Eugene Oregon Real Estate Blog

Good Monday Morning!

There is some good news on the national Real Estate front! Mortgage interest rates dipped slightly last week, and this could possibly lead to rates coming down even further. Both nationally and locally, the Real Estate market has become more sluggish as of late, and my thoughts are that the one thing to start bringing the Real Estate market back is mortgage interest rate decreases. We will know more in the weeks ahead. The following is a recent article from “Realtor.com”.

Mortgage rates dipped this week, with the average rate for a 30-year fixed home loan going from 6.89% last week to 6.77% for the week ending July 18, according to Freddie Mac.

“The 30-year fixed-rate mortgage fell to its lowest level since mid-March, dropping 12 basis points from last week,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Mortgage rates are headed in the right direction and the economy remains resilient, two positive incremental signs for the housing market.”

This should come as good news, but Khater also points out the following: “Homebuyers have yet to respond to lower rates, as purchase application demand is still roughly 5% below Spring, when rates were approximately the same. This is not uncommon: sometimes as rates decline, demand weakens, and the apparent paradox is driven by buyers making sure rates don’t decline further before they decide to purchase.”

Mortgage rates take a turn

For the past few months, inflated mortgage rates have sidelined both buyers and sellers, leaving them in a state of limbo.

“This week’s data revealed a housing market in a holding pattern,” notes Realtor.com® economist Ralph McLaughlin in his analysis. “The small movements we do observe this week favor buyers: no price growth, a slower market, and more price reductions.”

“Mortgage rate relief has not arrived as quickly as many expected,” adds Realtor.com economist Jiayi Xu. “But the recent downward trend is encouraging news for homebuyers who have been hindered by high rates.”

The 10-year Treasury fell last week on better than expected inflation readings, and rates also fell by 7 basis points on a year-over-year basis—the first such decline in nearly three years.

“Fortunately, June’s more moderate jobs report and cooling [consumer price index] were solid readings that should help the Fed gain more confidence that the economy is moving in the right direction and could raise hopes for a rate cut signal in the July FOMC statement,” Xu explains.

Xu says this development should help interest rates, including mortgage rates, continue to drop, especially if the economy keeps making progress.

Home prices remain flat

In June, the median home cost $445,000.

Listing prices were flat year over year for the week ending July 13, and marked 25 consecutive weeks of price growth below 1%.

Yet since the median price per square foot grew in June by 3.4%, McLaughlin says, “buyers shouldn’t necessarily rejoice just yet.”

“Price growth per square foot continues to be positive, suggesting homes are still more expensive than they were last year,” he explains.

Housing stock is up

The number of homes actively for sale continued to grow, with buyers seeing 35.8% more listings for the week ending July 13 than last year.

For the 36th straight week in a row, there were more homes listed for sale versus the previous year.

Fresh listings were also up by 8.8% for the week ending July 13 compared with 12 months ago.

New listings have increased 14 out of the past 15 weeks—which McLaughlin says should help keep prices in check.

“Looking ahead, we expect the rising inventory to gradually exert downward pressure on price growth and falling mortgage rates to help lower borrowing costs, providing more relief to potential homebuyers,” McLaughlin says.

While the number of newly listed homes increased by 6.3% annually in June, this rate is roughly half of what it was two months ago. And buyers still see more than 30% fewer homes for sale compared with before the COVID-19 pandemic.

“Broadly speaking, the number of new homes for sale remains historically low and is still below the 2017 to 2022 levels, even with recent improvements,” says McLaughlin.

Although buyers might see more houses on the market this summer than last, they will ultimately have fewer options than were typical before 2023.

The pace of home sales slows

The typical home spent 45 days on the market in June.

For the week ending July 13, the average home for sale spent five more days on the market compared with the same period last year.

This ties with last week, marking the longest additional time on the market since August 2023, according to McLaughlin.

“A longer time on the market means buyers won’t have to move as quickly as last year, while sellers will need to be more patient,” says McLaughlin.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3469 River Pointe Dr, Eugene, OR 

Price: $1,169,000    Beds: 4    Baths: 3.2    Sq Ft: 3363

This is a Gorgeous and extremely well kept home in the highly sought after River Pointe neighborhood of North Gilham. This home not only has many high end extras, but it has a floor plan that suits many lifestyles. The spacious Primary Bedroom is on... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Some good news for homebuyers has finally arrived. Mortgage rates took a slight dip last week, and this is welcome news for anyone looking to purchase a home. Homes listed for sale are also beginning to take longer to sell, and price reductions are beginning to become the rule and not the exception. This could possibly indicate a further slowing of home sales, and lower-priced homes could be the new trend. Here in the Eugene and Springfield market area, we are seeing many homes that sold quickly just a few months ago sit and have to reduce the asking price to attract buyer interest. Home showings across the board have slowed significantly over the past few weeks as well. My guess is that this indicates a major market shift is under way. Stay tuned, because anything is possible right now. The following is a national Real Estate market update from "Realtor.com".

Mortgage rates fell this week, with the average rate for a 30-year fixed home loan going from 6.95% last week to 6.89% for the week ending July 11, according to Freddie Mac.

