Real Estate Information Archive

Good Monday Morning!

There has been a large number of home accidents over the past several months in the Eugene and Springfield area. With that in mind, I am sending this article from "Realty Times" on home accidents.

It's safe to say that none of us are purposely making our homes a hazard. And, no matter how hard we try, accidents still happen. But there is nothing more important than protecting ourselves, our families, and our investment.

"The home is supposed to be where you and your family are safe and protected but every year accident and emergency units deal with serious injuries and sometimes fatal accidents that occur in the home," said StaySafe. "It is not just children and the elderly that can come to harm in the home with things like chemicals and choke hazards. Accidents in the home claim 18,000 lives each year in America alone, "accounting for 21 million medical visits annually. Many of these accidents are preventable."

These tips will uncover key areas where dangers typically lie and the simple maintenance involved in avoiding them.

Dryer vents

Thousands of fires are started in the home every year because of deferred maintenance related to the clothes dryer. You may clean out the lint screen, but it's the lint you can't see that accumulates in the vent that can be dangerous. The U.S. Fire Administration (USFA) "recommends cleaning or having a professional inspect the vent for lint build-up a minimum of every two to three years," said Hunker. "Keep a fire extinguisher nearby in case a fire does break out in or around your dryer."

Falls

A third of all fatalities in the home are due to falls. A great number of them are related to old age, however people of all ages can also be at risk. Installing safety gates at the top and bottom of stairs is an obvious safety precaution with little ones, as are grab bars in bathrooms that are serving older individuals. Closely monitoring wet areas - just outside the shower and bath and in front of the kitchen sink - can help with slips. Installing nonslip rug pads under area rugs is key to keeping them in place and eliminating falls.

Blinds

The thought of a young child being strangled due to hanging cords from window blinds is horrifying. But it happens. According to USA Today, "Injuries and death from window blind cords send two kids to emergency department each day." Eliminate the worry without having to give up the blinds by choosing a cordless version. They give you the look and room-darkening features you want with some added safety measures.

Fire alarms

When's the last time you changed your fire alarm batteries? If you can't remember, you're obviously overdue. "Install fire alarms on all levels of your home, and check and change the batteries at least annually," said safewise. "Consider investing in a smart smoke detector like Nest Protect. This alarm uses Wi-Fi to provide real-time updates and remote monitoring right on your smartphone or other mobile device." 

A dirty oven

Most ovens today have a self-cleaning feature. While it's not entirely pleasant to endure the smell while it's doing its thing, it far outweighs the alternative, especially considering 40 percent of fires in the home start in the kitchen.

"A dirty oven can cause fires while cooking, allowing charred food or grease to ignite," said Home Security. "Clean your oven regularly and always attend food while cooking in the oven.'

Carbon monoxide posioning

Carbon monoxide is called the silent killer because "its presence is not known until symptoms of the exposure are experienced," said Poison Control. "It is a colorless, odorless, tasteless, and potentially dangerous gas. You can't see it or smell it." 

It's typical for smoke detectors to be in homes, but despite the fact that a carbon monoxide detector can save lives, they are often left to the homeowner to purchase and install. "Each year in the United States, more than 200 accidental deaths are caused by carbon monoxide (CO) poisoning. It is considered the leading cause of death from poisoning in the United States.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

3187 Kentwood Drive

 Price: $269,900   Beds: 3   Baths: 2   Sq.Ft: 1,172

 Fantastic updated home in Ferry Street Bridge! New laminate wood floors, doors and hardware, fresh interior and exterior paint, and kitchen countertop. Bright and open inside. Living room with dining area. Kitchen with eating bar opens to family roo... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

It seems that much of the nation is beginning to feel the pressure from housing markets that are quickly becoming over-priced. California, which has had extreme housing inflation for years is feeling the pain of an over-priced market and home sales are beginning to slow down quickly in many areas. California many times leads national housing trends. Here is an article from MSNBC that talks about the housing market changes.

A slight increase in the supply of homes for sale brought buyers back to the table in June.

Pending home sales, a measure of signed contracts to buy existing homes, rose 0.9 percent in June compared to May, according to the National Association of Realtors. Sales, however, were 2.5 percent lower than they were in June 2017. Pending home sales have been down annually for six straight months.

