Eugene Oregon Real Estate Blog

Good Monday Morning!

With our current slower economy and the continued inflation we are suffering through, many homeowners are cashing in on their home equity for a variety of reasons. Some are using the home equity that increased significantly prior to our current recession for home improvement, to pay off debt, to purchase autos, RV's or even take vacations. Home equity loans, "Helocs" are a great tool and and can certainly be used as a aid to help homeowners.  But, beware of how you use a "Heloc". There are some potentail pitfalls with using your home equity. The following article from "Realtor.com" will tell you about some of the "Heloc" benefits and some of the "Heloc" dangers.

Do you have a home equity loan or home equity line of credit (HELOC)? Homeowners often tap their home equity for some quick cash, using their property as collateral. But before doing so, you need to understand how this debt will be treated come tax season.

With the 2017 Tax Cuts and Jobs Act, the rules of home equity debt changed dramatically. Here’s what you need to know about home equity loan taxes when you file this year.

Acquisition debt vs. home equity debt: What’s the difference?

For starters, it’s important to understand “acquisition debt” versus “home equity debt.”

“Acquisition debt is a loan to buy, build, or improve a primary or second home, and is secured by the home,” says Amy Jucoski, a certified financial planner and national planning manager at Abbot Downing.

That phrase “buy, build, or improve” is key. Most original mortgages are acquisition debt, because you’re using the money to buy a house. But money used to build or renovate your home is also considered acquisition debt, since it will likely raise the value of your property.

Home equity debt, however, is something different.

“It’s if the proceeds are used for something other than buying, building, or substantially improving a home,” says Jucoski.

For instance, if you borrowed against your home to pay for college, a wedding, vacation, budding business, or anything else, then that counts as home equity debt.

This distinction is important to get straight, particularly since you might have a home equity loan or HELOC that’s notconsidered home equity debt, at least in the eyes of the IRS.

If your home equity loan or HELOC is used to go snorkeling in Cancun or open an art gallery, then that’s home equity debt. However, if you’re using your home equity loan or HELOC to overhaul your kitchen or add a half-bath to your house, then it’s acquisition debt.

And as of now, Uncle Sam is far kinder to acquisition debt than home equity debt used for non-property-related pursuits.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

260 54th Street, Springfield, OR 

Price: $415,000    Beds: 4    Baths: 2.0    SqFt: 2048

Great opportunity for a multi-family investment property. Both units are townhouse style with attached garages & separated backyards. Vinyl windows, newer flooring & spacious bedrooms. Convenient location near shopping & the bus line. Strict tenant...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The number of new housing starts both nationally and locally are continuing to dip.  This would be expected with any downturn in the economy.  Another issue with new construction is that the cost of new housing is also increasing and making new homes less affordable to would be buyers.  This is not good for anyone in the business of building new homes or supplying material for new homes. Home construction is also one of the key elements for maintaining a healthy economy and when housing starts dip, it typically has a major effect on the overall economy. The lack of affordable new housing also has an effect on existing housing.  A decrease in new homes on the market will typically help keep exising home demand higher and help uphold existing home values.  It will be interesting to see what happens with new home starts as we enter the time of year when new home construction typically peaks.  The following article is from "Realtor.com" that talks about the national market for new homes.

The numbers: Construction on new U.S. homes fell a seasonally adjusted 4.5% in January to 1.31 million, the Commerce Department said Thursday.

The drop in construction on homes follows the decline in December, when housing starts also fell by 3.4%

The drop was larger than what Wall Street expected. Economists polled by the Wall Street Journal expected housing starts to drop to a 1.35 million rate from December’s initial estimate of 1.38 million.

Construction is at the lowest level since June 2020, during the depths of the coronavirus pandemic. Starts have also fallen for the fifth month in a row.

The annual rate of total housing starts fell from 27.3% from the previous year.

In December, housing starts were revised to a drop of 3.4% of 1.37 million, as compared to a previous drop of 1.4%.

