Eugene Oregon Real Estate Blog

Good Monday Morning!

The price of new homes continues to soar as inventories remain low and home building materials continue to increase in costs.  I have been saying for some time now that we would reach a point where the cost of new housing will begin to surpass the ability of the buyers to purchase.  We may have met that time or be very close to reaching it.  Even with historic low mortgage interest rates the demand for new housing nationally is beginning to slow.  Here is an article from "Realtor.com" that talks about this current situation with new housing.

The numbers: Sales of newly built homes occurred at a seasonally-adjusted annual rate of 841,000 in November, the Census Bureau reported Wednesday. That was 11% below the downwardly-revised pace of 945,000 in October.

Analysts polled by MarketWatch had projected new-home sales to occur at a seasonally-adjusted annual rate of 875,000. Compared to last year though, November’s numbers remained elevated, up nearly 21% year-over-year.

What happened: New-home sales fell across all parts of the country, led by a 43% decline in the Midwest.

Inventory rose markedly by month’s end, up some 14% to a 4.1-month supply. A six-month supply of homes is generally considered indicative of a balanced market. The median price of new homes for sale was $335,300, down from October but up 5% from a year ago.

The big picture: The dip in sales in November is a sign that buyers are cooling on the market, in tandem with the cooler weather. “While buyers continue to favor larger homes with bigger backyards and better quality of life, steeply-rising prices are driving a wedge between their preferences and their wallets,” said George Ratiu, senior economist at Realtor.com.

Indeed, the rising cost of new homes points to the challenges buyers will face as we head into the new year. The increase in sales prices for newly constructed homes is a reflection mainly of higher building costs. Nevertheless, with the supply of existing homes so constrained, buyers will face tough competition for most properties, driving the prices higher.

Builders will face a challenge in 2021: There’s high demand for more affordable homes, but those homes offer less of a return for construction firms. “New home builders must navigate rising construction costs and shifting consumer preferences to boost the availability of affordable new homes,” Ratiu said.

What they’re saying: “Inventories are tight — down 14.2% year-over-year in October — and could be a constraint for home sales going forward,” said Rubeela Farooqi, chief U.S. economist at High Frequency Economics, in a research note.

Market reaction: Market reaction: The Dow Jones Industrial Average and S&P were up Wednesday, despite confusion as to the fate of the latest stimulus package..

Meanwhile, shares of home-building firms PulteGroup, LGI Homes, and Lennar Corp. were all down upwards of 2% following the release of the new-home sales report.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

5415 Royal Ave, Eugene, OR 

Price: $425,000    Beds: 3    Baths: 1.5    Sq Ft: 1366

Beautiful Danebo Property With Views. Large living room with wood burning fireplace. Views from living room and kitchen that looks over meadows and territorial hills. Kitchen has wrap around counter and lots of cabinet space. Patio access from two b...View this property >> 

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Good Monday Morning!

It looks like we are going to finish 2020 with a bang in regards to mortgage interest rates.  We started 2020 with extrmely low rates and we are finishing the year with even lower rates. Right now, I would bet for this trend to continue well into 2021 at a minimum.  Here is a recent report on end of year mortgage rate trends.

This week marked the 15th record low for mortgage rates this year. The 30-year fixed-rate mortgage dipped further to an average of 2.67%, the lowest rate ever recorded by Freddie Mac, with records dating back to 1971.

“The housing market continues to surge higher and support an otherwise stagnant economy that has lost momentum in the last couple of months,” said Sam Khater, Freddie Mac’s chief economist. “Mortgage rates are at record lows and pushing many prospective home buyers off the sidelines and into the market. Homebuyer sentiment is sanguine and purchase demand shows no real signs of waning at all heading into next year.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 17:

• · 30-year fixed-rate mortgages: averaged 2.67%, with an average 0.7 point, falling from last week’s 2.71% average. This time last year, 30-year rates averaged 3.73%.
• · 15-year fixed-rate mortgages: averaged 2.21%, with an average 0.6 point, falling from last week’s 2.26%. A year ago, 15-year rates averaged 3.19%.
• · 5-year hybrid adjustable-rate mortgages: averaged 2.79%, with an average 0.3 point, unchanged from last week. A year ago, 5-year ARMs averaged 3.36%.

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THIS WEEKS HOT HOME LISTING!

