Eugene Oregon Real Estate Blog

Good Monday Morning!

Home sales, both locally and nationally, are slowing again. After a short spurt of strong activity in our local Eugene and Springfield area, activity levels have once again slowed due to rising mortgage interest rates, high inflation, and a very sluggish economy. Even with all of this negativity, home sales remain better than you would anticipate. This certainly gives hope for a strong rebound if mortgage rates decline again and the economy strengthens. If you are considering a home sale, don't hesitate. Right now, this could be the strongest housing market we see this year. The following is a national housing market report from "Realtor.com."

Home sales slipped in March as mortgage rates rose.

Total existing-home sales dropped 4.3% from February, to a seasonally adjusted annual rate of 4.19 million in March, the National Association of Realtors® reported on Thursday. The March sales figure represented a 3.7% drop from one year ago. (Existing homes exclude new construction.)

A pullback in sales had been widely expected after mortgage rates ticked up, discouraging buyers.

Prices also kept climbing. The median price for existing homes was $393,500 in March, up 4.8% from the previous year to the highest it’s ever been for that month. Prices rose in all U.S. regions, climbing 9.9% in the Northeast, 7.5% in the Midwest, 6.7% in the West, and 3.4% in the South.

But in a silver lining for prospective homeowners, the number of existing homes for sale jumped 4.7% from February to 1.11 million units at the end of March, according to the report. The number of existing homes on the market was up 14.4% from a year ago.

Although high prices and rising interest rates remain challenges for homebuyers, any boost to housing inventory could provide some relief in a tight market where limited supply has been a persistent issue.

“More inventory is always welcomed in the current environment,” said NAR Chief Economist Lawrence Yun in a statement. “There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market.”

It is still a “great time to list” as home prices continue to rise overall and sellers of midpriced properties still frequently receive multiple offers, Yun said.

Existing-Home Sales

Sales of existing homes pulled back in March, after interest rates climbed in late February.

First-time buyers made gains in March

First-time buyers were responsible for 32% of sales in March, up from 26% in February and 28% from a year ago, according to the NAR report.

The resurgence of first-time buyers could be due to a recent influx of lower-priced homes for sale, says Realtor.com® Chief Economist Danielle Hale.

"Despite climbing sales and list prices, Realtor.com data show that sellers are approaching the housing market with more realistic expectations this spring even as we approach the week that Realtor.com has identified as the best time to sell a home," says Hale.

Cash sales also declined last month, perhaps giving first-time buyers a better shot at seeing their offer accepted. All-cash sales accounted for 28% of transactions in March, down from 33% in February. But these sales were up from 27% one year ago.

Investors, who frequently pay all-cash, made up a smaller share of buyers last month. Individual investors or second-home buyers purchased 15% of homes in March. That was down from 21% in February and 17% in March 2023.

Mortgage rates poised to remain higher for longer

Thomas Ryan, a property economist with Capital Economics, says that March's sales slump "didn’t come as a huge surprise" given that mortgage applications and pending home sales both fell in the early months of the year due to rising mortgage rates.

"The fall in existing home sales in March was triggered by mortgage rates climbing," Ryan said in a note.

Mortgage rates averaged 6.82% in March for 30-year fixed loans, according to Freddie Mac.

They rose to 7.1% for 30-year fixed loans in the week ending April 18 after hotter-than-expected inflation data for March tempered expectations of a Federal Reserve rate cut anytime soon.

"Prospective home buyers face a challenging—and confusing—housing market. Mortgage rates, which had been expected to fall in 2024, have inched up close to 7% and seem poised to remain higher for longer," said Bright MLS Chief Economist Lisa Sturtevant in a market commentary. "Inventory has started to increase, but the market is still competitive with sellers still getting multiple offers."

Sturtevant projected that "home sales activity could remain a bit downbeat this spring." However, she anticipates sales will likely pick up over the rest of the 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: $899,900    Beds: 3    Baths: 2.5    Sq Ft: 2840

This beautifully updated home is nestled on a private ? 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!

