Real Estate Information Archive

Blog

Displaying blog entries 1-5 of 5

2018 A Turning Point For First-Time Home Buyers?

by Galand Haas

Good Monday Morning!

What will the 2018 Real Estate market be like for the many thousands of buyers out there trying to find the perfect house?  The following article from "Realtor.com" will give you some insight into what lies ahead for 2018 homebuyers!

Aspiring home buyers have long known about the maddening lack of homes on the market. And despite the strong economy that's propelling more and more people into the home-buying market, the lack of inventory is crimping existing home sales.

Sales of homes that have previously been lived in hit 5.57 million in December, according to the most recent National Association of Realtors® report. That's down 3.6% from November to December, but up 1.1% from December 2017.

(Realtor.com® looked only at the seasonally adjusted numbers in the report. These have been smoothed out over 12 months to account for seasonal fluctuations.)

However, 2017 as a whole was a record year, boasting the most existing homes sold since the boom year of 2006, more than a decade ago. Sales were up 1.1% over 2016—and would have been more if there had been more properties for sale.

“The inventory of homes on the market is at its lowest level in [at least] two decades," says realtor.com® Senior Economist Joseph Kirchner. “It’s a problem because it means people are not finding homes on the market that meet their needs. So they’re just not buying.”

The lack of supply has also been steadily pushing up prices. The median price tag on an existing home was $246,800. The cost went up an almost unnoticeable 0.16% from November, but was up 5.8% from December 2017.

"The pool of interested buyers at the end of the year significantly outweighed what was available for sale," NAR Chief Economist Lawrence Yun said in a statement.

The median cost of an oh-so-in-demand single-family home was $248,100 in December—down just $100 from November. Year over year, prices were up 5.8%. Sales of the standalone homes, often found in suburbs, were down 2.6% from November, but increased 1% over December 2017.

Condos and co-ops were a little cheaper at $236,500 in December. Prices were down 1.2% from November, but up 6.4% year over year. Meanwhile, sales were down 11.6% from the previous month, but up 1.7% over the previous year.

However, prices were still significantly less (about 35.9% to be exact) than the median cost of a newly built abode at $334,900 in November, according to the most recent data from the U.S. Census Bureau and the Department of Housing and Urban Development.

Despite the overwhelming demand for affordably priced abodes, only about 10.9% of the sales in December were $100,000 or under. About 42% were in the $100,000 to $250,000 range, while another 34% cost between $250,00 and $500,000. An additional 13.1% of sales were more than $500,000.

The cheapest existing homes were in the Midwest, where the median price was $191,400 in December. That's up 7.8% from a year ago.

The region was followed by the South, at $221,200, where prices rose 5.8% over the previous year, and the Northeast, at $261,400, where prices jumped 3%. The most expensive region by far was the West, where the median home price was $367,400—and prices were up 7.3% from last year.

“Rising wages and the expanding economy should lay the foundation for 2018 being the turning point towards an uptick in sales to first-time buyers,”

NAR's Yun said in a statement. “However, if inventory conditions fail to improve, higher mortgage rates and prices will further eat into affordability and prevent many renters from becoming homeowners.”

 

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

Image Unavailable
Price: $595,000 Beds: 3 Baths: 2 Sq Ft: 2000
Horse property only 5 mins from town! Nearly 6 level acres, backs up to canal & great for trail riding along Amazon. Wonderfully updated home with 2-car garage. 1 bedroom guest house w/ carport has income producing potential. 2 barns w/ 11 stalls, i...



AND HERE'S YOUR MONDAY MORNING COFFEE!! 

2018 Housing Forecast

by Galand Haas

Good Monday Morning!

2018 has started out to be a challenging year for homebuyers in the Eugene and Springfield market area.  The issue with the current market is certainly not demand.  Our current home market problem stems from lack of inventory of homes for sale.  This is especially true in the price ranges of below $300,000, where the high demand for housing exists.  With a current inventory of less that 1.6 months, this shortage has left hundreds of would-be home buyers out in the dark.  The lack of inventory and high demand has created such a shortage that when a home comes on the market that is priced well in the price range of high demand, there is typically a bidding war taking place.  This of course is leading to the situation where many homes are now selling for above asking price.  If this trend continues in 2018, it could be a challenging market for buyers.

For anyone thinking about selling a home, this is a dream market.  In close to 30 years of selling homes in the Eugene/Springfield market area, I have never witnessed this strong of a sellers market.  This is a market that clearly has demand outpacing supply.  My suggestion to anyone in the Eugene/Springfield area who is considering the sale of their home is to get it on the market now.  January through April should be the kind of market that home sellers of the past could only dream about.

Have An Awesome Week!



AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Latest Market Activity for December 2017

by Galand Haas

Good Monday Morning,

As you can see from the following statistics, the Real Estate market in the Eugene and Springfield area remains very strong.  The largest obstacle at this time is that there is only 1.7 months of active inventory of homes for sale. This is critically low number and it is creating a shortage of affordable homes for would-be buyers.  For anyone considering the sale of their home, there just could not be a better market.  If you are considering the sale of your home, don't wait, get your home on the market "NOW" and take advantage of this very strong sellers market. Here are December's Lane County home sales numbers.

