Eugene Oregon Real Estate Blog

Good Monday Morning!

Would be homebuyers today are in a state of panic over the increased cost of a home mortgage. In many cases we are finding avenues for people wanting to purchase a home that work well of them. The home buying scenario is different for every buyer and it is important right now to obtain good advice from knowledgeable local lenders. If you are considering a home purchase, but think that it is just out of your reach right now. Contact me and let me connect you with a trusted mortgage adviser. You might be shocked to find out that a home purchase is not out of the question at this time. The following is a very good article about home mortgages from "Realtor.com".

While buying a home has always been a challenging milestone, today’s high interest rates have made this dream even harder to achieve.

Over the past two years, interest rates on home loans have nearly doubled from the 3% range to around 7% today. This tacks many hundreds extra onto the monthly expense of housing, stretching some homebuyers’ budgets to the breaking point. And while there are ways to lower those costs, navigating the home loan process is extremely complicated—particularly for first-time homebuyers.

“It’s very important for first-timers to do research and understand all their options before they start looking for a home,” says Cara Ameer, a real estate agent with Coldwell Banker who is licensed in California and Florida. “Doing your due diligence can help you avoid some of the most common rookie mistakes, so you come out not only with the home of your dreams, but also a mortgage you can afford.”

Here are some common blunders homebuyers make when attempting to secure a mortgage.

1. Focusing too much on the interest rate

Probably the most common mistake homebuyers make is simply assuming that the lower the interest rate, the better the deal. But what they might not realize is that to get an ultralow rate, there are often hidden fees—and those fees could mean they ultimately end up paying more.

“Many lenders, especially in more recent years, have started to charge hidden points in an effort to advertise a much lower mortgage rate to potential applicants,” warns Jason Gelios, author of “Think Like a Realtor” and a real estate agent with Community Choice Realty in South East Michigan.

“It’s great to have the most attractive rate, but if the lender has you paying junk fees to obtain that rate, it might not make sense,” he adds.

Mortgage points are a fee that lenders can charge to applicants to lower their interest rate through the life of the loan. This process is also known as “buying down the rate,” and the fee is paid to the lender as its own fee.

In other words, “buying down the rate” or “buying points” are just a fancy way of saying you’re paying more fees upfront to get a lower interest rate.

As a result, it’s important for mortgage seekers to ask for an estimate of all fees included in their mortgage offer, and not just the interest rate.

2. Assuming you need a 20% down payment

“There’s a common but detrimental misconception that’s causing some potential first-time owners to delay starting the homebuying process, and that is the belief that it still takes 20% down to buy,” says Cindy Allen, veteran real estate agent and founder of DFWMoves in Southlake, TX.

In reality, according to a new study from Self Financial, the average down payment needed in the U.S. for first-time buyers is $12,274 (around 6%), in addition to $1,983 in closing costs.

“Fannie Mae has had a 3% down, first-time homebuyer mortgage for years now, which competes with FHA’s 3.5% down,” says Yifan Zhang, CEO of the host-to-own homebuying program Loftium. “The only difference is that home prices have risen so much recently that these programs are probably more popular now.”

However, keep in mind that you will have to pay private mortgage insurance if you put less than 20% down, which increases your monthly payments.

3. Assuming you can get a loan instantly

Many borrowers assume that in today’s instant-gratification culture, they can get a mortgage in days or even minutes. Not so.

“Even the mortgage lenders with splashy apps and websites still may need a phone call, manual document collection, or other time-consuming steps,” says Zhang.

In fact, many home tours might be off-limits until you’ve been vetted by a lender.

“Buyers may not be able to even see a home without providing a copy of their pre-approval letter just to schedule an appointment,” says Ameer. “Many listing agents are requiring that, no matter the price range. This is no longer just for high-end properties.”

4. Thinking pre-qualification means you’re approved for the loan

While getting pre-qualified for a loan is a good first step, it does not mean you’re guaranteed the money. Pre-approval is better because it means lenders have reviewed your finances.

In the past, pre-approval was typically enough to pass muster. In today’s ultracompetitive market, however, you might want to get fully approved from the get-go before you make an offer.

“Full approval means the buyer has been underwritten prior to making an offer—they have submitted all of their required documents, the lender has reviewed it and been able to vet them to basically say they are solid and just need to get an accepted offer on a property for the loan to go through,” says Ameer.

Being fully approved also allows buyers to close the deal in a much shorter time—two to three weeks in most cases.

This can give buyers the edge, as Ameer points out, “given today’s tight market with low inventory. Listing agents are going to recommend their seller ask for shorter time periods for loan approval.”

5. Not considering first-time homebuyer programs

Newbies who feel overwhelmed by the financial barriers to homeownership might be pleasantly surprised to learn that there are first-time homebuyer programs to help them get over the hump.

“You can find programs that offer help with closing costs and down payments, lower interest rates, and even tax credits to free up some of your savings,” says Allen. “And if you’re a first responder or educator, active-duty military or veteran, there are often special programs available for you, too.”

For example, Allen says just this past January she was involved in a $352,000 transaction where the buyers were granted over $6,000 toward closing costs and escrow through a first-time buyer program. They were then able to use the $6,000 they saved as additional down payment funds.

6. Failing to check your credit score

You really need to check your credit score prior to talking to mortgage lenders because ultimately, this number—which represents how well you’ve paid off past debts—will affect the interest rate you’re offered.

“Not tackling easy options for improving your credit score before taking out a mortgage is a big mistake for first-time homebuyers,” says Zhang. “Today, there are tons of credit improvement tools you can use to quickly and easily tackle your credit. Even just paying off a credit card can bump you into a higher credit category and save you hundreds each month on your mortgage.”

At the very least, make sure you know what your score is by checking it with CreditKarma.com or one of the top three ratings bureaus: TransUnion, Experian, and Equifax.

7. Picking the wrong type of loan

Are you better off going with an FHA, VA, or USDA loan or some other type entirely? Don’t know what these acronyms mean? There are many types of mortgages available, each with its own pros and cons based on your own personal circumstances.

“Know your loan options because an inexperienced loan representative may not know all the available programs or may not present all the possibilities,” says attorney Bruce Ailion, a real estate agent with Re/Max Town & Country, Atlanta. “Learn about the types of loans before talking with a professional to know the right questions to ask.”

8. Underestimating fees beyond the down payment

The down payment is not the only cost you’ll have when buying a home and securing a mortgage.

“People talk about the down payment required but rarely talk about the ancillary costs required for purchasing a home like closing costs, title, appraisal, and first-year homeowners insurance upfront,” says Nicole Rueth, senior vice president and producing branch manager, The Rueth Team of Fairway Independent Mortgage Corp. “It’s a mistake not to factor these in, because they can add up to an additional $5,000 to $12,000 down.”

9. Not preparing for the possibility of a low appraisal

Before lenders front the money for a house, they will have an independent home appraiser estimate its value. Many first-time buyers don’t realize that with listing prices so high, it’s entirely possible that their appraisal will come in lower, which means the lender will loan only that much.

“Given the rapidly rising asking prices and multiple-offer scenarios going on, it is quite possible that a property may not appraise at the agreed upon contract sales price. But a bank is only going to base their loan amount off of the appraised price, not what a buyer and seller agreed to pay,” says Ameer. “Buyers may not be able to come up with the cash to cover the difference between the appraised value and the contract sales price, so only offer what you know you can cover out of pocket should that happen.”

10. Not shopping around for the right lender

Not all lenders are created equal and work the same way. That’s why you really should shop around and find someone you trust who will pick up the phone when you call.

