Eugene Oregon Real Estate Blog

Good Monday Morning!

Will 2025 bring in an improved housing market with greater affordability for buyers? The economists at the National Association of Realtors believe that this will take place. They are forecasting an improved housing market with slightly lower mortgage interest rates, slower gains with home prices, and a larger inventory of homes. If the past is repeated, our nation does not climb out of a housing crisis quickly. We have always had slow but steady improvements. If NAR economists are correct, it looks like this trend will repeat, and that is great news for homeowners and would-be home buyers as well. Here is the recent NAR report.

The housing market could open up more opportunities to home buyers in the new year and lead to a housing rebound after two years of sluggish sales, housing economists said on Thursday during the National Association of REALTORS®’ Real Estate Forecast Summit. During the virtual summit, NAR released its 2025 housing forecast, predicting stronger home sales (rebounding after hitting a 15-year low this summer), moderating but still increasing home prices, a greater number of homes coming up For Sale—both newly built and existing—as well as stabilizing mortgage rates.

“Home buyers will have more success next year,” said Lawrence Yun, NAR’s chief economist. “The worst of the affordability challenges are over as more inventory, stable mortgage rates and continued job and incoming growth pave the way for more Americans to achieve homeownership.” NAR research shows that if mortgage rates fall to 6%—as NAR predicts they likely will in 2025—homeownership could be made more affordable to about 6.2 million more prospective buyers than when rates were near 7%.

Already, some early signs are popping up that more home buyers are re-emerging: Sales activity picked up this fall as mortgage rates began to slightly ease from multi-decade highs that surpassed 7% to a drop in the mid to upper 6% ranges.

“I’m optimistic about the spring of 2025—all the factors are lining up that we could really see increases … with the increase in inventory really being one to focus on,” said Michael Frantantoni, chief economist at the Mortgage Bankers Association.

Snapshot of Housing Market Outlook for 2025 and Beyond

Existing-Home Sales

• · 2025: +7% to 12%
• · 2026: +10% to 15%

New Home Sales

• · 2025: +11%
• · 2026: +8%

Median Home Price

• · 2025: +2% ($410,700)
• · 2026: +2% ($420,000)

Mortgage Rates

• · 2025: Near 6%
• · 2026: Near 6%

Job Gains

• · 2025: Near 2 million
• · 2026: Near 2 million

More Listings, But Is It Enough?

Housing inventories have been making sizable gains, with listings up about 20% annually in October. Economists predict that the upswing will continue in 2025 as more homeowners—who may have delayed selling—finally get more motivated, due to stabilizing mortgage rates and improving market conditions. 

“I’m most optimistic about the growing inventory,” said Danielle Hale, chief economist for realtor.com®. “That’s going to make the market better not just for buyers but also sellers—many of whom turn around and become buyers, too. Sellers will still be in a good position with home prices expected to go up but that improving market balance should help to facilitate more transactions … A housing market that is better balanced works better for everyone.”

The expected increase in listings also likely will come from an increase in new home construction, which NAR projects to reach the historical annual average of 1.5 million units over the next couple of years. 

More than half of single-family home construction is occurring in the South, said Robert Dietz, chief economist of the National Association of Home Builders. Also, builders—still facing lot shortages nationwide—continue to focus on new-home construction in the exurbs and outer suburbs, a lasting shift that occurred during the pandemic. 

About two-thirds of builders are using sales incentives to attract buyers, including mortgage rate buydowns and amenity upgrades, Dietz said. “Any frustrated home buyer who is unable to find what they’re looking for in the [resale market] should shop for a new home to see if the upgrades and amenities” and incentives could make homeownership more attractive, he said. He also noted an uptick in lower-cost projects, like townhome construction, which grew by 6% in 2023, that could offer more affordable and entry-level homes.

Mortgage Rates Set a New Normal as ‘Lock-in Effect’ Lessens

NAR is anticipating mortgage rates to moderate, hovering near 6% in both 2025 and 2026. That may prompt more prospective home buyers to finally give up on the return of ultra-low rates in the 2% and 3% range from the pandemic. “The new normal for mortgage rates will be around 6%,” Yun said. “By historical standards … it’s still below the long-term average of 7%.” 

Hale said realtor.com® research shows that 84% of homeowners have a mortgage rate under 6% and that likely will fall to 75% by the end of 2025. “The lock-in effect is likely waning … and will be less impactful for the housing market,” she said. Life changes—marriages, growing families, job changes, retirements, deaths and more—may take precedence over keeping a lower mortgage rate, Yun said. 