December Residential Highlights

Lane County saw increases across the board this December compared to 2016 despite some cooling from last month. New listings (223) ended 3.7% ahead of December 2016 (215) but fell 35.4% sort of the 345 new listings o ered last month in November 2017.

Pending sales (309) fared similarly, increasing 24.1% from the accepted o ers recorded in December 2016 (249) but falling 15.6% short of the 366 offers accepted last month in November 2017.

Closed sales (371) ended one ahead of the 370 sales recorded last year in December 2016 (0.3%) but were 5.8% short of the 394 closings recorded last month in November 2017.

Year to Date Summary

Activity ended slightly ahead in 2017 compared to 2016. Comparing the entirety of each year, new listings (6,390) increased 3.5%, closed sales (5,204) increased 0.8%, and pending sales (5,254) increased 0.2%.

Average and Median Sale Prices

Comparing all of 2017 to 2016, the average sale price rose 9.2% from $263,700 to $287,900. In the same comparison, the median sale price rose 9.7% from $237,000 to $260,000.


Have An Awesome Week!


AND HERE'S YOUR MONDAY MORNING COFFEE!! 

How The New Tax Law Compares To The Old Tax Law

by Galand Haas

Good Monday Morning!

Over the past couple of weeks I have had numerous questions about the new tax laws. There are some changes and the following information will give you some ideas on what those changes look like.

Under the new tax law, homeowners will have decisions to make in 2018, due to reductions or elimination of certain deductions under the new tax law.

Real Estate: How The New Tax Law Compares to the Old Tax Law  
Measure Old Tax Law New Tax Law
Mortgage Interest Deduction Could deduct interest on up to 
$1 million in mortgages on primary & secondary residences
Can deduct interest on up to 
$750,000 in mortgages on 
primary & secondary residences
State and Local income, sales & Property Taxes  Can be deducted from federal income taxes Caps Federal income tax deduction at no more than $10,000 for total of all local state income, property and sales taxes
Interest on home equity debt (HELOCs) Home equity debt interest 
is deductible up to $100,000 if not disallowed by the AMT
Cannot deduct interest on home equity debt-new or existing on personal residence unless improving the residence* 

Equity debt on the personal residence is deductible if it is used to finance 
or improve a rental property
Capital Gains on Home Sales Can exclude up to $500,000 of gain for joint filers or $250,000 of gain for 
single filers from capital gains when selling a primary home, as long as the homeowner has lived in the 
residence for 2 of the past 5 years
No change
Source: Factcheck.org

$937,500 in purchase mortgages is the Max deduction for Mortgage Interest with 20% down.
The mortgage interest deduction is now limited to mortgages totaling up to $750,000 for primary and secondary homes. This means that homebuyers with a 20% down payment can only deduct 100% of the interest from their mortgages if their purchase price total is less than $937,500. 

 

Property Tax Impacts in High Tax States
State income tax, sales tax and property tax deductions (SALT) are now capped at $10,000 total. This is a significant hit for many high tax state residents in high cost areas. 

 

Tax Plan Calculator: Estimate Your Tax Liability
What does this mean for your bottom line? The Wall Street Journal’s tax plan calculator analyzes the impact of the biggest factors in the bill, so you can estimate your tax liability for 2018 through 2027. Click here for The Wall Street Journal Tax Plan Calculator.
 
Common Scenarios: How the Tax Bill Will Affect 8 Families
Bloomberg shows how taxes owed on wage and pass-through income (from a business you own) will change in 2018. These scenarios may remind you of someone you know: 
  • The multimillionaires in New York
  • The second home scenario in California
  • The small business owners in Pittsburgh
  • The suburban family in Westchester
  • Single in Manhattan
  • Married in Austin – a young couple who rents
  • Median income in Oregon
  • Renting in Milwaukee
 
Tax Workaround for Vacation Homes
Owners and buyers of second homes can potentially turn their vacation homes into an investment property by setting up a limited liability company. That allows them to write off interest and upkeep, while using the property part of the year for themselves, according to The Denver Post. Consult a tax professional for help navigating the new tax rules and how to best structure this business.

 Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

Image Unavailable
Price: $595,000 Beds: 3 Baths: 2 Sq Ft: 2000
Horse property only 5 mins from town! Nearly 6 level acres, backs up to canal & great for trail riding along Amazon. Wonderfully updated home with 2-car garage. 1 bedroom guest house w/ carport has income producing potential. 2 barns w/ 11 stalls, i...



AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Happy New Year!

by Galand Haas

Wishing you all a wonderful 2018! Happy New Year!!! 

Displaying blog entries 1-5 of 5

Syndication

Categories

Archives

Contact Information

Photo of Galand Haas Team  Real Estate
Galand Haas Team
Keller Williams Realty Eugene and Springfield
2644 Suzanne Way
Eugene OR 97408
Direct: (541) 349-2620
Fax: 541-687-6411

Share This Page

Find Your Next Home

Homes for sale in the Eugene area are only a click away!