Real Estate Information Archive

Good Monday Morning!

Real Estate sales in 2018 were not a great deal different than 2017.  Home sales numbers were almost the same both years.  The largest difference is the average home sales price as home prices continue to rise in the Eugene and Springfield area.  Home inventories also remained low through both years, with first time buyers having a difficult time finding homes for sale in the lower price ranges.  2019 has started out looking very similar to both 2017 and 2018.  Only time will tell if the trend of the last two years carries through this year.  Here are the home sales statistics for December of 2018 and for the year 2018.

Lane County closed out 2018 with some mixed activity. New listings (228) outpaced December 2017 (223) by 2.2%, despite cooling 42.0% from last month in November 2018 (393). Even so, it was the best December for new listings in Lane County since 2011, when 231 were put on the market.

Pending sales (312) fared similarly, ending 1.0% higher than December 2017 (309) but showing a 11.1% decrease from November 2018 (351). Once again this was the strongest December for pendings since at least 2001 when RMLSTM started keeping record.

Closed sales, at 339, ended 8.6% below December 2017 (371) and 8.4% below November 2018 (370).

Total market time rose to 64 days in December, and inventory

decreased slightly to land at 1.9 months.

Year to Date Summary

Comparing the entirety of 2018 to 2017, new listings (6,394) increased 0.1%, closed sales (5,203) fell one short of 2017 (0.0%), and pending sales (5,240) decreased 0.3%.

Average and Median Sale Prices

Comparing 2018 to 2017 through December, the average sale price increased 7.3% from $287,900 to $309,000. In the same comparison, the median sale price rose 8.7% from $260,000 to $282,600.

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THIS WEEK'S HOT HOME LISTING!

39825 Upper Camp Creek Rd

Price: $950,000    Beds: 5    Baths: 3    Sq Ft: 3520

Private Camp Creek retreat located at the top of the hill & backing to land owned by Weyerhaeuser. This home features an open kitchen & dining area. Main level master suite & 2 extra guest suites w/balconies. Two separate living/family areas. Outdoo....View this property >> 

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Good Monday Morning!

Good news for home buyers.  Mortgage rates have dropped and may continue to slide.  This along with improved inventory of homes for sale is making our current Real Estate market very attractive.  Here is an article from Realtor.com that explains the unexpected drop in mortgage loan rates.

Unless prospective home buyers have been living under a rock, they're probably all too familiar with the fact that mortgage rates are on the rise. And with a strong economy spurring the Federal Reserve to raise interest rates, mortgage rates are likely to continue their climb in the longer term.

The average rate of a 30-year fixed loan was anticipated to hit 5% last month. That would have been an increase of about a percentage point from a year earlier, a change that can add hundreds of dollars a month to a mortgage payment and tens of thousands of dollars over the loan's three-decade duration. But then something unexpected happened.

Instead of continuing their steady rise, mortgage interest rates began to fall. That average hit 4.75% as of Dec. 6, down from 4.94% a month earlier, which was this year's peak, according to Freddie Mac data. So what happened?

Well, buyers have an underperforming stock market and the worst trade deficit in a decade to thank for the temporary reprieve.

“It’s good for home buyers because it makes the monthly payment more affordable for a home," says Chief Economist Danielle Hale of realtor.com®. “It’s the lowest level we’ve seen in two months, but it’s still pretty high.”

What do trade and the stock market have to do with mortgage rates?

Trying to understand why mortgage rates go up and down is complicated stuff. Most folks think that they're tied to the Federal Reserve's short-term interest rates, which the Fed has hiked three times so far this year. But even if it does raise rates again this month by 0.25 percentage points, as expected, it doesn't mean that mortgage rates will jump as a result.

That's because while mortgage rates are influenced by these short-term rates, they're really more closely tied to the factors driving longer-term rates like the 10-year U.S. Treasury bond market. When the stock market drops or there is a trade deficit, investors get spooked. (The trade deficit is a result of more foreign imports coming in and fewer American products exported to the rest of the world.) So investors typically turn to bonds and mortgages, which are considered safer, long-term investments.

“The problem is, there’s negative headlines ... around the stock market and around international trade," says Sam Khater, chief economist of Freddie Mac. "When stock prices drop, it causes a flight to safety and Treasury bonds."

Since mortgage rates are generally an inverse reflection of the strength of the bond market, when bonds are up, mortgage interest rates drop. Basically, when investors put more money into mortgage-backed securities, there is more money to lend to home buyers. So interest rates, which are basically the price of borrowing money, come down—and the cost savings are passed onto lenders making loans.

"Mortgage rates are decided by investors looking for a return on their money over the next 10 years," says Hale. “If people think international trade is going to hurt the economy and U.S. company growth prospects, then they might choose to invest in something safer, like Treasury bonds, and that drives mortgage rates down.”