“In today’s market, it is imperative that you work with someone reputable who is reachable by cellphone seven days a week, because various questions and scenarios will come up as you embark on your property search and you may need some guidance that is crucial to having the winning offer,” says Ameer. “These situations often happen outside of typical office hours.”

This is one reason real estate agents typically prefer to use local lenders because they are accessible and reliable.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4927 Morely Loop, Eugene, OR 

Price: $335,000    Beds: 3    Baths: 2.0    SqFt: 1518

This updated manufactured home is on its own land and located on a quiet street. Open floor plan with vaulted ceilings, skylight in the kitchen, laminate flooring and vinyl windows. Sliding French doors lead to a large family room/bonus room for ext...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There have been some recent changes in the national housing market that should be watched. First of all, mortgage interest rates have certainly increased over the past several weeks, with rates now in the high 7% to low 8% range. With rising mortgage interest rates, home affordability takes a hit. The other change is that buyer ability and interest in purchasing homes is on the decline. At the same time, home inventories remain low in most areas of the country and home prices for the most part have not declined. Typically, when mortgages rates increase and demain decreases, home prices go down in order to compensate. That has not been the case during our current market. My guess is that we are on the verge of seeing home prices decline. This actually has to happen in order for home affordability to return. The speed and depth of decline will depend upon the path mortgage interest rates take moving forward. The following is an article from "Realtor.com" that talks about this situation.

Is the housing market overvalued?

It’s an increasingly fraught question, and the answer might depend on who’s being asked.

Some real estate experts believe home prices are well above what they should be and expect them to begin coming down. Others think the high prices make sense given how many people are still in the market looking for properties, despite mortgage rates nearing 8%.

“If you look at how much income homebuyers are putting toward their housing payment, if the number is not the highest ever, it’s really darn close,” says Realtor.com® Chief Economist Danielle Hale.

No one wants to buy a home at the peak of the market—and then watch the home value trickle down.

Homes in 98 of the 100 largest housing markets are selling above their long-term prices, which indicates that they are overvalued, according to an August analysisfrom Florida Atlantic University and Florida International University researchers. Only two markets had homes selling at a discount.

Nine of the top 10 markets where homes were priced the highest above historical norms were in the South, with seven in Florida, according to the analysis.

“The Sun Belt states are the most overvalued,” says Ken H. Johnson, a real estate economist at Florida Atlantic University in Boca Raton.

However, not everyone believes home prices are out of whack.

One thing most observers agree on: It’s the housing shortage that has kept prices high. Since there aren’t enough properties to go around for all of those aging into prime homebuying years, buyers have been trying to outdo one another with higher and higher offers to win bidding wars.

It happens in artwork, in commodities, in precious metals—and certainly in housing: The rarer, and more desirable, something is, the more valuable it is often considered to be.

“Yes, we’re in an affordability crisis,” says Devyn Bachman, senior vice president of research at the real estate consulting firm John Burns Research and Consulting. But “we have so much demand in the market, I don’t know that you can argue housing is overvalued.”

Fears of buying at the top of the market

It’s nearly impossible to perfectly time investments in the stock market. That is also true in real estate. No one wants to risk buying shortly before a major price correction.

That’s why some buyers who can afford the steep price tags at today’s high mortgage rates might decide to wait.

“There’s always this looming fear that they’re buying at the wrong time or they’re buying at the top of the market,” says Ali Wolf, chief economist of the builder consultancy Zonda. “We thought the peak was last year; we thought the peak was the year before.”

The problem is that it’s often impossible to figure out if the market has peaked until well after the fact. Many thought the market had peaked earlier this year when prices began to dip on a year-over-year basis, but then they started creeping up again.

“If someone is buying now because they want to lock in their interest rate, live in a certain neighborhood, get in a certain school district, and they’re planning to live there at least five years, I wouldn’t be as concerned about trying to time the market,” says Wolf.

Home prices aren’t sitting by themselves on an island. Mortgage rates and incomes also play a large part in whether real estate is overvalued.

It’s simple math. If everyone in America made at least $1 million a year, September’s median home list price of $430,000 wouldn’t seem so extra. Similarly, if mortgage rates were below 3%, then today’s prices would also be a lot more palatable.

“Two years ago, home prices were [also] high, but interest rates were low and most markets were considered fairly valued,” says Wolf. “The reason that’s changed today is mortgage rates have more than doubled.”

If mortgage rates keep climbing, home prices could fall. There is a limit to how much buyers can afford to spend each month on housing.

“It’s definitely more risky [to buy] today because of the high interest rates,” says Wolf. “If someone is buying now because they think their home [will be] up in value one year from now, I wouldn’t guarantee it.”

But if rates come back down, that could lure more buyers back into the market and prices could rise more steeply again.

“If mortgage rates drop, then maybe your asset isn’t overvalued,” says Bachman.

Will home prices crash?

Even if home prices are overvalued, most real estate experts don’t expect another housing crash to correct them.

“It’s certainly possible that home prices could fall from recent highs. It’s also possible they could still go up,” says Hale. “One year ago, everyone was predicting that the sky would fall in real estate—and that hasn’t happened in most markets.”

Unlike during the Great Recession, there are more buyers today than there are homes for sale. That shortage is expected to put a floor under prices, keeping them more elevated than many buyers would prefer.

Lenders have also tightened underwriting so that only more qualified borrowers get loans. That’s likely to prevent another wave of foreclosures, flooding the market with cheap real estate.

“There is going to be some adjustment. It could be that prices fall, it could be that incomes grow to catch up, it could be that mortgage rates come back down,” says Hale. “Or each of these three things could contribute a little bit over time until we gradually get back to housing taking up a more normal share of income.”

She also notes that housing markets rarely bottom out quickly. During the Great Recession, it took about four years for prices to fall to their nadir.

Even if prices did correct, most homeowners have enough equity in their homes to not find themselves underwater on their mortgages, says Hale.

The exceptions are recent homeowners who haven’t had as much time to pay down their balances or benefit from the steep price increases of the past few years. There is also a greater risk for those who purchased their homes with low down payments; they could be in the uncomfortable position of owing more than their homes are worth if prices came down by double digits.

But over time, the housing market generally rebounds and prices begin rising again. Homeowners just have to hold on. Even if the housing market is overvalued, people who need a home will still buy.

“It’s very clear that housing is expensive right now,” says Hale. But “even if housing is overvalued, it will make sense for people to buy homes.”

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!

One of the leading culprits with our slow Real Estate market in the Eugene and Springfield area and around the country is the low inventory of homes on the market for sale. Right now, there are clearly more home buyers than there are home sellers. This is true, even with increasing mortgage interest rates. The primary reason for the low inventory, is that most homeowners have either purchased a home or refinanced their home during the previous long stretch of low mortgage interest rates. The result of this is a lack of interest that homeowners have to give up their low rates in trade for higher rates on a new home. This is a situation that may not change any time soon. The following article from "NAR", gives some ideas and perspective for home sellers who would like to sell their home during this current market.

Selling a house can be a stressful process, particularly in today’s rapidly changing market. Although sellers enjoyed a strong seller’s market throughout much of the COVID-19-fueled housing boom rich with bidding wars and record-high prices, rising interest rates have shifted these power dynamics to the point that many prospective sellers might feel downright paralyzed by home-selling “what ifs.”

Like: What if I sell now, but then home prices rise? Or: What if I sell now, but then can’t find a new house? Will I regret selling so soon, or regret not selling soon enough? 

