Eugene Oregon Real Estate Blog

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.

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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 >> 

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Good Monday Morning!

There is actually some positive news in the world of Real Estate as home sales both locally and nationally improved slightly in June.  Was this increase in sales just a seasonal event or will it become a trend?  Only time will tell as to where the housing market is headed.  Much of the future with housing will depend on the overall economy of our country and whether the lid can be put on inflation or not.  Stay tuned, because we will most likely see some answers here soon.  The following is a recent article from "Realtor.com".

The numbers: Home sales inched up for the first time in four months, even as the U.S. housing market continues to deal with a dearth of listings.

Pending home sales rose by 0.3% in June from the previous month, according to the monthly index released Thursday by the National Association of Realtors.

The figure exceeded expectations on Wall Street. Economists were expecting pending home sales to fall 0.5% in June.

Transactions were still down 15.6% from last year.

Pending home sales reflect transactions where a contract has been signed for the sale of an existing home but the sale has not yet closed. Economists view it as an indicator of the direction of existing-home sales in subsequent months.

Big picture: Home sales rose as the housing market contends with excess buyer demand and a shortfall in the supply of homes for sale.

Real-estate agents are looking to home builders to fill the gap as rate-locked homeowners hold out on selling. New-home sales surged in May, and while they lost some momentum in June, the broader trend is still upward.

The prices of new homes, which are generally seen as more expensive, are also coming down. The gulf between the median price of a new home and of an existing home narrowed in June, based on data from the NAR and the federal government.

What the real-estate experts said: “The recovery has not taken place, but the housing recession is over,” NAR chief economist Lawrence Yun said. “The presence of multiple offers implies that housing demand is not being satisfied due to lack of supply.”

The NAR also said it expects rates for 30-year mortgages to average 6.4% this year and to fall to 6% in 2024.

The NAR also expects existing-home sales to fall 12.9% in 2023 from the previous year, to 4.38 million, before recovering in 2024 to a rate of 5.06 million.

The group also expects home prices to hold steady this year, falling only slightly by 0.4% to $384,900, before rising 2.6% next year to $395,000.

The West—the country’s most expensive region—will see reduced prices, while the more affordable Midwest region is likely to see a small positive increase,” Yun added.

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THIS WEEKS HOT HOME LISTING!

1592 Fetters Loop, Eugene, OR 

Price: $275,000    Beds: 2    Baths: 1.5    SqFt: 1118

This townhouse style condo is nestled off the road in a quiet association with a pool and community garden. It has been recently updated with waterproof laminate wood flooring, quartz counters in the kitchen & bathrooms, painted cabinetry & soon to...View this property >> 

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Good Monday Morning!

The rise in mortgage interest rates gets all of the attention for slowing our current local Real Estate market. The truth is that there is another culprit out there that is having an even larger effect on our housing market. This culprit is the long term low inventory of homes for sale. Our local inventory continues to bounce between 1 month and 1.7 months of active inventory. This is the number of months that it would take to exhaust our inventory if no new homes hit the market. A healthy market maintains around 6 months of inventory. Our largest problem right now is not a lack of ready and willing home buyers, but a lack of homes for the ready and willing buyers to purchase. The root cause of this problem is the fact that most homeowners are sitting on mortgages that range from 2.25% to 3.5% and don't want to give up on those rates and jump into a current housing market where interest rates are double or more. If mortgage interest rates tick up even further it could lead to an even lower inventory of homes for buyers needing housing. The following is a recent article from "Realtor.com" that talks about this situation.

Homes listed for sale remained on the market for 18 days on average, unchanged from the previous month. Last June, homes were only on the market for 14 days.

Sales of existing homes across the country were mixed—the Northeast saw home sales climb in June by 2%, but the rest of the country saw flat or even drops in the number of homes being sold.

All-cash buyers made up 26% of sales. The share of individual investors or second-home buyers was 18%. About 27% of homes were sold to first-time home buyers.

Big picture: The housing market has recovered, but with inventory at record lows, the big question is whether it is sustainable.

Home sellers continued to hold out on selling their homes amid mortgage rates that hovered near 7%.