Building permits for new homes rose 0.1% to 1.34 million in January.

Economists had expected building permits to rise to a 1.35 million rate from December’s initial estimate of 1.34 million.

Key details: On an unadjusted basis, housing starts fell 1% in January.

The construction pace of single-family homes fell 4.3% in January and apartments fell 5.4%.

Permits for single-family homes fell 1.8% in January, while permits in buildings with at least five units rose by 0.5%.

Notably, permits for middle housing, or buildings with 2 to 4 housing units like townhomes, rose by 26.1%.

Regionally, construction of homes rose the most in the south and the west.

Single-family construction in the south led the jump with a 11.6% increase. The northeast and west regions reported a drop in single-family construction.

Big picture: The housing starts data likely reflects builders’ subdued sentiment from back in January, when they were only slowly becoming confident that buyers would return.

Builders have since become even more confident that sales of new homes will increase, and are signaling that they will ramp up production in the months ahead.

What are they saying? “Strong economic data (retail sales and jobs report) from January mean the Fed is likely to raise the fed funds rate higher than previously expected to get inflation under control,” Abbey Omodunbi, senior economist at PNC, wrote in a note.

And “this will put upward pressure on mortgage rates and slow housing demand even further this year,” he added.

The company is expecting home prices to fall by 12% in 2023.

“Home builders continue to face a raft of headwinds including worker shortages and fading housing demand,” Priscilla Thiagamoorthy, senior economist at BMO Economics, wrote in a note. “And, with rates likely to stay high for some time, homebuilders are not out of the woods… yet.”

Have An Awesome Week!

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

THIS WEEKS HOT PROPERTIES FOR SALE!

320 Mountaingate Dr, Springfield, OR 

Price: $125,000    Acres: 0.23

...View this property >> 

340 Mountaingate Dr, Springfield, OR 

Price: $140,000    Acres: 0.25

...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

January was an interesting month for home sales in the Eugene and Springfield area. The inventory of homes on the market hit the highest point we have seen in over 2 years at 2.3 months of inventory. At the same time, the number of new homes hitting the market decreased. This means that the rise in home inventory was created by fewer home sales. The interesting thing is that with an even slower market for home sales, the average and median home sale prices increased further. Also of interest is the fact that even with mortgage interest rates increasing slightly, the demand for homes is extremely strong. Why is this not reflected with home sales? The answer to this is that the existing inventory of homes for the most part does not fall into the categories of where the buyer demand is. Many price points and areas have virtually no inventory and in many cases scores of buyers waitng to find a home to purchase. The result of all of this is that this continues to be a very frustrating market for most home buyers and in many cases, it is one of the best markets we have seen for home sellers. The next several months should prove interesting for sure. Here are the home sales numbers for January 2023.

New Listings 

New listings (303) decreased 10.1% from the 337 listed in January 2022, and increased 73.1% from the 175 listed in December 2022. 

Pending Sales 

Residential Highlights 

New Listings 

New listings (303) decreased 10.1% from the 337 listed in January 2022, and increased 73.1% from the 175 listed in December 2022. 

Pending sales (303) decreased 9.6% from the 335 offers accepted in January 2022, and increased 53.8% from the 197 offers accepted in December 2022. 

Closed Sales 

Closed sales (177) decreased 35.2% from the 273 closings in January 2022, and decreased 24.4% from the 234 closings in December 2022. 

Inventory and Time on Market 

Inventory increased to 2.3 months in January. Total market time increased to 50 days. 

Year-to-Date Summary 

Comparing the first month of 2023 to the same period in 2022, new listings (303) decreased 10.1%, pending sales (303) decreased 9.6%, and closed sales (177) decreased 35.2%. 