What if, what if, what if?

In fact, sellers hesitating to put their homes on the market are part of the reason why the number of new homes entering the market has been down for well over a year.

If you’re one of the many homeowners who feel paralyzed by indecision, allow us to help you play out the various scenarios and move forward. Here are some of the top “to sell or not to sell” questions floating around today, plus a reality check weighted with expert forecasts rather than hearsay or fear.

‘What if I want to sell now, but feel locked in by my current low-interest-rate loan?’

A recent Opendoor survey found that out of all housing market issues, 77% of homebuyers and sellers are most concerned about high interest rates. As a result, many potential sellers are postponing their moves for fear of future affordability woes.

“According to the FHFA national mortgage database, 90%-plus of outstanding mortgages have interest rates less than 6%,” says Amit Arora, vice president of investments for Opendoor. “So there isn’t a huge motivation for many sellers to list.”

This tracks since 72% of sellers also plan to go out and buy a new house, and with current interest rates hovering around 7%, many sellers are afraid to give up their lower interest rate when they sell to then repurchase their next home.

Reality check: The truth is, high interest rates do not need to hold a seller back. For one, if sellers are sitting on any amount of home equity in their current home, selling could make them flush enough to make an all-cash offer (or near that) on a new house, circumventing mortgage rates.

Sellers can also snag a lower rate by buying down their rate with the lender, or shopping for new-construction homes where builders might offer rate buy-downs as well.

Another possible option: an assumable mortgage. True to its name, this is where you assume, or “take over,” the mortgage of the home you’re buying—as well as its low interest rate.

“You may be able to apply with the same mortgage company that the seller of the home you wish to buy uses and see if you can qualify to take over the existing mortgage,” says Jonathan Rundlett, regional owner of EXIT Mid-Atlantic.

‘What if I sell now, then home prices rise?’

Some sellers might hesitate to list their homes right now thinking that their property might appreciate even more in the near future—and then they’ll be sorry they sold it for less.

At the moment, prices might continue to go up some, but the escalation has seemingly slowed from pandemic times.

Realtor.com® predicts only a modest decline in prices of just 0.6% for 2023 as a whole.

So if you’re thinking of selling, you could wait; but you’re not really going to make that much more than if you sold now. That’s because most sellers are likely selling one house and using the funds from that sale to purchase another house. In this scenario, it is not as important to “time” the market to sell at the peak.

‘What if I wait to sell my property until interest rates drop?’

Some homeowners who are likely to sell in the near future are waiting on the sidelines for interest rates to drop because they believe that if a buyer is able to get a lower interest rate, they will be willing to pay more for the house. However, supply and demand play a big role in determining home values, and this might not play out the way sellers imagine.

“Since many people are waiting for this same interest rate decline, there may be a large amount of properties that hit the market at the same time,” says Rundlett. “This increase in supply typically results in a reduction of prices.”

At the moment, however, data shows that there is still limited inventory and great demand for housing, which is why prices have continued to increase despite the higher interest rates.

“There is currently a very limited supply of homes available,” says Rundlett. “So it is likely better to sell your house now, rather than waiting and then trying to sell your house when there are many more properties for sale.”

‘What if I sell now, but mortgage rates rise higher before I buy another home?’

This really comes down to the reason you are selling.

“As I tell clients every day, interest rates do not determine if you are going to sell or buy a new home. What drives your move is far more important than an interest rate,” says Mason Whitehead, a Dallas-based branch manager for Churchill Mortgage.

Whitehead says when people have to move, it is usually for any one of these reasons:

• They have a growing family and need more space.
• They want to move into a better school district.
• They are moving for their job.
• They are moving to be closer to family.
• The are empty nesters, and they don’t need as much space.

“All of these are reasons we move, and whether the rate is in the 6% or 7% range doesn’t really matter relative to your quality of life and family needs,” says Whitehead.

He concedes that affordability is a big issue for his clients, but says it is often trumped by lifestyle needs.

So focus on the reason you are moving and not the rate—if rates drop, you can always refinance. If rates go up, you’ll be glad you locked in when you did.

‘What if I put my home on the market and it sells right away, but I need more time to buy a new property?’

Homes spend an average of 46 days on the market. That’s about two weeks longer than last year, but still shorter than before the pandemic. Since homes are selling faster in general, you need to make sure you aren’t thrown for a loop if you list your home and immediately get offers.

If you think you’ll need even more time, there are ways to negotiate with a buyer.

“You could include a contingency clause that allows you to find a home before completing the sale,” says real estate expert Michael Gifford, CEO of Splitero.

You could also request a closing date that is longer than the usual 30 days to give you more time to find a new residence.

Another option is a rent-back agreement, which allows the seller to stay in the house as a tenant of the buyer for a period of time after the sale is complete.

“Most lenders will allow a buyer to offer up to 60 days for the seller to lease back the property after the sale is complete to give them additional time to find a property and move,” says Rundlett.

‘What if I sell now but can’t find a new home in the area where I want to live?’

This is certainly a risk these days. However, even in a low-inventory environment, there are always some homes available, and depending on where you’re moving, the market might be better supplied.

If you really want to live in the same area and just can’t find another home that fits your needs, you could decide to stay put and instead remodel.

“Consider accessing your home equity to update and renovate your current home to satisfy what you’re seeking in a new home,” says Gifford.

Another option to consider is looking at new construction. While in the past new construction was always thought to be more expensive, today new homes might cost less than resale homes thanks to factors like builder incentives.

In fact, recent statistics show that new-home sales are increasing while the sale of existing homes is dropping, shifting home sales more toward new construction for the first time since 2008.

‘What if my home needs a lot of repairs but I can’t afford to fix them before selling?’

To get the highest price for your house, it is ideal to put it on the market with most items updated and few, if any, repairs needed. Turnkey homes are what most people are looking for, so they create the greatest demand. However, some homeowners do not have the money to update or make repairs before selling.

Fortunately, it is still possible to sell your home as is. And some buyers are looking for properties where they can build some sweat equity.

“But as a seller, your expectations need to be realistic to know that you won’t get top dollar for your house if repairs or updates are needed,” says Rundlett.

If a significant issue arises during the home inspection—such as structural problems or major systems in disrepair—and you can’t afford to fix it but you still want to close the sale, the best option in that scenario is to obtain repair estimates and negotiate with the buyer to find a solution that works for you both.

“You can offer the buyer a credit or price reduction to account for the necessary repairs, allowing them to address the issues on their own after the purchase,” says Gifford.

The buyer will have the option of continuing with the sale or voiding the contract if they have an inspection contingency.

‘What if I list my home and it doesn’t sell for the price I want?’

According to a recent Opendoor survey, 36% of sellers expect an offer above their asking price, whereas 73% of buyers plan to offer a bid below the list price. Obviously, in order for there to be a sale, both sides are going to have to give a little.

Keep in mind that even if you have a sale price in mind, it might not be realistic.

“Research comparable sales in your area to determine if the offers match the current market,” says Gifford. “You may need to adjust your expectations if market conditions have changed.”

If you feel like the offers you’re getting are too low—or you’re not getting offers at all—you might consider improving your marketing strategy by getting professional photographs, virtual tours, or targeted advertising to reach a wider audience.