Builders were responding to the lack of inventory by ramping up home-building, but new housing units may not be enough to address the shortage of homes for sale.

Home prices were also at near-record highs, as the NAR noted, which coupled with high rates, makes homeownership unaffordable for many Americans.

What the realtors said: “It is a tough market to be a buyer in the current environment,” Lawrence Yun, chief economist at the National Association of Realtors, said.

Yun added that there were “simply not enough homes for sale,” and that even if inventory doubles, the market could “easily absorb” it.

Buyers are still contending with multiple offers, Yun said, and one-third of homes are getting sold above their list price.

What are they saying? “Existing home sales fell more than expected and are likely to remain subdued until mortgage rates ease or inventories improve,” Erik Johnson, senior economist at BMO Capital Markets, wrote in a note.

“Perhaps stabilizing prices will be enough to convince more owners to put their homes on the market, but it’s likely that the fate of both existing home inventories and mortgage rates will remain linked for the foreseeable future,” he added.

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THIS WEEKS HOT HOME LISTING!

479 33rd Street, Springfield, OR 

Price: $385,000    Beds: 3    Baths: 2.0    SqFt: 1160

This completely renovated home on 1/3 of an acre was tastefully updated from top to bottom in 2021. Open floor plan with laminate flooring throughout, vinyl windows & a ductless heat pump. Kitchen features include quartz counters, extensive cabinetr...View this property >> 

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Good Monday Morning!

Mortgage interest rates ticked up slightly over the last week! Most likely this was due to anticipation over another potential rate hikes by the Fed. The good news here is that mortgage rates may be peaking and hopefully will soon begin to decline. Lower inflation numbers as of late may help this and also prevent the Fed from a long line of future rate increases. The housing market, both local and national still remains a strong sellers market with low inventories. There really is not any relief in site over the short term for the housing shortage. Here is an article from"Housing Wire" that talks about the present national housing market.

Mortgage rates continued rising for the third consecutive week, increasing to 6.96%, the highest level since November 2022. 

The uptick in mortgage rates came amid positive inflation news – the consumer price index rate showed cooling prices in June, rising just 3.0% from a year ago, the smallest annual increase since March 2021. However, it is unlikely to be enough to prevent an additional rate hike at the next Federal Open Markets Committee meeting on July 25-26. And rates could remain above 6.5% for a while longer, economists said. 

Freddie Mac’s Primary Mortgage Market Survey, which focuses on conventional and conforming loans with a 20% down payment, shows the 30-year fixed rate averaged 6.96% as of July 13, up from last week’s 6.81%. By contrast, the 30-year was at 5.51% a year ago at this time. 

“Mortgage rates increased to their highest level since November 2022, the last time rates broke seven percent,” said Sam Khater, Freddie Mac’s chief economist. “Incoming data suggest that inflation is softening, falling to its lowest annual rate in more than two years. However, increases in housing costs, which account for a large share of inflation, remain stubbornly high, mainly due to low inventory relative to demand.”

Other mortgage indexes show rates ticking down. 

HousingWire’s Mortgage Rates Center showed Optimal Blue’s 30-year fixed rate for conventional loans at 6.85% on Wednesday, compared to 6.92% the previous week. The 30-year fixed rate for conventional loans was 6.96% at Mortgage News Daily on Thursday morning, down 12 basis points from the previous week.

Though a strong job market and cooling inflation means many households will be in a good position to buy a house, high mortgage rates and still-high housing prices continue to present stiff challenges, said Realtor.com economist Jiayi Xu. As a result, home purchases are slowing and more pressure is added on home and rental prices. 

Overall, the economy is still very durable, said Lisa Sturtevant, chief economist of Bright MLS. It is highly possible that mortgage rates will remain above 6.5% over the coming weeks.

For buyers out there, being able to find a home to buy and crafting a successful offer that will beat other buyers remains the main challenge, not high mortgage rates, she said. Home price growth has moderated but in many markets, prices are still rising because of limited supply.

While further rate hikes are likely, economists, including Sturtevant, do not think that it’s the solution to induce a significant drop in home prices. 

“Without a significant influx of new listings, which will not be possible if existing homeowners feel even more tied to the super low rate they got during the pandemic, the balance between demand and supply will still be tilted toward sellers,” said Sturtevant. 