“Following June’s jobs report, which showed a cooling labor market, the 10-year Treasury yield decreased this week, and mortgage rates followed suit,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

Despite the drop, the stubbornly high interest rates over the past months have largely left the market in limbo as buyers and sellers hit the pause button.

Yet one key metric shifted for the first time in almost two months: Home prices fell 1.1 % year over year for the week ending July 6, after nine weeks of steady or rising prices.

However, this buyer-friendly good news might be short-lived.

While this decrease might provide some relief to homebuyers, it could be a temporary shift due to Independence Day unless further data can provide persistent evidence of a new trend,” says Realtor.com® economist Jiaya Xu in her latest analysis.

Here’s a breakdown of the latest housing market data and what it means for homebuyers and sellers in our latest installment of “How’s the Housing Market This Week?”

Lower mortgage rates predicted

Though the rate has not risen above 7% for six weeks now, that number is still too high for many would-be buyers who are hanging back until rates fall even further.

However, if the economy and job market continue to improve, the Federal Reserve might decide to cut rates, causing mortgage rates to follow this downward path. (While mortgage rates are distinct from Fed rates, they tend to reflect the same patterns.)

“This means buyers may see lower mortgage rates in the second half of 2024 and be more likely to jump back into the market,” Xu explains.

Realtor.com senior economist Ralph McLaughlin agrees that mortgage rates should slowly decline throughout the rest of the year and into 2025.

“The downward trend will certainly be welcome news to homebuyers, who have been stymied by high rates and low inventory,” he says. “Falling mortgage rates should help lower monthly mortgage payments for new borrowers.”

While this decrease might provide some relief to homebuyers, it could be a temporary shift due to Independence Day unless further data can provide persistent evidence of a new trend,” says Realtor.com® economist Jiaya Xu in her latest analysis.

Here’s a breakdown of the latest housing market data and what it means for homebuyers and sellers in our latest installment of “How’s the Housing Market This Week?”

Lower mortgage rates predicted

Though the rate has not risen above 7% for six weeks now, that number is still too high for many would-be buyers who are hanging back until rates fall even further.

However, if the economy and job market continue to improve, the Federal Reserve might decide to cut rates, causing mortgage rates to follow this downward path. (While mortgage rates are distinct from Fed rates, they tend to reflect the same patterns.)

“This means buyers may see lower mortgage rates in the second half of 2024 and be more likely to jump back into the market,” Xu explains.

Realtor.com senior economist Ralph McLaughlin agrees that mortgage rates should slowly decline throughout the rest of the year and into 2025.

“The downward trend will certainly be welcome news to homebuyers, who have been stymied by high rates and low inventory,” he says. “Falling mortgage rates should help lower monthly mortgage payments for new borrowers.”

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

766 S 47th Pl, Springfield, OR 

Price: $799,900    Beds: 3    Baths: 2.5    Sq Ft: 2840

This beautifully updated home is nestled on a private 3/4 acre lot with filtered views through the trees. Designed for either main level living or a great setup for separation of space with additional bedrooms and a bonus room upstairs and a large fam... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There is a slight bit of welcome news in the world of Real Estate. Mortgage interest rates have slowly trickled down slightly. In this housing market, any news like this is welcome. The lower mortgage interest rates will certainly help, but the other issues that continue to haunt the housing market are that home prices have not come down enough to make a real difference, and the overall national economy, along with inflation numbers, has not changed. This has led to a consumer confidence crisis that may stick around for a while. Never the less, home sales are still taking place in the Eugene and Springfield area and even though the market here may be slower than several months ago, I still believe that it is a good time to sell your home. The following is a recent article from "Realtor.com" that talks about where our national housing market is today.

Mortgage rates sank further this week, with the average rate for a 30-year fixed home loan falling from 6.87% last week to 6.86% for the week ending June 27, according to Freddie Mac.

“The 30-year fixed-rate mortgage continues to trend down, hitting the lowest level in almost three months,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

Despite the slight tick down, the consistently high mortgage rate has effectively put the housing market in a holding pattern for months, leaving potential buyers and sellers in limbo.

Real estate experts agree the market can’t seem to move forward lately, with economists at Bank of America remarking this week that the housing market is “stuck and we are not convinced it will become unstuck until 2026 … or maybe even later.”

A recent Gallup poll also found that just 21% of Americans think it’s a good time to buy a house—tied as the worst reading in the record’s history—while 76% said it’s a bad time to buy.

What will it take to jump-start the market? Significantly lower mortgage rates.

“Although mortgage rates continue to trend lower, the declines have not yet been big enough to have an impact on most housing metrics,” says Realtor.com® Chief Economist Danielle Hale in her latest analysis. “The key weekly data we track has been remarkably stable relative to the prior June, with pricing flat, listings up, and time on market somewhat slower.”

Here’s a breakdown of the latest housing market data and what it means for homebuyers and sellers in our latest installment of “How’s the Housing Market This Week?”

The mortgage rate doldrums

Mortgage rates are on a continued long run of remaining stubbornly high.

The Federal Reserve, which was once poised to cut base interest rates three times this year, expressed reluctance to do so at its last meeting. (Though mortgage rates aren’t tied to interest rates, the two numbers generally move in the same direction.)

