Eugene Oregon Real Estate Blog

Good Monday Morning!

One of the largest obstacles that home buyers have dealt with for several years is the lack of inventory of homes for sale. A typical healthy home sales market for both home buyers and sellers will have from 5 to 6 months of home inventory. We have not had anything close to that kind of inventory both locally and nationally for many years. A recent bright spot in both the local and national housing markets is that the inventory of homes has started to increase. The current inventory of homes for sale in Lane County now stands at 3.1 months, and this is the highest home inventory we have seen in over a year. Part of the issue with our local inventory is the lack of new homes on the market. A decade ago, Eugene alone would see the number of building permits issued be near a thousand per year. Last year it stood at just over 100 new home building permits. This level of new home construction cripples any housing market. Even without many new homes, our local home inventory could continue to climb. We can only hope that the recent trend continues. The following is a recent article from NAR that talks about the recent increase in homes for sale on a national scale.

As the spring thaw sets in, new housing momentum is “flashing encouraging signs” for the market, says NAR Chief Economist Lawrence Yun.

A notable uptick in housing inventory nationwide may be pulling the real estate market out of a long winter hibernation.

Total existing-home sales, which account for completed transactions for single-family homes, townhomes, condos and co-ops, rose 4.2% month over month in February, the National Association of REALTORS® reported Thursday.

“Home buyers are slowly entering the market,” even as mortgage rates and home prices appear frozen at elevated levels, says NAR Chief Economist Lawrence Yun. “More inventory and choices are releasing pent-up housing demand.” 

Existing-home inventory climbed 5.1% month over month in February and is up 17% from a year ago, NAR reports. Also adding to the housing supply, single-family construction rose 11.4% last month, reaching the highest pace in a year, the Commerce Department reports.

It was a frigid winter for the U.S., which helped soften foot traffic among home buyers. But as the spring thaw begins, “the momentum for home sales is flashing encouraging signs,” Yun adds.

Home Prices Remain Strong

The median price for an existing home increased 3.8% to $398,400 in February, NAR data shows. All four major regions of the U.S. recorded price gains last month, led by a 10.4% annual increase in the Northeast.

“Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners,” Yun says. “That means a gain of nearly $1.3 trillion in home value appreciation at a time when the stock market is undergoing a correction.”

He adds that the recent uptick in inventory shouldn’t dampen home prices. “The ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values,” Yun says.

Some home sellers may be leveraging their equity in the next home purchase. Cash sales comprised about a third of home sales in February, continuing to command a historically high share of the market. Individual investors and second-home buyers comprise a sizable portion of cash sales, purchasing 16% of homes in February, which is down from 21% a year ago, NAR reports.

Housing Affordability Headwinds Continue

With high home prices and mortgage rates in the mid-6% range, home buyers may need to dig deeper in their pockets to complete a home purchase. Despite affordability challenges, first-time home buyers comprised 31% of existing-home sales in February, up from 24% a year earlier, according to NAR. As housing inventory rises, so is the share of first-time home buyers.

Overall, buyer demand remains strong despite cost pressure. Twenty-one percent of homes sold above list price last month, according to the REALTORS® Confidence Index, which is based on NAR members’ most recent transactions. The average home on the market received 2.3 offers in February, and about 50% of agents say their listings sold in less than a month.

For buyers facing budget concerns, home builders are offering incentives to compete: Nearly 60% of builders in March used sales incentives, such as covering closing costs, design credits or mortgage-rate buydowns, the National Association of Home Builders reports. Also, 29% of builders cut their prices in March, with an average 5% price reduction.  

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2250 Turnberry Ct, Eugene, OR 

Price: $1,250,000    Beds: 5    Baths: 3.5    Sq Ft: 4053

Nestled in the highly desirable Oakway neighborhood of Eugene, Oregon, this beautifully updated single-family home offers the perfect blend of modern upgrades and timeless charm. Featuring an open floor plan with abundant natural light from expansiv... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Yes, mortgage loan rates have declined a bit, and it looks as if this is making a difference in the number of would-be home buyers jumping into the market. With rates in the mid-6% range, buyer interest is certainly picking up. We may be looking at some further rate decreases, but at this time my guess is that rates will remain near the current level for most of 2025. Here is a recent article from "NAR" that talks about the current market and mortgage rate changes.

Loan applications are on the rise as mortgage rates settle into the mid-6% range.

Mortgage rates are settling near the mid-6% range, tempting prospective home buyers, who are applying for mortgages in greater numbers.

Mortgage applications to purchase a home—a gauge of future homebuying activity—rose 7% in the latest week and are 4% higher than a year ago, the Mortgage Bankers Association reports.  

“Mortgage applications continue to rise as buyers capitalize on lower rates and increased [housing] inventory,” says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “The days on market have lengthened, allowing buyers to view homes and submit competitive offers. Inflation has also decreased this week, possibly making it a bit easier to save for a home.”  

