Real Estate Information Archive

Blog

Displaying blog entries 1-4 of 4

American Dream

by Galand Haas

Good Monday Morning!

Has the increase in home pricing reached a point where it is keeping large numbers of would be homeowners out?  A recent survey that was conducted by the National Association of Realtors thinks so.  Here is the report from that survey.

Homeowners and non-homeowners both strongly consider homeownership part of the American Dream.

That is according to new consumer survey data from the National Association of Realtors®, which revealed that among those polled, approximately 75 percent of non-homeowners believe homeownership is part of their American Dream, while nine in 10 current homeowners said the same.

NAR’s Aspiring Home Buyers Profile analyzed 2018 quarterly consumer insights from its Housing Opportunities and Market Experience (HOME) survey1 to capture the housing expectations and sentiments of non-homeowners – both renters and those living with a family member.

When non-homeowners were asked for the chief reason why they currently do not own a home, most respondents said it was because they were currently unable to afford a mortgage. Over the last quarter of 2018, 43 percent of non-owners said they did not own a home because they were not in a position to purchase, which was down from the third quarter of 2018, when 49 percent of non-homeowners answered the same. Also in the 4th quarter, 33 percent of non-homeowners said they do not own because current life circumstances are not suitable for ownership, while 16 percent said they need the flexibility of renting.

In addition, the survey looked at the main reason why non-homeowners would buy a home in the future. Throughout 2018, 28 to 31 percent of non-owners each quarter said an improvement in their financial situation would be the top reason that would encourage them to buy a home in the future. In each quarter, 26 to 30 percent of non-owners said a change in lifestyle – such as getting married, starting a family or retiring – would be the primary reason they would make a future home purchase.

Lawrence Yun, NAR chief economist, says unaffordable housing has caused a number of potential buyers to hold off on purchasing a new home. “The lack of affordable and moderately priced homes has forced non-homeowners to delay achieving that part of the American Dream. However, as the survey confirms, significant lifestyle changes like marriage or starting a family often spur non-owners to pursue home-ownership.”

For this year’s survey, homeowners and non-owners were also asked about adult family or friends moving into their homes, the span of time this individual(s) lived within the household, and if they thought about moving to a new home because of the change.

According to the survey, 11 percent of homeowners had an adult child move into their residence, while 5 percent of non-owners had an adult move into their home.

Of those who had someone move into their home, 44 percent said that the individual intended to live with them for over one year or to stay permanently. Forty-four percent of non-owners reported that the individual planned on living with them for between six months to one year.

Eighty-eight percent of those surveyed who had someone move into their home reported that their living situation remained acceptable and therefore did not warrant consideration of moving into a different home. Twelve percent said they did consider moving or ultimately did move due to their home situation changing.

“While home sales were slightly down in 2018, there is still a sizable pent-up housing demand. Economic growth, interest rates, and the supply of moderately priced-homes will dictate how well the real estate industry will do this year,” said Yun.”

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

2330 Comstock Ave

Price: $585,000    Beds: 5    Baths: 3.5    Sq Ft: 2904

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. Guest bedroom with murphy bed set in beautiful cabinetry can double as bonus area. Large cook's kitchen with upper end stainless steel appliances. Separate formal dining room. This home has a 10X16 studio in the backyard. View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Real Estate For 2018

by Galand Haas

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.

Have An Awesome Week!

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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Number of Home Sales Rise

by Galand Haas

Good Monday Morning!

Home sales numbers are on the rise nationally again as well as home prices. Locally, we have started 2019 with a bang as home sales have been brisk.  The previous issue of low inventory is again becoming an issue locally and may continue into the near future as home sales remain strong.  This is a good sign for the 2019 housing market both nationally and locally.  

If you are considering the sale of your home this year, I strongly suggest that you don't wait for Spring- Summer this year.  Right now you have a strong market that should allow you to obtain a sale in a shorter period of time for the highest dollar value.  

Have An Awesome Week!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-January-2019


THIS WEEK'S HOT HOME LISTING!

825 SAND AVE

Price: $525,000    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........ .View this property >>


AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good News Buyers!!

by Galand Haas

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 >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!


Displaying blog entries 1-4 of 4

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!