Sales increased in all regions of the country, rising 1.4 percent month-to-month in the Northeast, 0.5 percent in the Midwest, 1.1 percent in the South and 0.7 percent in the West. Compared to a year ago, however, sales were lower in all regions – weakest in the West.

"After two straight months of pending sales declines, home shoppers in a majority of markets had a little more success finding a home to buy last month," said Lawrence Yun, chief economist for the Realtors. "The positive forces of faster economic growth and steady hiring are being met by the negative forces of higher home prices and mortgage rates."

The severe shortage of homes for sale has been plaguing the housing market for more than a year. As demand rises, prices continue to heat up, with multiple offers more the norm than the exception. Total housing inventory at the end of June rose 0.5 percent compared to June of 2017, the first annual increase in three years.

"Even with slightly more homeowners putting their home on the market, inventory is still subpar and not meeting demand. As a result, affordability constraints are pricing out some would-be buyers and keeping overall sales activity below last year's pace," added Yun.

Affordability has hit the West especially hard. Home sales in southern California plummeted in June, according to CoreLogic, as buyers came up against red-hot prices. Some sellers are starting to lower prices, and real estate agents there are reporting fewer bidding wars. This could mark a turn in the market.

The rise in pending home sales, albeit very small for the month, does show that as more inventory comes on the market, there are buyers waiting to meet it. One headwind going forward is mortgage rates. They barely moved at all in June but started to edge higher again in July. Should rates move even more decisively higher, especially amid still-high home prices, sales could weaken further.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

 BOLTON HILL RD

Price: $990,000    Beds: 4    Baths: 3.5    Sq Ft: 3700

Stunning estate w/ amazing valley view! Enjoy beautiful sunsets & sunrises over Fern Ridge Lake & Three Sisters mountains from a serene & private hillside. Oak & hickory hardwoods, marble & porcelain tile. Master suite. Bonus rm w/ balcony, office &... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

Even in the strong sellers market that we are currently experiencing in the Eugene and Springfield area, there are always a few homes that just don't sell.  9 times out of 10, the issue is price.  We find that even during hot markets, overpriced homes may get looked at, but they just do not attract offers.  Pricing with the market is crucial with any kind of market and today, we find that competitive pricing often brings in multiple offers and the purchase war begins.  This strategy will bring about a sale for top dollar value in any market.  Along with this, there are a few things that homeowners can do to make their home more attractive to potential buyers.  The following are a few tips that just might help you if you have a home on the market or if you are considering the sale of your home.

If your home is in pretty good shape (i.e. it's decently updated and not in need of a total overhaul), you might think it's ready to go on the market as is. But little things you wouldn't expect can end up being deal breakers. And, when you've got competition, you need your home to stand out for all the right reasons. Give your home a good look and address the little things now before they become big problems when buyers are balking.

Cords hanging from your mounted TV

This is one of those things that tends to fade into the background in a home we live in every day. But don't be surprised if new eyes go right to those dangling cords and wonder why you didn't take the next step and hide them in the wall. Anything that makes a potential buyer question whether you cut corners or were lazy elsewhere could spell bad news for your home sale.

An unkempt yard

So, you had your landscapers out to clean out your flower beds, trim the bushes, plant colorful new blooms and mulch everything. And then, the night before a showing, a storm blew a whole mess of leaves into your yard. Grab that rake and make it a family affair out on the lawn at dawn. You know what they say about first impressions. Buyers likely won't be forgiving of a messy lawn, and your house may stand out if they can see the effort made to clean it up when the neighbors' yards are still 15-deep in leaves.

A dingy front door

Again with the first impressions. Your home may look great inside, but if the front door is chipped or faded, or the hardware is worn, your potential buyers may never get past it. This is an easy fix, and one that consistently rates high on the ROI scale.

Animals

While homebuyers in general may not mind if animals live in the home they are considering purchasing (unless there are severe allergy issues), they don't want to see - and, especially, smell - evidence of them. You have probably gathered up and stowed away the overflowing box of toys and balls. But have you considered the smell? You might not notice it, but first-time visitors likely will.