Echoing that sentiment, Frantantoni expects a shift to more “repeat home buyers” in the marketplace. “They have the equity to fuel those purchases,” he said, adding that first-time home buyers likely will continue to face affordability challenges. MBA predicts a 20% growth in mortgage originations from 2024 to 2025, coming off low volume levels and based on projections that home sales will increase in the new year. 

Home Prices Still Increasing But on a Smaller Scale

Home prices are expected to continue to rise, albeit at a slower pace than in previous years. NAR predicts a 2% increase next year, reaching a $410,700 median existing-home price. 

After years of appreciation, homeowners have accumulated record-high amounts of equity in real estate. That has put homeowners’ median net worth surging above renters’—projected in 2024 to be $415,000 median net worth for homeowners versus $10,000 for renters, Yun said. About one-third of repeat home buyers are leveraging the equity from a home to pay all cash on their next purchase, a growing portion that is also part of the record high of all-cash buyerswho dominated the 2024 market, at 26%, said Jessica Lautz, NAR’s deputy chief economist.

“The housing market has been working really [favorably] for existing homeowners, but it has been more of a challenge for others to break into,” Hale said, noting the affordability challenges of first-time home buyers (whose market share fell to a record low of 24% in the 2024 housing market). “But with home prices going up at a slower pace … affordability likely will marginally improve,” she added, along with income gains and an increase in new-home construction and housing inventory that can help more home buyers move ahead in the new year.

Some housing markets are expected to rebound faster than others in 2025. Find out which ones: NAR unveils its Top 10 Housing Hot Spots for 2025.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4620 Wendover St, Eugene, OR 

Price: $625,000    Beds: 3    Baths: 3.0    Sq Ft: 2086

Welcome to this fantastic Santa Clara home located in a quiet neighborhood! This home features 3 bedrooms plus an office, 3 full bathrooms & and an upstairs bonus room. The vaulted front porch has been accented with cedar and offers a comfortable se... View this property >> 

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Good Monday Morning!

There are no major changes within the Eugene and Springfield area Real Estate market. Our local market remains fairly flat with some ups and downs but remains a strong sellers market with a very low inventory of homes on the market. Mortgage interest rates have improved some but continue to hover in that area of 6.5% to 7% for 30 year conventional financing. The price of homes for sale continues to increase, as it has for a long time now.  This trend is somewhat alarming because it continues to make homes in our area less affordable. For this current market to improve significantly, we need affordable homes. The cost of home ownership continues to be far too high for many. This is especially true for first-time home buyers. We are hoping for the home affordability issue to begin improving next year. Here are the home sales numbers for Lane County in November of 2024.

New Listings

New listings (245) decreased 21.7% from the 313 listed in November 2023, and decreased 38.8% from the 400 listed in October 2024.

Pending Sales

Pending sales (279) increased 18.2% from the 236 offers accepted in November 2023, and decreased 16.7% from the 335 offers accepted in October 2024.

Closed Sales

Closed sales (283) increased 14.6% from the 247 closings in November 2023, and decreased 6.9% from the 304 closings in October 2024.

Inventory and Time on Market

Inventory decreased to 2.9 months in November. Total market time increased to 61 days.

Year-to-Date Summary

Comparing the first eleven months of 2024 to the same period in 2023, new listings (4,669) increased 2.7%, pending sales (3,574) increased 4.5%, and closed sales (3,420) increased 2.7%.

Average and Median Sale Prices

Comparing 2024 to 2023 through November, the average sale price has increased 0.4% from $473,600 to $475,500. In the same comparison, the median sale price has increased 1.1% from $435,000 to $440,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

5369 Olympic Cir, Eugene, OR 

Price: $365,000    Beds: 3    Baths: 2.0    Sq Ft: 1646

Excellent location with completely fenced backyard and corner lot. Open floor plan with high vaulted ceilings. Large Primary Bedroom with spacious master bath and soaking tub. Spacious and open kitchen with island. Beautifully landscaped with gated... View this property >> 

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Good Monday Morning!

There is some positive news with home sales nationally. Pending home sales, which are used as a measure of trends with home purchases, have increased nationally. Of course, this could just be a temporary blip, but if this trend continues into December and we start to see an increase in home sales, it could signal a potential upturn in the national housing market. The following is a recent article from "Realtor.com".

– Pending home sales ascended in October – the third consecutive month of increases – according to the National Association of REALTORS®. All four major U.S. regions experienced month-over-month gains in transactions, with the Northeast leading the way. Year-over-year, contract signings increased in all four U.S. regions, led by the West.

The Pending Home Sales Index (PHSI)* – a forward-looking indicator of home sales based on contract signings – elevated 2.0% to 77.4 in October. Year-over-year, pending transactions expanded 5.4%. An index of 100 is equal to the level of contract activity in 2001.