Many would be home buyers and sellers are fearful of our current housing market. It certainly is a much different market than what we were experiencing just over a year ago. The reality is that mortgage interest rates in the 2.5% to 3.5% range are unrealistic, and the fact that we had them available for so many years was a blessing. Those who have been in the Real Estate market for years knew that these rates would end. They couldn't last forever! Mortgage interest rates are cyclical, as is the national housing market. When I purchased my first home, the interest rate was just under 12%. It was painful, but I was tired of paying rent, and I knew that rates would not stay at 12% to 13% forever. When the rates finally began to decline, I refinanced at 8.5%. I was a very happy homeowner at that time. My second home came about 10 years later, and mortgage interest rates were at 7.5%. I was very happy to pay such a low mortgage interest rate. I would later refinance at 3.5%, and it was like gaining free money. I still live in the same home that my wife and I purchased 27 years ago. Again, when we bought our current home, the price we paid was a struggle, and we sacrificed to be able to make the payment. The purchase price of that new home was $300,000. We used the equity that we built from the sale of our first home to move up to a much nicer and larger home. Today, the value of that home is between $950,000 and $1,000,000, and we are months away from owning it free and clear. Was it worth it to go out on a limb and buy homes that we had to sacrifice for at the time? I think it should be clear that yes, it was a good move, and in hindsight, it certainly is something that I would not hesitate to repeat. 

I mention all of this because I feel that homeownership remains one of the best investments that anyone can make. The conditions that we purchase homes under constantly change, and we go through various market cycles, but throughout the history of this country, homeownership has stood as a strong investment. The market we have today won't be the market we have tomorrow or a year from tomorrow. There will always be opportunity, and there will be challenges that come with that opportunity. But becoming a homeowner is well worth the effort and the sacrifice.

The other thing to be considered is that the alternative to purchasing a home is renting.  Renting is typically a losing proposition long-term. You build no equity, you have few, if any, tax write-offs, and you are helping your landlord make the money that should be yours. Renting can become a dead-end street, and if there is anything you can do to get out of the renting cycle, you need to explore it. If you are caught in this cycle, get in touch.  I may be able to show you some avenues to break you away from making money for a landlord and start building equity in your own home. I have helped many people purchase homes they thought they had no chance of ever owning!

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2690 Carbona St, Eugene, OR 

Price: $355,000    Beds: 3    Baths: 1    Sq Ft: 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!

Home sales in the Eugene and Springfield area fell slightly in March. New listings hitting the market were slightly up, and at the same time, the total inventory of homes on the market fell. This is just a continuation of the same market that we have been in for quite some time. I see little change on the horizon unless we see a significant decrease in mortgage interest rates. A decrease in rates is not likely at this time, as inflation continues to be a thorn in the economy's side and the Fed has announced that there will be no rate decreases in the near future. Overall, the Eugene and Springfield area housing market is holding up better than I would have expected. Homes are selling, and we are continuing to see many multiple-offer situations. The bright spot for anyone considering a home sale is the fact that we are currently at 2 months of active home inventory. This means little competition at the time of year when home sales typically begin to spike. The following are the home sales statistics for Lane County in March 2024.

New Listings

New listings (405) increased 1.3% from the 400 listed in March 2023, and increased 13.8% from the 356 listed in February 2024.

Pending Sales

Pending sales (345) increased 0.9% from the 342 offers accepted in March 2023, and increased 3.0% from the 335 offers accepted in February 2024.

Closed Sales

Closed sales (287) decreased 1.4% from the 291 closings in March 2023, and increased 20.6% from the 238 closings in February 2024.

Inventory and Time on Market

Inventory decreased to 2.0 months in March. Total market time increased to 80 days.

Year-to-Date Summary

Comparing the first three months of 2024 to the same period in 2023, new listings (1,052) increased 5.5%, pending sales (908) increased 0.9%, and closed sales (723) increased 1.4%.

Average and Median Sale Prices

Comparing 2024 to 2023 through March, the average sale price has increased 4.7% from $445,500 to $466,300. In the same comparison, the median sale price has increased 3.1% from $415,000 to $428,000.

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: $925,000    Beds: 3    Baths: 2.5    Sq Ft: 2840

This beautifully updated home is nestled on a private ? 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!