That leaves the future of mortgage rates teetering on coming economic reports. If inflation falls to a certain point, the Fed will likely cut rates. If inflation rises more than expected, rates will likely remain the same or perhaps even rise further.

“For home shoppers and sellers, peak mortgage rates are likely behind us, but the risk of volatility remains, complicating moving decisions,” says Realtor.com economist Jiayi Xu. “In addition, with only one rate cut expected before the end of 2024, relief may come too little and too late for many first-time homebuyers.”

Home prices remain unchanged

The median list price remained the same compared with the previous year for the week ending June 22, marking the fourth week in a row when the home list price matched the exact level as the prior year. (In May, the median home cost $442,500.)

The good news is that while the median home price remains high, according to Hale, there are “more abundant affordable options” on the listing pages these days.

“In recent months, a growing share of smaller homes on the market have helped keep the market median price in check even as the price per square foot continued to rise,” explains Hale.

Housing stock rises

One housing data point that did see real movement for the week ending June 22 was housing stock, with fresh listings rising by 7.4% compared with the year prior.

Overall, the total number of homes for sale (including newly listed and those that have lingered on the market) jumped 36.1% above year-ago levels, marking 33 weeks in a row with an increase in the number of listings.

“Seller activity is up compared to one year ago, but momentum has waned from recent weeks and earlier this year,” says Hale.

Indeed, active inventory in May was down more than 30% from typical pre-pandemic levels.

Getting more sellers to list their homes depends on when mortgage rates start to cool. Realtor.com analysis shows that 87% of outstanding mortgages have a rate below 6%, meaning many homeowners are reluctant to trade in a low rate for a higher one if they become buyers.

“If these homeowners sell, they are relinquishing relatively inexpensive debt for today’s roughly 7% mortgage rates, a costly proposition,” says Hale. “As rates ease, they will cause less drag on the ‘move or stay’ calculus, and we are likely to see an increase in seller interest.”

Homes are lingering longer

Real estate listings sat on the market longer for the week ending June 22 compared with this time last year.

“The typical home for sale spent two more days on the market this past week compared to last year, continuing the trend observed in recent weeks,” says Hale. “Longer time on market means selling may require more patience while buyers may have more time to make a decision, a buyer-friendly trend.”

Some buyers might be waiting out the market, hoping for lower mortgage rates and lower prices before they pounce.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

5580 Tradition Alley, Eugene, OR 

Price: $477,500    Beds: 3    Baths: 2.0    Sq Ft: 1812

This single level home has been tastefully updated and is located in a quiet West Eugene neighborhood. Features include a newer 3-head ductless heat pump AC/heating system, a spacious living room, large bedrooms & a 2-car garage with built-in storag... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

It now feels as if the housing market is beginning to cool off in the Eugene and Springfield area. Homes are now taking longer to sell, and for the most part, the rush of buyers looking at new homes coming on the market seems to have gone away. At the same time, home prices remain stubbornly high, and mortgage interest rates have increased instead of decreased. If the inventory of homes for sale does continue to increase, it's a sure bet that home prices will begin to decrease. Within a few more weeks, we will certainly have a very good idea as to where the housing market is heading in the forseeable future. The following is a recent update on the national housing market from "Realtor.com."

The spring housing market is officially over, and home sales fizzled out in the last full month of the season.

Sales of existing homes shrank by 0.7% in May compared with April, according to a recent report from the National Association of Realtors®.

Sales also fell annually, dipping 2.8% from May 2023 to a seasonally adjusted annual rate of 4.11 million homes.

Yet low inventory might be the least of homebuyers’ hurdles as the summer market heats up. Median home prices skyrocketed 5.8% annually from $385,800 in May 2023 to $419,300—the highest home price ever recorded. May also marks the 11th month in a row of annual price increases.

“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” said NAR Chief Economist Lawrence Yun in a statement. “The mortgage payment for a typical home today is more than double that of homes purchased before 2020.”

Stubborn mortgage rates continue to toggle above and below the 7% benchmark, averaging 6.87% for 30-year fixed loans in the week ending June 20, according to Freddie Mac.

Sluggish sales can be traced back to these high rates, which have many sellers “locked in” to their existing low mortgage rates and unwilling to trade them for a rate that could be double what they currently pay.

“The combination of high home prices and elevated mortgage rates has proved to be challenging for the housing market, weighing down sales activity,” Realtor.com® Chief Economist Danielle Hale said in a statement.

Who bought homes in May

High mortgage rates did not deter first-time homebuyers in May, who accounted for 31% of sales compared with 33% in April and 28% in May 2023.

Of the total home sales, 28% were all-cash buyers, the same percentage as last month’s. Individual investors or second-home buyers, a large percentage of cash buyers, bought 16% of existing homes in May, which matched the 16% seen in April and up from 15% in May 2023.

Only 2% of sales were foreclosures and short sales, a number that remained unchanged from last month and last year.

Where home sales are rising and falling the most

Sales slipped modestly from April to May in the South, yet remained exactly the same for the same period in the West, Northeast, and South. The Midwest was the only region that saw home sales rise year over year.

Sales declined by 1.6% in the South month over month, falling 5.1% from the prior year. The median price in the South was $374,300, up 3.6% from last year.

The Northeast saw sales slip 4% from May 2023. The median price was $479,200, up 9.2% from the prior year.