Still, housing inventory remains tight, which means buyers are facing competition for properties. Bidding wars are still present, and the typical home seller received an average of 2.6 offers on their home last month, according to the REALTORS® Confidence Index.  

Greater Loan Options, Bigger Loans

Mortgage application activity for home purchases was up across all loan categories last week, says MBA Chief Economist Joel Kan. Government purchase applications posted an 11% increase, which Kan says was helped by the FHA loan rate dropping to 6.34%.  

But amid higher home prices, average loan sizes are climbing to new highs. The average purchase loan amount rose to $460,800—the highest ever recorded, according to MBA data.  

The 30-year fixed-rate mortgage averaged 6.65% this week, Freddie Mac reports. “Mortgage rates continue to be relatively low versus the last few months, and home buyers have responded,” says Sam Khater, Freddie Mac’s chief economist. “The combination of modestly lower mortgage rates and improving inventory is a positive sign for home buyers in this critical spring homebuying season.”

At this week’s average rate, the monthly mortgage payment would translate to $2,054 for a home priced at $400,000, assuming a 20% down payment, Lautz says. With a 10% down payment, the typical payment would be $2,311 per month.  

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

32568 Deberry Rd, Creswell, OR 

Price: $2,670,000    Beds: 4    Baths: 3.0    Sq Ft: 5433

Welcome to one of Lane County's finest estate homes! Every detail of this exquisite residence has been thoughtfully crafted to create an unparalleled living experience. Bathed in natural light, this unique home boasts soaring ceilings and premium ma... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

February saw what I would call a bit of a setback with home sales in the Eugene and Springfield area. All sales categories were down from February of 2024. This includes pending home sales. Pending home sales indicate current market conditions and also reflect on where home sales will be in the next month. When we see pending sales decline, it is a true indication of the current direction of both the current and coming home market. It would appear that the housing market in Eugene and Springfield may continue to be sluggish, and any recovery could remain months away. Here are the numbers for February 2024 home sales in Lane County.

New Listings

New listings (324) decreased 9.0% from the 356 listed in February 2024, and decreased 4.7% from the 340 listed in January 2025.

Pending Sales

Pending sales (286) decreased 14.6% from the 335 offers accepted in February 2024, and increased 0.7% from the 284 offers accepted in January 2025.

Closed Sales

Closed sales (221) decreased 7.1% from the 238 closings in February 2024, and decreased 4.7% from the 232 closings in January 2025.

Inventory and Time on Market

Inventory increased to 3.1 months in February. Total market time decreased to 68 days.

Year-to-Date Summary

Comparing the first two months of 2025 to the same period in 2024, new listings (668) increased 4.4%, pending sales (554) decreased 5.3%, and closed sales (457) increased 9.1%.

Average and Median Sale Prices

Comparing 2025 to 2024 through February, the average sale price has increased 0.9% from $466,100 to $470,400. In the same comparison, the median sale price has decreased 1.2% from $425,000 to $420,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2250 Turnberry Ct, Eugene, OR 

Price: $1,250,000    Beds: 5    Baths: 3.5    Sq Ft: 4053

Nestled in the highly desirable Oakway neighborhood of Eugene, Oregon, this beautifully updated single-family home offers the perfect blend of modern upgrades and timeless charm. Featuring an open floor plan with abundant natural light from expansiv... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Sales of previously owned homes slowed down in January amid higher mortgage rates, setting a disappointing tone for the start of the new year.

Existing-home sales dropped 4.9% last month from December, to a seasonally adjusted annual rate of 4.08 million, the National Association of Realtors® reported Friday. However, the January sales figure was up 2% from the same month a year earlier.

Home prices continued to rise on an annual basis, with the median sales price for all existing housing types at $396,900 in January, up 4.8% from one year ago.

Sales of previously owned homes slowed down in January amid higher mortgage rates, setting a disappointing tone for the start of the new year.

Existing-home sales dropped 4.9% last month from December, to a seasonally adjusted annual rate of 4.08 million, the National Association of Realtors® reported Friday. However, the January sales figure was up 2% from the same month a year earlier.

Home prices continued to rise on an annual basis, with the median sales price for all existing housing types at $396,900 in January, up 4.8% from one year ago.

Supply of homes for sale rises as spring approaches

The supply of previously owned homes for sale rose last month, sending a potentially friendly signal to buyers as the spring selling season approaches.

Total housing inventory for sale was 1.18 million units at the end of January, up 3.5% from December and 16.8% higher than one year ago. 

Unsold inventory sits at a 3.5-month supply at the current sales pace, up from 3.2 months in December and 3.0 months a year earlier.

“More housing supply allows strongly qualified buyers to enter the market,” Yun says. “But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners.”