Average and Median Sale Prices 

Comparing 2023 to 2022 through January, the average sale price has increased 5.0% from $448,000 to $470,600. In the same comparison, the median sale price has increased 1.9% from $411,000 to $419,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

91710 Burton Dr, Mckenzie Bridge, OR 

Price: $629,900    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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Even with 4 consecutive weeks of mortgage interest rate decline, the housing market remains in decline nationally. Our current market is strange though and not like any other that I have witnessed in my 34 years as a Real Estate Broker in the Eugene and Springfield area. Yes, some homes that are on the market for sale just sit and dont sell in this market, but others sell quickly and some with bidding wars. Why is that? The reasons are many, but price is the number one reason and condition follows close behind. The other reasons are that some price ranges have more buyers looking and lower inventory. If you price your home competitively with this market and prepare your home for sale by making it very attractive to buyers, you may sell quickly and possibly create a buyer bidding war, even in this market. If you are considering selling your home, read the following article from "Realtor.com" that talks about why some homes sell while others sit in this market.

Homebuyers who are closely watching the correction in the real estate market might believe now is a good time to pounce. After all, homes are sitting on the market for longer, those maddening bidding wars have dried up, and wild offers over the asking price are things of the past, right?

Well, not exactly. It all depends on what they’re hoping to purchase.

Those searching for a home are seeing plenty of fixer-uppers, homes lacking curb appeal, and those in less desirable areas sitting on the market for longer and undergoing price reductions. But well-appointed, well-situated turnkey homes are still selling fast, often receiving multiple offers, and even selling over the asking price. It’s as if the housing slowdown hasn’t affected these properties much at all.

“If it’s a good home in the resale market, it’s selling quickly,” says Ali Wolf, chief economist of the building consultancy Zonda. “The buyer who is buying today is not the same buyer buying 12 months ago. If [they’re] paying this much, it needs to be a nice home.”

Competition for turnkey homes in good school districts remains fierce.

“If the house is perfect, the odds of someone else wanting it are high, too,” says Geena Peoples, an Austin, TX–based real estate agent with The Juice Group at Compass.

Home prices are still much higher than they were before the COVID-19 pandemic. And while mortgage rates have fallen a bit of late, they’re still substantially higher than they were at this time last year, jumping to just over 6% for 30-year fixed-rate loans, according to Freddie Mac. So buyers don’t have much room in their budget for costly repairs.

“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing,” says Realtor.com® Chief Economist Danielle Hale.

During the pandemic, just about everything was selling for more money than ever before because homebuyers didn’t have much to choose from. Even fixer-uppers in the right markets were hot commodities. Buyers and investors could snap up these properties and still be able to afford the work they needed.

“Back in 2021, you could list just about anything and there would be a line out the door,” says Peoples. She used to see dated homes with cracks in the foundation and the walls on the market, and buyers would still pounce on them.

But those days seem to have ended, at least for now.

Fewer buyers are seeking out fixer-uppers

Fixer-uppers have traditionally been popular with investors, who could get these homes at a discount, put some work into them, and then resell them at a hefty profit. And this popularity soared in the early portion of the pandemic. However, with home prices falling from their peaks over the summer, many investors are now increasingly pausing their purchases. If prices dip, even a little, they could lose money on their projects. And many of the larger iBuyers have either exited the market or aren’t buying as much at the moment. That’s left less demand for these properties.

So they’re staying on the market longer and sellers are having to drop the price on these homes or accept lowball offers.

“Buyers want those homes [only] when there is no other inventory out there,” says Matt Curtis, owner of his eponymously named brokerage in Huntsville, AL.

Even in today’s more challenging housing market, “anything that is staying on the market for more than 48 hours [without a booked showing] is in a less desirable location and definitely not in tiptop, showable condition, says Princeton, NJ–based real estate agent Debbie Lang. She works for Berkshire Hathaway HomeServices Fox & Roach Realtors.

She recently saw a home priced below $1 million that received eight offers.

What’s not selling are properties “that need a major renovation and updates, like a new kitchen or bathroom and major systems,” says Lang. “Buyers are always looking for improvements that have already been done.”

Those problems can be overlooked if the home is in a great location, such as near a train station or in a community with top-rated schools, she says. But buyers could get a discount on these properties.