The lower rates could give the housing market a shot in the arm. It's been slowing in recent months due to a triple whammy of high home prices, rising mortgage rates, and an increase in homes for sale. Lower monthly mortgage payments could bring some prospective buyers back into the market.

"In the short term, this is good for consumers," says Khater. "Now we’re back down to the same rates of a few months ago, and there’s more inventory to purchase from."

So will mortgage rates continue to fall?

Unfortunately for buyers, mortgage rates aren't expected to continue falling for long.

"Trade will ultimately get worked out and the economy will continue to grow, so the doomsday scenario that people are expecting right now is unlikely to happen," predicts Hale. This means investors won't be as keen on bonds and mortgage-backed securities. "As the uncertainty passes, we expect mortgage rates will also turn around and begin climbing again.”

Khater agrees.

"The thing that gets lost with all the noise is the fundamental health of the economy remains sound," he says. "And mortgage rates will typically increase when the economy is stronger."

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

2230 Comstock Ave

Price: $585,000    Beds: 5    Baths: 3/1    Sq Ft: 2904

Builder's home with only one owner. Quiet park-like backyard. Master with his/hers sinks, jetted tub, large dual head shower, private camode, walk-in closet, two sided/see-through fireplace. Upstairs hall closet laundry plus a full laundry room area... View this property >>

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Good Monday Morning!

Home sales nationally have softened.  Maybe it is time for the Fed to revisit its policy of interest rate hikes.  The yield curve, which can predict recession has changed negatively and could be pointing towards tougher economic times.  It might be time for the Fed to halt interest rates hikes and abandon its agressive approach.  Could it be time for the Fed to even lower rates again?  Here is an article from Realtor.com that addresses the current national home sales slump.

Sales of previously owned U.S. homes posted their largest annual decline since 2014 in October, as the housing market continues to sputter due to higher mortgage rates that are reducing home affordability.

The latest data offered a mixed picture of a market that isn’t in free fall but also is far from robust. Existing-home sales edged up 1.4% in October from the previous month to a seasonally adjusted annual rate of 5.22 million, the National Association of Realtors said Wednesday. That broke a six-month streak when sales declined compared with a month earlier.

Sales, however, posted a sharp 5.1% drop compared with a year earlier, indicating the market is likely to end the year on a sluggish note.

Lawrence Yun, the trade group’s chief economist, said the annual decline signals softness in the housing sector that is likely to persist in the months to come.

“There is some feeling that the market could actually go even lower than what it is now in terms of sales,” Mr. Yun said.

When sales began slowing this spring, economists initially blamed a shortage of inventory, which has plagued the housing market throughout the recovery. But rising mortgage rates are playing a bigger role in slowing buyer demand than many economists had expected, shaking confidence that now is a good time to buy a home, according to recent surveys.

Mr. Yun said higher interest rates appear to be choking off buyer demand, and said the Federal Reserve should consider pausing its rate increases to give the housing sector time “to be on firmer ground.”

Mike Fratantoni, chief economist at the Mortgage Bankers Association, said recent declines in the stock market are also causing fresh unease. “The level of volatility in the stock market is reflecting a lot of uncertainty about where we are with the broader economy. There is a little bit of increased anxiety about how much things are going to slow,” he said.

The good news for buyers is that conditions are becoming friendlier to them, as mortgage rate and home-price increases slow and inventory of homes for sale is growing compared with last year.

The rate for a 30-year fixed rate mortgage averaged 4.81% this week, down from 4.94% a week earlier, according to data released by Freddie Mac on Wednesday. Rates are still up significantly from a year ago, when they averaged 3.92%.

The median sale price for an existing home in October was $255,400, up 3.8% from a year earlier. That shows a cooling from a year ago, when prices rose about 5.5%.

There was a 4.3-months’ supply of homes on the market at the end of October, based on the current sales pace, down from 4.4 months in September but up from 3.9 months a year ago.

Mr. Fratantoni said the combination of more muted price growth and a greater number of homes for sale could boost the housing market in the spring, especially if wages continue to rise.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1849 Crescent Ave 

Price: $319,000   Beds: 3   Baths: 2  Sq Ft: 1344

Wonderful updates in this N. Gilham home! Great Rm layout, hickory cabinets, granite counters, engineered wood flr, recessed lights, stone gas fireplace, vinyl windows & French drs w/ built-in blinds. Kitchen w/ under-mount sink, island & eating bar. Master ste w/ slider. Laundry/mud rm. Fenced yard, shed, covered deck & patio, plus RV parking. Located in highly desirable area, on bus route & only 6 min drive to shops, schools & park.

