Eugene Oregon Real Estate Blog

Good Monday Morning and Happy New Year!

Mortgage rates dipped slighly in December, but ticked up right before years end. The reality is that mortgage rates most likely have not peaked. How high will they go in 2023? This is a question that has much debate right now. My thought is that rates will continue to rise, but at a much slower pace than 2022. Even with home inventories low, home prices should decrease further to compensate for higher mortgage rates. As I have stated previously, the housing market we see right now may be the most advantageous market we see this year for both buyers and sellers. Here is a recent article that speaks to our current national housing market.

Mortgage rates notched their first weekly increase in six weeks just before the new year.

The average rate for a 30-year fixed-rate loan climbed to 6.42 percent from 6.27 percent, according to Freddie Mac data reported by Bloomberg. The figure closes out a year over which mortgage rates more than doubled, pricing out potential homebuyers and locking sellers in place.

Higher mortgage rates “remain a significant barrier to successfully closing transactions,” George Ratiu, head of economic research at Realtor.com, told Bloomberg.

As more buyers sit on the sidelines, homes are taking longer to sell. Inventory has risen as a result, but the population of available listings is still down from the pandemic-era housing market.

The number of properties for sale has risen 18 percent since last year, according to a recent report by Redfin, for the biggest gain since 2015. However, the brokerage reported home sales dropped 35.1 percent year-over-year in November — the largest drop since it began tracking sales in 2012.

The buyer of a median-priced home would pay about 60 percent more than last year due to higher borrowing rates, or about $2,100 a month without taxes or insurance, according to Ratiu.

Mortgage rates rose following an increase in 10-year treasury bond yields, which indicated more investors were seeking a safe store for their money. A key inflation metric showed earlier this month that consumers were paying six percent more than a year ago for goods and services.

The Federal Reserve is targeting an annual inflation rate of two percent, suggesting that its campaign to stem high prices and high wages with even higher interest rates is far from over.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

4781 Treewood Ct, Florence, OR 

Price: $498,000    Beds: 2    Baths: 2.0    SqFt: 1552

Cozy coast retreat located minutes from Harbor Vista Park! Freshly painted & updated ranch style home with luxury vinyl flooring. Two master suites with private baths. Perfect for owner occupied or a coast investment property. Large sunroom leads to a fenced backyard with raised garden beds, small shop with electrical and tool shed. Kitchen has stainless steel appliances...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There is some very positive news this Holiday Season as mortgage interest rates continue their decline, giving some relief to a depressed national and local housing market. The recent decline has helped those wanting to purchase a home immensely. Our largest problem at this time is that the inventory of homes on the market for sale, both here in the Eugene and Springfiled area and across the country remains extremely low and well below healthy levels. Those buyers out there today are ready to buy and take advantage of the lower mortgage rates, yet low home inventories are making the process difficult. If you are considering selling your home, this just might be that window of opportunity you need to sell your home at top market value. If you are considering the sale of your home, please contact me. I can easily give you an idea of what your home would currently sell for and also give you an idea as to what you would have as a payment on the purchase of your next home. The following is a recent article from "Realtor.com" that will provide you with an update on the current home mortgage market.

The numbers: Mortgage rates continued to inch downwards, providing some relief to prospective homeowners.

The 30-year fixed-rate mortgage averaged 6.27% as of December 22, according to data released by Freddie Mac on Thursday.

That’s down 4 basis points from the previous week—one basis point is equal to one-hundredth of a percentage point.

Rates have dropped for the sixth week in a row. Rates were last at this level in mid-September. Last week, the 30-year was at 6.31%. Last year, the 30-year was averaging at 3.05%

Rates are much lower than they were a month ago, when the 30-year was averaging above 7%.

The average rate on the 15-year mortgage rose to 5.69%.

“Rates have declined significantly over the past six weeks, which is helpful for potential homebuyers,” Sam Khater, chief economist at Freddie Mac, said in a statement.

But “new data indicates that homeowners are hesitant to list their homes,” he added.

“Many of those homeowners are carefully weighing their options as more than two-thirds of current homeowners have a fixed mortgage rate of below four percent,” Khater explained.

What are they saying? Buyers are taking advantage of the dip in rates to refinance their mortgages.

According to the Mortgage Bankers Association, refinancing demand jumped 6% in the latest week.