I am often asked, "When is the best time of year to sell my home?" That answer can be somewhat complicated, but typically my answer is the same. In the Eugene and Springfield market area, I have always found that late winter and early spring may be the prime time for home sales. In our area, the days are becoming longer, the weather is improving from winter storms, trees are getting leaves again, and flowers are beginning to bloom. This is typically when homebuyer interest begins to spark. Another important thing to remember is that this time period typically has a lower inventory of homes for buyers to choose from. Later in spring and summer, the inventory of homes for sale will typically increase. Higher demand and lower inventory are a good combination for home sellers. The following is an article from "Realtor.com" that also suggests spring as the best time to sell your home.

A new realtor.com® analysis looks at historical listing metrics to pinpoint when sellers have the biggest advantage this spring.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2690 Carbona St, Eugene, OR 

Price: $365,000    Beds: 3    Baths: 1    Sq Ft: 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!

The national Real Estate world was full of facts and non-facts in regards to the recent NAR settlement over brokerage fees. I am doing this article this morning because many clients have had questions over what is going on, and home buyers have been in fear that they will now have to pay fees that they did not have to pay previously in a Real Estate transaction. The truth is that, yes, there will be some changes coming soon, but the overall picture of how we buy and sell Real Estate will change very little for most home sellers and home buyers. This is an ever-changing situation, so there could be some further developments ahead, but as of right now, it is pretty much business as usual. Here is a recent article from "Realtor.com" that briefly goes over the recent decisions.

Misinformation has been pervasive in the media over real estate commissions. Here are the facts you should know.

The national conversation around real estate commissions reached a crescendo in the last week since the National Association of REALTORS® announced a settlement agreement that would resolve litigation brought on behalf of home sellers related to broker commissions. Brokers and agents have their own questions about what comes next for their businesses, while at the same time trying to answer consumer inquiries. And many headlines aren’t separating fact from fiction, feeding misinformation to you and your clients.

Let’s clear the air: There’s no doubt the litigation—including copycat lawsuits that were filed after the Sitzer-Burnett verdict—caused considerable uncertainty in an industry already dealing with the effects of low inventory and interest rate increases. The settlement, which must be approved by a judge, provides a path forward for real estate professionals, REALTOR® associations, brokerages, MLSs and other industry stakeholders. Most importantly, it gives NAR members the chance to refocus on their core mission to support buyers and sellers.

Facts First

There’s much the media has gotten wrong about NAR’s settlement, which would require the association to pay $418 million over four years. Some outlets have suggested that NAR previously set or guided commissions to a standard rate of 6%. Even President Joe Biden, in recent comments, misspoke in suggesting that the settlement makes commissions negotiable for the first time.

You know that is false. NAR does not set commissions, and commissions were negotiable long before this settlement. They are and will remain entirely negotiable between brokers and their clients. And housing prices are dictated by market forces beyond members’ control.

Getting the facts right is important, especially because the settlement agreement is complex. NAR is continuing to engage with media to correct inaccurate reporting about the settlement. Members are also encouraged to refer to official NAR sources, like facts.realtor, for the most accurate and up-to-date information about the settlement and what it means for consumers.

The settlement achieves two important goals: protecting members to the greatest extent possible and preserving consumer choice. The proposed settlement:

1. Resolves claims against NAR and nearly every member; all state, territorial and local REALTOR® associations; all association-owned MLSs; and all brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2 billion or below.
2. Preserves cooperative compensation as an option for consumers looking to buy or sell a home—as long as such offers of compensation occur off of the MLS.

NAR fought for a release that covered all industry players, but large settlements reached by other corporate defendants shaped the negotiations. Throughout the settlement process, NAR also engaged with a diverse range of members to consider their perspectives and interests.

“Ultimately, continuing to litigate would have hurt members and their small businesses,” NAR Interim CEO Nykia Wright said in a statement. “While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances. It provides a path forward for our industry, which makes up nearly one-fifth of the American economy, and NAR. For over a century, NAR has protected and advanced the right to real property ownership in this country, and we remain focused on delivering on that core mission.”