Lot 2 Laurelwood Ln, Eugene, OR 

Price: $179,000    Beds: 0    Baths: 0    Acres: 0.29

Ready to build large lot located a highly desirable area near Laurelwood Golf Course. Lot has recently been partitioned to increase size and add a highly attractive building site. Utilities are to the lot line...View this property >> 

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Good Monday Morning!

The Real Estate market in the Eugene and Springfield area continues along the same path that it has for some time now.  The inventory of homes for sale continues to be at a low point and is setting records.  The inventory now sits at .8 months.  This is the lowest level in history for the Eugene and Springfield area and well below the level for what would be considered a healthy market.  Low inventory means difficuty for buyers finding homes, fast sales for home sellers and also tough pricing for buyers.  I am in hopes that after Christmas time and coming in to the new year, this situation will begin to change. The following are the numbers for home sales in Lane County for November of 2020.

November Residential Highlights

New listings (311) increased 19.2% from the 261 listed in November 2019, and decreased 39.1% from the 511 listed in October 2020.

Pending sales (398) increased 22.1% from the 326 offers accepted in November 2019, and decreased 18.8% from the 490 offers accepted in October 2020.

Closed sales (392) increased 12.6% from the 348 closings in November 2019, and decreased 19.0% from the 484 closings in October 2020.

Inventory and Market Time

Inventory decreased to 0.8 months in November, the lowest on RMLSTM record. Total market time decreased to 33 days.

Year-to-Date Summary

Comparing the first eleven months of 2020 to the same period in 2019, new listings (5,325) decreased 3.6%, pending sales (4,701) increased 1.6%, and closed sales (4,388) decreased 3.2%.

Average and Median Sale Prices

Comparing 2020 to 2019 through November, the average sale price has increased 11.8% from $325,200 to $363,500. In the same comparison, the median sale price has increased 13.6% from $295,000 to $335,000.

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Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

5415 Royal Ave, Eugene, OR 

Price: $425,000    Beds: 3    Baths: 1    Sq Ft: 1366

Beautiful Danebo Property With Views. Large living room with wood burning fireplace. Views from living room and kitchen that looks over meadows and territorial hills. Kitchen has wrap around counter and lots of cabinet space. Patio access from two b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Good Monday Morning!

With home values soaring over the past several years, many people have not made adjustments with their homeowners insurance policies.  This is a huge problem with many homeowners that I speak with and one that you should look at immediately if you feel you may be under insured.  The cost of rebuilding a home or repair is at an all time high and with high home values, I feel most households are currently under insured.  Another issue is with the current trend for remodels. A remodel can leave you under insured if you do not make an adjustment for your homes increased value from that remodel.  The followiong article speaks about this situation.

Many homeowners have spruced up their homes during the pandemic. But major remodeling upgrades could result in homeowners needing to update their insurance, too. Otherwise, the home may be under-insured if a disaster ever strikes.

“Remodeling your home can lead to higher insurance rates, since a home remodel often increases the rebuild cost of a home,” a new report from QuoteWizard.com states. “Your dwelling coverage limit should match the rebuild cost of your home.”

In general, expect to pay about an extra $36 for every additional $10,000 of added rebuild cost after a remodel, QuoteWizard.com’s report notes. Broken down by project, insurance rates likely will increase by an average of $54 after a $15,000 upper-grade bathroom renovation. After a $50,000 kitchen upgrade, insurance rates could increase by $180. Further, a home addition of about $48,000 for, say, a 20-by-20 family room (or 400 square feet) could increase rates by $173. A deck upgrade of about $10,000 could increase insurance rates by an average of $36 a year, the report notes.

The quality of the updates could also have an impact on premiums. For example, an updated roof that uses low fire resistance or window update with weak window panes could also result in an increase in home insurance premiums, the report notes.

Homeowners may want to talk to insurers before they start a major remodeling job so they can brace themselves for any added premium costs. Insurance companies factor in several variables when setting premiums, such as your claims history, home’s value, the home’s age and material, safety features, climate, and local property crime rates, and more, QuoteWizard.com notes.

Property damage comprises more than 98% of all homeowner insurance claims. Of property claims, wind, hail, fire, and lightning are the most common reported damages, the report finds.