Falling rates have helped homeowners: The national median mortgage payment has dropped from $2,012 in October to $1,977 in November, the MBA said in a separate report. Mortgage payments have risen by nearly $600 in the first 11 months of the year.

The MBA said it expects the housing market and the U.S. economy to “remain volatile in early 2023.” It also expects mortgage rates to continue coming down.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

4781 Treewood Ct, Florence, OR 

Price: $498,000    Beds: 2    Baths: 2.0    SqFt: 1552

Cozy coast retreat located minutes from Harbor Vista Park! Freshly painted & updated ranch style home with luxury vinyl flooring. Two master suites with private baths. Perfect for owner occupied or a coast investment property. Large sunroom leads to a fenced backyard with raised garden beds, small shop with electrical and tool shed. Kitchen has stainless steel appliances...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Change in the Eugene and Springfield housing market is picking up steam. Novemeber Real Estate numbers show that our local market continues to slow. What stands out is that home sales and new pending home sales continue to decline as the number of new homes hitting the market also continue in decline. The odd thing is that even with fewer sales and fewer homes hitting the market, home prices remain on the rise. The other unusual statistic is that the inventory of available homes for sale has also increased. The next few months could prove to be interesting! Here are the home sales statistics for November 2022.

Residential Highlights

New listings (254) decreased 20.9% from the 321 listed in November 2021, and decreased 28.9% from the 357 listed in October 2022.

Pending sales (207) decreased 47.2% from the 392 offers accepted in November 2021, and decreased 28.1% from the 288 offers accepted in October 2022.

Closed sales (258) decreased 37.2% from the 411 closings in November 2021, and decreased 29.1% from the 364 closings in October 2022.

Inventory and Market Time

Inventory increased to 2.1 months in November. Total market time increased to 36 days.

Year-To-Date Summary

Comparing the first eleven months of 2022 to the same period in 2021, new listings (5,200) decreased 7.0%, pending sales (4,181) decreased 14.7%, and closed sales (4,293) decreased 8.4%.

Average and Median Sale Prices

Comparing 2022 to 2021 through November, the average sale price has increased 9.9% from $433,600 to $476,600. In the same comparison, the median sale price has increased 10.2% from $396,000 to $436,500.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

91710 Burton Dr, McKenzie Bridge, OR 

Price: $649,900    Beds: 2    Baths: 2.0    SqFt: 1364

This cozy McKenzie retreat will not disappoint. Nestled in the trees on a quiet drive, this home is perfect for owner occupied or a vacation rental. Recently updated kitchen, open concept with great room, vaulted ceilings, wood burning fireplace & a...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Nationally, home sales continue on a path of decline. The latest statistics show that pending sales are once again lagging. This is a good indication of continued issues with our economy. The bright spot in all of this is that mortgage interest rates have declined some and with the prices of homes declining, this is a window of opportunity for home buyers. Over the past several weeks we have found homes for buyers at prices that are far less than several months ago. The combination of lower home prices and relief in mortgage rates has made monthly payments on these houses similar or less than they would have been earlier in the year. Currently, we are also seeing sellers buy the interest rates down or offer to pay closing cost for buyers. Good home purchase options are there if you know how to find them. The following is a recent article from"Realtor.com" talking about the current national Real Estate Market.

The numbers: U.S. pending home sales fell 4.6% in October, the fifth straight monthly decline, the National Association of Realtors said Wednesday.

Economists polled by the Wall Street Journal expected pending home sales to fall 5.5%.

The index captures transactions where a contract has been signed, but the home sale has not yet closed.

Key details: On a year-on-year basis, pending home sales were down a sharp 37%.

Sales fell in three of the four regions, with the Midwest registering an increase.