The existing-home sales in the West dropped 1.3% from the year prior. The median price reached $632,900, a 5.5% jump from May 2023.

In the Midwest, existing-home sales were unchanged from April to May but were up 1% from one year ago. The median price was $317,100, up 6.4% from May 2023.

“Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months,” said Yun.

An opportunity for buyers

The total number of unsold existing homes increased by 6.7% from the previous month, reaching 1.28 million at the end of May. Based on the current monthly sales pace, this amount represents a 3.7-month supply of available homes.

“Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions,” said Yun.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

93048 Hwy 99 S, Junction City, OR 

Price: $450,000    Beds: 3    Baths: 1.0    Sq Ft: 1205

Great potential. House is in good shape but needs cosmetics. Sale includes a 3 bay, 35'X 55" shop. Property is currently in county, but in UGB. Could easily be annexed and connected to city services. Potential for being re-zoned to commercial. The l... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Finally, some good news about the Real Estate market, both locally and nationally. Mortgage interest rates dipped slightly last week. Any reduction in mortgage loan rates is welcome news. Hopefully, this trend will continue and bring some fresh air into a stagnant market. In the Eugene and Springfield area, we are seeing more homes hit the market, which will help a market that has had extremely low inventory for several years. Only time will tell if this is a blip or if this trend will continue. Right now, signs are pointing to an improving summer housing market. The following is a recent article from "Realtor.com."

Mortgage rates dipped further this week, with the average rate for a 30-year fixed home loan falling from 6.99% last week to 6.95% for the week ending June 13, according to Freddie Mac.

“Mortgage rates continued to fall back this week as incoming data suggests the economy is cooling to a more sustainable level of growth,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Top-line inflation numbers were flat, but shelter inflation, which measures rent and homeownership costs, increased, showing that housing affordability continues to be an ongoing impediment for buyers on the house hunt.”

Mortgage rates have been perched on a 7% seesaw, rising just above or below the benchmark for almost two months, presenting a major financial hurdle for would-be buyers.

Still, with just one week left in the spring housing market, many sellers are forging ahead the instant they see rates fall, as they did last week.

“This past week, mortgage rates dropped below 7% once again,” says Realtor.com® senior research scientist Jiayi Xu. “As a result, more home sellers returned to the market, leading to an increase in new listings compared to the previous week.”

Fresh listings jumped for the week ending June 8, with 8.0% more new listings hitting the market compared with a year ago. (The prior week saw only a 2.1% rise in new listings year over year.)

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

766 S 47th Pl, Springfield, OR 

Price: $849,900    Beds: 3    Baths: 2.5    Sq Ft: 2840

This beautifully updated home is nestled on a private 3/4 acre lot with filtered views through the trees. Designed for either main level living or a great setup for separation of space with additional bedrooms and a bonus room upstairs and a large fam... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Do we have a housing crisis in the Eugene and Springfield area? We have a crisis nationally, and I suspect that there is a major housing crisis in the Eugene and Springfield area. Rising home prices, high property taxes, and now higher mortgage interest rates have made home ownership nearly impossible for many people in our area. Have you wondered why there are apartment buildings springing up everywhere? Home affordability in our community is a true crisis. One of the major factors contributing to high home prices in the Eugene and Springfield area is the lack of land that is readily available to build on. The lack of expansion along the Eugene urban growth boundary has created a lack of affordable building lots. There is just not enough land remaining that allows builders to build affordable housing. Lack of development area means that the price of any existing building lots is extremely high. On top of this, system development charges for new construction are extremely high. The combination of this, along with high labor and material costs, has pushed housing costs to a level that is not affordable to most in the average income brackets.  This is a problem that has been brewing in our area for years and is now at a crisis level. The following is an article from "Realtor.com" that goes over the housing crisis on a national level.

The United States needs at least 1.5 million additional homes, and likely many more, to relieve the nation’s housing shortage, according to Freddie Mac.

In the first quarter of 2024, the homeowner vacancy rate dropped to 0.8% from 0.9% the prior quarter, the mortgage buyer said in a recent report on the housing market. That’s well below the 1.6% average vacancy rate recorded from 1994 to 2003, the period the report uses as a basis for comparison, and near the all-time low hit earlier last year.

Meanwhile, the rental vacancy rate remained flat for the third straight quarter at 6.6%, down from 8.2% during the historical comparison period. Rental vacancies touched four-decade lows in 2021 and 2022 and crept up slightly last year.

To bring the vacancy rate, both rental and homeowner, back in line with historical averages, the U.S. would need to add an additional 1.5 million vacant for-sale and for-rent homes,” the report says. “Without such units, the pressure on housing markets will persist.”

Despite higher mortgage rates, the housing market has remained incredibly tight due to a shortage of homes for sale. Earlier this week, the benchmark index tracking U.S. home prices hit a new all-time high, after surging 47% in the past four years.

The reason: Demand for homes continues to far outpace the available supply, pushing prices higher.

Homebuilders have responded by constructing many new units, but have failed to keep pace with demand. Freddie Mac estimates the nation’s current housing stock at 146.4 million units, an increase of 1.6 million units from one year ago.