Sales remain flat in Midwest, fall elsewhere

In January, existing home sales were unchanged from December at an annual rate of 1 million, up 5.3% from the previous year. The median home price in the Midwest was $290,400, up 7.2% from January 2024.

Sales fell in the other regions on a monthly basis, led by the West, where they slumped 7.4% in January to an annual rate of 750,000, up 1.4% from a year ago. The median price in the West was $614,200, up 7.4% from January 2024.

In the South, sales fell 6.2% from December to an annual rate of 1.83 million in January, identical to one year earlier. The median price in the South was $356,300, up 3.5% from last year.

In the Northeast, existing-home sales dropped 5.7% from December to 500,000 annualized, up 4.2% from January 2024. The median price in the Northeast was $475,400, up 9.5% from one year earlier.

Sales of previously owned homes slowed down in January amid higher mortgage rates, setting a disappointing tone for the start of the new year.

Existing-home sales dropped 4.9% last month from December, to a seasonally adjusted annual rate of 4.08 million, the National Association of Realtors® reported Friday. However, the January sales figure was up 2% from the same month a year earlier.

Home prices continued to rise on an annual basis, with the median sales price for all existing housing types at $396,900 in January, up 4.8% from one year ago.

Sales of previously owned homes slowed down in January amid higher mortgage rates, setting a disappointing tone for the start of the new year.

Existing-home sales dropped 4.9% last month from December, to a seasonally adjusted annual rate of 4.08 million, the National Association of Realtors® reported Friday. However, the January sales figure was up 2% from the same month a year earlier.

Home prices continued to rise on an annual basis, with the median sales price for all existing housing types at $396,900 in January, up 4.8% from one year ago.

Supply of homes for sale rises as spring approaches

The supply of previously owned homes for sale rose last month, sending a potentially friendly signal to buyers as the spring selling season approaches.

Total housing inventory for sale was 1.18 million units at the end of January, up 3.5% from December and 16.8% higher than one year ago. 

Unsold inventory sits at a 3.5-month supply at the current sales pace, up from 3.2 months in December and 3.0 months a year earlier.

“More housing supply allows strongly qualified buyers to enter the market,” Yun says. “But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners.”

Sales remain flat in Midwest, fall elsewhere

In January, existing home sales were unchanged from December at an annual rate of 1 million, up 5.3% from the previous year. The median home price in the Midwest was $290,400, up 7.2% from January 2024.

Sales fell in the other regions on a monthly basis, led by the West, where they slumped 7.4% in January to an annual rate of 750,000, up 1.4% from a year ago. The median price in the West was $614,200, up 7.4% from January 2024.

In the South, sales fell 6.2% from December to an annual rate of 1.83 million in January, identical to one year earlier. The median price in the South was $356,300, up 3.5% from last year.

In the Northeast, existing-home sales dropped 5.7% from December to 500,000 annualized, up 4.2% from January 2024. The median price in the Northeast was $475,400, up 9.5% from one year earlier.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2250 Turnberry Ct, Eugene, OR 

Price: $1,250,000    Beds: 5    Baths: 3.5    Sq Ft: 4053

Nestled in the highly desirable Oakway neighborhood of Eugene, Oregon, this beautifully updated single-family home offers the perfect blend of modern upgrades and timeless charm. Featuring an open floor plan with abundant natural light from expansiv... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The Real Estate market has certainly changed since the days of 2.5% mortgage interest rates and multiple offers within hours of a home hitting the market for sale. We are now back to what I would call a more normal market. With this new market we find ourselves in, homeowners who wish to sell their homes need to be much more aggressive with their approach to selling if they want to sell their home in the shortest number of days and for top market value. The following is an article I ran across in US News that will give anyone who is considering the sale of their home some excellent advice on how to achieve a successful sale and maximize the amount of money they make on that sale.

If you want to sell your home fast and for the right price, avoid these pitfalls.

Be sure to learn about the tried-and-true practices before selling your house.

Key Takeaways 

• The housing market is cooling in many areas of the country, and it could take weeks or months to sell a home.

• Using a real estate agent can ensure that your home is priced and marketed appropriately.

• Homeowners should declutter and remove personal items from a home so potential buyers can better envision themselves living there.

• Selling a home is a business deal, and homeowners should avoid becoming emotional during the process.

After years of bidding wars and surging prices, the U.S. housing market seems to be cooling. As of the end of January 2025, homes were selling at their slowest pace in five years, according to real estate brokerage firm Redfin. The company notes that it takes the typical home almost two months to go under contract now.

If you are selling a house, the process can become more difficult if you ignore the tried-and-true practices that have helped home sellers in the past.

That includes pricing the home correctly and having it properly prepared to go on the market, says Molly Gallagher, real estate agent and partner of the Falk Ruvin Gallagher Team, part of real estate brokerage Keller Williams Milwaukee North Shore in Wisconsin.