Money isn’t the only obstacle to purchasing a home that needs some TLC.

On Cape Cod, a popular vacation destination on the Massachusetts shore, it can be difficult to get work done, says local real estate agent Doug Payson, with Kinlin Grover/Compass.

“Because of the supply chain issues, it’s often difficult to get materials. There’s also a shortage of workers,” says Payson. Meanwhile, “properties that you don’t have to do anything to are seeing, like, 12 offers.”

Price Matters

Even the ugliest, run-down, abandoned homes with the worst smells, located in the most undesirable areas, such as on a busy highway, will still sell—at the right price.

“Price will always overcome any objection,” says Salt Lake City real estate agent Justin Udy, of Century 21 Everest.

His brokerage will loan sellers up to $10,000 to renovate and improve their homes before putting them on the market.

You have to make it easy on the consumer to want to buy it,” he says.

Have An Awesome Week!

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

THIS WEEKS HOT PROPERTIES FOR SALE!

320 Mountaingate Dr, Springfield, OR 

Price: $125,000    Acres: 0.23

...View this property >> 

340 Mountaingate Dr, Springfield, OR 

Price: $140,000    Acres: 0.25

...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Even with 4 consecutive weeks of mortgage interest rate decline, the housing market remains in decline nationally. Our current market is strange though and not like any other that I have witnessed in my 34 years as a Real Estate Broker in the Eugene and Springfield area. Yes, some homes that are on the market for sale just sit and dont sell in this market, but others sell quickly and some with bidding wars. Why is that? The reasons are many, but price is the number one reason and condition follows close behind. The other reasons are that some price ranges have more buyers looking and lower inventory. If you price your home competitively with this market and prepare your home for sale by making it very attractive to buyers, you may sell quickly and possibly create a buyer bidding war, even in this market. If you are considering selling your home, read the following article from "Realtor.com" that talks about why some homes sell while others sit in this market.

Homebuyers who are closely watching the correction in the real estate market might believe now is a good time to pounce. After all, homes are sitting on the market for longer, those maddening bidding wars have dried up, and wild offers over the asking price are things of the past, right?

Well, not exactly. It all depends on what they’re hoping to purchase.

Those searching for a home are seeing plenty of fixer-uppers, homes lacking curb appeal, and those in less desirable areas sitting on the market for longer and undergoing price reductions. But well-appointed, well-situated turnkey homes are still selling fast, often receiving multiple offers, and even selling over the asking price. It’s as if the housing slowdown hasn’t affected these properties much at all.

“If it’s a good home in the resale market, it’s selling quickly,” says Ali Wolf, chief economist of the building consultancy Zonda. “The buyer who is buying today is not the same buyer buying 12 months ago. If [they’re] paying this much, it needs to be a nice home.”

Competition for turnkey homes in good school districts remains fierce.

“If the house is perfect, the odds of someone else wanting it are high, too,” says Geena Peoples, an Austin, TX–based real estate agent with The Juice Group at Compass.

Home prices are still much higher than they were before the COVID-19 pandemic. And while mortgage rates have fallen a bit of late, they’re still substantially higher than they were at this time last year, jumping to just over 6% for 30-year fixed-rate loans, according to Freddie Mac. So buyers don’t have much room in their budget for costly repairs.

“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing,” says Realtor.com® Chief Economist Danielle Hale.

During the pandemic, just about everything was selling for more money than ever before because homebuyers didn’t have much to choose from. Even fixer-uppers in the right markets were hot commodities. Buyers and investors could snap up these properties and still be able to afford the work they needed.

“Back in 2021, you could list just about anything and there would be a line out the door,” says Peoples. She used to see dated homes with cracks in the foundation and the walls on the market, and buyers would still pounce on them.

But those days seem to have ended, at least for now.

