Eugene Oregon Real Estate Blog

Good Monday Morning!

Good news for the housing industry.  December 2019 saw a rise in home sales nationally.  This is postive news that a strong economy may keep the housing market steady.  Here is an article from "Realtor.com" that talks about the recent market numbers.

Sales of previously owned U.S. Houses rose in December, a sign historically low unemployment and low mortgage rates are propelling the U.S. housing market as it enters a new year.

Home sales increased 3.6% in December compared with November to a seasonally adjusted annual rate of 5.54 million, the National Association of Realtors said Wednesday.

Existing-home sales were up 10.8% in December from a year earlier. Total sales ended 2019 at 5.34 million, the same pace as in 2018.

Low joblessness is one factor supporting demand for home buying. The U.S. unemployment rate remained at 3.5% in December, a 50-year low.

Further, borrowing conditions for homeowners are generally better than a year ago. The average interest rate on a 30-year fixed mortgage was 3.65% as of Jan. 16, according to Freddie Mac, up slightly from September’s lows but below year-earlier levels.

One persistent drag on the housing market has been a dearth of inventory.

“We are facing this dire housing shortage,” said NAR chief economist Lawrence Yun. “We need to build more.”

At the current sales pace, there was a 3.0-month supply of homes on the market at the end of December, compared with 3.7 in November and in December 2018. December’s inventory was the lowest for NAR records tracing back two decades. Limited housing stock has contributed to higher home prices, with the median sales price for an existing home in December up 7.8% on year to $274,500.

Inventory has been particularly tight at the cheaper end of the market, restraining sales. Inventory for homes priced below $100,000 declined 14.3% in December from a year earlier.

Some positive signs have emerged that suggest more inventory could soon flow onto the market. The National Association of Home Builders reported its housing market index, which measures industry confidence, remained near a two-decade high in January, and construction of new U.S. homes rose in December to the highest level since 2006, the Commerce Department said last week.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3161 Dahlia Ln, Eugene, OR 

Price: $289,900    Beds: 3    Baths: 1.5    Sq Ft: 1344

Don't miss this well-kept & charming one-owner 60's ranch style home in a quiet Santa Clara neighborhood. Original hardwood floors in the bedrooms. Vinyl windows throughout & a ductless heat pump. Kitchen has a breakfast bar & is open to the family...View this property >> 

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Good Monday Morning!

Home values continue their climb in the Eugene and Springfield area and in many other parts of the country.  One of the results of these continued value increases is that many homeowners are realizing significant upticks in their home equity.  The following article describes the extent of the home value increases we have seen in many areas

Home sellers nationwide felt richer at resale in 2019. The average seller saw a home price gain of $65,500 on a typical sale, which is up from $58,100 the year prior, ATTOM Data Solutions reports in a new study. This marks the highest level since 2006.

That also represents a 34% average return on their investment compared to the original purchase price, which is also the highest average home seller ROI since 2006.

NAR: Home Sales Climb, Sellers Are in a Good Position

“The nation’s housing boom kept roaring along in 2019 as prices hit a new record, returning ever-higher profits to home sellers and posing even greater challenges for buyers seeking bargains,” says Todd Teta, chief product officer at ATTOM Data Solutions. “But there were signs that the market was losing some steam last year, as profits and profit margins increased at the slowest pace since 2011. While low mortgage rates are propping up prices, the declining progress suggests some uncertainty going into the 2020 buying season.”

Homeowners in western states continued to see the highest returns. ATTOM Data Solutions’ researchers found that the metros with the highest home seller ROIs were in the following areas:

• San Jose, Calif.: 82.8%
• San Francisco: 72.8%
• Seattle: 65.6%
• Merced, Calif.: 63.2%
• Salem, Ore.: 62.1%

Meanwhile, overall home prices continued to rise in 2019. The biggest year-over-year increases in median home prices in 2019 were: South Bend, Ind. (up 18.4%); Boise City, Idaho (up 12.6%); Spokane, Wash. (up 10.9%); Atlantic City, N.J. (up 10.6%); and Salt Lake City (up 9.6%).