You don't have to rehome your pets; Use these tips from petMD to make your home smell pet-free.

Cobwebs

Even if you keep a pretty clean home, there may be areas that need attention, like ceiling fans or windowsills that are out of reach. You may not have a housekeeper on a regular basis, but doing a one-time, super deep clean before your home hits the market is a good way to make sure potential buyers don't nitpick and find a reason to question the home's condition.

Poor furniture arrangement

If you're rolling your eyes at the idea that the way you have your living room laid out could make a difference in whether or not your home sells, remember back to when you saw the home for the first time. Were you picturing your own furniture in the space? That's what real buyers do, and if they can't picture how it will work because you have too much stuff in the space or it's oddly configured - blocking a fireplace or doorway, for instance - you're keeping them from doing the thing that could make them buy the home.

"Square footage is important to homebuyers, so when you're selling a house it's important to maximize the space to appear bigger and highlight each room's dual functionality to enhance buyer appeal," said U.S. News & World Report. "A home seller can do this by decluttering, lighting up the room and especially by having your furniture strategically placed to show off the square footage. The layout will determine the visual size and flow of the room." You can learn more staging tips for arranging your furniture here.

Junk drawers and crammed cabinets

Buyers who are genuinely interested in your home are likely going to open everything and look everywhere. It's not snooping (at least, we hope it's not snooping!) - it's an interest in how much storage there is in the home. You may be forgiven for one "junk drawer," but the neater and cleaner you can make everything else, the better. You want people to see the space, not your stuff.

Overfilled closets

The need to showcase the space, not the stuff, goes double for closets. "Whether it's a hallway coat closet or a master suite walk-in, your home's closets will have a major big impact on prospective buyers," said Apartment Therapy. "Box up off-season apparel - or better yet, donate it - and remove extra hangers so yours looks spacious and streamlined."

Cluttered countertops

Eliminating, or at least cutting down on, clutter in your home is key to getting it sale-ready, and this is especially important in kitchens and bathrooms. While people may be impressed by your professional mixer and juicer, they're much more interested in knowing they have ample countertop space for their own stuff.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

1670 Ridgley Blvd

Price: $415,000   Beds: 3   Baths: 2 full, 1 half   Sq. Ft: 1,951

Terrific two-story in highly desirable area! Features vaulted ceiling, skylights, bay windows, recessed lights and hardwood floor. Gas fireplace in living room. Kitchen with eating bar opens to dining room. Family room with closet and slider to back. Master suite with...View this property>>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Morning!

One of the largest problems that comes about during a home sale is the fact that there are typically seller paid repairs that need to be done.  The majority of buyers are going to want both a pest and dry rot inspection and a whole home inspection completed as part of their purchase due diligence.  From this inspection, there are typically some repair items that will come about and in most cases the buyer will want many of them taken care by the seller prior to the close of escrow.  Negotiating these repairs during escrow can be nerve racking and can also sometimes create delays with closing.  My suggestion to all of my sellers is to have their home inspected before we go on the market.  This gives us a heads up for any potential issues and also allows the seller to repair major problems.  Typically, this creates a much easier sale process.  The followiong is and article from "US News" on why having a professional inspection prior to selling is a good thing to do.

A home inspection is traditionally known as a part of the due diligence process when a home is under contract with an intended buyer. A professional home inspector will visit the home and conduct a thorough review of the structure, noting any deferred maintenance, defects in the building and the remaining useful life of major appliances and systems such as the air conditioner and water heater.

Depending on what the inspector finds, the results can have a powerful impact on the sale of the house. The buyer can ask for repairs or updates to be made, try negotiating on the sale price or walk away from the deal.

To avoid the unpleasant surprises a home inspection may bring to light, homeowners looking to put their house on the market can opt for a prelisting home inspection, which provides sellers with a thorough report before the home goes on the market. Sellers have the opportunity to make necessary repairs before potential buyers start touring the property and to avoid a deal that falls through due to structural or maintenance problems that could lead to other potential buyers steering clear of a property that has issues.

"The homeowners would do the same diligence as if they were going to buy the house," says Frank Lesh, executive director of the American Society of Home Inspectors.

