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Good and Bad News For Current Home Sales

by Galand Haas

Good Morning!

Here in the Eugene and Springfield area and nationally, new home sales are down.  This has contributed to the current national and local shortage of available homes for sale.  The following is an article from "Realtor.com" that will give you more information on why the inventory of homes for sale is so low at this time.

Here’s the good news: Sales of newly constructed homes rose in the beginning of the year. The bad news? It wasn’t enough to ease the housing shortage that is frustrating would-be home buyers across the nation.

Buyers purchased about 3.7% more new homes in January than in December, according to a joint report by the U.S. Census Bureau and U.S. Department of Housing and Urban Development. The January purchases were also 5.5% above where they had been a year earlier. (Realtor.com® looked only at the seasonally adjusted numbers, which have been smoothed out over 12 months to account for seasonal fluctuations.)

Sounds good, right? Well, not exactly.

“New-home sales should be growing much more than they are,” says Chief Economist Jonathan Smoke of realtor.com. “We should be seeing twice the volume of new-home sales, and we’re not.”

The reason is that there aren’t enough buyers who can afford the median $312,900 price tag of one of those new homes, often decked out with the latest appliances and finishes. They are nearly 37% more expensive than the median $228,900 price for an existing home in January, according to the most recent National Association of Realtors® data.

Prices on those new homes dipped 1% from December—but were nearly 7.5% higher than in January 2016.

New residences cost more because they’re expensive to build, with increased local red tape, high land and material costs, and a shortage of construction workers. So builders are going to erect only what they’re sure they can sell, Smoke says.

“It effectively limits who can buy the new homes and how many new homes can be built and sold,” Smoke says.

For example, about 55% of the new homes sold in January cost more than $300,000, according to the report.

Just 5% were under $150,000 and only 9% were between $150,000 and $199,999—the price categories that are most likely to fit into the typical first-time buyer’s budget.

The bulk of sales, about 30%, were between $200,000 and $299,999, and 27% were between $300,000 and $399,999.

Most of the home purchases were in the South—about 290,000—where prices are typically lower. The purchases were up 4.3% from December, but down 1% from January 2016.

The West, the country’s most expensive region, saw the second-most sales, at about 151,000. Monthly sales dropped 4.4% but rose 16.2% annually.

In the Midwest, new-home sales were up 14.8% from December and 4.5% from the same month a year earlier. There were about 70,000 sales in the region.

Meanwhile, the Northeast saw the largest surge in home purchases. Sales of the roughly 44,000 homes were up 15.8% from the previous month and rose 22.2% from a year earlier.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

755 HORN LN

Price: $295,000    Beds: 4    Baths: 2    Sq Ft: 1868

Tranquil & spacious property! Beautifully landscaped 0.41 acre lot provides seclusion & great entertaining spaces. Remodeled home offers updated kitchen & baths, large living rm w/ gas fp, formal dining, large windows+skylight. Private master ste w/...View Home for Sale >>

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Latest Market Activity for February 2017

by Galand Haas

Good Morning!

Here are the numbers for the February 2017 Real Estate market in the Eugene and Springfield area.  As you can see, there was little change.  The inventory of homes for sale remains critically low and the result is fewer sales and higher home prices.  The Eugene/Springfield area remains as one of the lowest areas in the country for active homes for sale at just 2.2 months of active inventory available.  All that I can say is the same thing that I have been saying.  If you are thinking about selling your home in the near future, this is the top of the market for home pricing and you should take advantage of it. Here are the numbers for February.

 

February Residential Highlights

Activity in Lane County continued a cooling trend this February, but some numbers showed gains over January. New listings (393) showed a 22.8% gain over January 2017 but ended 5.5% below the 416 new listings offered last year in February 2016.

Similarly, pending sales (369) rose 16.0% above the 318 orders accepted last month in January 2017 but were 12.1% under the 420 orders accepted last year in February 2016.