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

26065 Lake Trail Dr, Veneta, OR 

Price: $799,000    Beds: 3    Baths: 2.5    SqFt: 2289

Fall in love with this beautifully updated country home at Fern Ridge Peninsula. Large windows and high ceilings bring in lots of natural light to this spacious and thoughtfully designed floorpan. The large covered stamped concrete patio over looks...View this property >> 

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Good Monday Morning!

Real Estate sales in the Eugene and Springfiled area sagged slightly in June. For the most part, mortgage interest rates heald steady, which is extremely helpful in this market. Home sales were off from the same period last year and home prices declined slightly, but not enough to compensate for the higher mortgage interest rates. Buyer demand seems to be remaining strong with the largest obstacle for more home purchases being the extreme lack of home inventory. We remain in a very strong seller's market with multiple offers continuing to be the situation with many sales. If you are considering the sale of a home, the market remains very favorable for you. The following is a report on home sales in the Eugene and Springfiled area for June 2023.

New Listings

New listings (553) decreased 12.5% from the 632 listed in June 2022, and increased 26.0% from the 439 listed in May 2023.

Pending Sales

Pending sales (377) decreased 14.3% from the 440 offers accepted in June 2022, and increased 1.3% from the 372 offers accepted in May 2023.

Closed Sales

Closed sales (365) decreased 21.5% from the 465 closings in June 2022, and increased 25.4% from the 291 closings in May 2023.

Inventory and Time on Market

Inventory decreased to 1.6 months in June. Total market time increased to 38 days.

Year-to-Date Summary

Comparing the first six months of 2023 to the same period in 2022, new listings (2,389) decreased 21.9%, pending sales (1,925) decreased 23.1%, and closed sales (1,698) decreased 26.3%.

Average and Median Sale Prices

Comparing 2023 to 2022 through June, the average sale price has decreased 2.5% from $475,900 to $464,100. In the same comparison, the median sale price has decreased 1.1% from $435,000 to $430,000.

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THIS WEEKS HOT HOME LISTING!

28093 Crossley Ln, Eugene, OR 

Price: $1,095,000    Beds: 4    Baths: 2.0    SqFt: 2883

Enjoy country living, just a short distance from town. Extremely quiet and private neighborhood of gorgeous country estates. Spacious country home with open design and country terrain views. Engineered hardwood flooring, Primary on Main level, huge...View this property >> 

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Good Monday Morning!

Nationally, home prices declined 3.1% in May of this year. This was the first real decline since 2011. Locally, home prices also fell 2.7%, which is lower than nationally, but also the first real decline in years. Typically, in a slower housing market we would have seen housing prices decline much sooner than they have during the current down turn. Higher interest rates would usually drive home prices down, but the lack of home inventory both nationally and locally has kept home prices high and added to the pain that would be home buyers are suffering in todays market. If mortgage interest rates would stabilize or even better yet decline, it would take the pressure off of home prices. Future interest rates hikes by the Fed could keep our national housing market in a decline though. Only time will tell as to what direction the housing market goes. One thing for sure is that if inflation numbers remain high, the Fed will react with more interest rate hikes. The following is an article from "Realtor.com" that addresses the recent decrease in home prices.

The numbers: Sales of previously-owned homes in the U.S. rose slightly in May amid a shortage of homes for sale and high mortgage rates but the median price for an existing home fell 3.1%, the largest drop since December 2011.

Sales of existing homes in the U.S. increased 0.2% to an annual rate of 4.3 million in May, 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 it did in May. The numbers are seasonally adjusted.

The rise in sales exceeded what economists on Wall Street were expecting. They forecast existing-home sales to total 4.25 million in May.

Compared with May 2022, home sales were down 20.4%.

Key details: The median price for an existing home fell 3.1% from last May to $396,100 this year. The drop is the largest since December 2011, when home prices dropped 3.9%.

Home prices have dropped for the fourth month in a row on an annual basis. Home-price growth peaked in May 2021, when it grew 25.2% annually.

The number of homes on the market rose 3.8% in May to 1.08 million units. That’s the lowest number of homes—particularly single-family homes—that have been on the market during the month of May, since the NAR began tracking data in 1983.