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1040 Bay St, Florence, OR 

Price: $290,000    Beds: 2    Baths: 2    Sq Ft: 1048

One of a kind Siuslaw River Bay frontage and within short distance to Florence Old Town. Sweeping views of the sand dunes, Siuslaw Bay and bay bridge. Watch the boats and fishermen through the front windows or the covered patio area. Condo is in exc...View this property >> 

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Good Monday Morning!

The New Year has brought a Real Estate market to the Eugene and Springfield area that remains strong.  Home sales remain strong and mortgage interest rates remain at extremely favorable levels.  Home prices are up, but seem to be leveling off.  All of this points to a market of opportunity for both home buyers and home sellers.  It is certainly a great market for home sellers as home inventories remain low and sales prices are at record high levels.  If you are considering a home sale this year, don't wait until Spring!!  January, February and March will be your months of oppurtunity this year.  There are lots of home buyers out there looking right now and the inventories (competition) will be at their lowest levels of the year.  This points toward being able to sell your home at top dollar in the fewest number of days.  

If you have a home in the Eugene and Springfield area and you are considering selling it this year, contact me. I would be happy to give you a free, no obligation look at your homes current value and what the market looks like for you.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3704 Norwich Ave  

Price: $675,000    Beds: 4    Baths: 2.5    Sq Ft: 2873

Beautiful Home In Hidden Creek neighborhood, North Gilham. High ceiling living area. Natural lighting throughout. Spacious living room features gas fireplace & access to covered patio area. Dining room and separate eating area. Wet Bar and walk-in p...View this property >> 

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Good Monday Morning!

More homeowners are refinancing to take equity out through a cash-out tranaction. They’re then using the extra cash to pay down credit card debts, renovate their home, or even invest in a new home.

Over the past two years that has resulted in a large number of homeowners who are taking on higher interest rates via refinancing. Still, owners say that the mortgage rates are lower than what they would have to pay through a credit card or home equity line of credit.

Homeowner Paul Thompson was undeterred by the higher rates through a cash-out refi. He told The Wall Street Journal that when he purchased his Dallas home in 2015, he was able to get a mortgage at 4%. But at the end of last year, he refinanced at 4.625% and took out about $30,000 in equity from his home. He says the higher rate was worth it because it gave him extra cash to renovate an investment property next door.

But the greater use of cash-out refinancings has some economists concerned that homeowners will be tempted to use their homes like ATMs, as they were blamed on doing in the years leading up to the housing crisis. Consumers who struggle to pay their mortgages from a cash-out refinancing are at risk of losing their homes. On the other hand, the economists note, credit card debt is unsecured.

Still, others are quick to note that cash-out refinancings are well below pre-crisis levels.

Also, cash-out refinancings are becoming more enticing compared to home equity lines of credit. The Wall Street Journal reports that the 30-year fixed-rate mortgage has dropped at a much faster pace than HELOC rates this year. The two are based on different benchmark rates. For example, this fall, 30-year mortgage rates were nearly 3 percentage points lower than the average HELOC rate, according to Bankrate.com.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

Lot 2501 E 49th Ave  

Price: $125,000    Beds: 0    Baths: 0    Sq Ft: 4356

Level Lot. Few trees. Ready to build. Utilities available at street.....View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Look at what could be a good buy during the Holiday Season.  It's somewhat suprising, but homes may be the best buy out there right now.  Here is an article from Realtor.com that explains why!

Forget television sets and video games, the best thing to buy during the holiday season may be a home.

A new analysis from Attom Data Solutions, a provider of real-estate data, found that December is the best month of the year to buy a home when it comes to getting a relatively good price. During the last month of the year, homes only sold for 1.2% more than their estimated market value on average. Comparatively, June, when homes sell for roughly a 7% premium, is the most expensive time to buy.

To produce the report, Attom analyzed more than 23 million single-family home and condo-unit sales over the past six years. Attom limited the analysis to days with at least 10,000 sales. Altogether, 362 days met that threshold — exceptions were Jan. 1, July 4, Nov. 11 and Dec. 25.

