that your building doesn't have. If you don't have a yard for the kids and the dog, make sure there's a park and playground nearby.

Think about how far and how long it will take you to get to shopping, work, and other friends and family. Think about how a long commute will affect your family. Would you rather be sitting in traffic or attending your son's ball game?

You and your spouse may want the prestige of living in a certain area, but if your house-payment is too high, you'll introduce problems into the relationship you don't need. It's about making choices that make sense. Better to buy a smaller home in a great neighborhood and keep the arguing down.

Buy the best home you can that's within your means and it will see you through years of comfort.

Have An Awesome Week! 

THIS WEEK'S HOT HOME LISTING!

33970 Van Duyn Rd

Price: $995,000 Beds: 4 Baths: 2 Half Baths: 1 Sq Ft: 2,930

Live where the eagles fly. Gorgeous valley and coast range views from a serene lofted location in the exclusive Country View Estates gated community. An elegant, top quality home offering spacious rooms, built-ins, and beautiful views, including ...

View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

Happy New Year!!!!!!

It now appears that the Eugene and Springfield area will hit 2008 with some renewed energy in the Real Estate market.  We have certainly watched a significant increase in both the number of buyer calls and showings on home we have listed for sale.  This trend has picked up steam over the past 3 weeks, which is typically a much slower time of interest due to the Holiday's.  Over this same time period we have also sold a number of homes that have been on the market for extended periods of time.  This is good news for a market that was in steady decline.

If you are considering selling a home in 2008, the first quarter may very well be your best bet.  If you wait for the trees to bud and the flowers to bloom you may miss the best part of the 2008 market for home sales.  Waiting for Spiring/Summer could cost you time and money.

Have An Awesome Week!