"Homebuying momentum is building after nearly two years of suppressed home sales." said NAR Chief Economist Lawrence Yun. "Even with mortgage rates modestly rising despite the Federal Reserve's decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market."

SentriLock lockbox openings rose 7% in October compared to last year.

Pending Home Sales Regional Breakdown

The Northeast PHSI jumped 4.7% from last month to 68.7, up 7.2% from October 2023. The Midwest index grew 4.0% to 77.8 in October, up 1.8% from the previous year.

The South PHSI increased 0.9% to 90.0 in October, up 2.5% from a year ago. The West index edged higher by 0.2% from the prior month to 64.1, up 16.8% from October 2023.

"It's encouraging to see contract signings increasing in all major regions of the country," added Yun. "More notable gains from a year ago occurred in the expensive regions of the Northeast and West. The record-high stock market is providing a boost for upper-end home buyers."

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

766 S 47th Pl, Springfield, OR 

Price: $749,900    Beds: 4    Baths: 2.5    Sq Ft:2840

Nestled on a private 3/4-acre lot with filtered views, this tastefully updated 4-bedroom home offers a perfect setup for an extended family. The main level primary suite has a large walk-in closet, double sinks, new walk-in shower and backyard acces... View this property >> 

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Good Monday Morning!

If you are considering the sale of your Eugene or Springfield area home and hoping that a rich out-of-state buyer comes along, this may be wishful thinking! According to NAR statistics, Oregon didn't even enter into the the top states that people are relocating to. Just a few years ago this was not the situation, as Oregon saw people by the thousands relocating to our state from California and many other states, including the East Coast. That trend seems to have made a change, and it could have a profound effect on our housing market. Whether this is good or bad, fewer out-of-state home buyers in Oregon may begin to have an effect on our housing market. Here is a recent article from NAR that talks about the top states that people are relocating to.

NAR’s 2024 Migration Trends report reveals consumers’ motivations for relocating and which states are gaining the most new residents.

A job change, which is typically a primary impetus for moving, is becoming less of a motivating factor for people to relocate—even as some companies call for employees to return to the office.

Recent home buyers say they were more motivated to move to be closer to friends and family or to find greater affordability, according to the National Association of REALTORS®’ newly released 2024 Migration Trends report.

“Being closer to family and friends has been growing in importance among home buyers since the onset of the pandemic,” says Matt Christopherson, the lead author of the report and NAR’s director of business and consumer research. “Perhaps the pandemic put things into perspective and buyers are prioritizing family more, but added mobility from remote work also allows this to occur.”

The South is drawing a large portion of relocating buyers, with the Carolinas, Florida and Texas being the “big winners,” NAR’s report says.

“Given the lack of affordability in today’s market, it’s no shock Americans are flocking to Southern states for more affordable housing options and getting more home for their money,” Christopherson says. Further, “Texas and Florida have both seen more than 10% increases in job gains since the arrival of the COVID pandemic. With more affordable housing, lower taxes and strong job markets, Florida and Texas are highly desirable to America’s home buyers.”

People moving to the South and West are most likely coming from a different state while relocations in the Northeast are most likely to be people moving within the same state, NAR’s study finds.

Top 20 States Gaining More Residents

Southern and Midwestern states tend to offer greater housing affordability, which may explain their appeal to buyers. Case in point: NAR’s latest existing-home sales report shows that the median price is $361,200 in the South and $305,300 in the Midwest. Both are significantly lower than the $627,700 median price in the West and $472,900 in the Northeast.

These are the 20 states with the largest net migration, according to NAR’s analysis:

• Florida: 372,870 new residents
• Texas: 315,301
• North Carolina: 126,712
• South Carolina: 91,853
• Georgia: 88,325
• Tennessee: 76,471
• Arizona: 57,814
• Alabama: 36,128
• Oklahoma: 31,967
• Ohio: 28,718
• Indiana: 22,468
• Arkansas: 22,202
• Virginia: 21,132
• Idaho: 20,053
• Wisconsin: 19,301
• Colorado: 19,167
• Missouri: 19,023
• Kentucky: 16,592
• Washington: 13,643
• Nevada: 12,908

Moving Motivations

Forty-three percent of real estate pros say job relocation did not play a role in their client’s purchase decision, and only 2% say their clients moved because of their employer’s office policies, according to NAR’s report.

Instead, agents reported a greater desire among their clients to seek more affordability and live closer to family and friends. Some home buyers also were motivated to relocate for lower or more favorable taxes, particularly those who moved to the South.