There were only three days of the year where homes actually sold for a discount relative to estimated market values. All three of these days are in December: Dec. 4, Dec. 26 and Dec. 31.

“Closing on a home purchase the day after Christmas or on New Year’s Eve can be one of the most financially beneficial holiday-season gifts you can get,” Todd Teta, chief product officer with Attom Data Solutions, said in the report. “While lots of folks are shopping the day-after Christmas sales or getting ready to ring in the New Year, our data shows that buyers and investors are buying homes on those days at a discount.”

Of these, the day after Christmas was the best time to purchase — on that day, homes sold at a 0.3% discount.

At a local level, though, other months can be better than December. For instance, homes sell for over a 7% discount compared with the national average in January in Ohio, while the same is true of Michigan homes in February.

Happy New Year!!

THIS WEEKS HOT HOME LISTING!

93048 Templeton Rd  

Price: $750,000    Beds: 4    Baths: 3    Sq Ft: 3035

Quiet And Private House on 20.59 secluded acres with gorgeous valley and mountain views. 15+ acres second growth Fir with significant market value and 2+ acres of pasture. Gorgeous custom interior with hardwood floors, vault ceilings, views. 4 bay s...View this property >> 

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Good Monday Morning!

Is Winter the best time to purchase a home.  This article from "Realtor.com" will give the answer to this question. 

Forget television sets and video games, the best thing to buy during the holiday season may be a home.

A new analysis from Attom Data Solutions, a provider of real-estate data, found that December is the best month of the year to buy a home when it comes to getting a relatively good price. During the last month of the year, homes only sold for 1.2% more than their estimated market value on average. Comparatively, June, when homes sell for roughly a 7% premium, is the most expensive time to buy.

To produce the report, Attom analyzed more than 23 million single-family home and condo-unit sales over the past six years. Attom limited the analysis to days with at least 10,000 sales. Altogether, 362 days met that threshold — exceptions were Jan. 1, July 4, Nov. 11 and Dec. 25.

There were only three days of the year where homes actually sold for a discount relative to estimated market values. All three of these days are in December: Dec. 4, Dec. 26 and Dec. 31.

“Closing on a home purchase the day after Christmas or on New Year’s Eve can be one of the most financially beneficial holiday-season gifts you can get,” Todd Teta, chief product officer with Attom Data Solutions, said in the report. “While lots of folks are shopping the day-after Christmas sales or getting ready to ring in the New Year, our data shows that buyers and investors are buying homes on those days at a discount.”

Of these, the day after Christmas was the best time to purchase — on that day, homes sold at a 0.3% discount.

At a local level, though, other months can be better than December. For instance, homes sell for over a 7% discount compared with the national average in January in Ohio, while the same is true of Michigan homes in February.

Happy Holidays!!

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3220 Tilden St  

Price: $385,000    Beds: 3    Baths: 2    Sq Ft: 1894

Updated home in a quiet Santa Clara neighborhood. Newer roof, vinyl windows,hardwood flooring and granite in the kitchen & bathroom. Kitchen w/ eating area leads to a cozy family room w/ gas fireplace & sliding door to the backyard. Separate living...View this property >> 

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Good Monday Morning!

We now have the Real Estate market numbers for Lane County home sales in the month of November 2019.  The trend for fewer homes on the market continues and inventories are even lower than for this same time last year.  Home prices continue to climb as the numbers of available homes for purchase slides.  This is just a continuation of the same trend we have seen for several years. Here are the numbers.

There were 261 new listings, 33.6% fewer than in November 2018 (393) and 38.4% fewer than last month in October 2019 (424).

Pending sales (326) decreased 7.1% from November 2018 (351) and fell 17.3% from last month October 2019 when 394 offers were accepted.

Closed sales (348) decreased 5.9% from November 2018 (370) and fell 14.9% from the 409 closings recorded last month in October 2019.

Inventory and Market Time

Inventory decreased slightly to 1.7 months in November. Total market time increased to 52 days.