The settlement agreement also mandates two key changes to the way members and MLS participants do business.

1. NAR agreed to create a new MLS rule prohibiting offers of compensation on the MLS. This would mean that offers of compensation could not be communicated via an MLS, but they could continue to be an option consumers could pursue off-MLS through negotiation and consultation with real estate professionals.
2. NAR also agreed to create a new rule requiring MLS participants working with buyers to enter into written representation agreements with their buyers before the buyer tours a home. NAR has long encouraged its members to use written agreements to help consumers understand exactly what services and value they provide, and for how much.

NAR continues to deny any wrongdoing and maintains that cooperative compensation is in the best interest of consumers. NAR members can use these changes as an opportunity to explain their clients’ options. Both changes would go into effect in mid-July under the terms of the proposed settlement.

NAR considered a range of legal options throughout the litigation process, including reaching a settlement or continuing to appeal the Sitzer-Burnett verdict and litigate the related copycat cases. The latter could have forced the association to file for Chapter 11 bankruptcy protection, leaving members, associations, MLSs and brokerages exposed.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2105 Chambers St, Eugene, OR 

Price: $495,000    Beds: 3    Baths: 2    Sq Ft: 1360

Welcome to this amazing mid-century modern home that has been meticulously updated throughout. Conveniently located just a short distance to restaurants, shopping, park space and highly sought after schools. Updates include a new membrane roof & R-1...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

At the beginning of this year, national financial experts were mostly in agreement that the Fed would go through a series of interest rates drops in 2024. They thought that with inflation numbers predicted to decline, the Fed would need to do this to get the economy back on track. So far, the Fed has failed to drop rates and has even made it look as if a rate decline program is not in the picture any time soon. Recent unfavorable inflation rates could be putting a stranglehold on Fed rates declining any time soon. With that reality, mortgage interest rates remain around the 7% mark. This is a lower level than a year ago, but this rate remains higher than what many home buyers feel they want to deal with. Many would-be buyers are sitting and waiting for mortgage interest rates to drop, but is that the best route? The following article from "US News" talks about the best direction for home buyers to take.

It's been two years since the Federal Reserve first began its tightening cycle with a series of rate hikes, effectively ending the pandemic-era housing boom. Since then, mortgage rates rose past 5%, 6% and 7% as home prices stayed stubbornly high – a combination that brought housing affordability to its lowest levels in decades. 

The spring 2024 home-shopping season is upon us, and it brings with it a sense of deja vu: Just like in 2023, two-thirds of respondents who plan on buying a home in 2024 are waiting for rates to fall first, according to the second annual Homebuyer Sentiment Survey from U.S. News.

Between Feb. 28 and March 4, U.S. News ran a nationwide survey of 1,200 Americans who are planning to buy a home in 2024 using a mortgage. We asked respondents a series of questions to find out how the mortgage rate environment has impacted their homebuying plans. Here's what we found:

• Two-thirds of homebuyers (67%) are waiting for mortgage rates to drop before buying a home this year. Last year, an equal share of buyers said the same thing – but rates didn't budge. In fact, 67% of this year's buyers put off purchasing a home in 2023 because they were waiting for rates to fall. 
• Among those who are holding out for lower rates, a quarter (26%) want to see them below 5% before buying, which isn't expected to happen in 2024 or even 2025. About half (49%) are willing to wait for more than six months for rates to come down. 
• Three-quarters of current buyers (76%) plan on refinancing to a lower mortgage rate in the future. Additionally, more than a third (36%) are considering borrowing an adjustable-rate mortgage in order to get a lower rate. Both of these strategies come with risks: Those who "buy now, refi later" could be stuck with unaffordable monthly payments while they wait for rates to fall, and those who choose an ARM may be on the hook for higher payments in the future. 
• The vast majority of homebuyers (91%) are at least "somewhat" stressed about buying a home this year, with a quarter (25%) saying they're "extremely" stressed about it. Just a quarter of buyers (26%) say there's enough for-sale housing inventory within their budget in the market where they're buying a home. 
• Over half of 2024 home shoppers (52%) are planning on buying new construction, including 55% of first-time buyers and 45% of repeat buyers. Among them, 61% say they will use their builder's preferred lender, which often comes with added incentives like mortgage-rate buydowns and closing-cost credits.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