And even if you don’t get the exact price you want, the good news is that both prospective sellers (76%) and buyers (80%) indicate a willingness to make some concessions to ensure a mutually beneficial sale.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

24842 Kingpin Loop, Veneta, OR 

Price: $344,000    Beds: 3    Baths: 1.5    SqFt: 1030

Don't miss out on this beautifully updated home, nestled in a wonderful neighborhood of upkeep homes. Vaulted ceilings and large windows with open concept make this home spacious and bright! It's been immaculately cared for with a large fenced yard...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Here in the Eugene and Springfield area, we are seeing homes sales numbers decline. August saw the largest decline in home sales that we have had in years. The question at this time is whether this trend shall continue through the Fall months and into Winter? With future rate increases from the Fed likely, we may see a continued slowing housing market both here locally and nationally. The good news locally is that with the continued low inventory of homes for sale, the price of homes selling has remained fairly strong. The following is an article from "Realtor.com" that goes over the recent decline in housing sales nationally.

The numbers: U.S. home sales in August fell to the lowest level since January 2023.

A low number of home listings and high interest rates brought down sales of previously owned homes, which fell by 0.7% to an annual rate of 4.04 million in August, the National Association of Realtors said Thursday.

That’s the number of homes that would be sold over an entire year if sales took place at the same rate in every month as they did in August. The numbers are seasonally adjusted.

Sales activity for the month of August was at the lowest since 2010, during the Great Recession.

The drop in sales fell short of what economists on Wall Street had expected. They had forecast existing-home sales to total 4.1 million in August.

Compared with August 2022, home sales are down by 15.3%. Between January and August alone, sales fell 21%.

Key details: The median price for an existing home in August was $407,100, up 3.9% from a year ago. That was the highest price for the month of August since the NAR began tracking the data.

Home prices peaked in June 2022, when the median price of a resale home hit $413,800.

Around 31% of properties are being sold above list price, the NAR noted.

The total number of homes for sale in August fell by 14.1% from last year, to 1.1 million units. Housing inventory for the month of August was the lowest since the NAR began tracking the figure in 1999.

Homes listed for sale remained on the market for 20 days on average, unchanged from the previous month. Last August, homes were only on the market for an average of 16 days.

Sales of existing homes across the country were up only in the Midwest, by 1%. The median price of a resale home in the region was $305,300.

All-cash buyers made up 27% of sales. The share of individual investors or second-home buyers was 16%. About 29% of homes were sold to first-time home buyers.

Big picture: Home buyers today are facing an unfriendly housing market, due to the twin challenges of high mortgage rates and low inventory. Competition for a limited number of listings, along with rising home prices and higher borrowing costs, are making homeownership much more expensive and slowing the sector.

Even though buyers are not as sensitive to rates as before, as evidenced from a small uptick in purchase applications in the latest week, most experts say a drop in rates will be what prompts an increase in housing supply and improves affordability.

What the National Association of Realtors said: “It’s possible that mortgage rates may go up to 8% in the short run,” said Lawrence Yun, chief economist at the NAR.

Yun explained that rates could go substantially higher, based on how the 10-year rate was trending toward exceeding 4.5%. If rates go up, that could push home sales to a new low in the upcoming months, he added.

Yun also noted that a potential government shutdown and the expiration of the National Flood Insurance Program are also big concerns that could hurt sales further.

What are they saying? “All of the momentum for the housing market early in 2023 has evaporated in the face of rising mortgage rates. 2023 could end in a whimper for the real estate sector as any substantial pull back in rates is likely far off into 2024,” Ben Ayers, senior economist at Nationwide, said in a statement.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2127 Silver Lea Ct, Eugene, OR 

Price: $625,000    Beds: 3    Baths: 2.5    SqFt: 2018

This single level ranch style home is located in a wonderful cul-de-sac and a short distance to the brand-new North Eugene High School. The covered front porch welcomes you to this turnkey home that has been tastefully upgraded throughout. New LED...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Today, in this current Eugene and Springfield area Real Estate market, home ownership is a tough proposition for first time home buyers. Just a few years ago, this was not the case. Today with the continued escalation of home prices, the quick rise in mortgage interest rates and an inflationary economy, the dream of owning a home for most first time buyers is quickly becoming out of reach. Home ownership has always been the cornerstone of the American Dream and now this dream is fading. The following article from "Realtor.com" is a great piece and for anyone thinking about purchasing a new home or those who have been attempting their first home purchase, this article will relate very well to your experince.

Every morning, first-time buyer Anthony Valenti wakes up and then checks to see if any new homes have come onto the market in the Hartford, CT, area.

Valenti, 29, has been looking for a house to share with his fiancée since the spring of last year. The couple, both nurses at local hospitals, have been living with their parents to save money for their down payment.

They started their home search in the $300,000 range and quickly realized that there wasn’t much available at that price. Despite higher mortgage rates topping 7%, they adjusted their budgets and are now in the $400,000-plus range. But there aren’t many move-in ready, three-bedroom, two-bathroom homes with a two-car garage available.

He recently lost his first bidding war to another buyer who made a cash offer that was more than $75,000 over the list price.

“When the prices are at this point, you’re not getting your bang for your buck. Houses that are 1,200 square feet are going for crazy amounts of money,” says Valenti. “We want somewhat of a turnkey house. I don’t want to come home from a 12-hour shift and start laying tile.”

Valenti’s predicament is typical of what most first-time buyers are facing: Entry-level homes no longer come with entry-level prices.

First-time buyers are facing a housing market in which the median home list prices have shot up 38%, mortgage rates have roughly doubled, and the housing shortage has only worsened over the past four years, according to Realtor.com® and Freddie Mac data.

The monthly mortgage payment on a typical home has more than doubled since 2019. And first-time buyers are competing with cash-flush investors and wealthier, repeat buyers.

The competition from other buyers is particularly fierce for smaller, lower-priced starter homes—because, for many, that’s all they can afford. These entry-level homes have traditionally been most first-time buyers’ entrée to the American dream.

The traditional pattern: Buyers live in these cheaper homes for a while, building wealth that can be used to finance their next nicer/newer/larger home purchase, or to pass along to future generations.

But today, many first-time homebuyers who would have been able to purchase a starter home just a few years ago can no longer afford to do so. Even homes priced within the budgets of young couples can quickly become out of reach amid a bidding war.

Bu general consensus, just a few years ago, starter homes were generally defined as costing below $200,000. Today, they’re generally closer to $400,000, says Ali Wolf, chief economist of building consultancy Zonda. Buyers who don’t earn more than the median income in their area often can’t afford them.

“For people who haven’t already purchased a home, the chance of becoming a homeowner has gotten a lot harder,” she says. “A starter home may not be within reach for many Americans.”

In January 2019, households earning below $75,000 could afford about half of the homes on the market, according to the Urban Institute, a think tank. Four years later, they could afford just 25%.

“Now, owning a home has become a luxury,” says Wolf.

Valenti initially wanted to buy before the COVID-19 pandemic, but then prices shot up. So he decided to wait for them to come down. Instead, prices remained high and then mortgage rates shot up.

“Never in a million years did I think I would be 30 years old and still living with my parents,” he says. “Plan B will be to rent something. In a year, [my fiancee and I will] be married.”

A first-time buyer’s success can be tied to where they’re looking

A young person’s chance of becoming a homeowner isn’t dependent only on how much money they make and if their family and friends can help them out financially. It also depends on where they’re looking.

First-time buyers in the Des Moines, IA, area are still able to become homeowners—but local real estate agent Beth Van Zee isn’t sure how much longer that can last.

Before the pandemic, first-time buyers could find a three-bedroom, two-bathroom ranch home on a quarter-acre in the city limits, she says. Now, those same homes are selling from $250,000 to $275,000.