A prelisting inspection costs the same as one conducted while a property is under contract – ranging between $200 and $475, according to HomeAdvisor, depending on location and whether the inspection includes special checks like those for radon or termites.

Even in a hot real estate market where buyers are snapping up available homes quickly, a prelisting inspection can help reduce the chances a deal could fall through and get you closer to selling your home for the price you want in the time frame you need. Here are five reasons you should consider a prelisting home inspection before putting your house on the market.

Advance notice. Every house comes with its fair share of quirks and problems, and you're probably at least vaguely aware of a few of them – a window that lets water in when it rains or bowing floorboards in one corner of the dining room, for example. If you're planning to put your property on the market, an inspection report ahead of time will help you see all the potential problems together, including some you may not have known about.

The prelisting inspection gives you the knowledge to do with it what you will – make repairs or updates or reflect any deferred maintenance in your sale price, explains Drew White, founder and owner of AmPro Inspections in Colorado Springs, Colorado. "[Sellers] have all the cards – they're not going to be blindsided by any major finds from the buyer's inspection," he says.

There is a caveat: Once you have the report in your hands, you can't completely ignore a problem. If your inspector finds cracks in the foundation, you'll be required to disclose that information as a known defect to the buyer, or fix it before anyone puts an offer in.

"You know the old saying, 'Ignorance is bliss?' Now you can't do that," Lesh says. 

DIY option. For simple repairs, however, the prelisting inspection gives you the added benefit of being able to take on projects yourself. When negotiating with a buyer, necessary repairs will typically require you to bring in professionals for all work done, even when the fixes are simple.

"There's a lot of do-it-yourself projects that the homeowner can do where it's satisfactory, it's not going to be an issue," White says. "If the buyer's inspector finds it – let's say there's an electrical outlet that needs to be replaced or some simple plumbing – they're going to typically mandate that a professional electrician or plumber do it."

An outlet replacement or tightening a washer on a faucet – both simple projects homeowners can do – could be a couple hundred dollars for a pro to complete, White says.

Contractor of choice. For those bigger projects that do require professionals to come out, time is also on your side when your home isn't yet on the market. "They get time to use the contractors they want," White says.

Rather than needing to find a roofer in a specific time frame to appease the buyer, you can shop around for the right price, availability and skill to ensure you're satisfied with the work.

Informed pricing. Of course, there are some projects you're just not willing to take on. If you can't afford to fix a foundation issue with your house or you don't want to invest the money to replace cracked tile in a bathroom when you know a buyer will completely renovate it anyway, you don't necessarily have to take care of the repairs. Instead, "that can be reflected in the price," Lesh says.

Work with your real estate agent to establish the right sale price, taking into account whatever issues you can't – or aren't willing to – fix before putting the house on the market. Your final sale price will be lower, but it may be better than paying for repairs that won't be fully recouped by a buyer's offer.

Buyer may accept results. The fact that your house has already had an inspection can have its own appeal for buyers and can serve as a plus if included in marketing descriptions of the house. Especially in a tight seller's market where buyers have to fiercely compete with each other, you may see more buyers willing to accept the prelisting inspection report and forgo an additional inspection during the due diligence period, moving the process along faster.

Some home inspectors provide a warranty with their inspection reports. AmPro Inspections is one such company, White says, which helps some buyers feel more comfortable because the warranty can be transferred to the next owner. He says homebuyers accept the prelisting inspection roughly 50 percent of the time.

That doesn't mean you can expect buyers to accept the prelisting report as the only inspection. It's like buying a used car from a private individual, Lesh says. While the seller's mechanic may say the car is in great shape, you'll likely want a mechanic you trust to look at it, too.

Plus, if any significant amount of time passes between that first inspection and the buyer's offer, more problems could have popped up, especially in winter, Lesh says: "Are the conditions going to be the same in April as they are in January? Probably not."

Have An Awesome Week!

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

Over the past couple of weeks I have had numerous questions about the new tax laws. There are some changes and the following information will give you some ideas on what those changes look like.

Under the new tax law, homeowners will have decisions to make in 2018, due to reductions or elimination of certain deductions under the new tax law.