However, most of those newly built units were rentals, the report notes. Rentals accounted for about 1 million of the units constructed over the past year, while owner-occupied homes grew by just 600,000.

Homebuilders blame stifling regulations

The National Association of Home Builders has blamed a number of factors for stifling construction, including excessive regulations, inefficient local zoning rules, and costly building codes.

“With a nationwide shortage of roughly 1.5 million homes, the lack of housing units is the primary cause of growing housing affordability challenges,” said NAHB Chief Economist Robert Dietz in comments last week. “Policymakers at all levels of government need to enact policy changes that will allow builders to construct more homes, such as speeding up permit approval times, providing resources for skilled labor training, and fixing building material supply chains.”

The Freddie Mac report warns that the 1.5 million estimated shortfall of homes “is almost certainly a dramatic underestimate of the total housing shortage” because it fails to account for latent demand and vacant housing that is not on the market for sale or rent.

In a 2021 report, the government-backed mortgage buyer estimated that the U.S. needed an additional 3.8 million units to achieve a target vacancy rate of 13%. That report cited a long-term decline in the construction of single-family homes, and an even sharper decline in the construction of entry-level homes of less than 1,400 square feet.

Construction of entry-level homes has declined on an absolute and percentage basis since the early 1980s, and took another leg down after the Great Recession. In 2020, Freddie Mac estimates there were only 65,000 new entry-level homes completed—less than one-fifth of the entry-level homes constructed annually in the late 1970s.

More recently, builders have started to pivot to building smaller homes in an effort to lure buyers frustrated by high prices and mortgage rates. In April, the median new-home sale price was $433,500, down 1.4% from March, but up 3.9% compared with a year ago, according to NAHB.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

5580 Tradition Alley, Eugene, OR 

Price: $489,900    Beds: 3    Baths: 2.0    Sq Ft: 1812

This single level home has been tastefully updated and is located in a quiet West Eugene neighborhood. Features include a newer 3-head ductless heat pump AC/heating system, a spacious living room, large bedrooms & a 2-car garage with built-in storag... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

In case you haven't noticed, there are more For Sale signs popping up around town. In fact, it seems that there are more signs now than there have been in years. Are these sellers late for the party, or will the market be able to keep its current home price level with more competition? The answer, of course, is mortgage interest rates. If mortgage interest rates decline, there will be more buyers to buy up an increased inventory of homes for sale. If rates go up or remain stagnant, increased inventory could bring on a much tougher market for home sellers. The other wild card is the economy. High inflation numbers could spell a tougher market for home sellers as well. It could be an interesting next few months. The following is an article from "Realtor.com" that describes our current national housing market.

Mortgage rates continued their downward trend with the average rate for a 30-year fixed home loan dropping from 7.09% last week to 7.02% for the week ending May 16, according to Freddie Mac.

“Mortgage rates decreased for the second consecutive week,” Sam Khater, Freddie Mac’s chief economist, said in a statement. “Given the news that inflation eased slightly, the 10-year Treasury yield dipped, leading to lower mortgage rates. The decrease in rates, albeit small, may provide a bit more wiggle room in the budgets of prospective homebuyers.”

Mortgage rates have been on a repetitive see-saw lately, bouncing between the mid-6% range and to over 7%, so whether this week’s movement will make a difference in the sluggish spring housing market remains to be seen.

“Mortgage rates remain stubbornly close to 7%,” says Realtor.com® economist Jiayi Xu. “To see mortgage rates dip further below 7%, persistent evidence showing inflation back on the path to 2% will be necessary.”

Until then, buyers might want to focus instead on the housing market breakthrough that’s been four years in the making.

“Last week saw the highest number of homes for sale since August 2020, a significant milestone,” says Realtor.com senior economic research analyst Hannah Jones in her latest analysis. “The recent strength in listing activity means buyers are seeing more homes for sale than they have seen in almost four years.”

Will a rush of homes hitting the listing pages tempt both buyers and sellers to accept high mortgage rates and dive in? Here’s what the latest real estate data means for homebuyers and sellers in our most recent installment of “How’s the Housing Market This Week?”

The latest mortgage rate outlook

Despite this week’s dip, mortgage rates have remained stubbornly high, largely powered by the robust economy.

Though the Federal Reserve had promised to lower key interest rates in 2024, it has yet to do so as economic reports have been coming in strong. (Though the Fed does not set mortgage rates, the two numbers often move in the same direction.) Yet this week, a report showed that inflation fell from 3.5% in March to 3.4% in April.

“This week’s consumer price index inflation data showed improvement, a welcomed sign of progress which can positively affect mortgage rates,” says Jones. “The CPI data will likely hold more sway over the policy and economic outlook, which means we may see this positive data reflected in mortgage rates in the near term.”

Economist Xu agrees, adding, “While this improvement is a baby step forward, it’s expected to foster stability in mortgage rates at their current level and possibly even trigger further declines.”

While many might be waiting for rates to fall before entering the housing market, some buyers have a workaround for high mortgage rates: larger down payments.

The more money a buyer puts down, the more they “minimize housing payments at a high mortgage rate by minimizing loan size,” explains Jones.