First-time buyers “just have to lower their expectations,” says Van Zee, with Coldwell Banker Mid-America. “They’re going to have to go out farther away from the metro.”

In 2021, when mortgage rates bottomed out, those making less than the median income of the area could afford a home in Huntsville, AL, says local real estate broker Matt Curtis.

“Now, the median income cannot afford the median home in our area,” he says.

Many Huntsville-area buyers are looking for ways to save money. They’re purchasing properties with multiple bedrooms they can rent out or shopping for new construction so that the builders can buy down their mortgage rate. Others are buying homes that are farther from their jobs and where prices are lower.

Many 20- to 40-year-olds are leaving San Francisco and California’s Silicon Valley because it can be difficult to find a decent starter home for under $1 million, says Patrick Carlisle, chief market analyst of the San Francisco Bay Area for Compass. Most of the area’s starter homes are condos.

“What may be a completely ordinary ranch-style house in most of the country that would sell for $300,000 or $400,000 or even less, here can go for $1.6 million to over $2 million,” says Carlisle. “That’s very challenging for first-time homebuyers.”

The costs of delaying a home purchase

While there are costs to buying a home, there are costs to delaying the purchase as well.

“Homeownership is a wealth builder for people, slowly over time. If you delay entry into homeownership, you delay the start of that wealth-building process,” says Realtor.com Chief Economist Danielle Hale.

Those who purchase homes earlier in life are more likely to have traded up into more expensive homes and have paid off their mortgages by retirement, says Jung Choi, a senior research associate at the Urban Institute.

During the pandemic, the record-low mortgage rates, in the mid-2% range, helped more first-time homebuyers become homeowners.

“The homeownership rate is significantly lower than the prior generation, which can have long-term implications on future wealth,” she says.

Today’s first-time buyers are spending larger shares of their income to become homeowners, says Hale. They’re also struggling to come up with down payments.

Rising rents and general inflation have hampered buyers’ efforts to save. Just 8% of buyers received family assistance, according to a recent survey of real estate agents conducted by John Burns Research & Consulting.

However, loans with lower down payments are less likely to be accepted by sellers if they have another offer with a higher down payment. That puts first-time buyers at a big disadvantage against investors and repeat buyers, who can use their home equity to help finance their next purchase.

“It’s a tough situation for buyers,” says Hale.

Becoming a homeowner isn’t impossible

While the American dream might seem to some to be just that, a dream, becoming a homeowner isn’t impossible.

Professionals with dual incomes, who waited to buy while they saved money and climbed the ladder within their fields, will have an easier time than younger buyers on a single income who are just starting out. And even those who are at the beginning of their careers are finding ways to make it happen.

Teegan Webster, 24, and her husband, 25, bought their first house last summer. The newly constructed, 1,500-square-foot house sits on a quarter of an acre in the small town of Cedar City, UT.

Webster, who has a young son and who works part time for an educational consulting company, began saving for a home when she was 15. Those savings helped her and her husband, a religious educator, to purchase their three-bedroom, two-bathroom home without family assistance.

Homeownership’s “been my dream my whole life,” says Webster. “We wanted to start building equity, and we were in the position to move and thought that it was the right time.”

Still, high home prices and rising mortgage interest rates were a challenge. They bid on three homes and prevailed on the third.

They offered the asking price and were surprised when their bid was accepted. The sellers were so eager to sell that they also paid for Webster’s closing costs and bought down her mortgage rate temporarily for two years.

While she loves her new home, she acknowledges that it’s not everything she ever dreamed of having in a home.

“For a first house, you’re not going to buy your dream home,” says Webster.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

24842 Kingpin Loop, Veneta, OR 

Price: $359,000    Beds: 3    Baths: 1.5    SqFt: 1030

Don't miss out on this beautifully updated home, nestled in a wonderful neighborhood of upkeep homes. Vaulted ceilings and large windows with open concept make this home spacious and bright! It's been immaculately cared for with a large fenced yard...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The month of August is typically one of the strongest home sales months of the year in Lane County. August of 2023 saw over a 24% drop in closed home sales from August of 2022. This is the continuation of the trend we have seen over the past several months of the Summer sales season where we also saw the number of closed home sales decline in Lane County. This trend is not just local, but it also reflects the trend of home sales in most national Real Estate markets. The interesting statistic in our local market is that we are continuing to see the price of homes sold increase. This trend is completely different than most declining markets, where we would typically see home values dropping due to lack of demand. If home sales continue to sag, we will see a decline in home values begin soon. Here are the home sales numbers for Lane County in the month of August 2023.

New Listings

New listings (533) increased 7.2% from the 497 listed in August 2022, and increased 16.6% from the 457 listed in July 2023.

Pending Sales

Pending sales (357) decreased 22.1% from the 458 offers accepted in August 2022, and decreased 8.2% from the 389 offers accepted in July 2023.

Closed Sales

Closed sales (352) decreased 24.1% from the 464 closings in August 2022, and increased 2.0% from the 345 closings in July 2023.

Inventory and Time on Market

Inventory increased to 2.2 months in August. Total market time increased to 33 days.

Year-to-Date Summary

Comparing the first eight months of 2023 to the same period in 2022, new listings (3,403) decreased 17.7%, pending sales (2,623) decreased 22.1%, and closed sales (2,433) decreased 23.9%.

Average and Median Sale Prices

Comparing 2023 to 2022 through August, the average sale price has decreased 0.7% from $475,900 to $472,700. In the same comparison, the median sale price has decreased 0.4% from $436,800 to $435,000.

Note: This data compares the rolling average sale price for the last 12 months (ex: 2/1/22-1/31/23) with 12 months before (ex: 2/1/21-1/31/22).

Residential Trends

August 2023 vs. July 2023

New Listings +16.6% Pending Sales -8.2% Closed Sales +2.0% Average Sale Price +2.8% Median Sale Price +1.1%Inventory +0.3 Total Market Time +4

August 2023 vs. August 2022

New Listings +7.2% Pending Sales -22.1% Closed Sales -24.1% Average Sale Price +6.7% Median Sale Price 0.0%Inventory +1.0 Total Market Time +6

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!

The Real Estate market in our local area and around the nation currently presents some challenges for homebuyers. Even with the higher mortgage interest rates, the lack of inventory of homes for sale continues to make the home buying process very competitive in many situations. Today and over the last year, I have watched far to many homebuyers make hurried and sometimes unwise decisions on a home purchase. The following article from "Realtor.com", goes over some important guidelines that will help you if you are currently in the market to purchase a home.

Real estate has always been a high-stakes game, with lots of money and hope hanging in the balance. And amid the current landscape of high interest rates, pricey listings, and a shaky economy, it’s no wonder many homebuyers are worried they might make a wrong move that could cost them dearly.

Real estate agents say homebuying anxiety has risen to a fever pitch among many of their clients—and for good reason, since today’s market is filled with new challenges and land mines that can be tough to spot.

“Real estate was not designed to move at the pace that it has for the past year,” says Eminlee Wang, a real estate agent with FlyHomes in Dallas. “I’m spending far more time than I was during the [COVID-19] pandemic educating and grounding clients on what’s happening with rates, prices, and inventory in order to calibrate expectations.”

in such a murky real estate market, it’s understandable that emotions can run amok—and might push homebuyers to make some rash decisions that they think/hope/pray might give them an edge, which, in fact, might plunge them in over their heads.

To help, we’ve highlighted some of the most common mistakes homebuyers are making these days, so you know where these pitfalls are hiding and can steer clear.

