Real Estate Information Archive

Good Monday Morning!

I am asked frequently these days about mortgage rates jumping due to the Feds recent increase in their rates.  The fact is that the Fed's increase had little effect on mortgage rates and in fact mortgage rates have continued to decline since the Fed increase.  If you want to purchase a home, now is the time.  Our current low mortgage rate situation is not here to stay, but you need to take advantage of it.  Here is an article from "Realtor.com" that explains our current situation with mortgage rates.  It is an interesting read.

The Federal Reserve recently raised interest rates, U.S. stocks are tumbling and new worries about the Chinese economy seem to emerge daily. So go ahead and buy that house you’ve been looking at.

Well, not necessarily. But consider: all the worries about China that have battered the U.S. stock market in early 2016 have done the opposite for bonds. More money pouring into Treasurys has driven mortgage rates to a two-month low. A 30-year mortgage slipped to 3.92% in mid-January.

The housing market had already been steadily gaining ground even before the latest drop in rates. Indeed, it’s been one of the strongest parts of the economy over the past year. Sales of new and previously owned homes are likely to finish 2015 at the highest level since before the Great Recession.

What’s more, the number of permits to build additional homes is on track to reach an eight-year high.

The final housing numbers for 2015 will start to trickle in this week.

Work on new construction, known as housing starts, is forecast to rise to a 1.19 million annual rate in December from 1.17 million in the prior month. Starts will top the 1 million mark for the second straight year.

Six years ago, builders were producing fewer than 600,000 new homes a year.

Sales of existing homes, meanwhile, are expected to hit a 5.15 million annual rate in December and finish the year about 25% higher compared to the post-recession low.

Most economists predict new construction and sales will increase again in 2016, aided by a much improved labor market. Barring, of course, China bringing the rest of the world to a crashing halt.

“The U.S. economy added more than 200,000 jobs per month on average in 2015, and wage growth is picking up,” noted Stuart Hoffman, chief economist of PNC Financial Services.

In the past three years, the U.S. has produced 8.2 million new jobs to give more people entering their prime earning years the ability to buy a home.

The big wild cards are mortgage rates and home prices, both of which could deter buyers.

The Fed raised a key short-term rate in December for the first time in nearly a decade, and the central bank is widely expected to push rates even higher in 2016. Yet so far that hasn’t translated into upward pressure on long-term Treasurys or home mortgages. Right now investors are more worried about whether a slowing Chinese economy will hurt the rest of the world.

The higher cost of buying a home could act as another repellent. Prices rose in 2015 to levels last seen shortly before the onset of the Great Recession in late 2007.

An expected increase in home construction could make it easier for buyers, though. Permits for new construction in November, for instance, were almost 20% higher compared to the same month in 2014. A greater supply of homes for sale would help hold the line on prices.

While home builders remain optimistic, the same can’t be said for American manufacturers. Sales and profits have softened over the past year because of a strong dollar, weak global economy and a slump among energy firms that are among the biggest buyers of manufactured goods.

A monthly Philadelphia Federal Reserve report on the state of manufacturing is likely to show an industry still under siege in January.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3759 Westleigh St

Price: $185,000    Beds: 4    Baths: 2    Sq Ft: 1645

Great townhouse! Townhouse with garage and yard. Four bedrooms and 2 bathrooms. Large kitchen, window shelves and seating. Fenced patio. Located one block from shops, school, park....
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Good Morning!

One thing that has always been true, Eugene and Springfield Oregon have a Real Estate market that does not always follow the flow of the rest of the country.  Sometimes this can be good and sometimes it might not be so good.  Our local market never seems to have the abrupt ups and downs that even close market areas like Portland experience.  This can be discouraging when we see other markets values jumping well above our local values, but when the market turns and those markets that had the steep gains begin the cycle down, Eugene typically does not decline as rapidly.  This is good!

Right now, Eugene and Springfield are enjoying one of the best housing markets that I have experienced in 27 years of selling Real Estate.  Unlike many other markets around the country, our home prices remain affordable.  First time buyers can still find entry level housing and be able to not put every last cent into making a house payment.  At the same time, our home values here have increased enough that most homeowners who have lived in their homes for a few years have good equity.  Eugene and Springfield is currently experiencing one of those housing markets that is great for buyers, sellers and investors.  But, a word of warning! Housing markets never stay the same for long.  The market that we are currently experiencing could be gone tomorrow.  For that exact reason, if you are considering the sale of your home, moving up or moving down in home size or wish to purchase your first home, you may never find a better opportunity than what we have today.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

 2231 Sandy Drive

Price: $310,000    Beds: 3    Baths: 3    Sq Ft: 2720

In highly desirable Ferry St Bridge area! Delightful 0.21 acre property on quiet street. Features recessed lights, skylights, vaulted ceiling and Pergo wood floor. Huge master suite with 3 closets and 5-piece bath. 3 bedrooms plus additional room th...
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Good Monday Morning!