320 Mountaingate Dr, Springfield, OR 

Price: $114,500    Acres: 0.23

Rare lot availability in the Mountaingate Community. Build your dream home here! Gorgeous mountain and valley views. Lot provides level driveway to garage opportunity, with potential for daylight basement opportunity in the rear of the lot. Nearby p...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

February of this year saw closed home sales and pending sales tick upwards in the Eugene and Springfield area.  Could this be seasonal, or is it a long-term positive sign for our local Real Estate market? Mortgage interest rates remain just below the 7% mark, which is up from this time last year but about a percentage point below several months ago. The overall economy remains about the same, but inflation continues, but at a slower pace than last year. The hope is that the Fed will lower rates at their next meeting. Slightly lower rates could give our Spring housing market a boost. We remain in a volatile housing market, and it is just tough to determine exactly where it is headed. The inventory of homes remains low, and my advice to anyone thinking of selling a home this year is to not wait. Right now, we seem to have more home buyers than we have home listings in our market. My suggestion would be to take advantage of this. The following are the home sales statistics for Lane County in the month of February 2024.

New Listings

New listings (356) increased 24.9% from the 285 listed in February 2023, and increased 25.8% from the 283 listed in January 2024.

Pending Sales

Pending sales (335) increased 21.8% from the 275 offers accepted in February 2023, and increased 29.8% from the 258 offers accepted in January 2024.

Closed Sales

Closed sales (238) increased 3.5% from the 230 closings in February 2023, and increased 37.6% from the 173 closings in January 2024.

Inventory and Time on Market

Inventory decreased to 2.3 months in February. Total market time increased to 76 days.

Year-to-Date Summary

Comparing the first two months of 2024 to the same period in 2023, new listings (640) increased 7.9%, pending sales (585) increased 3.4%, and closed sales (419) increased 2.2%.

Average and Median Sale Prices

Comparing 2024 to 2023 through February, the average sale price has increased 3.8% from $449,000 to $466,100. In the same comparison, the median sale price has increased 2.4% from $415,000 to $425,000.

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: $365,000    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!!

Good Monday Morning!

Mortgage interest rates have gone up recently, but they are remaining below the highs in late 2023. There is a silver lining to this trend, though. With rates up slightly, demand for housing is down, and home inventories are beginning to creep higher. With more competition and less demand, home owners trying to sell their homes are becoming more motivated. This is something that we have not seen take place in our local Eugene and Springfield housing market for years. The recent tick-up in mortgage rates is not enough to have a large effect on payments, but is it enough to have an effect on what you might have to pay for a home? The other side of this is that there are simply more homes to choose from. For many interested home buyers, this is a great time to jump back into the market and start looking at homes. The following is an update on recent market trends that affect home purchases.

Mortgage interest rates rose for a fourth consecutive week, increasing the chances of a challenging spring homebuying season for buyers already struggling with affordability.

The 30-year fixed-rate mortgage averaged 6.94% this week, up from last week's 6.9% and hitting a two-month high, according to the latest Freddie Mac survey. The 15-year rate dipped slightly, falling from 6.29% to 6.26%.

Rising 30-year rates are already dampening homebuyer momentum heading into spring, said Sam Khater, Freddie Mac's chief economist.

"While sales of newly built homes are trending in a positive direction, higher rates and elevated prices continue to pose affordability challenges that may leave potential homebuyers on the sidelines," Khater said.

The resilient economy is keeping rates higher, prompting economists to reconsider expectations about interest rate cuts, which typically impact the direction of mortgage rates. Some forecasts had predicted rate cuts as early as this spring, but it appears unlikely that the Federal Reserve will take any action until later in the year.

Bright MLS Chief Economist Lisa Sturtevant, for one, is now expecting rate cuts to happen this summer rather than in the spring.

"This Friday's employment report, which likely will include a revision to January's robust numbers, will be key to watch for guidance on the timing of Federal Reserve action," Sturtevant said.