The listing pages hit a four-year high

Buyers who have faced years of scarce listing pages have much to celebrate, given the data for the week ending May 11. The total number of homes for sale was strong, 35% higher than the previous year, marking 27 weeks in a row that homes have been above the previous year’s levels.

“Seller activity continued to climb annually last week and accelerated relative to the previous week’s growth,” says Jones.

However, she notes that the annual amount of fresh listings “was lower than almost every week back to early February, signifying a slowdown in new listings growth.”

New listings were up for the week ending May 11 by 6.6% from a year ago.

“New listing activity will continue to be influenced by mortgage rate movement, but cooling labor market and inflation data could mean things are moving in the right direction,” says Jones.

Home prices remain flat

The median list price didn’t rise or fall for the week ending May 11, remaining unchanged at 0.0%.

“The prices for homes on the market notched in at the same level as one year ago for the second week in a row,” says Jones. (The median-priced home cost $430,000 in April.)

A flood of homes priced in the budget-friendly $200,000 to $350,000 range might have helped to tamp down list prices compared with last year.

The pace of home sales is slowing

The pace of the market softened for the week ending May 11, with homes lingering one extra day compared with the same time a year prior. (The typical home spent 47 days on the market in April.)

“Homes sold slightly slower than one year ago last week but remained within a tight margin of the previous year, as has been the trend over the last couple of months,” says Jones.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

91747 Blue River Reservoir Rd, Blue River, OR 

Price: $325,000    Acres: 20.94

Gorgeous 20+ acre building site. 100+ yards to Blue River Reservoir and boat landing. A one minute drive to the scenic McKenzie River and boat launch. Panoramic views of the surrounding mountains and 3 Sisters Mountains. Trees and prairie on most of... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Finally, some relief with mortgage rates. The question is, will this trend continue? It's no secret that high mortgage interest rates have created a huge slowdown in home sales across the nation. Expected rate cuts this year by the Fed turned into disappointment as inflation numbers continue to climb, and the Fed determined that lower rates would only fuel this fire. There are many opinions out there as to what lies ahead; the following is from a recent article from "Realtor.com."

Mortgage rates finally fell for the first time in five weeks, with the average rate for a 30-year fixed home loan dropping from 7.22% last week to 7.09% for the week ending May 9, according to Freddie Mac.

“After a five-week climb, mortgage rates ticked down following a weaker than expected jobs report,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

Despite this welcome bit of news, overall, high mortgage rates have put a damper on the spring market, discouraging both buyers and sellers from entering what is often the busiest season of the year. 

“An environment where rates continue to hover above seven percent impacts both sellers and buyers,” Khater noted in his statement. “Many potential sellers remain hesitant to list their home and part with lower mortgage rates from years prior, adversely impacting supply and keeping house prices elevated. These elevated house prices add to the overall affordability challenges that potential buyers face in this high-rate environment.”

In her recent analysis, Realtor.com® economist Jiayi Xu agrees that, for now, “homebuyers and sellers are likely to experience a slow spring, characterized by fewer transactions, as the elevated mortgage rates deter many from pursuing housing plans.”

She adds that so far, “many sellers who are also prospective buyers opted to defer their selling plans, resulting in a notable slowdown in listing activities. Alongside the scarcity of fresh listings, the increasing buying costs propelled by rising mortgage rates may leave many homebuyers feeling disheartened.”

Here’s what the latest real estate data means for homebuyers and sellers in our most recent installment of “How’s the Housing Market This Week?”

The latest mortgage rate outlook

The U.S. Federal Reserve has not lowered interest rates for six consecutive months, despite earlier talk of three rate cuts in 2024. (While the Fed does not directly influence mortgage rates, the two numbers usually move in tandem.)

“In Wednesday’s meeting, the FOMC voted to hold rates steady and Chair Powell emphasized, once again, that future rate decisions will be dependent on incoming inflation and employment data,” explains Realtor.com senior economic research analyst Hannah Jones. “Recent data reflects a surprisingly resilient economy, which means rate cuts expectations have pushed out further into the back half of the year.”

Yet that does not mean all hope is lost for buyers and sellers looking to make real estate moves this year.

“The cooler labor market data in May signaled that mortgage rate relief could be on the horizon,” says Xu. “The inflation is still far from the 2% target, but persistent inflation improvements and subsequent mortgage rate drops could pave the way for an unseasonably active summer and fall.”

Home prices are falling

There’s good news for homebuyers this week as well, with home prices slipping by 0.2% for the week ending May 4 compared to the same week last year. (The median-priced home cost $430,000 in April.)

“Smaller, more affordable listings are taking the pressure off of the overall median price, which is good news for shoppers looking for these types of homes,” says Xu.

Buyers looking for a bargain should head South, where sellers are listing these budget-friendly homes (often condos, semiattached homes or townhouse) priced between $200,000 and $350,000. 

New listings are dwindling

While fresh listings were up by 3.6% for the week ending May 4 compared to the year prior, this growth is slowing considerably under the weight of high mortgage rates. 

“Although the number of new listings kept rising, the rate of increase slowed considerably compared to the double-digit surges seen in recent weeks,” says Xu. “As mortgage rates breach 7% once more, numerous home sellers may be inclined to postpone their selling endeavors.”

If mortgage rates continue to rise, that may “continue to suppress listing activities,” says Xu.