Closed sales, at 247, ended 13.0% under February 2016 (284) and 9.5% under January 2017 (273).

February saw inventory in Lane County rise just slightly to 2.2 months. Total market time during the same period rose three days to 75 days.

Average and Median Sale Prices

Comparing the average price of homes in the twelve months ending February 28th of this year ($266,000) with the average price of homes sold in the twelve months ending February 2016 ($244,400) shows an increase of 8.8%. The same comparison of the median shows an increase of 8.3% over that same period.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1471 BARRINGTON AVE

Price: $514,900    Beds: 5    Baths: 3    Sq Ft: 3756

Luxurious & grand! Great Rm w/ surround sound, Brazilian cherry hardwd & gas fp. HUGE theater/bonus rm. Open KIT w/ cherry stained cabinets, island, LED under+above cabinet & toe-kick lights. Private mstr ste w/ access to back, bath w/ heated marble...View Home for Sale >>


AND HERE'S YOUR MONDAY MORNING COFFEE!!

This Month in Real Estate March 2017

by Galand Haas

Good Morning!

Nationally, the housing market is experiencing little change.  So far, this is what I predicted for the first half of 2017 with a fairly flat market.  The second half of 2017 could see some change, especially if we see mortgage interest rates begin to creep up.  Here in the Eugene and Springfield area, the inventory of homes for sale remains at a crippling low level for first time home buyers.  Homes in the $175,000 to $300,000 range are scarce.  

If you are thinking about selling your home this year, don't hesitate.  Right now is the time to get it on the market.  The worst thing you could do this year is to wait for Spring and Summer.  The present market may be the best market we see in years for home sellers!

Have An Awesome Week!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-March-2017

THIS WEEKS HOT HOME LISTING!


114 Hayden Bridge Way

Price: $249,900    Beds: 3    Baths: 2    Sq Ft: 1451

Pride of ownership shows. Over 1/4 of an acre offers oversize attached garage, detached garage/shop with workbench, long wide drive with room for RV parking, large fenced backyard with covered patio, plus timed sprinkler system. Great room with fire...View Home for Sale >>



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Good Morning!

Eugene's recent housing market is currently seeing record low number of homes on the market for sale.  In fact, the inventory right now is less than two months and second lowest in the nation.  The price range of homes that is hardest hit by this shortage is those that are at or below the median sales price of around $265,000.  This is the price range that most young families and first time home buyers are in.  The housing shortage has created some severe problems in our area as the shortage continues to drive home prices higher, making them less affordable.  Home price increases have outpaced the increase in income for our local area and as a result have actually pushed many first time home buyers completely out of the market or pushed them into price prices where there are low inventory and high demand.

Why does Eugene have one of the lowest inventories of available housing?

One major culprit is the fact that city and county land planners have refused to extend the urban growth boundary for Eugene.  This has caused a dire shortage of building lots and the shortage has lead to huge price increases for the existing lots.  The result of this is lack of new construction, which has fallen well below demand and has lead to a very high price for any new construction.  The urban growth boundary freeze is the primary culprit for low inventories and non-affordable housing, especially for young families and first-time home buyers.  As available lots become even more scarce the cost of housing continues to skyrocket and the affordability factor continues to decline.  This is not a healthy situation for any community.

Right now, City and County land planners are again refusing to expand the urban growth boundary for residential in Eugene.  This means a continuation of lot shortages, high priced lots, housing shortages and non-affordable housing for Eugene.  This refusal to extend the urban growth boundary for residential has choked our community for years and now during a time of crisis in the local housing market the planners refuse to help remedy our problem.

If you are concerned with the current housing crisis in Eugene, then I urge you to contact both county and city land planners and express your concern.  The failure to create affordable housing in Eugene will continue to choke our economy and drive our young families to other cities.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!