Fewer buyers are seeking out fixer-uppers

Fixer-uppers have traditionally been popular with investors, who could get these homes at a discount, put some work into them, and then resell them at a hefty profit. And this popularity soared in the early portion of the pandemic. However, with home prices falling from their peaks over the summer, many investors are now increasingly pausing their purchases. If prices dip, even a little, they could lose money on their projects. And many of the larger iBuyers have either exited the market or aren’t buying as much at the moment. That’s left less demand for these properties.

So they’re staying on the market longer and sellers are having to drop the price on these homes or accept lowball offers.

“Buyers want those homes [only] when there is no other inventory out there,” says Matt Curtis, owner of his eponymously named brokerage in Huntsville, AL.

Even in today’s more challenging housing market, “anything that is staying on the market for more than 48 hours [without a booked showing] is in a less desirable location and definitely not in tiptop, showable condition, says Princeton, NJ–based real estate agent Debbie Lang. She works for Berkshire Hathaway HomeServices Fox & Roach Realtors.

She recently saw a home priced below $1 million that received eight offers.

What’s not selling are properties “that need a major renovation and updates, like a new kitchen or bathroom and major systems,” says Lang. “Buyers are always looking for improvements that have already been done.”

Those problems can be overlooked if the home is in a great location, such as near a train station or in a community with top-rated schools, she says. But buyers could get a discount on these properties.

Money isn’t the only obstacle to purchasing a home that needs some TLC.

On Cape Cod, a popular vacation destination on the Massachusetts shore, it can be difficult to get work done, says local real estate agent Doug Payson, with Kinlin Grover/Compass.

“Because of the supply chain issues, it’s often difficult to get materials. There’s also a shortage of workers,” says Payson. Meanwhile, “properties that you don’t have to do anything to are seeing, like, 12 offers.”

Price Matters

Even the ugliest, run-down, abandoned homes with the worst smells, located in the most undesirable areas, such as on a busy highway, will still sell—at the right price.

“Price will always overcome any objection,” says Salt Lake City real estate agent Justin Udy, of Century 21 Everest.

His brokerage will loan sellers up to $10,000 to renovate and improve their homes before putting them on the market.

You have to make it easy on the consumer to want to buy it,” he says.

Have An Awesome Week!

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

THIS WEEKS HOT PROPERTIES FOR SALE!

320 Mountaingate Dr, Springfield, OR 

Price: $125,000    Acres: 0.23

...View this property >> 

340 Mountaingate Dr, Springfield, OR 

Price: $140,000    Acres: 0.25

...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

There is some good news coming out in regards to the national Real Estate Market. This is very welcome news following months of nothing but negative news. Nationally, pending home sale were up in December of 2022. This is an indicator that possibly home sales will improve in January. Pending sales typically will become closings within 30-45 days. Lower mortgage interest rates may be the primary reason for the increase in pending sales. Demand for homes is high and any downward shift in mortgage rates will result in more pending sales and ultimately more closed sales. Many economists now believe that we are going to continue seeing home values decrease. This would be the typical scenario in any slower housing market and one that really has not picked up steam yet. My guess is that we will see home values decline over the coming year. The extent of the decline is unknown, but it could help lead to better home sale numbers if mortgage rates do not increase dramatically. I continue to believe that home sellers have a short window to sell their homes at top dollar value before a more intense decline in home values hits. For anyone thinking about selling a home this year, my advice is to not wait. The following is a recent article from "Realtor.com" in regards to the good news of an increase in pending home sales nationally.

The numbers: U.S. pending-home sales rose 2.5% in December, reversing a six-month losing streak, according to the monthly index released Friday by the National Association of Realtors (NAR).

Pending home sales were down for six months in a row, as the U.S. Federal Reserve increased interest rates and mortgage rates took off.

Pending-home sales beat analyst expectations. Analysts polled by the Wall Street Journal had forecast the pending home sales index to drop by 1%.

Contract signings rose in the South and the West.

Pending home sales reflect transactions where the contract has been signed for an existing-home sale, but the sale has not yet closed.

Economists view it as an indicator for the direction of existing-home sales in subsequent months.

Mortgage application activity hints at the housing market’s further recovery. Mortgage demand rose in the latest week.