The National Association of Realtors has just released their predictions for the 2016 national Real Estate market.  As you will read in the following NAR article, the market will continue to grow, but at a different pace than it did in 2015.  Here is the article.

WASHINGTON (January 12, 2016) — Following the housing market's best year in nearly a decade, existing-home sales are forecasted to expand in 2016 at a more moderate pace as pent-up buyer demand combats affordability pressures and meager economic growth, according to National Association of Realtors® Chief Economist Lawrence Yun in a newly-released video on his 2016 housing market expectations.

In the NAR-published video, Yun discusses his expectations for the U.S. economy and housing market in 2016 and points to pent-up demand, sustained job growth and improving inventory conditions as his reasons for an expected gain (from 2015) in new and existing-home sales (view infographic).

Despite his forecasted increase in sales, Yun cites rising mortgage rates, home prices still outpacing wages and shaky global economic conditions as headwinds that will likely hold back a stronger pace of sales.

"This year the housing market may only squeak out 1 to 3 percent growth in sales because of slower economic expansion and rising mortgage rates," Yun says in the video. "Furthermore, the continued rise in home prices will occur due to the fact that we will again encounter housing shortages in many markets because of the cumulative effect of homebuilders under producing for multiple years. Once the spring buying season begins, we'll begin to feel that again."

With one month of data remaining for 20151, Yun expects total existing-homes sales to finish the year up 6.5 percent from 2014 at a pace of around 5.26 million —the highest since 2006, but roughly 25 percent below the prior peak set in 2005 (7.08 million). The national median existing-home price for all of 2015 will be close to $221,200, up around 6 percent from 2014. In 2016, existing sales are expected to grow between 1 and 2 percent (5.30 to 5.40 million) and prices between 5 and 6 percent.

Have and Awesome Week!

THIS WEEKS HOT HOME LISTING!

3628 Westleigh St

Price: $160,000    Beds: 3    Baths: 2    Half Baths: 1    Sq Ft: 1442

Warm and homely townhouse! Updated condo with garage and yard. Cozy living room, formal dining room with slider to back. Kitchen with granite counters and new floor. Very spacious master suite with two closets. Fenced back area with patio, deck, gar...
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Good Morning!

Year end home sales numbers are in for Lane County and it was another great month for home sales.  Sales continue to be strong at the same time that home inventory levels decline.  This makes for a very strong sellers market.  Here is the December report.

Closed sales ended on a strong note this December in Lane County. Closings, at 394 for the month, were 36.3% ahead of the 289 closings posted in December 2014—this was the strongest December for closings in Lane County on the RMLSTM record.

Pending sales (276) fared well in December, ending 20.5% ahead of December 2014, although 21.4% behind the 351 offers accepted last month in November 2015. New listings (211) ended 3.7% cooler than the 219 new listings offered in December 2014 and 33.2% cooler than last month in November 2015 (316). Inventory decreased to 2.2 months in December.

Year to Date Summary

Activity ended ahead this year compared to last year. Pending sales (5,071) rose 28.3%, closed sales (4,864) rose 27.2%, and new listings (6,385) rose 10.0% this year compared to 2014.

Average and Median Sale Prices

Comparing 2015 to 2014 through the end of each year, the average sale price increased 3.4% from $235,600 to $243,500. In the same comparison, the median sale price increased 3.8% from $212,000 to $220,000.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

6964 Bluebelle Way

Price: $255,000    Beds: 3    Baths: 2    ｽ Baths: 1    Sq Ft: 1912

Wonderful house to call home! Located in Thurston hills, enjoy great views of the Coburg hills to the North. Airy and spacious with high ceilings, arched doorways and large windows throughout. Beautiful hardwood floor in formal dining room and kitch...
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Good Monday Morning!

It is commonly thought that mortgage interest rates are up.  This assumption comes from the fact that the Fed recently raised their rates by a quarter of a percent.  The truth is that mortgage interest rates have actually declined and remain well below 4% for conventional 30 year fixed rate mortgages.  Last week rates continued to decline and I saw rates as low as 3.68%. Yes, rates may increase over time, but right now mortgage rates remain at historic low levels and there has never been a better time to purchase a home.  

If you are considering a home purchase the first step is to talk with a lender.  There are many very qualified mortgage specialists in the Eugene and Springfield area and my advice is to connect with one of them rather than using an online company.  If you would like a list of the mortgage professionals that we have found to be excellent with both rates and service, please get in touch.

Have An Awesome Week!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-January-2016

 

THIS WEEKS HOT HOME LISTING!