1471 BARRINGTON AVE

Price: $514,900    Beds: 5    Baths: 3    Sq Ft: 3756

Luxurious & grand! Great Rm w/ surround sound, Brazilian cherry hardwd & gas fp. HUGE theater/bonus rm. Open KIT w/ cherry stained cabinets, island, LED under+above cabinet & toe-kick lights. Private mstr ste w/ access to back, bath w/ heated marble...View Home for Sale >>


AND HERE'S YOUR MONDAY MORNING COFFEE!!

3 Steps To Save Money For Your Dream Home

by Galand Haas

Good Morning!

Today, with home prices rising faster than wages and a slight bump in mortgage interest rates, the home market for first-time homebuyers is tougher than it has been in a long time.  Saving enough money for a downpayment and also enough money to keep monthly payments in check can be a tough task.  The following article from "Realty Times" gives would be first-time homebuyers some good advice on how to prepare for a home purchase.

According to Harvard University's "State of the Nation's Housing" report, while more people than ever before want to own their own home, fewer feel financially ready to do so yet. Reasons range from high rents to student loan debt. Millennials, in particular, are waiting longer to get married, start families and purchase their first home. But this is not necessarily bad news for the housing market. In fact, it could mean that the millennial generation has something to teach us all about saving consistently towards a big life goal such as owning your own home!

In this article, learn three important steps to take when you start saving for your dream home.

Step 1: Pay down your debt to clean up your credit.

Your credit score is a tricky business when it comes to saving for your first home. You have no history of carrying a mortgage, so you can't make any real impact there. What you can do is to clean up your overall credit report so your general credit score is as healthy as possible before you apply for your mortgage loan.

According to the National Foundation for Credit Counseling (NFCC), a surprising number of Americans think they have "above average" (60 percent) to "very good" (41 percent) credit, although a full 48 percent have not seen their credit score in the past three years or ever.

So clearly, this is where you need to start. The best way to differentiate yourself from your competition (other people who are trying to convince a direct lender to give them a mortgage loan) is to pay down your debt, clear up any disputes on your credit report and, in so doing, boost your credit score so you can qualify for the best mortgage at the lowest interest rates.

Step 2: Separate and automate your savings.

Saving money is never going to be the easiest goal you attempt. In fact, according to The Atlantic, one of the chief reasons that nearly half of all Americans have little or no emergency savings to fall back on is taking on too much mortgage debt.

So here is a clear area where you should proceed with caution. First, save. Then, buy a home. The best approach to make saving as painless as possible for you is to automate your savings. You can do this by setting up direct deposit on your paycheck and then regular auto-drafts into a savings account reserved just for dream home savings. This way, you never even touch those funds and feel tempted to spend them instead.

Step 3: Downsize to upsize

Finally, one effective change many adults today are making to save more towards their dream home is to downsize while they save. This can mean anything from moving to a smaller apartment to getting rid of your cable television subscription. Also, you must continually remind yourself why you have downsized in order for this step to work well.

But the key to making downsizing work to serve your greater goals is to make sure you deposit every cent of what you save into your dream home fund. Referring back to Step 2 here, the easiest way to do this is to calculate for yourself exactly what you are saving by paying less rent, giving up cable, etc., and then setting up a monthly auto-draft in that amount to deposit directly into your dream home savings account.

By following these three steps, you can make tangible financial progress in saving to buy your dream home. If you can save 20 percent towards a downpayment, you can avoid paying expensive Private Mortgage Insurance (PMI) and you may even qualify for a lower interest rate. Scrimping and saving is never fun or easy, but it will be worth it when your realtor hands you that brand-new set of house keys!

Have An Awesome Week!

THIS WEEKS HOT LISTING!

Hilltop Drive #1

Price: $225,000    Beds: 0    Baths: 0    Sq Ft: 0

Development property platted for 8 residential building lots. Easy access for roads and utilities. Lot sizes range from 6,700 sq. ft. to 14,000 sq. ft. Plat map and estimate on development costs available upon request....View this property >>


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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

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