“Home buyers are placing a priority on getting more bang for their buck, looking to areas with not only more space within their home but also favorable taxes,” says NAR Deputy Chief Economist Jessica Lautz. “This migration flow will likely continue as retirees and remote workers relocate.”

Here are the top motivating factors identified for relocations, broken down by geographic area.

A job change, which is typically a primary impetus for moving, is becoming less of a motivating factor for people to relocate—even as some companies call for employees to return to the office.

Recent home buyers say they were more motivated to move to be closer to friends and family or to find greater affordability, according to the National Association of REALTORS®’ newly released 2024 Migration Trends report.

“Being closer to family and friends has been growing in importance among home buyers since the onset of the pandemic,” says Matt Christopherson, the lead author of the report and NAR’s director of business and consumer research. “Perhaps the pandemic put things into perspective and buyers are prioritizing family more, but added mobility from remote work also allows this to occur.”

The South is drawing a large portion of relocating buyers, with the Carolinas, Florida and Texas being the “big winners,” NAR’s report says.

“Given the lack of affordability in today’s market, it’s no shock Americans are flocking to Southern states for more affordable housing options and getting more home for their money,” Christopherson says. Further, “Texas and Florida have both seen more than 10% increases in job gains since the arrival of the COVID pandemic. With more affordable housing, lower taxes and strong job markets, Florida and Texas are highly desirable to America’s home buyers.”

People moving to the South and West are most likely coming from a different state while relocations in the Northeast are most likely to be people moving within the same state, NAR’s study finds.

Top 20 States Gaining More Residents

Southern and Midwestern states tend to offer greater housing affordability, which may explain their appeal to buyers. Case in point: NAR’s latest existing-home sales report shows that the median price is $361,200 in the South and $305,300 in the Midwest. Both are significantly lower than the $627,700 median price in the West and $472,900 in the Northeast.

These are the 20 states with the largest net migration, according to NAR’s analysis:

• Florida: 372,870 new residents
• Texas: 315,301
• North Carolina: 126,712
• South Carolina: 91,853
• Georgia: 88,325
• Tennessee: 76,471
• Arizona: 57,814
• Alabama: 36,128
• Oklahoma: 31,967
• Ohio: 28,718
• Indiana: 22,468
• Arkansas: 22,202
• Virginia: 21,132
• Idaho: 20,053
• Wisconsin: 19,301
• Colorado: 19,167
• Missouri: 19,023
• Kentucky: 16,592
• Washington: 13,643
• Nevada: 12,908

Moving Motivations

Forty-three percent of real estate pros say job relocation did not play a role in their client’s purchase decision, and only 2% say their clients moved because of their employer’s office policies, according to NAR’s report.

Instead, agents reported a greater desire among their clients to seek more affordability and live closer to family and friends. Some home buyers also were motivated to relocate for lower or more favorable taxes, particularly those who moved to the South.

“Home buyers are placing a priority on getting more bang for their buck, looking to areas with not only more space within their home but also favorable taxes,” says NAR Deputy Chief Economist Jessica Lautz. “This migration flow will likely continue as retirees and remote workers relocate.”

Here are the top motivating factors identified for relocations, broken down by geographic area.

Notably, many relocators do not sell their previous home, NAR’s report shows. Twenty percent of relocating buyers say they kept their previous residence as an investment, rental or vacation property; this is most likely to occur with buyers moving to the West and Northeast.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

32568 Deberry Rd, Creswell, OR 

Price: $2,895,000    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!

Are you considering the sale of your personal home or investment property? If so, knowing the current market value of your home or property is an essential part of the sales process. Just looking at your home's tax evaluation can be misleading at best. The county does not change values often, and market shifts are certainly not a part of your property tax evaluation. Also, national online home value sites are not always reliable sources either. Knowing the city and neighborhoods and knowing the market trends for each specific area is a crucial part of an accurate look into your home's current value. Home values can swing wildly and suddenly, and most online evaluations cannot keep up with the sudden swings. The only accurate way to obtain an evaluation of your home's market value is to have a local professional Real Estate agent view your home and then look at comparable recent home sales in your neighborhood of homes similar to yours. Having an agent who knows your area and who knows the recent market trends for your neighborhood, style of home, and price range is important. In our current market, it is essential to price your home correctly. Pricing too high may cause your home to sit on the market and not sell, which can cost you thousands of dollars. Pricing your home too low may bring about a quick sale, but you might leave a great deal of money on the table. A professional and local Realtor can also give you good advice on fix-ups, staging, or repairs for your home that might help bring about a faster sale and at a much higher sale price. 

If you are considering the sale of your home, my team is able to offer market evaluation services for you. There is no charge or obligation for this evaluation, and it will give you the information that you need to begin the process of selling your home. My team has been helping clients sell and purchase homes in the Eugene and Springfield area for 36 years. We know the area and all of the neighborhoods and can provide you with accurate, expert information.