Big picture: Sales have stalled as mortgage rates have jumped, making houses less affordable. Pending home sales are a leading indicator for the sector. Some economists think that buyers might return to the market as mortgage rates have plateaued.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

4781 Treewood Ct, Florence, OR 

Price: $498,000    Beds: 2    Baths: 2.0    SqFt: 1552

Cozy coast retreat located minutes from Harbor Vista Park! Freshly painted & updated ranch style home with luxury vinyl flooring. Two master suites with private baths. Perfect for owner occupied or a coast investment property. Large sunroom leads to a fenced backyard with raised garden beds, small shop with electrical and tool shed. Kitchen has stainless steel appliances...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The national economy that is being negatively effected by high inflation rates, continues to take it's toll on the housing industry. Higher mortgage interest rates coupled with home buyers purchase power dwindling has pushed housing sales downward for 9 straight months. There have been some small windows of hope. Recently, mortgage interest rates have declined and provided a window of opportunity for home buyers. Some of the decline in home sales nationally is also seasonal. Home sales over the next several months will pave the way for 2023. We will be watching closely and reporting to you. Here is an article from "Realtor.com" that goes over October national home sales numbers.

The supply of new homes for sale rose 1.5% between September and October, equating to a 8.9-month supply at the current sales pace. This is up from a 5.7-month supply in January.

Regionally, sales rose sharply in the Northeast and the South but dropped in the Midwest and the South.

Big picture: New home sales continue to buck the trend in many housing indicators. With the Federal Reserve continuing to raise interest rates, mortgage rates have hit 20-year highs and affordability has been declining. There could be some buyers rushing to complete purchases before homes get even more expensive. Other analysts point to a high cancellation rate for new home sales that is not reflected in the data.

Looking ahead: “The median and average new home price delivered was sharply higher in October, suggesting the high-end consumer has been able to withstand the increase in mortgage payments. Overall, while the rebound was encouraging, this report does little to change the outlook that housing will remain a drag on economic growth for several more quarters,” said economists at Contingent Macro.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

5427 Royal Ave, Eugene, OR 

Price: $1,500,000    Beds: 4    Baths: 3.0    SqFt: 3218

One of a kind property. This close-in home and property has an 80' X 120' riding arena with 8 stalls, 24' X 40' small barn and tac room with 3 stalls, 40' X 100' barn with 10 stalls and 600 sq.ft. apartment. Arena and apartment building are Butler b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sales in the Eugene and Springfield area and nationally continue to decline in October.  As inflation numbers continue to remain dangerously high and mortgage interest rates remain much higher than at the early part of the year the number of homebuyers in the market continue to drop. There has been a recent decline in mortgage interest rates, which hopefully will bring about an immediate surge in home purchases, but other than this the trend of slower home sales may continue indefinitely.  When one door closes two more open.  Just as mortgage interest rates increase, home prices have declined.  Also, the hot sales market of the last few years is gone.  There are more homes for home buyers to choose from and the days of bidding wars and paying well above asking price are gone. The days of sellers willingnes to do repairs and pay for buyer closing costs are back.  I am seeing many sales where the buyers final purchase deal makes up for the increased interest rates.  If you are considering purchasing a home, don't get out of this market, you just may be able to purchase a home for far less than you think!  The following is an article from "Raltor.com" that goes over the current national home sales market.

The numbers: Existing-home sales fell 5.9% to a seasonally adjusted annual rate of 4.43 million in October, the National Association of Realtors said Friday. Compared with October 2021, home sales were down 28.4%.

Economists polled by the Wall Street Journal had expected a decrease to 4.37 million units.

The level of sales is the lowest since December 2011 excluding the 2020 pandemic.

This is also the ninth straight monthly decline in sales, the longest streak on record.

Key details: The median price for an existing home was $379,100 up 6.6% from October 2021.

But price gains are decelerating. Prices were up over 20% on a year-on-year basis earlier this year.

Housing inventory fell 0.8% to 1.22 million units in October. Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 3.1 months in September and 2.4 months a year ago.

A 6-month supply of homes is generally viewed as indicative of a balanced market.

Sales declined in all regions of the country.

Big picture: Home sales have dropped as mortgage rates have risen sharply and affordability has dropped.

Softer inflation data in October have led to a drop in mortgage rates, which could lead for a floor on sales.

At the same time, Federal Reserve officials may pencil in a “peak” interest rate above 5% at the policy meeting next month.

Economists see home prices have further to fall in this market.

What the NAR is saying: Home sales have been very low and the softness could continue for a few months. But sales could pick up early next year if the mortgage rate has peaked, said Lawrence Yun, chief economist at the NAR.

The numbers: Existing-home sales fell 5.9% to a seasonally adjusted annual rate of 4.43 million in October, the National Association of Realtors said Friday. Compared with October 2021, home sales were down 28.4%.