While homebuyers might not have a ton of fresh listings to peruse, the number of homes for sale overall—both new listings and old—grew by 35.1% for the week ending May 4 compared to the year prior.

“For the 26th straight week, there were more homes listed for sale versus the prior year, giving homebuyers more options,” says Xu.

Homes are still selling fast

Despite sticky mortgage rates, buyers are still out there making offers. The typical property spent one fewer day on the market for the week ending May 4 compared to the same period last year. (The typical home spent 47 days on the market in April.)

“While the surge in mortgage rates might postpone certain buyers’ decisions, it could also intensify competition as some homebuyers rush to lock in favorable rates before they rise further,” says Xu.

Savvy home shoppers may also take advantage of high mortgage rates to offer less on a home—and sellers are listening. 

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4927 Morely Loop, Eugene, OR 

Price: $340,000    Beds: 3    Baths: 2.0    SqFt: 1518

This updated home is on its own lot & doesn't have any HOA fees. It's located on a quiet street with a treed view in the backyard. Open floor plan with vaulted ceilings, skylight in the kitchen, laminate flooring and vinyl windows. Sliding French ba... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The following article from NAR gives a great description of the housing market that we have lived through over the previous year and the one we find ourselves in today. 

Home sales in 2023 were the worst in nearly 30 years. The micro-level reasons—owners locked into low mortgage rates, low inventory, and rising interest rates—explain the fall in sales. But looking at the big picture, it makes less sense. Last year’s 4 million existing-home sales were the same as in 1995, when there were 70 million fewer people living in the U.S. The massive stored-up housing demand could easily mean increased home sales in eight of the next 10 years.

A turn for the better is already showing up: In February, existing-home sales rose 9.5% from the prior month even after accounting for seasonal factors and a leap year. The increase was helped by a 10% inventory boost. One regional exception was in the Northeast, where sales fell by 10%. But this region also had the largest home price gain because of lack of supply and a wider prevalence of multiple offers.

One issue to monitor is consumer response to the rules of the new settlement agreement, which is still pending final approval by the court. Sellers and buyers clearly benefit from a cooperative arrangement between the listing broker and buyer broker, and the proposed settlement was able to maintain consumer choice with respect to offering compensation off-MLS. It's especially important to maintain representation options for first-time, historically underrepresented and underserved, and veteran homebuyers, who often struggle to come up with a down payment. In the near term, the dynamics are hard to predict. But I believe sellers will continue to see the value of cooperation when listing agents clearly explain the benefits, such as increasing housing opportunity and widening the potential buyer pool. NAR’s goal is as much choice as possible for consumers undertaking one of the most important transactions of their life.

First-Timer Share Drops Again

Existing-home sales increased in February. Yet first-time buyers’ share of the market declined to 26%, down from 28% in January. According to NAR’s 2023 Profile of Home Buyers and Sellers, first-time buyers made up 32% of the market from July 2022 to June 2023, while the historical norm is 38%.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2690 Carbona St, Eugene, OR 

Price: $345,000    Beds: 3    Baths: 1.0    SqFt: 912

This charming home is located in the desirable Santa Clara neighborhood on a HUGE lot! The warm and inviting living room welcomes you with large windows flooding the space with natural light and a cozy fireplace ready to add to the ambiance.. The di... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Are you wanting to purchase a home, but you are just not sure if right now is the best time to make your purchase? If you fit into this category, you are not alone. Hundreds of thousands of potential home buyers are finding themselves in this situation. The following article from "US News" talks about this situation and gives you some perspective from both sides on whether to buy now or wait it out. This is a great read for you if you are on the fence about purchasing a home now vs. renting.

Over the past two years, mortgage rates have surged from around 3% to well past 7%, leaving many would-be homebuyers simply priced out of the market. Others have decided to wait on the sidelines, holding out for lower rates. In fact, two-thirds of homebuyers are waiting for rates to fall before buying a home in 2024, according to a U.S. News survey. 

But patience doesn't always pay off for buyers who are trying to time the market. Here's what to consider if you're holding out for lower mortgage rates, as well as when waiting to buy a home could make sense. 

Home Prices May Rise While You Wait to Buy

National home prices are up about 44% since the onset of the COVID-19 pandemic, according to the S&P CoreLogic Case-Shiller Home Price Index. Much of that home price appreciation can be attributed to heightened demand when mortgage rates were at record lows in 2020 and 2021. 

But even in 2022 and 2023, when mortgage rates began their relentless climb, home prices didn't drop. Instead, they rose by about 10% between January 2022 and January 2024. 

Those who put off buying a home during the past few years as they were holding out for lower mortgage rates have been left out of the market as home prices continued to appreciate. On top of that, mortgage rates have stayed higher for longer than previously expected, keeping monthly housing payments elevated. In other words, affordability didn't improve for those who chose to wait.

But there is a silver lining to buying now versus buying during the pandemic frenzy: Even though prices have stayed high, the housing market has come into better balance. Active listings have continued to improve in 2024 so far, according to a March housing market report from the real estate listings website Realtor.com. It may not be quite a buyer's market, but buyers may not have to waive home inspection contingencies or engage in bidding wars well over a home's appraised value in order to have an offer accepted. 