You can also go to our website www.eugeneareahomesearch.com and get a localized online home market evaluation that uses local home sales for comparables. This is not as accurate as having us do an actual physical evaluation, but it can get you started.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

100 Westbrook Way, Eugene, OR 

Price: $399,900    Beds: 2    Baths: 2.0    Sq Ft: 1090

This stunning one-level townhouse has been extensively remodeled in 2024 and is move-in ready! The primary suite is spacious with an attached bathroom. The kitchen has been completely updated with new soft-close cabinetry, quartz countertops, a new... View this property >> 

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Good Monday Morning!

Needless to say, our current Real Estate market in the Eugene and Springfield area has been challenging as of late. It is interesting that when we look at the market statistics for October 2024, the local housing market has not changed very much. In comparison to September, home sales in October were up slightly, time on the market increased, the number of homes for sale decreased, and at the same time, home values continued to increase. There were no huge surprises, but the overall market remains somewhat challenging for home buyers, with the inventory of homes dropping and mortgage interest remaining about the same. In the short term, my largest concern is the lack of home inventory and the fact that home prices are not declining, even with a softer purchase market. We may not see any huge change in our local housing market until we see some movement with mortgage rates and an improvement with the overall economy. Hopefully, we begin seeing both during the first quarter of 2025. Here are the Real Estate market numbers for October 2024 in Lane County.

New Listings

New listings (400) increased 7.5% from the 372 listed in October 2023, and decreased 5.7% from the 424 listed in September 2024.

Pending Sales

Pending sales (335) increased 12.0% from the 299 offers accepted in October 2023, and decreased 1.8% from the 341 offers accepted in September 2024.

Closed Sales

Closed sales (304) increased 4.5% from the 291 closings in October 2023, and increased 2.4% from the 297 closings in September 2024.

Inventory and Time on Market

Inventory decreased to 3.0 months in October. Total market time increased to 54 days.

Year-to-Date Summary

Comparing the first ten months of 2024 to the same period in 2023, new listings (4,418) increased 4.4%, pending sales (3,319) increased 3.5%, and closed sales (3,121) increased 1.7%.

Average and Median Sale Prices

Comparing 2024 to 2023 through October, the average sale price has increased 0.1% from $475,600 to $475,900. In the same comparison, the median sale price has increased 0.7% from $437,000 to $440,000.

Have An Awesome Week and Happy Veteran's Day!

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

THIS WEEKS HOT HOME LISTING!

482 Brookside Dr, Eugene, OR 

Price: $450,000    Beds: 3    Baths: 2.0    Sq Ft: 1324

Minutes to the local hiking trails and nestled in a quiet neighborhood in the South Eugene Hills, this home is just waiting for someone to come in and freshen up the finishes. The living room features a wood burning fireplace and a large sliding doo... View this property >> 

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Good Monday Morning!

The first-time buyer housing market fuels the entire housing market. When the first-time buyers are not there, the entire market suffers. First-time buyers success in purchasing homes means that homeowners who purchased these homes years ago and have built equity can sell and move up to larger and typically more expensive housing, and in turn, those owning mid-range valued homes are able to move into upper-end homes. Without a solid first market that attracts first-time home buyers and allows those who have been renters, etc. to enter the housing market, the overall housing market and the national and local economies suffer. Right now, the first-time home buyer market is in rough shape. High home prices, higher mortgage interest rates, high inflation rates, and a poor national economy have all added to the fact that first-time home buyers just can't afford to enter the current housing market. This situation for first-time home buyers will not change until we see the economy rebound, home prices come down, inflation rates decline, and mortgage interest rates decline and stabilize. Right now, we are a long way from this scenario, and this indicates a potential tough road ahead for our national housing market. The following is a recent article from "Realtor.com" that talks about this situation.

The housing market appears bifurcated between repeat home buyers and first-time home buyers,’ NAR says

It has never been this challenging to be a first-time home buyer.

Over the last year, as home prices inched toward new highs and the 30-year mortgage rate stayed firmly above 7%, first-time buyers have been relegated to the sidelines, with the share of homes sold to them plunging to a 43-year low, according to a new report.

The 2024 Profile of Home Buyers and Sellers from the National Association of Realtors looked at transactions from July 2023 to June 2024.

The share of first-time home buyers during that period fell to 24% of all buyers, the NAR said, down from 32% the year before. The figure is now at the lowest point since the NAR began collecting the data in 1981.

Prior to the 2008 subprime-mortgage crisis, the share of first-time buyers was historically around 40%. 