Economists polled by the Wall Street Journal had expected a decrease to 4.37 million units.

The level of sales is the lowest since December 2011 excluding the 2020 pandemic.

This is also the ninth straight monthly decline in sales, the longest streak on record.

Key details: The median price for an existing home was $379,100 up 6.6% from October 2021.

But price gains are decelerating. Prices were up over 20% on a year-on-year basis earlier this year.

Housing inventory fell 0.8% to 1.22 million units in October. Unsold inventory sits at a 3.3-month supply at the current sales pace, up from 3.1 months in September and 2.4 months a year ago.

A 6-month supply of homes is generally viewed as indicative of a balanced market.

Sales declined in all regions of the country.

Big picture: Home sales have dropped as mortgage rates have risen sharply and affordability has dropped.

Softer inflation data in October have led to a drop in mortgage rates, which could lead for a floor on sales.

At the same time, Federal Reserve officials may pencil in a “peak” interest rate above 5% at the policy meeting next month.

Economists see home prices have further to fall in this market.

What the NAR is saying: Home sales have been very low and the softness could continue for a few months. But sales could pick up early next year if the mortgage rate has peaked, said Lawrence Yun, chief economist at the NAR.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

91710 Burton Dr, McKenzie Bridge, OR 

Price: $649,900    Beds: 2    Baths: 2.0    SqFt: 1364

This cozy McKenzie retreat will not disappoint. Nestled in the trees on a quiet drive, this home is perfect for owner occupied or a vacation rental. Recently updated kitchen, open concept with great room, vaulted ceilings, wood burning fireplace & a...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

As inflation continues to roar, the FED has continued to increase rates.  Even though at last report, inflation subsided slightly, the FED has announced that they will continue to increase rates until inflation hits 2%.  At last report the inflation rate had decreased into the high 7% range.  We have a ways to go and this means the continuation of rate increases into the future.  This is why, right now is a good time to purchase a home.  Rates will not stay at the low level of today for long. There are also ways to get the rate lower than where it is currently. Home buyers can buy their rates down.  In many cases during this slower market, home sellers may be willing to buy the mortgage rate down for the buyer. This is just one of several avenues that we are currently using to help buyers get into houmes today.  If you are wanting to purchase a home in this market, contact us and we can help you explore some of these avenues.  The following is a recent article from "Realtor.com" that talks about our current mortgage market.

The numbers: The housing sector continues to face headwinds.

The 30-year fixed-rate mortgage averaged 7.08% as of Nov. 10, according to data released by Freddie Mac on Thursday.

The 30-year was last at this level in mid-2002.

That’s up 13 basis points from the previous week—one basis point is equal to one hundredth of a percentage point, or 1% of 1%.

Last week, the 30-year was at 6.95%. Last year, the 30-year was averaging at 2.98%

The average rate on the 15-year mortgage rose to 6.38%.

Home sales have declined significantly and, as we approach year-end, they are not expected to improve,” he added.

The adjustable-rate mortgage averaged 6.06%, up from the prior week.

What are they saying? Some homebuyers are fed up waiting for rates to stabilize and are jumping in with 7% rates, an industry group said.

“Although mortgage rates remained above 7% last week, applications to buy a home increased for the first time in six weeks,” Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said in a statement.

Still, “many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook,” he added.

Mortgage demand overall continues to be weak, as refinances plunge, the MBA said on Wednesday. 

The yield on the 10-year Treasury note dropped to 3.8% during the morning trading session on Thursday.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

91710 Burton Dr, McKenzie Bridge, OR 

Price: $649,900    Beds: 2    Baths: 2.0    SqFt: 1364

This cozy McKenzie retreat will not disappoint. Nestled in the trees on a quiet drive, this home is perfect for owner occupied or a vacation rental. Recently updated kitchen, open concept with great room, vaulted ceilings, wood burning fireplace & a...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The Real Estate market is constantly in a state of change.  We go through times when that change is minimal for long periods and we also go through periods where change is rapid. If you look at the history if Real Estate in the United States, this has always been the case and it most likely always will be. The one thing that is constant is the fact that over the long haul, Real Estate values continue to increase.  Even though there are periods of decline, they are always followed by periods of values increasing and that value always exceeds where it was prior to the decline.  Today, we find ourselves in a market of decline.  We hope that this period is short and not severe, but one thing that is certain is that the Real Estate market will rebound and home values will come back and most likley they will exceed the level of where they were before the decline began. It is for this reason that Real Estate investment is most likely the most solid investment that we can make.  It does exactly what we want our investments to do and that is to make us money over the long haul and be a security from losing what we have worked hard for.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