Homes listed for sale remained on the market for 18 days on average, down from 22 days in April. Last May, homes were on the market for just 16 days.

Sales of existing homes across the country were mixed–the South and West saw home sales rise, while the Midwest and Northeast saw sales dip in May.

All-cash buyers made up 25% of sales. The share of individual investors or second-home buyers was 15%. About 28% of homes were sold to first-time home buyers.

Big picture: The housing market is broadly recovering, but it’s a slow one.

Buyers are accepting the new reality of mortgage rates above 6%, but the market is still hampered by a serious shortage of homes for sale.

A separate report from Realtor.com on Thursday noted that the total number of homes for sale is likely to be at its lowest point since 2012.

While builders are filling the gap with new buildings and responding to demand from home buyers, it’s not enough to meet demand. Plus, new homes are much more expensive than resales. The median price of a new home sold in April was $420,800, nearly $25,000 higher than a previously-owned home.

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THIS WEEKS HOT HOME LISTING!

5427 Royal Ave, Eugene, OR 

Price: $1,250,000    Beds: 4    Baths: 3.0    SqFt: 3218

One of a kind property. This close-in home and property has an 80' X 120' riding arena with 8 stalls, 24' X 40' small barn and tac room with 3 stalls, 40' X 100' barn with 10 stalls and 600 sq.ft. apartment. Arena and apartment building are Butler b...View this property >> 

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Good Monday Morning!

Even though the climate for purchasing a home has become more difficult for most people, recent statistics show that the number of homes purchased by people under the median income level has increased. Here is a recent article that talks about how this market is still growing.

Below-median family income households are overcoming constraints related to increased borrowing costs and home prices and are finding ways to become homeowners, according to Freddie Mac’s latest economic, housing and mortgage outlook.  

The below-median family income homeownership rate increased to 53% from 48% since 2016, Freddie Mac said, citing data from the Census Bureau’s Housing Vacancy survey.  In turn, the below-median family income homeownership rate drove the overall increase in the total homeownership rate during that time. 

The homeownership rate for owner-occupied households with a family income higher than the median family income grew at a much slower pace than the below-median family income homeownership rate.

Since the second quarter of 2016, the below-median family income homeownership rate has increased 5.4 percentage points, while the above-median family income homeownership rate has only increased 0.8 percentage points, according to the Census Bureau’s data. 

The homeownership rate gap between above-median and below-median family income households has also shrunk over the last couple of years, and has generally been trending down over the past decade. This is due to the growth in the below-median family income homeownership rate continuing to outpace the above median family income homeownership rate growth, according to Freddie Mac. 

“Below-median family income households are overcoming constraints and finding ways to become homeowners even within a less affordable environment – an encouraging sign as we continue to celebrate National Homeownership Month,” the agency said. 

In terms of home prices, the government-sponsored enterprise (GSE) expects them to fall by 2.9% over 12 months through the first quarter of next year, and is expecting an additional decline of 1.3% over the subsequent 12 months.

Mortgage origination volume will likely increase in the second quarter of this year due to seasonality in the housing market, but origination volume for 2023 will almost certainly be below 2022 levels, the GSE said. 

Purchase originations are projected to stay flat before strengthening later this year as home sales stabilize, according to Freddie Mac. It will take until 2024 for purchase originations to resume modest growth, the GSE noted. 

Freddie Mac’s projections are in line with the recent Mortgage Bankers Association’s (MBA) forecasts.

According to the MBA, the median price of existing homes is expected to decline 4.2%, dropping to $367,800 in 2023 from $384,000 in 2022. In 2024, the MBA expects the median price of existing homes to fall an additional 2.1% to $375,400.

Purchase originations are projected by the MBA to increase to 3.9 million loans in volume in 2024 from 3.2 million in 2023. 