2231 Sandy Drive

Price: $320,000    Beds: 3    Baths: 3    Sq Ft: 2720

In highly desirable Ferry St Bridge area! Delightful 0.21 acre property on quiet street. Features recessed lights, skylights, vaulted ceiling and Pergo wood floor. Huge master suite with 3 closets and 5-piece bath. 3 bedrooms plus additional room th...
View this property >>

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Good Morning!

Homeownership has always been the "great American dream". Here is an article from "Realty Times", that talks about some real monetary advantages of home ownership.

To foster and encourage this dream, Congress has consistently enacted tax legislation which favors homeowners. Indeed, much has been written that our tax laws discriminate against renters, by giving unfair and unequal tax benefits to those who own homes.

Every four years, some candidate for high political office tries to focus our attention on equalizing the tax laws, and repealing the homeowner benefits, but these arguments have consistently fallen on deaf ears. And this coming election year is no different.

For those of us who own homes, here is a list of the itemized tax deductions available to the average homeowner. Every year, you are permitted to deduct the following expenses:

TAXES. Real property taxes, both state and local, can be deducted. However, it should be noted that real estate taxes are only deductible in the year they are actually paid to the government. Thus, if in year 2015, your lender held in escrow moneys for taxes due in 2016, you cannot take a deduction for these taxes when you file your 2015 tax return.

Mortgage lenders are required to send an annual statement to borrowers by the end of January of each year, reflecting the amount of mortgage interest and real estate taxes the homeowner paid during the previous year.

MORTGAGE INTEREST. Interest on mortgage loans on a first or second home is fully deductible, subject to the following limitations: acquisition loans up to $1 million, and home equity loans up to $100,000. If you are married, but file separately, these limits are split in half.

You must understand the concept of an acquisition loan. To qualify for such a loan, you must buy, construct or substantially improve your home. If you refinance for more than the outstanding indebtedness, the excess amount does not qualify as an acquisition loan unless you use all of the excess to improve your home. However, any other excess may qualify as a home equity loan.

Let us look at this example: Several years ago, you purchased your house for $150,000 and obtained a mortgage in the amount of $100,000. Last year, your mortgage indebtedness had been reduced to $95,000, but your house was worth $300,000.

Because rates were low last year, you refinanced and were able to get a new mortgage of $175,000. Your acquisition indebtedness is $95,000. The additional $80,000 that you took out of your equity does not qualify as acquisition indebtedness, but since it is under $100,000, it qualifies as if it was a home equity loan.

Several years ago, the Internal Revenue Service ruled that one does not have to take out a separate home equity loan to qualify for this aspect of the tax deduction. However, if you had borrowed $200,000, you would only be able to deduct interest on $195,000 of your loan -- the $95,000 acquisition indebtedness, plus the $100,000 home equity.

The remaining interest is treated as personal interest, and is not deductible.

POINTS. When you obtain a mortgage loan, some lenders will allow you to pay one or more points to get that loan. The more points you pay, the lower your mortgage interest rate should be. Whether referred to as "loan origination fees," "premium charges," or "discounts," these are still points. Each point is one percent of the amount borrowed; if you obtain a loan of $170,000, each point will cost you $1,700.

The IRS has also ruled that even if points are paid by sellers, they are still deductible by the homebuyer. Points paid to a lender when you refinance your current mortgage are not fully deductible in the year they are paid; you have to allocate the amount over the life of the loan. For example, you paid $1700 in points for a 30 year loan. Each year you are permitted to deduct only $56.66 ($1700 divided by 30); however, when you pay off this new loan, any remaining portion of the points you have not deducted are then deductible in full.

Needless to say, if you have any questions about these tax benefits, discuss them with your financial and legal advisors.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

5151 & 5153 Trevon St

Price: $235,000    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....
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HAPPY NEW YEAR!

Video Link: http://eugeneoregonhomesforsale.com/video/Happy-New-Year-2016

2685 Valley Forge Dr

Price: $524,900    Beds: 3    Baths: 2    Partial Baths: 1    Sq Ft: 2302

Anslow & DeGeneault 2015 Tour of Homes model home. Gas forced air 92% efficiency, exquisite single level, located in beautiful Hawthorne Estates. Easily entertain in Great Rm overlooking backyard. Escape to luxurious owner’s ste w/ tray ceilin...
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HAVE A VERY MERRY CHRISTMAS!!

Video Link: http://eugeneoregonhomesforsale.com/video/Merry-Christmas-and-A-Happy-New-Year

2231 Sandy Drive

Price: $320,000    Beds: 3    Baths: 3    Sq Ft: 2720

In highly desirable Ferry St Bridge area! Delightful 0.21 acre property on quiet street. Features recessed lights, skylights, vaulted ceiling and Pergo wood floor. Huge master suite with 3 closets and 5-piece bath. 3 bedrooms plus additional room th...
View this property >>

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Good Monday Morning!