Lower Rates Could Spark Competition – and Drive Prices Higher

Although home prices aren't expected to appreciate at the breakneck pace observed during 2020 and 2021, they're not expected to decline, due to limited housing inventory. 

One factor is the rate lock-in effect, where many homeowners are reluctant to list their homes for sale since they have much lower interest rates (and monthly payments) than what's currently available. About four in five homeowners have a mortgage rate below 5%, according to a January 2024 study by the online real estate brokerage Redfin. 

If mortgage rates do fall this year, some homeowners could be motivated to sell, but the vast majority will still have much lower rates than what's currently available for the foreseeable future. At the same time, first-time buyers (who aren't tied to a sub-5% rate) might decide to enter the market if rates fall even slightly, unleashing a wave of pent-up demand that could outweigh the relative improvement in supply. 

Those who are waiting for rates to fall will be in good company – or rather, healthy competition. On the other hand, those who are financially prepared to buy now may benefit from the improving inventory while demand is still stifled by high mortgage rates. And those who buy now can always refinance down the line if rates fall. 

If you do plan to buy now and refi later, just ensure that you can comfortably afford your monthly payments without banking on refinancing. Think of it as an added bonus, not a guarantee – and remember that refinancing costs money, too. 

Mortgage Rate Trends Are Difficult to Predict

At the start of 2023, many economists expected mortgage rates to drop throughout the year – but those forecasts didn't come true. In fact, mortgage rates marched higher, reaching a new peak of nearly 8% in October 2023. And while mortgage rates are forecast to decline in 2024, they're not likely to return to pandemic-era levels anytime in the near future. 

Federal Reserve Chair Jerome Powell said it best in a September 2023 news conference: "Forecasts are highly uncertain. Forecasting is very difficult. Forecasters are a humble lot with much to be humble about."

Even the most seasoned economists have trouble predicting mortgage rate trends, so the average homebuyer has little chance of successfully timing the market. Instead, buyers should focus on things within their control, like deciding what they want out of a home and working with a real estate agent to put in a competitive purchase offer.

When Buying a Home Now Makes Sense

You can afford the monthly payments. When mortgage rates are high, buyers face higher monthly housing payments. As a rule, your mortgage payments should not exceed 28% of your monthly pretax income. Some homebuyers may need to reduce their home price budget to accommodate the current rate environment and keep their monthly payments within reason.

Research rents in your area, and compare them to your estimated costs as a homeowner using a mortgage calculator. Don't forget to account for property taxes, homeowners insurance, mortgage insurance and homeowners association fees. 

You plan on staying in the home for a while. Buying a house comes with its share of one-time transactional costs, like fees for a home appraisal, land survey, home inspection and mortgage underwriting. On average, closing costs will run you about 2% to 5% of the home's purchase price (between $8,000 and $20,000 on a $400,000 home). 

At a minimum, you should expect to live in your home for about five years before it's worth selling to offset closing costs. Plus, you could be on the hook for capital gains tax if you sell a property within two years of owning it. 

Buying a home won't drain your savings. Take it from a new-ish homeowner: Home maintenance, upkeep and repairs are probably more expensive than you think. After making a down paymentand paying for closing costs and even moving expenses, buying a home can put a sizable dent in your bank account. Make sure you have enough of a cushion to cover upfront purchase costs, with a healthy savings fund left over. That way, you're not cash-strapped as a new homeowner.

You can expect to spend at least 1% of your home's value each year on maintenance expenses(or a minimum of $4,000 on a home worth $400,000). Building in a home maintenance fund helps you avoid tapping credit cards or taking on debt if you need to pay for renovations or urgent repairs within few years of homeownership. It's also wise to keep an emergency fund that can cover three to six months' worth of living expenses in the event of job loss or another unexpected life event.

When Waiting to Buy a Home Makes Sense

You need more time to financially prepare. Considering that your home could be the most expensive purchase in your lifetime, there's no such thing as being too prepared or having too much money saved up. While it's possible to buy a home with far less than 20% down, coming prepared with a larger down payment can help you qualify for better loan terms and enable you to avoid paying for mortgage insurance, which can help keep your monthly payments affordable.

On top of building up your savings, you might want to improve your credit score, pay down other debts like credit cards or find ways to increase your income before buying a home. 

You enjoy the flexibility of not owning a home, for now. Purchasing a home isn't just a financial decision, it's also a lifestyle choice. Some people might save money if they can find a reasonably priced rental with roommates, and they might simply enjoy that type of living arrangement. Others might decide to live at home until they've saved up for a larger down payment or just because they want to live among family – about 16% of Americans ages 25 to 34 live with a parent, according to U.S. Census Bureau data. 

Ask yourself what you want out of homeownership, because if you're not highly motivated to buy a home when mortgage rates are high, it might not be worth the financial stress. In other words, waiting makes sense when you're simply not ready to buy a home. 

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2434 E Irwin Way, Eugene, OR 

Price: $349,900    Beds: 3    Baths: 1.5    SqFt: 1056

This single level ranch style home is located on a quiet street near Irwin Park and the Golden Garden Pond. RV parking and an attached 2-car garage with built-in storage. Vinyl windows, newer carpet & vinyl, large fenced yard with a patio...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!