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

26065 Lake Trail Dr, Veneta, OR 

Price: $799,000    Beds: 3    Baths: 2.5    SqFt: 2289

Fall in love with this beautifully updated country home at Fern Ridge Peninsula. Large windows and high ceilings bring in lots of natural light to this spacious and thoughtfully designed floorpan. The large covered stamped concrete patio over looks...View this property >> 

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There were no significant changes in the Eugene and Springfield Real Estate market in May of this year. All categories were down from May of 2022, including sales, listings and home prices. These same categories with the exception of home prices were up from April of 2023 though, this includes a slight increase in the number of homes on the market. Any relief at all from higher mortgage interest rates would most likely put our local market back on a significant rebound. At this time this scenario looks unlikely though as the Fed is most likely going to announce another rate increase this week. Many economists feel that another rate increase by the Fed at this time is a huge mistake and could put the national housing market further into a tail spin. Let's hope for the best! Here are the home sales numbers for Lane County for the month of May 2023.

New Listings

New listings (439) decreased 27.4% from the 605 listed in May 2022, and increased 14.6% from the 383 listed in April 2023.

Pending Sales

Pending sales (372) decreased 23.1% from the 484 offers accepted in May 2022, and increased 9.7% from the 339 offers accepted in April 2023.

Closed Sales

Closed sales (291) decreased 31.5% from the 425 closings in May 2022, and increased 2.5% from the 284 closings in April 2023.

Inventory and Time on Market

Inventory increased to 1.7 months in May. Total market time decreased to 34 days.

Year-to-Date Summary

Comparing the first five months of 2023 to the same period in 2022, new listings (1,833) decreased 24.0%, pending sales (1,564) decreased 24.9%, and closed sales (1,320) decreased 27.7%.

Average and Median Sale Prices

Comparing 2023 to 2022 through May, the average sale price has decreased 2.7% from $473,000 to $460,300. In the same comparison, the median sale price has decreased 0.7% from $433,000 to $430,000.

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THIS WEEKS HOT HOME LISTING!

35243 Mckennzie View Dr, Springfield, OR 

Price: $824,900    Beds: 4    Baths: 2.5    SqFt: 1917

Absolutely gorgeous home and setting 10 minutes from town. Entire home has been updated with no spared expense and thought for the highest quality and extra attention to detail. Enjoy the park-like setting with trees, wildlife and amazing views of t...View this property >> 

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Good Monday Morning!

The inventory of homes for sale in the Eugene and Springfield area continues to be extremely low and well below 2 months of inventory. This means that if no new homes were to go on the market it would take less than two months to void the existing inventory of homes for sale. A healthy Real Estate market would have around 6 months of inventory of homes for sale. This lack of inventory is holding home prices high, not only in our local market area, but in most markets around the country. High home prices and higher mortgage interest rates are continuing to make home ownership difficult for many. It is a tough market for home buyers, but on the other side of the coin, the market remains attractive for anyone wanting to sell a home. Here is an article from "Realtor.com" that talks about the national home inventory issues.

The numbers: Home prices rose in March as sellers held out on listing their homes, constraining supply.

Despite elevated mortgage rates, the S&P CoreLogic Case-Shiller 20-city home-price index rose 0.5% in March, as compared with the previous month.

Home prices were strongest in the Southeast, while prices in the West continued to drag. Though buyer demand has outpaced supply in March, surging mortgage rates may dampen home sales. The rate for the 30-year mortgage in May is over 7%, according to Mortgage News Daily.

Year-over-year appreciation was down 1.1%, a dip after home prices rose 0.4% in February. The 20-city index peaked in June 2022.

A broader measure of home prices, the national index, rose 0.4% in March compared with February and was up 0.7% over the past year.

All numbers were seasonally adjusted.

Key details: Cities in the Southeast led home price growth. Miami and Tampa in Florida and Charlotte, N.C., were the three cities with the highest year-over-year gains among the 20 cities in March.

Cities on the West Coast, from Seattle to San Francisco, continued to see weak home-price growth. Home prices in Seattle were down 12.4% from last March.

A separate report from the Federal Housing Finance Agency also showed home prices rising in March, up 0.6% from February.

And over the last year, the FHFA index was up 3.6%.

Big picture: The housing market is being squeezed by a lack of supply.

There aren’t enough homes listed for sale on the market, as home sellers see no incentive in giving up their ultralow mortgage rates for a new home loan with a 7% rate.