Year to Date Summary

Comparing the first eleven months of 2019 to the same period in 2018, new listings (5,526) have decreased 10.2%, pending sales (4,626) have decreased 6.6%, and closed sales (4,535) have decreased 6.5%.

Average and Median Sale Prices

Comparing 2019 to 2018 through November, the average sale price has increased 5.3% from $308,800 to $325,200. In the same comparison, the median sale price has increased 4.8% from $281,500 to $295,000. 

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

Lot 2501 E 49th Ave  

Price: $125,000    Beds: 0    Baths: 0    Sq Ft: 4356

Level Lot. Few trees. Ready to build. Utilities available at street.......View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Winter is upon us and we are in the midst of the Hoiliday Season again!  For our local Real Estate market in the Eugene and Springfield area, this means that there are typically fewer homes on the market for sale and also fewer people in the market to purchase a home.  Believe it or not, this opens up opportunity for home buyers who want to find a home, because there is less competition for the homes that are out there.  This year, with low mortgage interest rates, the timing is perfect right now to buy a home. The same is true for sellers.  Less competiition can mean a shorter time period to sell and a higher sales price.  So, just because it is the Holiday season, if you are wanting to purchase a home or sell a home, don't shy away from this time of year.

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-December-2019

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

93048 Templeton Rd  

Price: $750,000    Beds: 4    Baths: 3    Sq Ft: 3035

Quiet And Private House on 20.59 secluded acres with gorgeous valley and mountain views. 15+ acres second growth Fir with significant market value and 2+ acres of pasture. Gorgeous custom interior with hardwood floors, vault ceilings, views. 4 bay s...View this property >> 

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Good Monday Morning,

There are some changes coming in the mortgage world with Fannie Mae and Freddie Mac announcing that they are raising the level of where they will loan money to home buyers.  The following article gives details on the new changes coming our way.

Fannie Mae and Freddie Mac will let mortgage borrowers nationwide take out home loans over $500,000 in 2020.

The Federal Housing Finance Agency announced Tuesday that it will increase the limit on conforming loans, meaning mortgages that adhere to the standards imposed by Fannie Mae and Freddie Mac to a maximum of $510,400 nationwide. In high-cost areas, the maximum loan limit for mortgages acquired by Fannie Mae and Freddie Mac will be $765,600.

On a local level, the loan limits were set higher in all but 43 counties across the country, the FHFA reported. The FHFA published a full list of the loan limits for each county nationwide for borrowers to reference.

By law, conforming loan limits must be adjusted to reflect changes in home prices across the U.S. The FHFA noted that its data show home prices had increased on average 5.38% between the third quarters of 2018 and 2019. Therefore, the loan limits increased by that percentage. In high-cost areas, the law allows loan limits to be set 50% higher than the baseline level nationally. Special provisions also establish different loan limit calculations for Alaska, Hawaii, Guam and the U.S. Virgin Islands.

This is the fourth consecutive year that the conforming loan limit has increased. Between 2006 and 2016, the FHFA held loan limits at $417,000. When loan limits were increased for the first time in 2017, it sparked enthusiasm across the mortgage industry as lenders expected it could lead to more people seeking home loans, because the lower loan limit forced many people to get jumbo loans that don’t always offer competitive financing.

Higher loan limits aren’t necessarily something to celebrate though. Some market observers have argued that by allowing Fannie and Freddie to purchase larger loans, the FHFA is increasing the risk that they will go belly-up the next time there’s a market downturn.

And for consumers, the higher limits are an indication that while home price growth has slowed from its breakneck pace in recent year, prices are still heading higher. That’s exacerbating the affordability crisis occurring in many housing markets across the country, keeping thousands of would-be home buyers out of the market.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

93048 Templeton Rd  

Price: $750,000    Beds: 4    Baths: 3    Sq Ft: 3035

Quiet And Private House on 20.59 secluded acres with gorgeous valley and mountain views. 15+ acres second growth Fir with significant market value and 2+ acres of pasture. Gorgeous custom interior with hardwood floors, vault ceilings, views. 4 bay s...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

One of the most improtant things you can do before you close on your new home is to do a final walk through of the home you are purchasing with your Real Estate Agent.  Most of the time it takes 4-6 weeks to close on a home and many things can happen to that home within that time period.  The following will give you insight as to why the final walk through before closing is so essential.