Key details: Compared with a year earlier, transactions were down by 33.8%.

On a monthly basis, pending sales rose in the South and the West. Sales dropped in the Northeast and Midwest.

Pending home sales fell the most since last December in the West, by 37.5%.

Big picture: A dip in rates has boosted demand for mortgages. Buyers are coming back to the market, and the housing market is slowly recovering. But inventory remains low, as sellers hold out. Many are looking to the spring to see if sellers are motivated to list their homes.

What the realtors said: “This recent low point in home sales activity is likely over,” NAR Chief Economist Lawrence Yun said. “Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market.”

Yun expects mortgage rates to hover between the 5.5% and 6.5% range.

He also expects the South to outperform in terms of sales, since the job market is stronger in the region.

What they’re saying: “Home sales have now largely adjusted to the collapse in demand since late 2021. … [but] a sustained recovery likely remains a long way off,” Kieran Clancy, senior U.S. economist at Pantheon Macroeconomics, wrote in a note.

“The downturn in sales is coming to an end, but the decline in home prices is only just getting underway,” he added. He expects home prices to fall 15% over the next year.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

5427 Royal Ave, Eugene, OR 

Price: $1,500,000    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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Nationally, home sales were down in December of 2022.  This marked the 11th striaight month of declining home sales in The U.S.  We have witnessed a similar scenario in the Eugene and Springfield market area.  The national economy along with rising mortgage interest rates have created this negative effect.  Both the national and local economies are quite dependent upon home sales and new home construction, so this trend seems to feed upon itself.  What is the remedy for a turn around?  This is much debated, but first of all inflation needs to be brought under control.  Currently, this is a tall order. Huge Federal spending and other key countries with high inflation rates along with many other factors are leading to our current high inflation rates.  The Fed raising their interest rates, slows the economy and in turn this should help slow inflation. The truth is that just the Fed raising rates won't completely halt inflation, but it will keep the sales of both new homes and existing homes at a low level. The hope is that inflation numbers will slow in 2023, allowing the Fed to either slow or halt their trend of raising rates.  This will allow the housing market to adjust and will eventually lead to a much more robust housing market.  In the mean time, the availabilty of homes for sale in our local market is continuing to be an issue for home buyers and is a positive for those homeowners wanting to sell a home.  This too could change in the months ahead.  We will just need to wait and see how this all plays out.  The folllowing is an article from "Realtor.com" that talks about the current national housing market.

The numbers: U.S. existing-home sales fell 1.5% to a seasonally adjusted annual rate of 4.02 million in December, the National Association of Realtors said Friday.

This is the 11th straight monthly decline in existing-home sales. The losing streak is the longest since NAR began tracking sales in 1999.

Economists polled by the Wall Street Journal were expecting existing-home sales to drop to 3.95 million.

The level of sales activity was lowest since November 2010, in the midst of the foreclosure crisis in America.

Compared with December 2021, home sales were down 34%.

Total sales of existing homes in 2022 were down 17.8% from the previous year. Last year, 5.03 million existing homes were sold, which is the lowest level since 2014.

The last time existing home sales dropped by this magnitude was in 2008.

Key details: The median price for an existing home fell to $366,900 in December, from $370,700 in November.

The number of homes on the market fell 13.4% to 970,000 units in December.

Expressed in terms of the months-supply metric, there was a 2.9-month supply of homes for sale in December, down from the previous month. Before the pandemic, a four- or five-month supply was more the norm.

Homes remained on the market for 26 days on average, up from 24 days in November. Pre-pandemic, the average time for homes to remain on the market was a month.

Sales of existing homes mostly fell across the country, led by the South, which saw a 2.2% drop. Sales were unchanged in the West.

All-cash transactions made up 28% of all transactions. About 31% of homes were sold to first-time home buyers, up from the previous month.

Big picture: Mortgage rates have moved lower, and many buyers are coming back to the real-estate market.

A small dip in rates prompted a 28% surge in mortgage demand earlier this week.