Be sure to learn about the tried-and-true practices before selling your house.

Here are 12 home selling mistakes to avoid:

1. Working alone

2. Waiting to sell

3. Pricing too high

4. Selling as-is

5. Keeping clutter

6. Not depersonalizing

7. Skipping major repairs

8. Cutting costs on photography

9. Hiding problems

10. Being unavailable

11. Being unwilling to negotiate

12. Letting your emotions get the best of you

1. Working Alone

Selling a house yourself may seem like an easy way to avoid paying commissions, but you'll miss out on a real estate agent's market knowledge, contacts, and help with the process. Unless you have a real estate license or are planning to find an iBuyer, a real estate agent is key to a successful – and less stressful – home sale. For-sale-by-owner properties tend to sell for a lower price overall. According to the National Association of Realtors' 2024 Profile of Home Buyers and Sellers, FSBO homes sold at a median price of $380,000 compared to a median sale price of $435,000 for properties that sold with the assistance of an agent. If you're looking to sell your home for its full market value, professional insight is more likely to get you there.

2. Waiting to Sell

Spring and early fall are often hailed as the best times to sell a house, but that doesn't mean you should wait months to put your home on the market. While December and August see the fewest sales, homes still sell every month of the year, says Anne DuBray, a real estate broker with Coldwell Banker Realty in Glenview, Illinois. In fact, February is the best month to put your property on the market, DuBray says – even in places that see long, cold winters like Chicago and Milwaukee. "People are less distracted in that month than every other month of the year," according to DuBray.

3. Pricing Too High

You want to sell your house for top dollar, but be realistic about the value of the property and how buyers will see it. If you've overpriced your home, chances are you'll eventually need to lower the number, but the peak period of activity that a new listing experiences is already gone. "Time will kill you," DuBray says. "You still think you're going to get showings and showings (as time goes on), and you just don't." For that reason, it's important that your real estate agent be honest with you about what your home will sell for, based on the recent sales of similar homes in the area.

4. Selling As-Is

Unless you're planning to sell your house to an investor who will flip the property, selling your house "as is" won't yield the highest possible sale price. Today's homebuyers expect move-in ready conditions and want to see a blank slate that allows them to picture themselves living in the home. That means you'll need to update appliances, paint walls neutral colors such as gray or khaki, and remove old carpeting.

5. Keeping Clutter

It's tough to remove belongings while you're still living in your house, but presenting each room and space in its best light means you'll need to declutter in more ways than one. Get rid of items you don't need anymore, but also remove oversized couches and other large furniture that dwarfs the room. Also clear out closets so they don't look overcrowded and put away decor that displays too much personal detail. "Just because you see any empty surface doesn't mean you have to have something there. Give the eyes a moment to rest," wrote Jessica Harris, an interior designer and manager of production design at furniture retailer Living Spaces, based in Southern California, in an email.

6. Not Depersonalizing

While removing personal decor choices is part of decluttering, it's also important to neutralize your house so the buyer doesn't immediately think of the people who currently live in it. "Remember to remove personal photos, memorable items, and more from the home," Harris says. "You want the potential buyers to envision it's their home, not yours. If it's something you question, go with your gut. Think simple, clean, and refreshing." That goes for your personal design tastes as well. Busy wallpaper, bright colors and trendy furniture can look amazing in your home, but buyers won't be able to look past them and consider the space first.

7. Skipping Major Repairs

Pulling up carpeting and painting the walls are relatively easy tasks, but you'll want to fix major issues as well. Cracks in the foundation or replacing the roof are expensive fixes that you may be wary of taking on, especially when you won't likely recoup the entire cost in the sale. But you're better off fixing these issues now rather than having the buyer ask for a credit at closing to cover the cost of the repair later. This way, you have more say over who does the job and the total cost of the repair. Plus, newly replaced features become a selling point once the property is listed. Gallagher says replacing the roof before listing your home can be cheaper than the cost a buyer would subtract from an offer. "You're likely to get that (cost back) in the sale price if you do the new roof," Gallagher says.

8. Cutting Costs on Photography

The first way many buyers see your property is by viewing photos of the house online, so don't make them cross your house off their list before they've even visited. Most real estate agents include professional photography in their marketing budget. Even if you can't get a professional, make sure all photos give the buyer an idea of the size of the rooms. Also make sure photos are well-lit and keep you out of the frame in any reflections.

9. Hiding Problems

If there are problems with the property you can't afford to repair before putting it on the market, you have to be honest about them – even if they're not visible to the naked eye. Sellers are required to note recent repairs, problems, and updates in the seller's disclosure. "All those things are going to come up in the inspection," Gallagher says, adding that it's best for everyone to know in advance rather than let the buyer have second thoughts after reading the inspection report. Even if the inspection doesn't catch a leak or structural issue, should the buyer be able to prove your knowledge of it later, you could face a lawsuit.