For homebuyers and sellers alike, the final walk-through can be one of the most significant steps in the real estate process. It may also be one of the most nerve-wracking.

The final walk-through typically takes place mere hours before the closing itself. It’s one last opportunity for the buyer, along with his or her agent, to inspect the home and make sure there aren’t any last-minute problems.

Hopefully, your final walk-through will be smooth sailing. Every now and again, though, issues do arise – and they can go as far as to derail the entire home sale.

Here are 10 of the most common final walk-through discoveries that can potentially throw a wrench into the transaction:

• The home isn't empty.
• The house is a mess.
• The negotiated repairs haven't been completed.
• Included personal property has gone missing.
• The lawn hasn't been cared for.
• The utilities have been shut off.
• The appliances aren't working.
• There's major damage to the walls.
• The HVAC systems aren't working.
• The home was damaged in the moving process.

The Home Isn’t Empty

Unless otherwise agreed upon, the sellers should be totally moved out of the house by the time of the final walk-through. Now, if they left behind a can of paint or a couple bags of trash, that’s probably not the end of the world. But if they left behind much more, the buyer may have to request they come by and clean up.

The House Is a Mess

The typical agreement is that the seller leave the property in broom-clean condition. This is a somewhat nebulous term, and it may mean different things to different people. The house doesn’t necessarily have to be spotless, but neither should it be a disaster area. Ideally, the house should appear move-in ready for the new homeowners.

The Negotiated Repairs Haven’t Been Completed

When buyer and seller negotiate on repairs or renovations, it’s expected that they all be finished by the time of the final walk-through. If the seller needs a little additional time due to unforeseen circumstances, this should be communicated to the buyer well in advance of the closing.

Included Personal Property Has Gone Missing

Did the seller take items they said they would leave for you? Light fixtures? Window treatments? A piece of furniture you wanted to buy along with the house? That’s definitely something that can stall the closing or lead to some tumult.

The Lawn Hasn’t Been Cared For

Generally speaking, real estate contracts stipulate that the seller will keep the lawn areas maintained until the date of closing. That doesn’t mean everything has to be perfectly manicured, but if the grass is five feet tall, or has died during the escrow period, that’s a problem.

The Utilities Have Been Shut Off

Typically, your real estate contract will stipulate that the utilities have to be on through the final walk-through. If you don’t have power or running water during the walk-through, that could technically be a breach of contract.

The Appliances Aren’t Working

For homebuyers, it’s important to use the final walk-through as an opportunity to test all the appliances included in the sale, confirming they work as intended. If something doesn’t work, you can ask the seller for a repair allowance.

There’s Major Damage to the Walls

Did the seller remove a wall-mounted TV, a piece of artwork, or some kind of home automation technology? And if so, did it leave behind damage to the wall? This could be a big issue.

The HVAC Systems Aren’t Working

Buyers should test out both the heating and cooling capabilities of the home. See that they work satisfactorily. If not, that’s something for which you’ll likely want to negotiate repair costs or a price adjustment.

The Home Was Damaged in the Moving Process

If the sellers did any kind of damage to the home while they moved out, that’s something for you to take stock of. In some cases, it may be worthwhile for you to request a repair allowance.

These are some of the main items you’ll want to look out for if you’re a buyer going through your final walk-through. And if you’re in the process of selling a house, let these serve as words of caution. Make sure to avoid these common hurdles to the home closing.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3220 Tilden St  

Price: $385,000    Beds: 3    Baths: 2    Sq Ft: 1894

Updated home in a quiet Santa Clara neighborhood. Newer roof, vinyl windows,hardwood flooring and granite in the kitchen & bathroom. Kitchen w/ eating area leads to a cozy family room w/ gas fireplace & sliding door to the backyard. Separate living...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!