So with rates continuing to move downwards, sales may likely rebound in the next few months, breaking an 11-month losing streak.

But the market still has to figure out inventory, since there are so few homes for sale on the market.

What the realtors said: “We really need to begin to address this supply issue,” Lawrence Yun, chief economist at the National Association of Realtors said.

Yun said that overall, homeowners have enjoyed more in home price appreciation versus their 401k performance in the stock market.

What are they saying? Even though sales dropped considerably, “this result was somewhat better than expected,” Stephen Stanley, chief economist at Amherst Pierpont, wrote in a note.

And as rates move lower, that will “help to boost demand for homes generally,” Stanley added, “but it will also lessen the impact of homeowners being ‘trapped’ in their current locations.”

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3843 Souza Street, Eugene, OR 

Price: $359,900    Beds: 3    Baths: 2.0    SqFt: 1216

This well maintained single level home is located on a private drive in a quiet neighborhood. Vaulted ceilings & a gas fireplace in the living room. Spacious kitchen with ample counter space & cabinetry. Dining area with slider leads to the low main...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning! 

The Real Estate market in the Eugene and Springfield area ended 2022 with a loud thud! Home sales were down, pending sales were down, the number of homes active on the market for sale was down and the average home sales price was up. The interesting thing about our local market is that you can look at 2022 month by month and watch as the year progresses just how much the housing market here deteriorated as the year went along. This of course followed the path of rising interest rates and an ugly economy with roaring inflation. Will 2023 be any different? There is all kinds of speculation that the worst has passed us by and that 2023 will see mortgage interest rates flatten out and inflation will settle down. I certainly hope tht this is the case. It's anyones guess on where we actually go with the housing market in 2023. The Real Estate market is like any commodity market in that it has always had highs and lows and the market in between. Right now it is my guess that we are in the market in between. The direction we travel from here is uncertain, but people are continuing to purchase and sell homes and this will continue no matter which way the market moves. If you are wanting to purchase a home or sell a home in this market, it is not the time to trust your home purchase or sale to an inexperienced agent. I have been a Real Estate broker in the Eugene and Springfield area for 34 years. This is the third recessionary Real Estate market that I have helped home buyers and sellers navigate through. There is a difference in who you choose as your Real Estate agent! In this market, choosing the right agent can save you many thousands of dollars and protect you and your home investment. Here are the home sale statistics for Lane County for the month of December 2022.

New listings (175) decreased 27.1% from the 240 listed in December 2021, and decreased 31.1% from the 254 listed in November 2022.

Pending sales (197) decreased 32.1% from the 290 offers accepted in December 2021, and decreased 4.8% from the 207 offers accepted in November 2022.

Closed sales (234) decreased 43.5% from the 414 closings in December 2021, and decreased 9.3% from the 258 closings in November 2022.

Inventory and Market Time

Inventory decreased to 1.9 months in December. Total market time increased to 45 days.

Year-To-Date Summary

Comparing the twelve months of 2022 to the same period in 2021, new listings (5,384) decreased 8.0%, pending sales (4,982) decreased 3.8%, and closed sales (4,538) decreased 11.4%.

Average and Median Sale Prices

Comparing 2022 to 2021 through December, the average sale price has increased 9.2% from $435,300 to $475,400. In the same comparison, the median sale price has increased 9.3% from $399,000 to $436,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

91710 Burton Dr, McKenzie Bridge, OR 

Price: $629,900    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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

We are now into the second week of the New Year and the national housing market really remains on the same path as 2022. High inflation rates have created a situation where the Fed has needed to increase rates, which in turn has effected mortgage rates. The question that most would be home buyers are asking is, will this trend continue through 2023, or will inflation rates ease and mortgage rates begin to decline? Only time will tell. The signs are that the economy is beginning to slow even further with retail sales down, an increase in job losses, etc. This is exactly what could slow inflation. The wild card here is Federal spending. In order to truly control inflation, the governement needs to stop it's reckless spending habits, which would decrease the amont of money in circulation. The path for this has already been set for 2023 with a record high spending bill being passed. Both the state of the economy and inflation will have signigicant roles on the housing market is 2023. I certainly hope for the best with lower inflation, a decrease in government spending and lower mortgage rates, Time will tell! Here is an article from "Realtor.com" that goes over the current national mortgage situation.