Part of the reason first-time buyers are having a tough time is the lack of affordable homes for sale, Jessica Lautz, the NAR’s deputy chief economist and vice president of research, told MarketWatch.

The median price of an existing home in September was $404,500, up 3% from the same period a year earlier, according to the NAR. 

Although “there is pent-up demand among potential first-time buyers,” Lautz said, “for now, they are staying put renting or living with friends and family.”

Have An Awesome Week!

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

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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sales remain sluggish both in the Eugene and Springfield market area and nationwide. We have become a nation of interest rate watchers. Of course interest rates have an impact on home sales because of their impact on home payments. Just as important though are home prices. Just as it is expected that mortgage interest rates will not decline significantly any time soon, the same holds true for home values. In fact, home values may continue to increase in many markets due to low inventories of homes for sale and the high cost of building new homes. My advice to home buyers remains the same. Don't sit and wait for a large decrease in mortgage interest rates. This is something we just may never see. Become serious about a home purchase now before home prices rise even further. It's also no secret that the housing market has become much more of a buyers market. Your opportunity to negotiate a sale at a lower price, with seller concessions, etc. is the best right now that I have seen for many years. Waiting for a large rate drop could be a mistake. Here is an article from "NAR" on the study of buyers and their thoughts about current mortgage interest rates.

This is the range in borrowing costs that could jumpstart home sales, a new study shows.

Prospective home buyers may have a magic number in mind when it comes to a mortgage rate they will accept—and most lenders are not even close to reaching it.

More than half of would-be home buyers—56%—say they’re waiting for mortgage rates to fall to a range between 5.5% and 5.75% before making a home purchase, according to HomeLight’s 2024 Lender Insights Report. The national average for the 30-year fixed-rate mortgage was 6.54% this week, Freddie Mac reports.

What’s more, mortgage financing giant Fannie Mae and the Mortgage Bankers Association predicted this week that the 30-year fixed mortgage rate likely will average about 6.2% by the end of 2024. So, some prospective home buyers may have a long wait.

Home buyers continue to express anxiety over high interest rates, despite rates being considerably lower than a year ago, when the avarage approached 8%. Fifty-eight percent of borrowers surveyed by HomeLight called “rising interest rates” their greatest fear in purchasing a home, followed by persistent increases in home prices (49%) and increases in the cost of living due to inflation and shrinking personal savings (40%). Nearly 40% of loan officers surveyed by Homelight reported more borrowers are inquiring about down payment assistance or lower down payment programs, trying to offset the elevated rates and home prices.

This week marks the fourth consecutive week that mortgage rates have increased.

“The continued strength in the economy drove mortgage rates higher once again this week,” says Sam Khater, Freddie Mac’s chief economist. “Over the last few years, there has been tension between a downbeat economic narrative and incoming economic data that is stronger than the narrative. This has led to higher-than-normal volatility in mortgage rates despite a strengthening economy.”

Still, inflation remains high, and just over one in three workers—34%—say they’re living paycheck to paycheck, according to an August survey from Bankrate. Home buyers also face higher home prices, with the median existing-home price in September reaching $404,500, which is nearly 50% higher than September 2019. Further, home price growth has outpaced the 25% growth in income during that same time period, according to National Association of REALTORS® data.

At this week’s 6.54% average for the 30-year loan, a borrower with a 20% down payment who is purchasing a $400,000 home would have a monthly mortgage payment of $2,031, says Jessica Lautz, NAR’s deputy chief economist. With a 10% down payment, they would have a monthly payment of $2,285.

Nevertheless, rates have made monthly payments far cheaper than those of a year ago. “The monthly savings a home buyer could have on a $400,000 home is $270 compared to last year,” Lautz notes. That said, housing affordability constraints continue to press on the market. Existing-home sales fell 3.5% in September compared to a year ago, NAR reported this week. First-time home buyers, who do not have equity to leverage from a previous sale, may be faring the worst. The share of first-timers in the homebuying market fell to 26% in September, one of the lowest readings on record, NAR’s data shows.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1640 Umpqua Ave, Eugene, OR 

Price: $1,089,000    Beds: 4    Baths: 3.5    Sq Ft: 2978

Beautiful custom Nordic home, with great attention to detail in the highly desirable Nine's neighborhood! Spacious lofty ceilings throughout the home, with two beautiful master suites on the main floor! Gourmet kitchen with commercial grade applianc... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

What? The Fed just cut rates, and mortgage rates are on the rise! What the heck! We were told that mortgage rates would be coming down. What is going on? This is what I am hearing from everyone right now. It is a good question, and there are many other puzzling questions in regards to what is currently taking place with our current national real estate market. The following article is from "Housing Wire," and it offers the best explanation of our current housing market that I have read. It is election time, and who you vote for makes a difference. Be careful and thorough, and vote for the candidates who you feel will improve our economy. Elections have consequences!!