But rising rates could soon dampen demand as well, as buyers may find rising costs prohibitive to purchasing a home.

The housing sector is trying to boost both demand and supply: While home builders add to supply with new construction, which has boosted sales of new homes, mortgage lenders are also offering incentives, such as buyers only having to make a 1% down payment. The National Association of Realtors is proposing changes to existing tax policy to boost supply.

What S&P said: “Two months of increasing prices do not make a definitive recovery, but March’s results suggest that the decline in home prices that began in June 2022 may have come to an end,” Craig J. Lazzara, managing director at S&P DJI, said.

“That said, the challenges posed by current mortgage rates and the continuing possibility of economic weakness are likely to remain a headwind for housing prices for at least the next several months,” he added.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

26065 Lake Trail Dr, Veneta, OR 

Price: $799,000    Beds: 3    Baths: 2.5    SqFt: 2289

Fall in love with this beautifully updated country home at Fern Ridge Peninsula. Large windows and high ceilings bring in lots of natural light to this spacious and thoughtfully designed floorpan. The large covered stamped concrete patio over looks...View this property >> 

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Good Monday Morning!

Home sales both locally and nationally continued to slump in April. Much of the reason for the downturn is the extremely low inventory of homes for sale. Home inventory issues are effecting buyers in the Eugene and Springfield area and also buyers on the national level. The market remains very strong in our local area for home sellers. Demand for housing remains strong, but would be home buyers are finding it difficut to find houses that fit their needs and price range. If the inventory of homes would improve, we would see a sharp increase in home sales numbers. Eugene and Springfiled area home sellers are still seeing multiple offers and bidding wars on many homes. The climate for selling a home remains very strong. The following is an article from "Realtor.com" that describes our recent nations housing market.

The numbers: Sales of previously-owned homes in the U.S. fell 3.4% in April for the second month in a row, as buyers continue to deal with low levels of home listings and see-sawing mortgage rates.

Sales of existing homes in the U.S. fell to an annual rate of 4.28 million in April, 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 it did in April. The numbers are seasonally adjusted.

The drop in sales wasn’t as bad as what economists on Wall Street had expected. They forecast existing-home sales to total 4.26 million in April.

But compared with April 2022, home sales were down 23.2%.

Key details: The median price for an existing home fell by 1.7% from last April to $388,800 this year. The drop is the largest since January 2012, when home prices fell 2%.

Home prices peaked in May 2021, where they grew 25.2% annually.

The number of homes on the market rose by 7.2% in April to 1.04 million units. But the number of fresh listings is still down from a year ago, the NAR said.

Homes listed for sale remained on the market for 22 days on average, down from 29 days in March.

Sales of existing homes fell in all regions, with the sharpest drop in the West.

All-cash buyers made up 28% of sales. The share of individual investors or second-home buyers was 17%. About 29% of homes were sold to first-time home buyers.

Big picture: Despite home sales dipping in April, most of the housing data is indicating that the U.S. housing market is in broad recovery.

But a combination of issues are making it a slow one, from a lack of new home listings to see-sawing mortgage rates.

Many homeowners are reluctant to sell for two reasons: They may be reluctant to give up an ultra-low mortgage rate secured during the pandemic for a much higher one, and they also don’t want to deal with competition

Homebuilders are responding to the inventory crunch by bumping up construction of new homes. Housing starts, which refer to when a builder starts constructing a home, rose in April. Rates, on the other hand, are volatile: The 30-year mortgage rose to the highest level in two months to 6.57% as of May 12, the Mortgage Bankers Association said on Wednesday. It was 6.48% the previous week.

Given the underlying issues on supply and rates, sentiment among U.S. consumers regarding the housing market has worsened: The number of people who think it’s a bad time to buy a home has hit a 45-year high.

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THIS WEEKS HOT HOME LISTING!

91710 Burton Dr, Mckenzie Bridge, OR 

Price: $627,400    Beds: 2    Baths: 2.0    SqFt: 1364

This cozy McKenzie retreat will not disappoint. Nestled in the trees on a quiet drive, this home is perfect for owner occupied or a vacation rental. Recently updated kitchen, open concept with great room, vaulted ceilings, wood burning fireplace & a...View this property >> 

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