10. Being Unavailable

When your house is on the market, showing it should be your priority. That means if a buyer calls to tour the house, you need to be able to leave it in pristine condition quickly. Even on holidays, an interested buyer is likely serious about making an offer, and you shouldn't refuse a showing. So while you're trying to sell your house, aim to hold Thanksgiving or other holiday celebrations elsewhere.

11. Being Unwilling to Negotiate

If you've received an offer for your house that isn't quite what you'd hoped it would be, expect to negotiate. While you'll naturally feel your asking price is more than fair, the only way to come to a successful deal is to make sure the buyer also feels like he or she benefits. If you would like to see the sale price come up, consider offering to cover some of the buyer's closing costs or agreeing to a credit for a minor repair the inspector found.

12. Letting Your Emotions Get the Best of You

It's natural to have some emotional attachment to your house after living in it for years and celebrating milestones, holidays, and accomplishments with your family and friends there. But you have to view selling your house as a business deal. A low offer is not a personal affront but a start that can either be negotiated up or declined. Plans to renovate part of your house are not an insult to your taste but a difference in preferences. The more you can approach the sale of your house as a business deal, the better off you'll be to make the transaction as smooth as possible.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3285 Redwood Dr, Springfield, OR 

Price: $429,000    Beds: 3    Baths: 2.0    Sq Ft: 1494

The beautiful one-level home includes 2 separate & spacious living spaces with vaulted ceilings, exposed beams, large windows, and French doors leading to the backyard. The open concept kitchen includes all appliances, eating bar, and ample cabinetr... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The month of January saw some new life come into the Eugene and Springfield area housing market. The number of new homes hitting the market increased substantially from December of 2024. Home sales improved, as well as pending home sales. Home prices decreased slightly, which is a good thing as mortgage interest rates did not change much and remain at near 7%. Positive news with home sales in January may be a good signal for the 2025 housing market. The following are the home sales numbers for Lane County for the month of January 2025.

New Listings

New listings (340) increased 20.1% from the 283 listed in January 2024, and increased 75.3% from the 194 listed in December 2024.

Pending Sales

Pending sales (284) increased 10.1% from the 258 offers accepted in January 2024, and increased 9.2% from the 260 offers accepted in December 2024.

Closed Sales

Closed sales (232) increased 34.1% from the 173 closings in January 2024, and decreased 9.7% from the 257 closings in December 2024.

Inventory and Time on Market

Inventory increased to 2.8 months in January. Total market time increased to 76 days.

Year-to-Date Summary

Comparing the first month of 2025 to the same period in 2024, new listings (340) increased 20.1%, pending sales (284) increased 10.1%, and closed sales (232) increased 34.1%.

Average and Median Sale Prices

Comparing 2025 to 2024 through January, the average sale price has increased 4.8% from $460,800 to $482,900. In the same comparison, the median sale price has decreased 1.6% from $415,000 to $408,500.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4310 Hyacinth St, Eugene, OR 

Price: $749,000    Beds: 4    Baths: 3.0    Sq Ft: 2740

Nestled in a quiet, conveniently located cul-de-sac, this beautifully maintained two-story home offers the perfect blend of modern updates and serene surroundings. Step inside to find beautiful hardwood floors, a spacious living room, large family r... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Are higher interest rates here to stay? To some extent, I believe they are. We may never see mortgage interest rates at 2.5% again. That's not all bad, though. Low mortgage interest rates to that extent have long-term issues. What we may see is rates decline from the 7% range and hopefully settle in at around 5.5% or maybe slightly lower. But for now, buyers seem to be settling in on the rates in the high 6% to 7% range. The national housing market seems to be breathing some life again, despite rates. The following is an article that talks about recent consumer trends with the mortgage interest rates.

Mortgage shoppers and hopeful homebuyers are getting no relief on borrowing costs at the beginning of the year, with mortgage rates shooting past the 7% mark and hitting their highest point since May.

But with the pandemic-era days of rock-bottom interest rates fading into distant memory, consumers may no longer be as easily deterred by climbing mortgage rates as they were in 2022, according to a brokerage CEO who says current costs are nothing new for many buyers.

Darren Copeland (pictured top), founder of Summit Lending, told Mortgage Professional America the mortgage industry had been battling that rate problem for two years – and many prospective homebuyers aren’t viewing rate spikes with the same dismay as before.

What’s more, many are moving ahead with their purchase if they’re able to, in the expectation of a potential refinance down the line when rates finally tick lower.

“I think people are getting used to it,” he said. “One of the things that we’re doing is having that discussion with them to make sure that they’re in the right spot and that they get a really good deal. But then we’re also moving forward what we’re already coaching them on, the future refi – so that when the rates do go down, eventually, whatever that timeline is, we’ll come back in.