View this property >> 

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Good Monday Morning!

Here are the home sales numbers for October of 2018.  For the most part, there is little change taking place over previous months this year. This reflect on a market that has flattened out and maybe starting to decline slightly. This actually is good news and may help us maintain a strong housing market going into 2019.  Here is the report for Lane County in October of 2018.

October brought mixed numbers to Lane County, but new listings saw a gain over October 2017. At 469, new listings rose 5.2% ahead of the 446 new listings last year in October 2017, despite a 2.9% cooling from last month in September 2018 (483).

Closed sales (421) were 5.5% warmer than last month in September 2018 (399) but fell 1.6% short of the 428 closings recorded last year in October 2017.

Pending sales fared similarly,warming 6.1% over the 429 offers accepted in September 2018, but falling 4.6% short of the 477 accepted last year in October 2017.

Total market time rose to 43 days in October with inventory decreasing slightly to 2.1 months from 2.4 months in September.

Year to Date Summary

Comparing the first ten months of 2018 to 2017, closed sales (4,451) have increased 1.9%. Pending sales (4,611) have decreased 0.4% and new listings (5,753) have decreased 0.5%.

Average and Median Sale Prices

Comparing 2018 to 2017 through October of each year, the average sale price has increased 6.9% from $288,200 to $308,200. In the same comparison, the median sale price rose 8.5% from $260,000 to $282,000.

Have An Awesome Thanksgiving Week!

THIS WEEKS HOT HOME LISTING!

1849 Crescent Ave 

Price: $329,900   Beds: 3   Baths: 2  Sq Ft: 1344

Wonderful updates in this N. Gilham home! Great Rm layout, hickory cabinets, granite counters, engineered wood flr, recessed lights, stone gas fireplace, vinyl windows & French drs w/ built-in blinds. Kitchen w/ under-mount sink, island & eating bar......

 View this property >> 

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Good Morning!

There can be some confusion in the minds of the average consumer about interest rates, especially as it relates to the Federal Open Market Committee, or FOMC, meetings. About every six weeks, the FOMC meets to discuss the current state of the economy with an eye toward the future. One important task is to monitor and adjust the cost of funds. In general, the “Fed” tries to keep inflation in check and in theory raise or lower the cost of funds. They do so by adjusting the Federal Funds rate and this is the rate that gets so much press each time the FOMC meets.

The Federal Funds rate is the rate banks can charge one another for short term lending. Short term as in overnight. Why does a bank need to borrow money on such a short notice? Banks are required to keep a certain amount of liquid capital, in other words “cash,” at the end of each business day. These funds are essentially demand funds. When a consumer wants to withdraw some cash either at the bank or at any automated teller, there needs to be cash available to meet those withdrawal requests. If the bank sees their reserves to meet these requests do not meet the reserve requirements, banks seek out a short term loan from another depository institution to meet the reserve requirements. This is what the Fed adjusts, the overnight lending rate. But the Fed doesn’t directly impact the everyday 30 year conforming fixed rate mortgage.

When lenders set their rates each day, they refer to a specific mortgage bond. For example, with a 30 year fixed conforming loan underwritten to Fannie Mae standards, the lender will review the current yield on the FNMA 30-yr 3.0 mortgage bond. Just like any bond, with the price of the bond goes up, the yield will fall. And when the price goes down, the yield will rise. Investors buy bonds, all types of bonds, as a safe place to park cash. When the economy appears to falter, investors can get a little skittish and pull some funds from the stock market and transfer those funds into bonds, including mortgage bonds. If on the other hand the economy is healthy and improving, the opposite will occur.

When the Fed makes an announcement at the end of their two-day meetings, investors are anxious to hear if the Fed raised, lowered or kept rates the same. If the Fed announces they decided to raise the cost of funds by 0.25%, it can tell investors the FOMC decided the economy is doing rather well but to hold of any potential inflation, it will raise the cost of funds that banks will pay for short term lending. It’s not a direct affect on mortgage rates, but definitely an indirect one.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

825 SAND AVE

Price: $550,000    Beds: 3    Baths: 2    Sq Ft: 2344

Grand very well-maintained home! Light filled vaulted open layout w/ large windows & skylights. Living rm w/ gas fireplace opens to dining area. Office/bonus rm w/ exterior entrance & Shoji sliding dr/rm divider. Massive kitchen w/ cook island, pant...View this property >>

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Good Monday Morning!

Finally, some bright news for would-be homebuyers. Mortgage interest rates are holding steady and may even see a decline. This trend may help take heat off of a housing market that continues to be over priced for many buyers.

