Good Monday Morning!

It is very easy to see that we are in the midst of a major change in the housing market, both here locally in the Eugene and Springfield area and across the nation. You can see more "For Sale" signs up, the signs remaining up for much longer, price reductions on homes for sale and just less buyer interest. Homes that would have gone on the market two months ago and had multiple offers and sold in just a few days are now sitting. This is the beginning of what I beleive will be a major shift in the national housing market. A shift that is now just in it's infancy. Many economists predict that in certain markets, home prices could decline as mcuh as 20%. Why is this happening when we have a huge shortage of houses both locally and nationally. Inflation is the primary culprit. With inflation rates of over 8% for months now, everything is costing more. The Feds only tool against rising inflation is to raise interest rates. This has a direct effect of mortgage rates.  In the Spring of this year, we saw mortgage interest rates as low as 2.5%. Now mortgage rates have doubled that. You take higher mortgage rates and throw that into a housing market with inflated home prices and housing affordability suddenly goes out the window. All is not lost yet. Inflation needs to be brought under control. If this happens, then we will see the stabilizing of the housing market with home affordability returning. The problem is that if the government continues to put the cap on energy production, continues out of control spending and continues its current economic policies, inflation will continue to roar and the national housing market will continue its downward trend. The next several months may tell the story as to where we are heading as a nation with our housing market.

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!!