“We’ll… tell people ‘Hey, we’ll watch the market for you. And we’ll hook you up on the refi,’ just to continue the good vibe to make sure you’re taking care of your database.”

Is housing set to turn the corner on the supply front?

Existing-home sales slid to their lowest level since August 2010 last month, hitting a seasonally adjusted annual pace of 3.78 million units, but the National Association of Realtors (NAR) – which released the data – indicated a turning point for the market could be imminent.

“The latest month’s sales look to be the bottom before inevitably turning higher in the new year,” Lawrence Yun, chief economist at the NAR, said, with a burst of supply hitting the market likely to spur growth in the months ahead. Buyers are increasingly conscious of the potential for a market uptick down the line, according to Copeland. “The challenge is if people sit around and they’re playing the rate game and waiting for rates to fall. Let’s say rates fall into the fives,” he said. “Now you’re going to have everyone coming out of the woodwork that wants to buy houses.

“So you’re overbidding $40,000, $50,000, $60,000 on a house. Whereas if you just bought the house now at 7% and in six months, let’s say the rates go down – instead of you overpaying for that house, now what you’re doing is a simple refi. Now you’re just saving money and everyone out there is fighting for the inventory.”

New buyers stay optimistic despite rates spiraling upwards

First-time buyers are facing especially steep challenges because of those affordability hurdles – but Copeland pointed to a relatively promising outlook for that buyer cohort in his market around the Kansas/Missouri border, even though those that can afford a property may not be able to get all the house they want for what they’re able to pay.

That’s still often preferable to renting. “With the way the rents have increased over the past few years, a first-time homebuyer payment versus rent is going to be very similar,” Copeland pointed out.

“One of the challenges is they forget that their parents had the starter home – the first step-up home. So these kids want to go straight to the type of house their parents have right now. They don’t want to take a step back and buy a first-time homebuyer house which is probably not as nice as what they grew up in.” Unsurprisingly, with prospects better for new buyers in that region than pricier parts of the country, plenty of first-time entrants to the market are turning their attention to a purchase in Kansas or Missouri. “Let’s say the rate is 7% or whatever it is,” Copeland said. “The payment on that compared to a house that they would get in New Jersey or California – it’s just crazy. It’s a whole different realm.”

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

32568 Deberry Rd, Creswell, OR 

Price: $2,770,000    Beds: 4    Baths: 3.0    Sq Ft: 5433

Welcome to one of Lane County's finest estate homes! Every detail of this exquisite residence has been thoughtfully crafted to create an unparalleled living experience. Bathed in natural light, this unique home boasts soaring ceilings and premium ma... View this property >> 

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There is some good news in the national housing industry. Home sales were up in December of 2024. This is even with mortgage interest rates climbing a bit. If we see the same trend in January of 2025, there will be some optimism for a continued improving housing market. Here is a recent article from "NAR".

WASHINGTON (January 24, 2025) – Existing-home sales climbed in December, according to the National Association of REALTORS®. Sales advanced in three major U.S. regions and slipped in the Midwest. Year-over-year, sales accelerated in all four regions.

On an annual basis, existing-home sales (4.06 million) declined to the lowest level since 1995, while the median price reached a record high of $407,500 in 2024.

Total existing-home sales¹ – completed transactions that include single-family homes, townhomes, condominiums and co-ops – elevated 2.2% from November to a seasonally adjusted annual rate of 4.24 million in December. Year-over-year, sales swelled 9.3% (up from 3.88 million in December 2023).

"Home sales in the final months of the year showed solid recovery despite elevated mortgage rates," said NAR Chief Economist Lawrence Yun. "Home sales during the winter are typically softer than the spring and summer, but momentum is rising with sales climbing year-over-year for three straight months. Consumers clearly understand the long-term benefits of homeownership. Job and wage gains, along with increased inventory, are positively impacting the market."

Total housing inventory² registered at the end of December was 1.15 million units, down 13.5% from November but up 16.2% from one year ago (990,000). Unsold inventory sits at a 3.3-month supply at the current sales pace, down from 3.8 months in November but up from 3.1 months in December 2023.

The median existing-home price³ for all housing types in December was $404,400, up 6.0% from one year ago ($381,400). All four U.S. regions posted price increases.

"The median home price was elevated partly due to the upper-end market’s relative better performance," Yun added. “Sales rose by 35% from a year ago for homes priced above $1 million, while sales fell for homes priced under $250,000.”

REALTORS® Confidence Index

According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 35 days in December, up from 32 days in November and 29 days in December 2023.

First-time buyers were responsible for 31% of sales in December, up from 30% in November 2024 and 29% in December 2023. NAR’s 2024 Profile of Home Buyers and Sellers – released November 2024⁴ – found that the annual share of first-time buyers was 24%, the lowest ever recorded.