The Fed isn't providing many hints about when cuts could happen. In a speech on Feb. 28, New York Federal Reserve President John Williams said that while there is still some work to do, the door is opening to interest rate cuts "this year," depending on data, according to Reuters.

Without providing a timeline, Williams did suggest that three cuts could be coming sometime this year.

"While the economy has come a long way toward achieving better balance and reaching our 2% inflation goal, we are not there yet," Williams said.

Inventory is building, but mortgage applications haven't picked up yet

The one bit of good news for buyers is that elevated mortgage rates are allowing more inventory to build. Redfin's weekly report noted that new listings rose 13% year-over-year during the four weeks ending Feb. 25, the biggest jump in nearly three years.

And Altos Research noted in its weekly report that there are more sellers and fewer buyers heading into spring. Price reductions also ticked up this week for the first time since November, said Altos Founder Mike Simonsen. That doesn't mean home prices are necessarily falling yet, but they are softening.

"It is simply very clear evidence of how homebuyers wait when mortgage rates stay higher for longer," Simonsen said.

According to the company's research, there are 498,000 single-family homes for sale, which is 16% higher than last year but below pre-pandemic levels for this time of year.

Even as inventory has picked up, higher mortgage rates have stalled loan activity, said Mike Fratantoni, chief economist at the Mortgage Bankers Association.  

Applications for mortgages decreased by 5.6% from a week earlier, according to MBA data. Purchase applications were down 12% compared to a year ago.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1879 Adelman Loop, Eugene, OR 

Price: $420,000    Beds: 3    Baths: 2.5    SqFt: 1888

This adorable home is turnkey ready and features an open two-story floor plan, that's nestled in a charming neighborhood, with close proximity to a park. This 3-bedroom, 2.5-bath home offers an open concept with a large living space that leads to th...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning! 

Many homebuyers are choosing to wait in regards to purchasing a home. They are doing this in hopes of seeing mortgage interest rates drop over the months ahead.  My thoughts are that this may not be the best strategy. First of all, there is no promise that mortgage rates will decline soon. It has been widely publicized that we will see mortgage rates drop later this year. This could be wishful thinking as we watch inflation rates continue to climb and our overall economy is not fairing well.  At the same time, the government continues out-of-control spending, which will only further the risk of continued high inflation rates. The other unknown is the price of housing. We continue to see inflation with home prices and low inventories. My guess is that home prices will most likely not go down any time soon, and we may see home prices continue to increase as a part of our national inflation problem. My suggestion for homebuyers at this time would be to get serious about purchasing a home soon. Purchasing a home now may be a great financial decision. The thought of buying now and not risking higher home prices or even higher mortgage interest rates makes sense. If mortgage rates do decline, refinance! The following is an article from "NAR" that talks about why making a home purchase now may be a wise decision.

Mortgage rates edged up this week, prompting a pause among some would-be house hunters. But here’s why they may not want to wait.

Home shoppers are sensitive to mortgage rates, which was made clear this week with an increase in the average for the 30-year fixed-rate mortgage. The rate rose to 6.77%, and mortgage applications for home purchases fell 3%, according to the Mortgage Bankers Association.

Every notch up and down in rates can impact home buyers’ purchasing power, but borrowing costs have largely stabilized. “While mortgage interest rates edged up weekly, the overall trajectory from fall 2023 is down and is now a full percentage point below the recent high” when rates neared 8%, says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “While mortgage interest rates may come down to the low 6% range in the middle to later part of the year, buyers must weigh what makes the most sense for them. Timing the real estate market based purely on mortgage interest rates—especially marginal changes—rarely works when new babies, marriages and jobs are the real decision-makers.”

Buyers may not save much by waiting, either. Home buyers purchasing the typical home at $400,000, with a 20% down payment, would likely have a monthly mortgage payment of about $2,080 at this week’s rate average, Lautz says. Last week, when rates averaged 6.64%, home buyers could have paid about $70 less per month—but that was based on a median home price of $391,700.