4781 Treewood Ct, Florence, OR 

Price: $515,000    Beds: 2    Baths: 2.0    SqFt: 1552

Cozy coast retreat located minutes from Harbor Vista Park! Freshly painted & updated ranch style home with luxury vinyl flooring. Two master suites with private baths. Perfect for owner occupied or a coast investment property. Large sunroom leads to a fenced backyard with raised garden beds, small shop with electrical and tool shed. Kitchen has stainless steel appliances...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Inflation rates continue to rise and mortgage interest rates continue to increase as a result. This is a situation that I warned everyone about over a year ago, when inflation began to creep in on us. Now with high inflation we also have higher mortgage interest rates. The problem is two fold, mortgage interest rates have gone up far too quickly and have not given consumers or the economy any time to adjiust. The second issue is that the inventory of homes for sale remains historically low and this has put the brakes on home prices declining to help home buyers be able to afford a home purchase. Typically in a situation where mortgage rates increase, home values decline accordingly and the market adjusts. The reluctance of homeowners to give up their 2.5% and 3% mortgage rates is not going to change any time soon. What is really going to control our housing market over the next year and beyond is going to be the inflation rate. Here is an article from "Realtor.com" that talks about the current national housing market.

The numbers: U.S. pending-home sales fell 10.2% in September, which is the fourth straight monthly drop, according to the monthly index released Friday by the National Association of Realtors (NAR).

The decline was much larger that forecast. Analysts polled by the Wall Street Journal had forecast the pending home sales index to drop by 4%.

Outside of the pandemic, the drop in pending home sales is the largest year-over-year decline since 2001. Sales dropped by 33.1% in April 2020.

Contract signings fell by double-digits in all regions across the country.

Pending home sales reflect transactions where the contract has been signed for an existing-home sale, but the sale has not yet closed.

Economists view it as an indicator for the direction of existing-home sales in subsequent months.

The fall in pending sales is preceded by a drop in mortgage application activity, which fell in the latest week.

Key details: Compared with a year earlier, transactions were down by 31%.

Pending sales fell all four major U.S. regions, led by the Northeast, which saw a 16.2% drop from last month, followed by the West, with a 11.7% drop, the Midwest, with a 8.8% drop, and the South, where sales fell 8.1%

This is the tenth time pending home sales have fallen in the last 11 months.

Big picture: The housing market has stalled.

With rates above 7%, buyers aren’t biting, and sellers are having a hard time attracting bids.

Sales have dropped so much that it’s dragged down economic activity in the second quarter.

Sellers also not keen to give up their rock-bottom interest rates, the NAR noted, which means new supply isn’t hitting the market, which then keeps prices up.

According to June data from the Federal Housing Finance Agency, nearly a quarter of homeowners have mortgage rates of less than or equal to 3%. And the vast majority of owners—93%—have rates less than 6%.

What the realtors said: “Persistent inflation has proven quite harmful to the housing market,” said Lawrence Yun, chief economist at NAR.

With the Federal Reserve hiking interest rates to address inflation, the housing market finds itself with “far fewer buyers and even fewer sellers,” he added.

Though mortgage rates are high, “the new normal for mortgage rates could be around 7% for a while,” Yun stated.

With rates doubling from a year ago, on a $300,000 mortgage, mortgage borrowers are paying an additional $700 a month or more today, Yun said.

“Only when inflation is tamed will mortgage rates retreat and boost home purchasing power for buyers,” he added.

What are they saying?

“Contract signings for existing homes dropped 10.2% in September, to the lowest level since June 2010, with sharp declines across all geographic regions,” George Ratiu, senior economist and manager of economic research at Realtor.com said in a statement. 