Cash sales accounted for 28% of transactions in December, up from 25% in November but down from 29% in December 2023.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in December, up from 13% in November and identical to December 2023.

Distressed sales⁵ – foreclosures and short sales – represented 2% of sales in December, unchanged from November and the previous year.

Mortgage Rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.96% as of January 23. That’s down from 7.04% one week ago but up from 6.69% one year ago.

Single-family and Condo/Co-op Sales

Single-family home sales moved higher by 1.9% to a seasonally adjusted annual rate of 3.83 million in December, up 10.1% from the prior year. The median existing single-family home price was $409,300 in December, up 6.1% from December 2023.
Existing condominium and co-op sales increased 5.1% in December to a seasonally adjusted annual rate of 410,000 units, up 2.5% from one year ago (400,000). The median existing condo price was $359,000 in December, up 4.5% from the previous year ($343,500).

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

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Price: $315,000    Beds: 3    Baths: 1.0    Sq Ft: 894

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Good Monday Morning!

December of 2024 saw some slight improvements in the Lane County housing market. Overall, 2024 also saw a slight market improvement over 2023. However, the part of the housing market that has not improved is the inventory of homes on the market for sale. December 2024 saw 2.5 months of inventory, which is very low. Remember, a healthy market would see 4.5 to 6 months of inventory. The fact that home sales have improved in December may be a good sign that the housing market is going to improve in 2025. December saw a 20% increase in pending home sales nationally, which is also a very good sign. The first quarter of 2025 may tell the story of what the remainder of the year will look like. The following are the home sales numbers for Lane County in December of 2024.

New Listings

New listings (194) increased 9.6% from the 177 listed in December 2023, and decreased 20.8% from the 245 listed in November 2024.

Pending Sales

Pending sales (260) increased 25.0% from the 208 offers accepted in December 2023, and decreased 6.8% from the 279 offers accepted in November 2024.

Closed Sales

Closed sales (257) increased 19.5% from the 215 closings in December 2023, and decreased 9.2% from the 283 closings in November 2024.

Inventory and Time on Market

Inventory decreased to 2.5 months in December. Total market time increased to 72 days.

Year-to-Date Summary

Comparing the twelve months of 2024 to the same period in 2023, new listings (4,878) increased 3.0%, pending sales (3,811) increased 5.5%, and closed sales (3,699) increased 3.9%.

Average and Median Sale Prices

Comparing 2024 to 2023 through December, the average sale price has increased 1.3% from $470,600 to $476,700. In the same comparison, the median sale price has increased 1.6% from $432,900 to $440,000.

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THIS WEEKS HOT HOME LISTING!

32568 Deberry Rd, Creswell, OR 

Price: $2,895,000    Beds: 4    Baths: 3.0    Sq Ft: 5433

Welcome to one of Lane County's finest estate homes! Every detail of this exquisite residence has been thoughtfully crafted to create an unparalleled living experience. Bathed in natural light, this unique home boasts soaring ceilings and premium ma... View this property >> 

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Good Monday Morning!

The United States housing market has been plagued with an extremely low inventory of homes for sale for several years. Much of this situation has been caused by the rise in mortgage interest rates. As a nation, homeowners were spoiled for years with mortgage interest rates on their current homes that ranged from 2.5% to 3.5%. The inventory issue has been primarily created by homeowners reluctance to abandon these exceptionally low interest rates and move to another home purchase with rates that may be double or more than their interest rate on a current home. This lack of inventory has added to the rise in home prices and helped make homeownership a tough proposition for many would-be buyers. The following is a recent article from "Realtor.com" that talks about this issue and what may be coming our way with the national housing market.

The U.S. housing market crawled to a standstill last year—and while the latest projections show that 2025 is expected to bring only limited relief to buyers and sellers, there is a glimmer of hope on the horizon.

The year closed out with the strongest seasonal slump since January 2023. Homes lingered on the market for a whopping 70 days, up from 62 in November. It made December 2024 the slowest festive season in five years.

Inventory also plummeted 8.6% from November, marking the most precipitous drop in nearly two years.

Meanwhile, mortgage rates reached a six-month high, hitting 6.91% for the average 30-year fixed home loan for the week ending Jan. 2, according to the latest numbers from Freddie Mac.

On top of that, in mid-December, the Federal Reserve announced a plan for fewer-than-anticipated rate cuts in 2025, which was expected to have a chilling effect on the already catatonic market.

The Realtor.com® economic research team projects that mortgage rates will average 6.3% through 2025 and end 2024 at around 6.2%, dashing any hopes for a return to the COVID-19 pandemic-era below-3% rate.

The ‘lock-in’ effect still grips homeowners

The projected above-6% mortgage rate for the duration of 2025 is bad news not only for prospective buyers, but also for would-be sellers, who have spent the past year in the grips of the “lock-in” effect, which has made them unwilling to list their properties and part with their current, significantly lower mortgage rates.