The numbers: Mortgage rates rose in the first week of 2023, as mortgage applications sank to multi-decade lows.

The 30-year fixed-rate mortgage averaged 6.48% as of Jan. 5, according to data released by Freddie Mac on Thursday.

That’s up 6 basis points from the previous week—one basis point is equal to one hundredth of a percentage point.

Last week, the 30-year was at 6.42%. Last year, the 30-year was averaging at 3.22%

Rates are still far lower than they were a month ago, when the 30-year was averaging above 7%.

The average rate on the 15-year mortgage ticked back up to 5.73%.

If rates were to drop, the outlook for the mortgage market in 2023 will be bright, Freddie Mac noted.

“Homebuyers are waiting for rates to decrease more significantly, and when they do, a strong job market and a large demographic tailwind of millennial renters will provide support to the purchase market,” Sam Khater, chief economist at Freddie Mac, said in a statement.

“Moreover, if rates continue to decline, borrowers who purchased in the last year will have opportunities to refinance into lower rates,” he added.

Demand for mortgages has fallen to the lowest level since 1996, the Mortgage Bankers Association reported on Wednesday.

Khater expects inflationary pressures in the U.S. to ease, and rates to drop in 2023.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

91710 Burton Dr, McKenzie Bridge, OR 

Price: $649,900    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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning and Happy New Year!

Mortgage rates dipped slighly in December, but ticked up right before years end. The reality is that mortgage rates most likely have not peaked. How high will they go in 2023? This is a question that has much debate right now. My thought is that rates will continue to rise, but at a much slower pace than 2022. Even with home inventories low, home prices should decrease further to compensate for higher mortgage rates. As I have stated previously, the housing market we see right now may be the most advantageous market we see this year for both buyers and sellers. Here is a recent article that speaks to our current national housing market.

Mortgage rates notched their first weekly increase in six weeks just before the new year.

The average rate for a 30-year fixed-rate loan climbed to 6.42 percent from 6.27 percent, according to Freddie Mac data reported by Bloomberg. The figure closes out a year over which mortgage rates more than doubled, pricing out potential homebuyers and locking sellers in place.

Higher mortgage rates “remain a significant barrier to successfully closing transactions,” George Ratiu, head of economic research at Realtor.com, told Bloomberg.

As more buyers sit on the sidelines, homes are taking longer to sell. Inventory has risen as a result, but the population of available listings is still down from the pandemic-era housing market.

The number of properties for sale has risen 18 percent since last year, according to a recent report by Redfin, for the biggest gain since 2015. However, the brokerage reported home sales dropped 35.1 percent year-over-year in November — the largest drop since it began tracking sales in 2012.

The buyer of a median-priced home would pay about 60 percent more than last year due to higher borrowing rates, or about $2,100 a month without taxes or insurance, according to Ratiu.

Mortgage rates rose following an increase in 10-year treasury bond yields, which indicated more investors were seeking a safe store for their money. A key inflation metric showed earlier this month that consumers were paying six percent more than a year ago for goods and services.

The Federal Reserve is targeting an annual inflation rate of two percent, suggesting that its campaign to stem high prices and high wages with even higher interest rates is far from over.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4781 Treewood Ct, Florence, OR 

Price: $498,000    Beds: 2    Baths: 2.0    SqFt: 1552

Cozy coast retreat located minutes from Harbor Vista Park! Freshly painted & updated ranch style home with luxury vinyl flooring. Two master suites with private baths. Perfect for owner occupied or a coast investment property. Large sunroom leads to a fenced backyard with raised garden beds, small shop with electrical and tool shed. Kitchen has stainless steel appliances...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!