Home prices are rising quickly. The median price of an existing home surged to an all-time high in December, according to NAR, and prices are expected to continue to climb. The annual median home price is predicted to increase by 1.4% this year, and by another 2.6% in 2025, to $405,200, NAR’s forecast shows. Plus, housing inventory remains at historical lows and remain a major obstacle for would-be home buyers. That will keep pressure on home prices, economists say.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1011 S 8th Street, Cottage Grove, OR 

Price: $337,500    Beds: 3    Baths: 1.0    SqFt: 1008

This adorable single level home was completely remodeled in 2019 and has been refreshed from top-to-bottom! Updates include a 30-year composite roof, vinyl windows and laminate flooring. The kitchen is open to the family room and has been tastefully...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Locally and nationally, new home starts have taken a huge hit as of late. Housing starts are off in large numbers, and this is one of the key indicators as to where our local and national economy is currently at. In Lane County, building permits for new construction are at a standstill.  Just look around at the number of new houses you see under construction. It is minimal. We are experiencing low housing starts, and at the same time, our nation has never had a larger shortage of housing. A sluggish economy, high mortgage interest rates, the high cost of land, high building material costs, high labor costs, high SDC charges, high property taxes, and expensive homeowner insurance have all contributed to the crash in new home construction. The remedy for this situation is complex, and most likely we will not see a rapid change in new home construction numbers any time soon. Lower inflation numbers and a decline in mortgage loan interest rates would be a good start to bringing back our new home industry. The following is an article from "Realtor.com" that talks about the decline in new home starts nationally.

The numbers: Construction of new U.S. homes fell 14.8% in January as home builders scaled back new projects.

The pace of construction slowed as builders curtailed their activity amid wintry weather in the U.S. in January.

Housing starts fell to a 1.33 million annual pace from 1.56 million in December, the government said Friday. That’s how many houses would be built over an entire year if construction took place at the same rate every month as it did in January.

Housing starts fell to the lowest level since August 2023.

The drop in January was the sharpest since April 2020, during the coronavirus pandemic, when starts fell by nearly 27%. Not including that pandemic drop, housing starts fell by the most since 2015.

The data fell short of expectations on Wall Street, where the expected rate was 1.45 million. The numbers are seasonally adjusted.

Single-family and multi-family construction fell in January, with the latter registering a nearly 36% drop.

But in a more recent survey of builders in January, builders were upbeat about future sales of new homes and optimistic about demand, as they expect interest rates to fall through the rest of the year.

Building permits, a sign of future construction, fell 1.5% to a 1.47 million rate.

Key details: Builders scaled back construction of new single-family homes, leading to a 4.7% drop, as well as apartments, which fell 35.8%.

The only region where builders increased construction was the Northeast, where single-family starts rose 26.7%. Every other region posted a drop in January.

Permits for single-family homes rose 1.6% in January, while apartment permits fell 9%.

Big picture: Housing starts are generally a volatile data series, but the data indicate that that builders slowed down construction of new homes in January.

But most builders are optimistic about the future, as seen in a recent survey, and expect falling mortgage rates to boost home-buying demand.

Meanwhile, builders continue to benefit from the tailwind that is the persistent shortage of previously owned homes. While new homes only formed a tenth of overall sales historically, that share has jumped to 30%, the National Association of Home Builders told MarketWatch.

What are they saying? “Housing starts fell by the largest amount since April 2020 in January, led by a huge drop in multi-family starts. We suspect the multi-family sector will continue to be a drag on new development this year, given the huge number of multi-family units already under construction,” Thomas Ryan, property economist at Capital Economics, wrote in a note.

“The sharp pullback in starts could reflect bad weather in January,” Ali Jaffery at CIBC Economics, wrote in a note. But as mortgage rates inch up, “housing activity should remain weak until the Fed signals a more clear intent to ease policy,” he said.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4391 N Shasta Loop, Eugene, OR 

Price: $450,000    Beds: 4    Baths: 2.5    SqFt: 2154

This diamond in the rough is perfect for an investor looking for a project or an owner looking to create their own oasis in a quiet South Eugene neighborhood. This is an eclectic home from the 1970's with natural wood, vaulted ceilings and great sep...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!