1. Trying to time the market

With real estate, as with stocks, trying to time the market is generally a losing proposition. While it might be tempting to try to wait it out and hold off for the perfect moment to buy, the reality is that conditions will never be perfect.

“The biggest mistake buyers make is not moving forward now in the hope that rates or prices will come down,” says Mason Whitehead, a Dallas-based branch manager for Churchill Mortgage. “At least in Texas, one of the states with the highest demand nationwide, that is just not happening.”

As a result, Whitehead suggests that homebuyers ask themselves “what if” questions to help in their decision-making:

• What if you buy now and prices and rates go up? You win by starting to build home equity and gaining the tax benefits that come with homeownership.
• What if you buy now and prices drop? You won’t really feel that until you sell, which in most cases might be years down the line. So, you haven’t really lost it yet.
• What if you buy now and interest rates go down? You can always refinance your mortgage when rates get low enough that it makes sense to do so.
• What if you don’t buy now and prices and rates keep going up? If that’s the case, you might be stuck renting for a lot longer than you hope.

Whitehead says that waiting is unlikely to change the fundamentals of the underlying and long-term factors of the market.

“Over time, real estate is still one of the main wealth-building drivers for Americans, so it’s an investment that is more than likely going to benefit you and your family in the long run,” says Whitehead. “Instead of continuing to pay rent and help someone else gain equity, take the opportunity to start earning it for yourself.”

2. Worrying only about your mortgage payments

With mortgage interest rates a full percentage point higher than last year, many homebuyers are sweating how much their monthly home loan bill has risen. Yet America’s mortgage obsession is leading some buyers to overlook the rest of their financial obligations.

“One of the biggest mistakes I see homebuyers making is not taking into consideration all the costs associated with getting approved for and owning a home,” says Jason Gelios, a real estate agent in Southeast Michigan and author of “Think Like a Realtor.” “Oftentimes, buyers will have an idea of their monthly payment without factoring in homeowners insurance, mortgage insurance, taxes, and any other costs associated with the home.”

Adam Littlefield, senior vice president of real estate for Investment.com, also points out that homebuyers often forget to factor in the costs of home maintenance and repairs.

“All of this can cost thousands of dollars to add on top of your mortgage payment,” warns Littlefield. “Take the time to do the research and get as detailed as possible on the full scope of what you will need to budget to realistically prepare for one of the largest investments you will make in your life.”

3. Neglecting to check your credit score

Mortgage rates are already high enough right now, but did you know that a bad credit score could make those rates go even higher?

“Having a lower credit score can lead to significantly higher interest rates [on home loans], so it’s best people start monitoring and working on improving their score as early as possible,” says Jill Gonzalez, an analyst for WalletHub.

Most experts recommend checking your credit rating a few times a year so you can get a sense of what kind of mortgage you might reasonably secure.

“Beware that some lenders may let you extend yourself beyond your means,” says Littlefield, who suggests you can save yourself stress by sticking to the 28/36 rule.

“This rule states that your total housing costs should not exceed 28% of your gross monthly income and your total debt payments should not exceed 36%. Staying within those parameters will make the homebuying process seamless,” he adds.

4. Buying a home too fast or sight unseen

Since the market has been recently moving at a rapid-fire pace, many people might think they have to make decisions in an instant or else the property will get snapped up by someone else. While this might have been somewhat true a year ago, the pace of sales has generally slowed significantly since then.

Today, in most markets, buyers can take a bit more time—and should—to ensure they’re certain they want to move ahead.

Many buyers today might feel so rushed, they might consider buying a home sight unseen. Yet many experts say this is a risky prospect that is no longer as necessary as it was during the pandemic.

“These motivated buyers will base this decision on images or digital assets online, and this is a huge mistake,” says Littlefield. “You cannot smell a house in a photo, you cannot visit a neighborhood or discuss its attributes with neighbors, and you cannot hear the outside—airplanes, trains, factories, or the pig farm a mile away.”

He suggests doing everything you can to visit and experience the home yourself before you make an offer.

5. Falling in love with a house you can’t afford

With interest rates heading higher and the market being tight, it’s become increasingly common for homebuyers to get emotionally attached to a particular listing that they just can’t afford.

Mike Hardy, a California-based managing partner at Churchill Mortgage, says his company has had an abnormal number of requests for “rescue operations” from potential homebuyers who’ve gone into escrow with other lenders that didn’t structure the loan properly. Trying to salvage a deal is more stressful than staying within budget from the start.

“I absolutely recommend someone get clear on the math before getting emotions involved,” says Hardy. “A lot of people spin their wheels getting excited and putting an agent to work, only then to discover a home was out of their budget from the get-go.”

It’s crucial for homebuyers to know what their range of affordability is, according to Gonzalez. Otherwise, any small change in the market can lead to their having unsustainable debt, or even not being able to close on the loan in the first place.

A good way to avoid this is by using a mortgage calculator, which will help people make sure homebuyers don’t go over their budget.

“Fall in love with the numbers before you fall in love with the house,” says Hardy.

6. Not securing a mortgage pre-approval

Mortgage pre-approval for homebuyers was always a smart idea, but in this ever-fluctuating market, you simply shouldn’t shop without it.

“Searching for a home without being pre-approved or underwritten causes undue stress for all parties to move forward without knowing the numbers or having certainty in purchasing power,” says Hardy.

He suggests homebuyers look for lenders who will take it even a step further and have an underwriter sign off on the loan upfront. That way, the heavy lifting on the loan is done and the homebuyer can shop for a home with the certainty and negotiating power similar to a cash buyer.

“It is crucial to be aware of what mortgage rates are doing and how that plays a part in your pre-approval,” says Gelios. “Because if rates go up, you can lose your pre-approval at the amount you were approved for.”

For example, if you are pre-approved for $250,000 and the rates drastically change, this would mean you are no longer approved for that amount, making it impossible to shop at that price range.

One option is a mortgage interest rate lock, which secures a rate, usually for 90 days. This option allows homebuyers to shop without the fear of being unable to afford the house they like because of another rate change. However, if rates dip lower, a rate lock might not serve a homebuyer as well.

Whichever route you take, just remember that getting pre-approved offers realistic boundaries of the price range in which you should be shopping.

“With the rates acting how they are in 2023, a homebuyer should be in regular touch with their lender to ensure they are still shopping for an amount that they can get financing for,” says Gelios.

7. Assuming you can’t afford a new-construction home

About 1 in 3 homes on the market today is new construction. This is going a long way toward making up for the lack of inventory. And while many homebuyers just automatically assume that a brand-new house will be beyond their means, that is just not the case today.

In fact, according to recent data from the National Association of Home Builders, nearly one-third of builders are reducing prices and more than half are providing some type of incentive, whether it’s mortgage rate locks or buy-downs.

“New-construction homes were once thought to be too pricey, but with builders offering impactful price cuts and incentives, buyers should take another look at them,” says Adam Toth, head of business development at Opendoor. “If you need to sell your existing home before you can purchase a new one, some builders also partner with companies who make it easy to do both at the same time.”

Plus, new-construction homes tend to include lots of money-saving features like energy-efficient appliances, integrated technology systems, and solar capabilities.

8. Considering only the house, not the neighborhood

Just like no human is an island, no home is without a neighborhood.

“Considering how many people work from home following the pandemic, it’s more important than ever to make sure you are comfortable in your surroundings, and there’s really no way to measure that without spending some time in the area prior to buying a home,” says Hardy.