Borrowers saw a slight cool down in mortgage rates this week following last week’s seven-year high. The 30-year fixed-rate mortgage dipped for the first time after five consecutive weeks of increases, averaging 4.71 percent.

But the higher rates may be deterring some would-be home buyers. “The strength in the economy has failed to translate to gains in the housing market as higher mortgage rates have contributed to the decrease in home purchase applications, which are down from a year ago,” says Sam Khater, Freddie Mac’s chief economist. “With mortgage rates expected to track higher, it’s going to be a challenge for the housing market to regain momentum.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 4:
(Scroll over interactive data chart)

• 30-year fixed-rate mortgages: averaged 4.71 percent, with an average 0.4 point, falling slightly from last week’s 4.72 percent average. Last year at this time, 30-year rates averaged 3.85 percent.

• 15-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.4 point, decreasing from last week’s 4.16 percent average. A year ago, 15-year rates averaged 3.15 percent.

• 5-year hybrid adjustable-rate mortgages: averaged 4.01 percent, with an average 0.3 point, rising from last week’s 3.97 percent average. A year ago, 5-year ARMs averaged 3.18 percent.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

6997 GLACIER DR

Price: $359,900    Beds: 4    Baths: 2 ½   Sq Ft: 2406

Completely remodeled! Fresh interior & exterior paint. All new carpet, vinyl wood floors, LED lights w/ Decora switches, heat pump, furnace, hot water heater. Large lower level bonus space (not included in SF) w/ lots of potential; could make a grea... View this property >>

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Good Monday Morning!

Nationally, both home sales numbers and average sales prices have dipped slightly.  This has not caught up to the Eugene and Springfield area just yet, but I believe that it is on the horizon.  I am noticing that many homes in our area are not selling quickly at this time and also I am starting to see a good number of price reductions.  This is a strong indication that change is on the horizon.  I would guess that we will most likley be seeing a much softer sellers market over the next quarter.  

If you have been looking for a home in the Eugene and Springfield area and became frustrated during the frenzied strong sellers market of the last year, this might be your opportunity to jump back in and potentially have a much easier time finding a home to purchase.

Trouble viewing video? View it here.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

84305 Derbyshire Lane

Price: $414,900   Beds: 3   Baths: 1.5   Sq Ft: 2,019

Beautiful country property! Serene tree views surround 5.27 acre estate w/ gate entry. Engineered wood floors, 2 fireplaces, ductless heat pump, recessed lights & sliding door. Open galley kitchen w/ eating nook. Living & family rm, plus bonus rm w/... View this property >>  

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Good Morning!

Nationally, pending home sales continue to decline for the seventh month in a row. As the video explains, this is primarily due to home affordability, low inventory and also to a lesser degree, rising mortgage interest rates. This trend could begin the shift to softer home prices down the road. View video HERE.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

6997 GLACIER DR

Price: $369,900     Beds: 4     Baths: 2.5    Sq Ft: 2406

Completely remodeled! Fresh interior & exterior paint. All new carpet, vinyl wood floors, LED lights w/ Decora switches, heat pump, furnace, hot water heater. Large lower level bonus space (not included in SF) w/ lots of potential; could make a grea... View this property >>

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Good Monday Morning!

The housing market both locally, in the Eugene and Springfield area, and across the nation seems to be slowing down. There certainly are fewer buyers out there serious about a home purchase. Home affordability could be most of the reason for this recent slowdown. This video from CNBC gives details on why affordability could be having an impact on the housing market at this time.

View video HERE

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

84305 DERBYSHIRE LN

Price: $450,000   Beds: 3   Baths: 1.5   SqFt: 2,019

Beautiful country property! Serene tree views surround 5.27 acre estate w/ gate entry. Engineered wood floors, 2 fireplaces, ductless heat pump, recessed lights & sliding door. Open galley kitchen w/ eating nook. Living & family rm, plus bonus rm w/... View this property >>

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Good Morning!

Nationally, homes sales dipped slightly in July, but home prices continue their upward trend.  It is my guess that we may have reached the peak in home prices and home prices will either remain flat, or possibly even start a decline soon.  Both locally and nationally, homes are becoming less affordable with higher prices and higher mortgage interest rates.  There is a point where the market will flatten due to this and home prices will begin the decline.  We are either there or it is close.

View video here

Have an awesome week!

THIS WEEK'S HOME HOME LISTING!

253 WEDGEWOOD DR

Price: $320,000    Beds: 3    Baths: 2.5    Sq Ft: 1855

Fabulous one-level home in desirable Santa Clara neighborhood! Spacious 0.22 acre lot on lovely low-traffic street. Living room w/ fireplace. Large galley kitchen w/ pantry. Dining/Family room combination w/ fireplace. Large private master suite w/ ... View this property

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