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

3437 Chaucer Way, Eugene, OR 

Price: $510,000    Beds: 3    Baths: 2.5    SqFt: 1662

This light & bright south facing home will not disappoint! Beautifully remodeled kitchen & eating area w/ quartz counters, maple cabinetry, stainless steel appliances & Brazilian cherry flooring. Open floor plan w/ great room concept. French doors l...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

We are in the midst of a very unusual housing market, both locally and nationally. Yes, the market has slowed on all fronts and is most likely going to slow even further due to economic policies that are negatively affecting our national economy. Home sales are down considerably both here in the Eugene and Springfiled area and across the nation. The odd part of the current market is that home inventories are remaining very low. Why is this? It is being caused by an unusual situation where mortgage loan rates were historically low for many years and the majority of home owners took advantage of them and now have mortgages at 3% or lower on their existing home. These homeowners are very reluctant to sell their current homes with a low mortgage interest rate and take on a new home which would have a mortgage interest rate double or even higher than what they currently have. This is not the typical scenario. We would normally see home inventories increase significantly with a declining market. This would in turn bring about a much more competitive home market and send home prices downward. This situation is why, even with a slower housing market, sellers are still able to sell fairly quickly and at good prices, even in this market. This is why, if you are considering a home sale now, your homes value may be slightly less than it was earlier this year, but the market remains much better than it really should for sellers. Here is an article from "Realtor.com" that goes over our current national housing market.

The numbers: U.S. existing-home sales fell 1.5% to a seasonally adjusted annual rate of 4.71 million in September, the National Association of Realtors said Wednesday.

This is the eighth straight monthly decline, the first since 2007.

The decline was in line with economists forecasts, according to a Wall Street Journal survey.

The last time existing-home sales fell to this level was May 2020.

Outside of the pandemic, the level of sales activity was lowest since September 2012.

Compared with September 2021, home sales were down 23.8%.

Key details: Existing-home prices continue to moderate given the backdrop of higher rates and cautious buyers. The median price for an existing home fell to $384,800 in September from $389,500 in the prior month.

And expect this median price to keep falling through January and February, the NAR said.

The number of homes on the market fell 2.3% to 1.25 million units in September.

Expressed in terms of the months-supply metric, there was a 3.2-month supply of homes for sale in September, same as the previous month. Before the pandemic, a four or five-month supply was more the norm.

Homes remained on the market for 19 days on average, up from 16 days in September. Pre-pandemic, the average time for homes to remain on the market was a month.

Sales of existing homes mostly fell across the country. Aside from the West, where sales were unchanged from September, the rest of the regions saw declines.

But the West has seen large declines on a year-over-basis, compared to the rest of the country, of 31.3% from last September.

California may see a “sizable” price drop of as much as 10%, the NAR said.

All-cash transactions made up 22% of all transactions. About 29% of homes were sold to first-time home buyers, unchanged from the previous month a percent higher than last year.

Big picture: The mortgage rate hike continues to hit the real-estate market, with sales slipping. And we’re already seeing some price declines led by some regions.

Rates are firmly above 7%, and is expected to keep rising as the Federal Reserve attacks high inflation in the country.

That’s causing a surge in borrowing costs, which continue to hurt buyer demand. The average contract rate for a 30-year fixed-rate mortgage is at 6.94%, according to the Mortgage Bankers Association.

Someone who was taking out a $300,000 mortgage last year at 3%, now with higher rates, can only afford a $190,000 mortgage, NAR said—a 37% drop in what they can afford.

Equifax, a credit reporting company, said during its third quarter results that it expects mortgage originations to fall over 60% in the fourth quarter.

Economists believe that the housing market downturn is sending ominous signals to the rest of the economy:

What the realtors said: Lawrence Yun, chief economist at the National Association of Realtors said that existing-home sales have further to drop.

“We are not yet at the bottom,” as interest rates are still rising, Yun told reporters.

He said sales could fall to 4.5 million.

Yun added that housing inventory, however, fell from September, meaning that people weren’t selling homes as much, which is hindering prices from coming down further to more affordable levels.

“There will not be a housing market crash because of lack of inventory,” Yun said.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

3437 Chaucer Way, Eugene, OR 

Price: $510,000    Beds: 3    Baths: 2.5    SqFt: 1662

This light & bright south facing home will not disappoint! Beautifully remodeled kitchen & eating area w/ quartz counters, maple cabinetry, stainless steel appliances & Brazilian cherry flooring. Open floor plan w/ great room concept. French doors l...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!