“Being in the wrong neighborhood doesn’t necessarily mean the property will depreciate, but if it isn’t the right fit for you, that is something you want to find out before you make a purchase of this magnitude,” he adds.

Basically, you need to do your due diligence on the neighborhood and not just the house. You can look up crime rates in an area, but Littlefield advises also checking school scores and investigating if the neighborhood is family-friendly. Also, factor in the distance from the nearest grocery store or gas station.

“Discover externalities like power lines, flight paths from the nearest airport, or if there are train tracks nearby,” says Littlefield. “Be detail-oriented on these variables and how they might affect you and your family’s daily lives, because you can feel stuck and experience remorse if you love the layout of the home you bought, but the location is disappointing.”

9. Waiving inspections or thinking ‘I can totally fix that’

Waiving a property inspection was common over the past few years, as buyers were wanting to make their offers more competitive. The risks can be substantial, however, so this is not something to forgo anymore.

In fact, most real estate experts always advise potential homebuyers to get an inspection so they can understand any property challenges and related costs.

Many homebuyers also make the mistake of thinking remodel projects are easier and cheaper than they end up being.

“Budgets can balloon once you start a project, and supplies can be hard to find—especially due to supply chain shortages and issues in a post-COVID era,” says Littlefield.

Additionally, a traditional mortgage will not fund the renovations you want to make, so keep in mind you will need access to extra cash if that’s your plan.

However, passing over homes just because they don’t look pristine and need cosmetic updates might also be a mistake with the limited inventory available currently.

“Purchasing a home that needs a little TLC gives the homeowner opportunities to create exactly what they want, while adding equity into the home,” says Toth. “If the fixer-upper requires a finished basement for your growing family, you can do minimal updates, and in a few months, you’ve already doubled your living space.”

10. Failing to suss out the seller’s motivation for listing

Many homebuyers feel like they need to get a great price or a discount and “haggle” with the seller. However, if you are in a hot market or hotter neighborhood and you find the house, you might need to come in at asking price or even above, according to Littlefield.

That being said, it is a mistake not to try to find out why the seller is selling.

“I always advise homebuyers to try to learn what the seller’s motivation is when expressing interest in a property,” says Gelios. “If we are viewing a home and there are multiple boxes already packed, that tells me the seller could be more motivated to accept a lower price because it seems they already have a place to go.”

Whether it’s a buyer’s or a seller’s market, people still need to move.

“If a home has been sitting on the market for longer than expected or there is an immediate and substantial price drop, the odds are that a seller needs to make a deal ASAP—and that’s an opportunity for a buyer to submit a lower offer,” says Toth.

After all, the worst the seller can say is no.

11. Not using an experienced real estate agent

In this crazy current real estate market, experience matters. This goes for your real estate and your mortgage agent.

“Over the past two years, we’ve seen a wave of new agents, yet many quit within the first year,” says Littlefield. “As the market continues to become more competitive, especially with the lack of supply or inventory across the nation, you will want to look for a local agent who has spent at least three to five years working in the area and who has a proven track record in offer negotiations.”

Littlefield says to remember that you are allowed to interview a handful of real estate agents to be sure you are working with a professional who will help you find the “must haves,” source those homes to view, and give you great information on the neighborhoods and areas you are interested in. Look for a pro with experience in reviewing contracts, making any amendments, and guiding buyers through any contingency or inspection period.

Another benefit is the cost: Normally, the home sellers pay the full commission for both their own agent and the buyers’ agent. This means using an experienced local real estate agent costs you nothing and includes all the expertise.

It is just as important to vet your lender as well.

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

THIS WEEKS HOT HOME LISTING!

2127 Silver Lea Ct, Eugene, OR 

Price: $635,000    Beds: 3    Baths: 2.5    SqFt: 2018

This single level ranch style home is located in a wonderful cul-de-sac and a short distance to the brand-new North Eugene High School. The covered front porch welcomes you to this turnkey home that has been tastefully upgraded throughout. New LED l...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Mortgage interest rates have creeped even higher lately and this has the makings of slowing our local Real Estate market even further. As of this time, home prices in the Eugene and Springfiled area have changed only slightly and the inventory of homes for sale has remained extremely low. Are we on the edge of a shift in this market? My guess is that the answer to this is, yes. Something has to give at this time and it does not look as if mortgage rates will be declining any time soon. My prediction would be that the inventory of homes for sale will increase slightly by Fall and that home prices in our market area will continue a downward trend. This could open up our local housing market for buyers slightly. We will all just need to watch and see what actually takes place. Stay tuned! Here is an article from "Realtor.com" that looks at the current housing market on a national scale.

Mortgage rates just jumped to their highest level in 20 years, averaging 7.09% for a 30-year fixed-rate home loan as of Aug. 17, according to Freddie Mac.

In addition to home loan rates hitting their highest levels in two decades, home prices edged upward for the week ending Aug. 12 compared with this same time period last year.

“For the third consecutive week, the median home listing price maintained a slight upward trajectory,” says Realtor.com® economic data manager Sabrina Speianu in her analysis.

Here’s what the latest real estate statistics seem to foretell in our latest installment of “How’s the Housing Market This Week?”

Why record-high mortgage rates affect both homebuyers and sellers

Record-high mortgage rates aren’t just weighing down buyers—they’re tethering sellers to their homes, too.

Speianu explains that most homeowners have loans at much lower rates than what’s available today, which has “effectively anchored prospective sellers” to their properties and kept them from listing.

And the latest numbers bear this out: For the week ending Aug. 12, the total number of homes for sale fell below year-ago levels by 8.6%. New listings were also down, sinking by 8.1%. In fact, fresh listings have been falling for 58 weeks straight.

“The continued drag from existing homeowners choosing to stay put is holding back overall inventory,” explains Speianu. “We expect a dip of 5% for 2023 overall compared to 2022.”

How low housing supply affects home prices

With the housing supply down, this has put upward pressure on prices. In July, home prices hovered at a national median of $440,000—and for the week ending Aug. 12, prices continued to rise by 0.2% compared with the same week last year.

Still, homebuyers in desperate need of good news can hang on to this nugget of hope: Home prices are unlikely to surpass the June 2022 high of $449,000. In fact, they’re bound to start going down seasonally as we head toward the end of the year.

“The median listing price has begun its typical seasonal decline,” says Speianu.

In other words, lower home prices lie ahead. And all in all, Speianu thinks the market is slowly trending in “a more buyer-friendly direction.”

Here’s why: While fresh listings are down annually, that gap has been shrinking.

“This week’s data shows a 5.9 percentage point improvement over last week,” says Speianu.

And buyers looking for a workaround to low inventory can always turn to new construction.

“New-home sales continue to climb from year-ago lows,” says Speianu.

Why the fall housing market will be better for homebuyers

This summer’s torrid housing market stands to cool off and bring some relief to homebuyers this fall.

“As we look to the upcoming autumn season, which is typically the best time to buy a home, a glimmer of optimism emerges,” notes Speianu. If current trends in housing supply continue, “It does appear that more newly listed homes could be available than the record low set last fall and winter.”

The upshot is that eager buyers shouldn’t dilly dally on making an offer if they find a home they like. While homes spent six more days on the market for the week ending Aug. 12 compared with this time last year, that sluggish pace might soon pick up.

“By fall, we could even see homes selling faster than one year ago,” Speianu predicts.

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

THIS WEEKS HOT HOME LISTING!