A report from the Consumer Financial Protection Bureau released back in September revealed that about 60% of the 50.8 million active mortgages had interest rates below 4%, way lower than the December rate of 6.91%. 

Homeowners fortunate enough to be paying off their mortgage at the below-4% rate would think twice before moving to sell their home and then be forced to take out a new mortgage at a much higher rate.

“We expect the willingness of homeowners to sell their existing home and buy a new one to wane,” says Realtor.com Chief Economist Danielle Hale. “Put simply, potential home sellers and the market in general will still feel the effects of mortgage rate lock-in, which is more acute when rates are higher.”

But there are glimmers of hope on the horizon.

Hale says that while the first months of 2025 will see only a small increase in home stock, at least in part because of the lock-in effect’s persistent hold on homeowners, come spring, the inventory levels are projected to climb, even above the typical seasonal boost. She also projects that they will remain high throughout much of the summer. 

“Time will continue to be an important healer of mortgage rate lock, with only modest help from lower rates expected in 2025,” Hale explains. “Even in today’s tough housing market, life happens and some households move, buying and selling in whatever conditions the market offers.”

Home prices are set to rise

Last year saw home prices surge at a 4% rate, up from 1.1% in 2023, despite the stubbornly high mortgage rate and a glut of inventory driven by unmotivated buyers and sellers. 

The median home price in December inched down by 1.8% year over year, arriving at $402,502, after peaking at $406,100 in November. But there is more to those numbers than meets the eye.  

When the size of the listed properties is taken into account, the average home has increased in asking price per square foot by 1.3% compared with the same time in 2023. That signals that the stock of smaller and cheaper homes continues to grow in share. 

Realtor.com economists expect to see more of the same in the coming months, with home prices projected to go up throughout 2025 at a rate of 3.7%, spurred on by a combination of marginally lower mortgage rates and an 11.7% jump in existing for-sale inventory compared with last year.

“We think the downward pressure on price growth due to this supply-side effect will slightly win out over the upward pressure on price growth due to falling mortgage rates next year (at least compared to the relative balance this year),” says Hale.

But another factor to keep in mind is that there are still not enough homes being constructed in the U.S. to keep up with the growing demand for housing due to more than a decade of under-building, which is bound to drive the price of existing properties up.

According to a Realtor.com analysis released last February, the market in 2023 was missing up to 7.2 million homes.

Older, richer homebuyers are still in charge

The National Association of Realtors® 2024 Homebuyers and Sellers Report revealed that buyers over the past year tended to be older and wealthier than in the past. The median age of homebuyers was 56, up 7 years compared with 2023. The median age of first-time, repeat, and all buyers each reached record highs. 

This should come as no surprise, considering that the median listing price topped $402,000 in December, up an eye-watering 68% compared with November 2019, when the median home price hovered around $274,000, according to the NAR report. 

Meanwhile, just 24% of homebuyers last year were first-time buyers, a record low in the data’s 44-year history, says Realtor.com senior economic research analyst Hannah Jones. 

This trend favoring older and more deep-pocketed house hunters is expected to carry into the new year.

“It is likely that repeat buyers and older buyers will continue to participate in the housing market as a larger share than younger and first-time buyers in 2025,” adds Jones. “Still-expensive housing will make it challenging for younger buyers, especially those without the benefit of existing home equity, to break into the market.”

Housing marketing anticipates a ‘Trump bump’

With President-elect Donald Trump‘s inauguration for a second term just around the corner, Realtor.com economists anticipate potentially major shifts to the housing market, running the gamut from an easing of regulations to tax policy changes and even a wholesale recalibration of the supply-and-demand dynamics.

Trump’s first term in the White House was marked by tax cuts, deregulation, and adoption of pro-business policies aimed at boosting economic growth.

“Many of these initiatives could return in a Trump-led 2025, potentially affecting everything from mortgage rates to new construction projects and homeownership affordability,” says Hale.

But the anticipated “Trump bump” effect could be tempered by economic factors that are out of a president’s control, such as interest rates, inflation, and changing demographic trends.

What’s more, it remains to be seen whether Trump’s raft of campaign proposals to mitigate the crippling housing shortage—by making federal land available for homebuilding to boost supply, ease regulations, and tackle inflation—would go from mere stump-speech promises to actionable policies, and how quickly.

Mortgage rates just north of 6% are expected to keep payments essentially static in 2025 despite growing listing prices. But an anticipated higher economic growth under Trump could lead to a bump in incomes. And if effective household tax rates go down, people could see a net increase in their disposable household income. 

“If both income growth and lower tax rates come to fruition, we could see homes become somewhat more affordable in 2025 than in the past few years,” Hale notes.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

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Price: $117,500    Acres: 0.23    

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