As 2025 approaches, the U.S. real estate market is marked by contradictions that are leaving many confused. Mortgage rates, rental patterns, homeownership dreams, and housing trends across the country are all seemingly colliding in ways that create both opportunities and uncertainties. It’s a complex landscape where the tension between renting and owning is more pronounced than ever, and regional differences in housing demand highlight the uneven nature of the market. Here are the five real estate contradictions we’re seeing as we close out 2024 and prepare for the new year.

Despite Fed cuts, mortgage rates remain stubborn 

One of the most glaring contradictions as we head into 2025 is the persistence of high mortgage rates despite efforts by the Federal Reserve to cut interest rates in late 2024. Many hoped these cuts would lead to lower borrowing costs and re-energize the for-sale housing market, yet home borrowing costs have only marginally dipped. As of early October, the 30-year fixed rate stood at 7.2 percent as opposed to the expected below 6 percent. The lingering effects of inflation, bond market volatility, and lender caution have tempered any significant drop in borrowing costs, leaving many prospective buyers still priced out of the market.

Many of those in the market to buy a home are frustrated by this mismatch. They watch as monetary policy eases, but mortgage rates—often viewed as the gateway to homeownership—remain stubbornly high, creating a widening gap between desire and affordability. As a result, many buyers are forced to either stay in rentals or settle for smaller homes or less desirable locations than they initially aimed for.

Rentals are everywhere, but homeownership remains the gold standard

In major cities and suburban markets alike, renting is not just more common but often the only feasible option for those priced out of homeownership. Yet ‘renting by choice’ is also on the rise as it offers flexibility, less financial commitment, and freedom from the burdens of property taxes, maintenance, and insurance. An increasing number of people are choosing to rent long-term, seeing it as a lifestyle choice that fits with the modern mobility of a remote work-driven world. In 2024, about 34 percent of households were renting in the U.S. 

Yet despite the growing proportion of renters—either by necessity or choice—homeownership remains the gold standard in the U.S. cultural narrative. The dream of owning a home persists—fueled by the promise of long-term investment, wealth accumulation through property appreciation, and the satisfaction of calling a place your own. This aspiration endures despite the growing recognition that homeownership can be costly and labor-intensive, involving everything from tax burdens to unexpected major repairs.

The contradiction is clear: many people increasingly value the freedom that rentals provide in today’s fast-paced, mobile society, yet owning a home continues to be seen as the ultimate marker of success, stability, and financial security.

Renting is often not seen as smart financially, yet it can foster affluence

Another contradiction lies in how renting is typically perceived as a less financially savvy choice compared to homeownership. After all, monthly rent payments don’t build equity, and the money is often seen as “lost” compared to a mortgage, which helps buyers build wealth through property value appreciation.

But there’s more to the story. Rentals, especially in today’s context, can create a different type of financial freedom. Renters avoid the high upfront costs of buying, including down payments and closing fees, while also dodging ongoing maintenance and unexpected repair bills. The average cost of owning a home, beyond the mortgage payment, is approximately $18,000 per year, according to a recent study by Ally Financial Inc. This includes expenses such as property taxes, homeowners insurance, maintenance, and utilities, adding about $1,500 per month to the mortgage payment for a typical single-family home. 

Moreover, with the increased mobility provided by renting, individuals are able to relocate more easily, pursuing better job opportunities or lower-cost living in other areas. For some, this flexibility opens up a different form of wealth creation by allowing them to prioritize other investments or save for larger opportunities down the road.

The idea that renting is a poor financial decision is becoming increasingly outdated, especially as renters find creative ways to make their financial situation work for them in ways that homeownership, with all its costs and complexities, might not allow.

Housing demand is high in some areas while others struggle to sell

Real estate markets across the U.S. reflect a growing divide. While many markets are chronically plagued by a housing shortage and low inventory, others are struggling with a rising oversupply and stalled sales. In high-demand markets such as California, New Jersey, and Washington, homes – especially affordable ones – are generally hard to find, and competition remains fierce. Inventory is low, keeping prices elevated and turning what should be a seller’s market into an increasingly inaccessible one for many buyers. The median home price in California in September was up 6.5 percent month over month at $886,560.