1218 N Park Ave, Eugene, OR 

Price: $399,000    Beds: 5    Baths: 2.0    SqFt: 1782

1218 N. Park Ave. Eugene, Oregon. Gorgeous, completely remodeled home, sitting on over a 1/3 acre fenced acre with peach, apple, plum, cherry and pear trees. There is plenty of room for an RV, and it boasts an insulated two car garage, storage shed,...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!  

Yes, our local Real Estate market is changing. The market we are leaving was one of short times on the market, sales for above asking price and multiple offers. Today, we are continuing to see some of this hot market due to a low inventory of homes for sale, but change is in the air. In this market that is fast approaching, pricing homes with the market will be crucial. Also, listening to the market and adjusting the asking price of a home for sale if it is not selling will be important. The following article addresses something that we have not had to deal with in years, "price reductions".

Deciding to sell your home is just the first step of a challenging process. You have to get it looking its best, then find the perfect real estate agent and figure out how much to sell it for. But what happens if you didn’t price it right to begin with, or worse, the market shifts while you’re trying to sell your home?

In either case, you may have to lower the price of your home if you want to go through with your big move.

Does It Matter If Your Home is Priced Right?

According to Realtor.com data, 14.1% of homes listed in June 2023 ended up having price reductions, down from 14.7% in June 2022. Although both of these figures are well below historical norms seen before the pandemic, it’s still a lot of homes that aren’t hitting the mark on pricing.

It can be difficult to determine the right price for a home, but since you can lower the price at any point, or accept a lower offer if one appears, does it even matter if you get the price right to start out? 

It turns out that it does matter.

“A home receives the most interest within the first two weeks of its arrival onto the real estate market,” Toni Gambill, real estate agent and associate broker at LPT Realty in North Port, Florida, said in an email. “If it is priced much higher than surrounding comparable homes, it will dampen interest. A well-priced home will generally sell more quickly than one that languishes on the market and receives multiple price reductions.”

A home priced too high will not just sit, but it may also receive lower offers than similar homes that were priced right from the beginning. Sometimes buyers see price reductions as an opportunity to get a bargain.

The bids that come in for a reduced-price listing nearly always come in lower as a percentage of the asking price, as buyers will often attribute a greater amount of leverage and negotiability in those instances under the assumption the pricing was, and may even remain, too high,” says Ian Katz, a real estate broker with Compass in New York City, New York. 

What To Do Before Lowering Your Price

Since lowering your home’s price might end up hurting you if it was too high to start with, there are other things you can do to help your home sell if it hasn't generated enough interest. 

According to Katz, refreshing your listing is a great first step, since it costs almost nothing and can make a huge difference. “This may include doing some virtual staging, providing alternate floor plans, shooting a new video or 3D tour, or adding content that might increase traffic to the property.”

If you need more than better photographs, it could be time for more drastic measures.

“There are three main reasons why a home does not sell: price, condition and location,” says Gambill. “While location cannot be changed, it can be overcome by price and/or condition. Sometimes it makes more sense to change the condition of a home than to lower the price.

“Depending upon the situation, I might advise the seller to declutter, remove personal photographs, allow me to have the home staged, or to make an update, upgrade or repair that might be holding them back from receiving a competitive offer on their home,” says Gambill. “Sometimes curb appeal is needed and something as simple as adding colorful planters at the entrance, painting the front door a trending color, or adding updated outdoor lighting is enough to create consumer appeal.”

How to Find Your Home’s Ideal Price

Real estate agents often have to convince potential clients that their home won’t bring as much as they feel like it deserves — this isn’t because homeowners are unrealistic, but they often lack the experience and access to data to have a good idea what the market is truly like.

Real estate agents go by more than feel. They generally perform a comparative market analysis (CMA) before listing a home to get a solid idea of what the market is doing and is likely to do in the near future.

A comparative market analysis is a review and display of active, off-market, expired and sold properties over the past three to six months in a typical market. These properties are substantially similar if not exactly alike to the subject property in terms of size, condition, location and broader contextual market environment for the purpose of determining a suggested list price for a residential property, Katz explains.

Armed with this information, your real estate agent will attempt to help you price your home competitively. But sometimes potential clients are resistant to the news that their homes aren’t worth what they think they should be worth. These are the homes that generally end up requiring a price reduction.

“Some clients insist on a higher price point than I recommend and I honor that,” says Jamie Camp, a real estate agent at The Agency RE in Los Angeles, California. “I make sure to inform them that in two weeks if we do not have any movement on the home we need to sit down for another conversation about price. This creates an open conversation for the future.”

During those two weeks, Camp collects data from other real estate professionals regarding the listing’s value compared to homes currently on the market. Because the real estate market can change quickly, it’s good to have other opinions to support a price reduction.

“I like to ask other agents who have seen the home what their opinion is for the pricing,” says Camp. “By having my peers repeat what I felt at the start helps my sellers realize where we need to drop the price. I do not like making drastic price changes, just enough to show other agents and buyers that we are motivated and want offers to come in.

"In this market we are seeing changes week to week. One day a home will have multiple offersand sell $100K over asking and the next week a comparable home will not have any interest at the same starting price.”

There’s no set amount that you should reduce your listing to get a buyer, but it helps if you’re priced somewhere near other homes like your own, which is why market data is so helpful. The goal is just to get people who dig homes like yours in the door, after all.

“The reality is it only takes one buyer to see and fall in love with the property to make a transaction happen,” says Camp. “Having the home set at the right price to make the seller and buyer happy is essential.”

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

THIS WEEKS HOT HOME LISTING!

2127 Silver Lea Ct, Eugene, OR 

Price: $650,000    Beds: 3    Baths: 2.5    SqFt: 2018

This single level ranch style home is located in a wonderful cul-de-sac and a short distance to the brand-new North Eugene High School. The covered front porch welcomes you to this turnkey home that has been tastefully upgraded throughout. New LED...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Eugene and Springfield Real Estate sales for the month of July 2023 took a dip. Our local housing market continues to slide downwards as mortgage interest rates continue to rise and the overall national economy continues to falter. At the same time, the governement continues out of control spending, which just adds to the problems with inflation. Even with the continued market down turn, our local housing market remains fairly strong for those wanting to sell a home in Lane County. Notice that both home prices and the number of homes on the market continue to change monthly. Here are the home sale numbers for July 2023 in Lane County.

New Listings

New listings (457) decreased 20.0% from the 571 listed in July 2022, and decreased 17.4% from the 553 listed in June 2023.

Pending Sales

Pending sales (389) decreased 13.9% from the 452 offers accepted in July 2022, and increased 3.2% from the 377 offers accepted in June 2023.

Closed Sales

Closed sales (345) decreased 12.9% from the 396 closings in July 2022, and decreased 5.5% from the 365 closings in June 2023.

Inventory and Time on Market

Inventory increased to 1.9 months in July. Total market time decreased to 29 days.

Year-to-Date Summary

Comparing the first seven months of 2023 to the same period in 2022, new listings (2,862) decreased 21.3%, pending sales (2,293) decreased 21.7%, and closed sales (2,071) decreased 24.0%.

Average and Median Sale Prices

Comparing 2023 to 2022 through July, the average sale price has decreased 1.9% from $476,900 to $467,800. In the same comparison, the median sale price has decreased 0.9% from $435,000 to $431,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2127 Silver Lea Ct, Eugene, OR 

Price: $650,000    Beds: 3    Baths: 2.5    SqFt: 2018

This single level ranch style home is located in a wonderful cul-de-sac and a short distance to the brand-new North Eugene High School. The covered front porch welcomes you to this turnkey home that has been tastefully upgraded throughout. New LED...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!