If you are uncertain about your homes current value, you can go to one of my wbs sites, www.forhomesellers.com and recieve a free online analysis of your homes current market value.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

5415 Royal Ave, Eugene, OR 

Price: $425,000    Beds: 3    Baths: 1    Sq Ft: 1366

Beautiful Danebo Property With Views. Large living room with wood burning fireplace. Views from living room and kitchen that looks over meadows and territorial hills. Kitchen has wrap around counter and lots of cabinet space. Patio access from two b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Good Monday Morning!

Due to rising home prices, the Federal Housing Finance Agency announced Tuesday that it would raise loan limits for mortgages backed by Fannie Mae and Freddie Mac.

In most of the country, the 2021 maximum conforming loan limit for single-family properties will be $548,250. That marks a 7.4% increase from last year’s limit of $510,400. The FHFA’s loan limits define the maximum amount that Fannie and Freddie can finance for a one-unit single-family home.

In more expensive markets, such as California and New York, the new limit will be $822,375, up from $765,000 in 2000.

“With home prices setting records in many U.S. markets, the National Association of REALTORS® is pleased to see the FHFA raise its national conforming loan limits for 2021,” NAR President Charlie Oppler said in a statement. “With an assurance that loan limits will align with home price growth, this decision will help ensure homeownership remains within reach for countless American families.”

U.S. home prices have continued to rise during the COVID-19 pandemic. The latest NAR report on existing-home sales showed that median home prices were up 15.5% in October compared to a year ago.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

Lot 2 Laurelwood Ln, Eugene, OR 

Price: $179,000    Beds: 0    Baths: 0    Acres: 0.29

Ready to build large lot located a highly desirable area near Laurelwood Golf Course. Lot has recently been partitioned to increase size and add a highly attractive building site. Utilities are to the lot line...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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Good Monday Morning!

The Eugene and Springfield area housing market remains robust, even with the lowest inventory of homes on the market for sale in history.  That level stands now at .09 months of inventory.  It seems that this story is being repeated across the nation at this time.  Here is an article from "Realtor.com" that talks about the national housing market.

The numbers: Existing-home sales rose for the fifth consecutive month in October, as the housing market finally made up for the pandemic-related downturn in sales this spring.

Total existing-home sales increased 4.3% from September to a seasonally-adjusted annual rate of 6.85 million, the National Association of Realtors reported Thursday. Compared with a year ago, home sales were up roughly 27%. It was the highest level of home sales in 15 years.

“Considering that we remain in a period of stubbornly high unemployment relative to pre-pandemic levels, the housing sector has performed remarkably well this year,” Lawrence Yun, the trade group’s chief economist, said in the report. “The surge in sales in recent months has now offset the spring market losses.”

Economists polled by MarketWatch had projected existing-home sales to rise to a median rate of 6.5 million.

What happened: Home sales grew in every region across the country, led by an 8.6% increase in the Midwest, the National Association of Realtors reported.

But the supply of homes on the market is a growing concern. By month’s end the total inventory of homes for sale dropped to a 2.5 months’ supply, the lowest on record. A six-month supply of homes is considered to be indicative of a balanced market.

As in September, 7 in 10 homes sold in less than a month. The fast pace of sales drove prices higher, with the median existing-home price was $313,000, up 15.5% from October 2019.

The big picture: A number of recent trends are supportive of growing home sales. Mortgage rates remain at all-time lows — dropping to the lowest level on record for the 13th time this week. Not only do low rates ease affordability constraints caused by the low supply of homes on the market, but they also serve as a catalyst spurring people to enter the market to lock in the cheap financing before it goes away.

Additionally, Americans are busy improving their homes. Both Home Depot and Lowe’s reported increasing sales in the third quarter as Americans spent money renovating their properties. Some of this was undoubtedly caused by people spending more time at home amid the pandemic — and therefore finding more flaws to fix. As economist Christophe Barraud notes, “home-improvement activity is closely correlated with existing home sales.” Sellers want to put their best foot forward, and that means doing things like touching up paint or fixing broken fixtures.

What they’re saying: “So far, the housing market appears immune to the virus due to record-low borrowing costs and teleworkers seeking roomier and cheaper properties outside of major cities,” Sal Guatieri, senior economist at BMO Capital Markets, said in a research note.

“While rising prices may be a drag on home sales, mortgage rates are contributing to affordability,” Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research note. “While demand for mortgages is likely to stay strong — despite job and income losses — tightening lending standards may be a constraint going forward.”