In contrast, other regions are facing a marked slowdown. In Florida, rising insurance premiums tied to natural disasters like hurricanes can make homeownership more of a liability than an asset. Insurance rates in Florida surged by 45 percent between 2017 and 2022, according to a recent report from the Florida Policy Project. According to a recent Wall Street Journal analysis, an increasing number of homeowners in the state are struggling to sell due to skyrocketing insurance costs. Events like Hurricane Helene that ravaged parts of the state in October have only worsened the situation, with $6 billion in private insurance losses leaving many Floridians reevaluating the cost of homeownership. The paradox is striking: while demand is high in some states, homeowners in others are grappling with insurance burdens and stagnant buyer interest, exacerbating regional imbalances in the U.S.

It’s a seller’s market—but selling is far from easy

Another contradiction facing the 2025 real estate market is that even in high-demand areas of the U.S., selling a home isn’t as effortless as it may seem. The number of offers on homes remains healthy, but there has been a decline in bidding wars. While the median number of offers on homes remained at two, fewer homes received four or more offers, according to a recent Zillow report. It’s a reminder that even in hot markets, selling can be more difficult than anticipated, with homeowners facing higher buyer scrutiny, buyers’ difficulties in obtaining financing, and more competition from other sellers.

Some sellers are also reconsidering their choices. About two-thirds of sellers (66 percent) at least thought about renting out their home instead of selling it, according to the same Zillow report. Younger sellers, in particular, are leaning toward renting as an alternative, seeing it as a way to generate income while holding onto an appreciating asset. Those between the ages of 18 to 29 and 30 to 39 were the two age groups with the highest percentage of those considering renting out their home (82 percent and 83 percent, respectively). This growing trend hints at an evolving mindset where homeownership and renting are not seen as opposing paths but complementary strategies.

Heading into 2025, navigating the real estate market’s contradictions requires a proactive and adaptable approach. Buyers should work closely with agents to identify opportunities in less competitive regions or explore creative financing options to mitigate high mortgage rates. Renters can leverage the flexibility of leasing to pursue job opportunities and build savings for future investments, with agents helping them find suitable properties. Homeowners, especially in disaster-prone areas, should reassess their insurance coverage and consider renting out their properties for additional income. Sellers, too, should remain agile by exploring rental opportunities and working with agents to position their homes competitively in a shifting market. In this complex environment, agents play a crucial role in helping all parties make informed, financially sound decisions.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1640 Umpqua Ave, Eugene, OR 

Price: $1,089,000    Beds: 4    Baths: 3.5    Sq Ft: 2978

Beautiful custom Nordic home, with great attention to detail in the highly desirable Nine's neighborhood! Spacious lofty ceilings throughout the home, with two beautiful master suites on the main floor! Gourmet kitchen with commercial grade applianc... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

As I predicted, the Real Estate market in the Eugene and Springfield area declined in September 2024 in most categories: new listings, listing sales, pending listing sales, and average home value. The only categories to increase were the number of homes for sale and the time it takes for a home to sell. One of the key indications of a slowing housing market is higher inventory at the same time that the number of new homes hitting the marker declines. We have felt this market coming for several months, and now that we have experienced a declining market for more than a month, it indicates that the current housing market situation is now a trend. How deep the slower market goes and for how long depends upon the overall national and local economy, mortgage interest rates, and inflation. I would also say that it is not necessarily a poor time to purchase a home. The increase in the inventory of homes for sale means a better selection of homes to choose from, lower home prices, and far less competition. Mortgage rates remain better than a year ago and certainly may drop in 2025, indicating that a home purchase now could certainly be refinanced. There are also some great mortgage programs available that would allow you to purchase a home with an interest rate that is lower than the market level. This very well could be the best opportunity to purchase a home that we will see for some time. The following report will show you what the September 2024 Real Estate market looked like in Lane County.

New Listings

New listings (424) decreased 3.4% from the 439 listed in September 2023, and decreased 12.6% from the 485 listed in August 2024.

Pending Sales

Pending sales (341) decreased 1.7% from the 347 offers accepted in September 2023, and decreased 7.6% from the 369 offers accepted in August 2024.

Closed Sales

Closed sales (297) decreased 6.3% from the 317 closings in September 2023, and decreased 18.0% from the 362 closings in August 2024

Inventory and Time on Market

Inventory increased to 3.2 months in September. Total market time increased to 48 days.

Year-to-Date Summary

Comparing the first nine months of 2024 to the same period in 2023, new listings (4,014) increased 4.2%, pending sales (3,012) increased 2.3%, and closed sales (2,802) increased 1.3%.

Average and Median Sale Prices

Comparing 2024 to 2023 through September, the average sale price has increased 0.2% from $473,700 to $474,600. In the same comparison, the median sale price has increased 0.3% from $437,900 to $439,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

32568 Deberry Rd, Creswell, OR 

Price: $2,895,000    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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!