Even during this time of a strong Real Estate market in the Eugene and Springfield area, there are homes that hit the market and fail to sell.  The primary reason for homes not selling in any market is pricing.  Homes that are priced above their competition will sit and be looked at, but may not get offers and typically will not sell.  One of the primary factors that effects the value of a home is it's condition.  Here are some ideas as to how to upgrade the condition of your home to get a higher sales price.

When it comes to looking at houses, we do tend to judge a book by its cover. That’s why it’s so important to make sure your home looks as appealing as possible, both inside and out, if you want to get top dollar when you sell. U.S. News & World Report talked to real estate experts, who said these home improvements will help boost your selling price.

Improve your landscape. Keep your lawn neat, trim the bushes, clear out any old or tired-looking shrubbery and replace with new ones, add color with potted plants or garden beds, and top everything off with a fresh layer of mulch or rock.

Spruce up your entryway. Paint the front door or replace it, and update your house numbers and mailbox.

Change out light fixtures and plumbing fixtures. Replacing outdated fixtures with more modern ones gives your house an instant lift.

Return rooms to their original uses. If you use the extra bedroom as an office, turn it back into a bedroom.

Replace dirty or worn carpet. Prospective buyers can tell the difference between new carpet and cleaned carpet, and often, cleaning it just isn’t enough. If you have hardwood floors underneath the carpet, your best bet might be to refinish them and forego carpet completely.

Remove window treatments, unless they are current and high-end. Your window treatments probably won’t match a prospective buyer’s décor, so you’re better off removing them. Plus, uncovered windows let in more light.

Depersonalize. House hunters want to imagine themselves in your home, so remove obvious and identifying personal items, like photos and knick-knacks.

Clean thoroughly. Make every inch of the house sparkle and shine by deep cleaning it. And then think about hiring a house-cleaning service to do it, too.

Paint every room. A fresh coat of paint in a neutral color appeals to everyone. It freshens up the house, making it look newer and more modern.

Consider replacing textured ceilings. For some buyers, popcorn ceilings are a deal-breaker. If your home was built before 1979, the ceilings could contain asbestos, so you would need to hire a professional to remove the texture. If it’s a newer house, you can scrape the ceilings yourself or, if your ceilings are high enough, you could just install drywall over them to create new ceilings

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2685 Valley Forge Dr

Price: $524,900    Beds: 3    Baths: 2    ½ Baths: 1    Sq Ft: 2302

Anslow & DeGeneault 2015 Tour of Homes model home. Gas forced air 92% efficiency, exquisite single level, located in beautiful Hawthorne Estates. Easily entertain in Great Rm overlooking backyard. Escape to luxurious owner’s ste w/ tray ceilin...
View this property >>

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Good Morning!

As I have mentioned previously, one thing that you can bet on is that things are not going to stay the same in the world of Real Estate for any long period.  Our extended run of historically low mortgage interest rates could be close to ending.  It now appears that the Fed will soon begin raising interest rates.  This could indicate that the Fed is putting the steps into place which will eventually normalize interest rates in this country.  How fast this all takes place is anybody's guess, but it has to happen and it now looks like this is the scenario that is rapidly approaching.

What does this mean for home buyers and home sellers?  Our long run of low mortgage rates has heated up a Real Estate market that otherwise would have been flat.  Low rates have kept buyers very active and this has created high demand, which in turn has created low inventories of homes from sale.  This situation has lead to home price increases across the country.  Higher mortgage interest rates will decrease buyer demand, allowing invetories to rise and this will in turn put pressure on home pricing.  This will not happen over night, but it will happen.  Also, remember that this country has struggled to fully recover from the recession and household incomes have not really increased in a long time.  All of this points towards a much slower housing market in the months ahead. A market that may not be nearly as attractive to buyers and sellers as the one we are currently enjoying.

If you are considering a home purchase or a home sale, don't hold off.  Don't wait for Spring.  This could be a very costly mistake.  Mortgage interest rates remain low at this time and buyer demand is high.  For sellers, this may be the be time to sell your home that you will see for years.  For buyers, home affordabilty may suffer when rates climb as well as your ability to qualify for financing.  Don't wait, as I mentioned above, the current mortgage rate situation is about to change and we may never see mortgage rates back at the levels they are today.

If you would like some information on buying or selling a home in this market, get in touch.  I would love to assist you.  As always there is no obligation, just good, honest information that will help you make the right decision.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2231 Sandy Drive

Price: $330,000    Beds: 3    Baths: 3    Sq Ft: 2720

In highly desirable Ferry St Bridge area! Delightful 0.21 acre property on quiet street. Features recessed lights, skylights, vaulted ceiling and Pergo wood floor. Huge master suite with 3 closets and 5-piece bath. 3 bedrooms plus additional room th...
View this property >>

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