“With the recent good news on vaccines, it is likely many buyers and sellers are going to reevaluate their preferences as they imagine a world getting back to pre-pandemic conditions in the near future,” said chief economist at Keller Williams.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

Lot 3 Eagle View Dr, Eugene, OR 

Price: $299,000    Beds: 0    Baths: 0    Acres: 2.71

Don't miss this rare opportunity in SW Hills private Summit Glen subdivision. Build your dream home on this large 2.71 in-town acreage w/ expansive views of the coast range and city, and beautiful sunsets. Private, paved, gated community with only 4...View this property >> 

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Good Monday Morning!

It certainly is different times that we are currently living in.  Restrictions on everything we do, having to wear masks and maybe not being able to see or spend time with loved ones and friends.  But, one thing that has not changed is the fact that people still continue to need to buy and sell homes.  The Real Estate market that we are in changes, but the need for housing never changes.  Today, we are in a market like that I have never seen.  There is a high demand for homes, low inventory of homes for sale and historically low mortgage interest rates. This market has also taken the price of homes to all time high levels.  I am not sure how long this market will last, but for the time we are now in, this is the market that we have. The following is a report on the Eugene and Springfield Real Estate market for the month of October 2020.  Note that the inventory of homes for sale is currently the lowest on record!!

New listings (511) increased 20.5% from the 424 listed in October 2019, and increased 7.8% from the 474 listed in September 2020.

Pending sales (490) increased 24.4% from the 394 offers accepted in October 2019, and increased 9.6% from the 447 offers accepted in September 2020.

Closed sales (484) increased 18.3% from the 409 closings in October 2019, and increased 9.0% from the 444 closings in September 2020.

Inventory and Market Time

Inventory decreased to 0.9 months in October, which is tied with the lowest on RMLSTM record in July 2020. Total market time increased to 35 days.

Year-to-Date Summary

Comparing the first ten months of 2020 to the same period in 2019, new listings (5,009) decreased 4.7%, pending sales (4,323) increased 0.2%, and closed sales (3,982) decreased 4.7%.

Average and Median Sale Prices

Comparing 2020 to 2019 through October, the average sale price has increased 11.5% from $324,400 to $361,700. In the same comparison, the median sale price has increased 13.3% from $295,000 to $334,300.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

5415 Royal Ave, Eugene, OR 

Price: $425,000    Beds: 3    Baths: 1.5    Sq Ft: 1366

Beautiful Danebo Property With Views. Large living room with wood burning fireplace. Views from living room and kitchen that looks over meadows and territorial hills. Kitchen has wrap around counter and lots of cabinet space. Patio access from two b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Are we having fun yet?  I guess that in 2020 we should have expected the outcome of a natIonal election to be anything but ordinary!  How this all ends and who ends up in the Whitehouse for the next four years will shake out eventially, but until then we will live a state of uncertainty.  How is this going to effect the housing market?  That is is question that just might not be answered any time soon.  Uncertainty with any national situation typically has effects on the stock market, the housing market and other economic forces.  Just how much effect the outcome of this election has on all markets isquite  uncertain.  We do have somewhat of a track record of what the overall Real Estate market might look with a continued Trump presidency, because of what it has looked like over the past four years.  A Biden presidency with many changes in economic policy gives uncerainty to what would be ahead in the housing market.  How would tax increases, including a 3% federal tax on home sales effect the overall market?  We will find out if we end up heading in that direction.

For the present time, I woud suspect that we won't see any redical changes in the housing market either national or local.  Record low mortgage interest rates should keep housing markets active.  My only warning here is that if you are thinking of selling or buying a home, don't wait to see whats down the road. There is uncertainty ahead and we know that the current market is good for both buyers and sellers.  

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

5415 Royal Ave, Eugene, OR 

Price: $425,000    Beds: 3    Baths: 1.5    Sq Ft: 1366

Beautiful Danebo Property With Views. Large living room with wood burning fireplace. Views from living room and kitchen that looks over meadows and territorial hills. Kitchen has wrap around counter and lots of cabinet space. Patio access from two b...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sales in the Eugene and Springfield area remain strong and the inventory of homes for sale also remains at a historic low level.  Just as it has been for several months, the climate for home sellers could not be better.  High sales prices and short market times are the norm.  As I have repeatedly said, this market will not last forever.  Markets like this can change almost over night.  If you are considering selling your home within the next few months or within the year, don't wait.  Get your home on the market now if you want to take advantage of this seldom seen housing market.  The following article addresses the housing market nationally and gives you look at what is happening outside of our local market.