28667 HILLAIRE ST Price: $595,000 Beds: 3 Baths: 2 Sq Ft: 2000 Horse property only 5 mins from town! Nearly 6 level acres, backs up to canal & great for trail riding along Amazon. Wonderfully updated home with 2-car garage. 1 bedroom guest house w/ carport has income producing potential. 2 barns w/ 11 stalls, i... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

Anyone who has been keeping in touch with either the local or national housing market trends knows that 2016 was a record year for home sales.  2017 is starting off totally different than the previous year, though.  There are many questions as to what kind of Real Estate market 2017 will turn out to be.  Here is an article from Realtor.com that talks about the direction that the 2017 housing market will most likely take.

The days of multiple bids and offers that are typically way higher than a home’s asking price—you know, that stuff that we now consider to be normal in the housing biz—aren’t expected to disappear anytime soon. But here’s the good news: Things aren’t expected to get too much worse in 2017 either.

Rising mortgage rates, as well as a dearth of affordable, existing homes (i.e., previously lived-in residences) on the market, are expected to lead to a smaller increase in sales in 2017, according to the latest quarterly survey from the National Association of Realtors®.

The survey was of nearly 2,800 U.S. households and conducted from October through early December.

Existing-home prices are expected to go up 4% in 2017, slowing down just a bit from 5% in 2016, according to NAR.The pace of sales is also expected to slow, rising just 2% in 2017, compared with 3.3% in 2016

All in all, 2016 is expected to be the best year for existing-home sales since the height of the housing boom in 2006.

The challenges ahead2017 will “be a year of growth in both sales and prices,” says Chief Economist Jonathan Smoke of realtor.com®. “But that growth will be slower than what we’ve seen over the last three years.”

Those higher mortgage rates have already driven monthly mortgage payments up 7% since the presidential election, Smoke says. And those bigger bills are expected to make it harder for wannabe homeowners, particularly first-time buyers, to qualify for loans.

That’s in addition to the low inventory of available homes on the market that they need to contend with. In November, there were 12% fewer new and existing homes for sale on realtor.com than the same month a year earlier.

Still, the majority of households surveyed still believe now is a good time to buy a home, But fewer renters are getting the buying bug these days. That’s because housing prices are continuing to go up, making affordability an ever bigger challenge, says Lawrence Yun, NAR’s chief economist.

“Younger households, renters, and those living in the costlier West region—where prices have soared in recent months—are the least optimistic about buying,” Yun said in a statement.

According to the survey, about three-quarters of current homeowners who are over 45, make more than $50,000 a year, and live in the Midwest or South were the most confident that now is the time to close on the homes of their dreams.

They are typically the most financially stable or live in the most affordable regions of the country.

But for everyone else, it’s not all doom and gloom. Lenders are beginning to make more loans to buyers with lower credit scores and down payments as well as higher debt-to-income ratios as a result of rising mortgage rates, says Smoke.

That’s because fewer homeowners are likely to refinance their mortgages now that rates have gone up. To make up for that loss in business, lenders have to issue more loans. And higher rates can net mortgage makers higher profits, he says.

“Lenders are getting more aggressive,” Smoke says. “Credit access already appears to be improving because of the rates.”

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1615 Taney St

Price: $269,000    Beds: 4    Baths: 2    ｽ Baths: 1    Sq Ft: 1913

Brand new home! Great quality construction with plaster finished walls, maple hardwood & porcelain tile floor, hickory cabinets, granite counters, 9 ft ceiling, LED dimming lights, 3 skylights one of which opens. Great room layout with gas fireplace...View Home for Sale >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

It appears that the combination of slightly higher mortgage interest rates and the lack of available affordable housing will have a slight negative effect on the national housing market in 2017.  This situation will most likely follow the national trend locally in the Eugene and Springfield area.  Our area currently has the second lowest inventory of homes from sale in the nation.  This is a statistic that is great for anyone wanting to sell a home, but not so favorable for anyone wanting to purchase a home.  Here is an article from "Realtor.com", that address the future of the 2017 housing market nationally.