The National Association of REALTORS® reported Thursday that pending home sales—a forward-looking indicator based on contract signings—dipped 2.2% in September month over month. But contract signings are still up 20.5% compared to a year ago, which shows the fall housing market continues to be unseasonably hot this year amid the pandemic.

All four major regions of the U.S. posted double-digit year-over-year gains in pending home sales activity, led by the Northeast with a 27.7% annual increase.

“The demand for home buying remains super strong, even with a slight monthly pullback in September, and we’re still likely to end the year with more homes sold overall in 2020 than in 2019,” says Lawrence Yun, NAR’s chief economist. “With persistent low mortgage rates and some degree of continuing jobs recovery, more contract signings are expected in the near future.”

Yun predicts a second wave of home sales on the horizon as homeowners who had not considered moving prior to the pandemic begin to enter the market. “A number of these owners are contemplating moving into larger homes in less densely populated areas in light of newfound work-from-home flexibility,” he says.

Realtor.com®’s Housing Market Recovery Index shows that the metro areas that have recovered to their pre-pandemic levels or even above (as of Oct. 10) are Seattle-Tacoma-Bellevue, Wash.; Boston-Cambridge-Newton, Mass.-N.H.; Los Angeles-Long Beach-Anaheim, Calif.; Las Vegas-Henderson-Paradise, Nev.; and San Jose-Sunnyvale-Santa Clara, Calif.

NAR’s Pending Home Sales Index showed the following year-over-year gains in September broken down by region:

• Northeast: +27.7%
• Midwest: +18.5%
• South: +19.6%
• West: +19.3%

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

4810 Center Way, Eugene, OR 

Price: $359,500    Beds: 3    Baths: 1.0    Sq Ft: 1248

Single story ranch style home nestled on a quiet street & in close proximity to the Amazon trails. Updated home with new garage door, newer windows, floors, cabinets, lighting, trim, paint, and much more. This single family home has a open layout wi...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Sales of existing homes took off in September, jumping 9.4% from August to a seasonally adjusted annual rate of 6.54 million, the National Association of Realtors said in a report on Thursday. Compared to a year ago, sales are up 20.9%.

“Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season,” said Lawrence Yun, NAR’s chief economist. “I would attribute this jump to record-low interest rates and an abundance of buyers in the marketplace, including buyers of vacation homes given the greater flexibility to work from home.”

That surge in potential buyers, however, may be met with what Yun says is historically low inventory. At the end of September, housing inventory totaled 1.47 million units, down 1.3% from August and down 19.2% from one year ago when inventory sat at 1.82 million.

Unsold inventory measured as a “months supply” number that gauges how long it would take to sell all the homes if nothing else came on the market, was 2.7 months, NAR said. That’s down from three months in August and four months a year ago.

An improving job market, low rates, and families looking for more space played key roles in the recent activity spike, according to Mortgage Bankers Association senior vice president and chief economist, Mike Fratantoni.

“The primary constraint to even more sales is the plummeting inventory of homes on the market, which is leading to bidding wars and spikes in home prices across the country. Fortunately, we are seeing a pick up in the pace of construction, which should bring more inventory onto the market for next year’s buyers,” Fratantoni said.

The median existing-home price last month was $311,800, up 14.8% from this time last year, and prices rose in every region. According to the report, 71% of homes sold in September were on the market for less than a month at an average of 21 days – an all-time low.

However, risk still remains in the market, said Ruben Gonzalez, chief economist at Keller Williams.

“As long as unemployment remains elevated, there is a possibility that we see layoffs spill into the higher-paying sectors that are currently propping up the housing market”, said Gonzalez. “That broader recovery will likely hinge on medical progress toward ending the pandemic, as well as a strong fiscal stimulus that helps families maintain their incomes while the economy remains at reduced capacity.”

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

289 Terra Linda Ave, Eugene, OR 

Price: $335,000    Beds: 3    Baths: 2.0    Sq Ft: 1417

Beautiful One-Level Home in Santa Clara. New paint inside. Living Room has gas fireplace & new laminate flooring that is also in hallway. Large Family Room w/ gas fireplace insert. Beautiful shared bath w/ walk-in shower & sliding glass door. Vinyl...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!