The days of multiple bids and offers that are typically way higher than a home’s asking price—you know, that stuff that we now consider to be normal in the housing biz—aren’t expected to disappear any time soon. But here’s the good news: Things aren’t expected to get too much worse in 2017 either.

Rising mortgage rates as well as a dearth of affordable, existing homes (i.e., previously lived-in residences) on the market are expected to lead to a smaller increase in sales in 2017, according to the latest quarterly survey from the National Association of Realtors®.

Existing-home prices are expected to go up 4% in 2017, slowing down just a bit from 5% in 2016, according to NAR.The pace of sales is also expected to slow, rising just 2% in 2017, compared with 3.3% in 2016

All in all, 2016 is expected to be the best year for existing-home sales since the height of the housing boom in 2006.

The Challenges Ahead

2017 will “be a year of growth in both sales and prices,” says Chief Economist Jonathan Smoke of realtor.com®. “But that growth will be slower than what we’ve seen over the last three years.”

Those higher mortgage rates have already driven monthly mortgage payments up 7% since the presidential election, Smoke says. And those bigger bills are expected to make it harder for wannabe homeowners, particularly first-time buyers, to qualify for loans.

That’s in addition to the low inventory of available homes on the market that they need to contend with. In November, there were 12% fewer new and existing homes for sale on realtor.com than the same month a year earlier.

Still, the majority of households surveyed still believe now is a good time to buy a home, But fewer renters are getting the buying bug these days. That’s because housing prices are continuing to go up, making affordability an ever bigger challenge, says Lawrence Yun, NAR’s chief economist.

“Younger households, renters, and those living in the costlier West region—where prices have soared in recent months—are the least optimistic about buying,” Yun said in a statement.

According to the survey, about three-quarters of current homeowners who are over 45, make more than $50,000 a year, and live in the Midwest or South were the most confident that now is the time to close on the homes of their dreams.

They are typically the most financially stable or live in the most affordable regions of the country.

But for everyone else, it’s not all doom and gloom. Lenders are beginning to make more loans to buyers with lower credit scores and down payments as well as higher debt-to-income ratios as a result of rising mortgage rates, says Smoke.

That’s because fewer homeowners are likely to refinance their mortgages now that rates have gone up. To make up for that loss in business, lenders have to issue more loans. And higher rates can net mortgage makers higher profits, he says.

“Lenders are getting more aggressive,” Smoke says. “Credit access already appears to be improving because of the rates.”

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

Lot 8 Vineyard Hill Dr

Price: $250,000    Beds: 0    Baths: 0    Lot Size: 5 acres

Spectacular setting in The Vineyards At Gimpl Hill. Five acres of level and rolling hills in the heart of wine country. Private gated community offers gorgeous valley and tree views. Only a 7 minute drive to town....View Property for Sale >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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 >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

At a recent Real Estate conference that I attended in Seattle, I was talking with some top agents and we were discussing the current national Real Estate market.  It seems that just about every Real Estate market in the country is currently somewhat similar to the one we are experiencing in Eugene and Springfield.  There is a low inventory of homes for sale and high demand. Many of us have been in the business for quite a few years and we all agreed that none of use have experienced a housing market like the one we have today.  We also all agreed that this current market will be short lived.

The reason that I bring this up is that we may not see a market where homesellers have the kind of edge that they have right now for many years.  We may never see this kind of market  again in our life times.  We have jumped out of the recessed housing market and for the most part home values are at or near pre-recession values in Eugene and Springfield.  With high buyer demand, I am seeing many homes sell in a matter of days at or above full price.  When multiple ofers become the rule and not the exception, you know that we have an extremely strong sellers market right now.

If you are thinking about selling your home in the near future, my advice is act quickly.  Take advantage of this market, because it won't be here for long.  Right now is your opportunity to cash in at top market value.  When this market does change it will most likely come without warning.  The inventory of homes for sale will gradually build as buyer demand begins to fade.  With less demand and more homes on the market, prices will soften and then begin a slow decline.  The timing for this is anyones guess, but it is on the horizon.

If you would like to talk about selling your home in this market, call me and I can give you information on your homes current value and go over the many options that you might have.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3757 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....
View Home for Sale >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!