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Market Activity for April 2015

by Galand Haas

Good Morning!

The Real Estate market in the Eugene and Springfield area just continues to heat up.  An improving local economy and the fear that mortgage interest rates are going to begin to increase are fueling this market.  With high demand and home inventories remaining low, this is a tremendous opportunity for anyone thinking about selling their home.  If you fit into this category, then you may want to start doing your research.  A perfect way to do this is to get an online evaluation of your homes current market value.  You can easily do this by going to the web site www.forhomesellers-nonSmartZip.com.  The information that you receive from this site will give you a good indication of what your Eugene/Springfield area home vlaue is.

Lane County saw increased real estate activity across the board this April. Pending sales, at 557, showed a 56.5% increase over the 356 offers accepted in April 2014 and a 18.0% increase over the 472 offers accepted last month. In fact, this represented the strongest April for pending sales in Lane County on the RMLSTM record.


Closed sales, at 382, similarly outpaced last April (294) by 29.9% and last month (341) by 12.0%—the strongest April for closings since 2006, when there were 394 posted for the month.

New listings (687) increased 15.7% over last April’s 594 new listings and 19.7% over the 574 new listings offered in March 2015. The last April with as many new listings was in 2010, when there were 691.

Inventory in Lane County decreased to 3.4 months in April, with total market time decreasing to 95 days in the same period.

Average and Median Sale Prices

Prices have been higher in 2015 than in 2014. Comparing each year through April, the average sale price rose 5.2% from $225,200 to $236,900. In the same comparison, the median sale price rose 5.6% from $203,100 to $214,500.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!



185 Crest Drive

Price: $315,000    Beds: 3    Baths: 2    Sq Ft: 2500

Lovely updated gem in SW Hills! Hillside location surrounds you w/ serene tree views. Sunlight floods in through numerous windows. 2-story vaulted LR w/ pellet stove insert & loft overlook mahogany flr+trim & slider. Enjoy beautifully landscaped fen...
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Best Time to Buy a Home - By the Numbers

by Galand Haas

Good Morning!


Not a day passes without someone asking me if they should buy a home now or wait until the market slows down and homes are more affordable.  This is an easy question to answer, because we still have affordability and we also have historic low mortgage interest rates that won't be here for ever.  The following is a recent article from "Realty Times", that talks about our current market and addresses the home purchase question.

Right now, buyers have the best of both worlds -- home prices have risen, but they're still below the bubble of 2005, and mortgage interest rates are just above record lows. Yet, many buyers are still waiting for a sign that it's the right time to buy.

Should you wait for prices to go down or for lower interest rates? We advise that you do neither. The price of a home is fixed, so it makes sense to wait for prices to go lower, but you may not realize is that prices have to drop significantly to beat a minor fluctuation in mortgage interest rates.

Home prices have been rising for the past five years, sometimes in the double digits. Between January 2014 and January 2015, home prices rose over six percent. If sales continue at the current pace, it's more likely that the home you don't buy today could be more expensive later.

In the time you wait for price reductions, you could effectively build equity, or ownership in your home. Few homeowners keep a loan for 30 years anymore. People change jobs, get divorced, move up, downsize, refinance and have other reasons for not keeping their original mortgage. So the time is now.

So let's look at a few what-ifs and see when it's best for you to buy a home. Using round numbers, on a $200,000 30-year, fixed-rate mortgage at 4.00 percent, your monthly payment starting May 2015 will be $955. At seven years, the average length of time that most buyers occupy their homes today, you'll pay $52,898 in interest and the remainder of your loan will be $171,738.


If you wait around and interest rates go up, you'll be paying more monthly, plus you won't build equity as quickly. At 4.5 percent, your monthly payment will be $1,013 and you'll pay $59,828 in interest. Your loan remainder is higher - $173, 692. A half a point increase in interest will cost you $58 more per month, $6,930 more in interest, and you'll end up with $1,954 less in equity.

If your home dropped 5% in value and you were able to get a loan for $190,000 and 4.5% interest, your payment would be $963, a difference of $51 less per month than if you'd paid $200,000.

But what if you're wrong and prices go up by five percent? At $210,000 and 4.5 percent interest, you'll pay $1064 per month, $62,820 in interest, and the remainder on the loan will be $182,376. That's a difference of $109 more on your monthly payment and $9830 more in interest, plus you'll lose $10,638 in equity.

Why not buy now when both prices and interest rates are lower?

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!



649 ST ANDREWS LOOP
 

Price: $495,000     Beds: 5     Baths: 4    ½ Baths: 1     Sq Ft: 5568

Outstanding value at $88 per sq ft - Hardwood flooring, granite counters, travertine tile, hickory cabinets, two walk-in closets, solid core 8ft doors, creek views, next to Emerald Valley Golf Resort. Too many high end amenities to list. Less than 2...
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This Month in Real Estate May 2015

by Galand Haas

Good Morning!

I am asked frequently the question as to, "when is the best time for me to sell my home"?  The answer to this most times can vary and is always subject to supply and demand.  When supplies are low and demand is high, (sellers market), this is always the best time to sell. Right now in the Eugene/Springfield home market, the demand is high and the inventory is low.  In fact right now, we are at 3.4 months of home supply.  Remember, anything less than 6 months is a sellers market.  On top of this, we are continuing to enjoy the benefits of historic low mortgage interest rates.  The combination of high demand, low inventory and low mortgage rates has also put our home market on a sharp rebound in home values.  So, not only is there demand, but your home value is most likely much higher than where it has been over the past several years.

Beware!  As all markets do, this current market won't last forever. In fact my prediction is that when mortgage interest rates begin the spiral upwards, the housing market will flatten quickly. This means that demand will taper, there will be higher inventories of homes for sale and this may put pressure on home prices in our area.  We could actually see home values decline again.

For this reason, if you are thinking about selling your home now or within the next several years, my advice would be to act quickly.  Get your home on the market now while the conditions are extremely favorable. If you wait, you just may miss your opportunity for a home sale at a strong market value.  Chances are that we won't see another market like we have right now for many years.

Video Link: This Month in Real Estate

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING

3097 Summit Sky Blvd

Price: $699,000     Beds: 4     Baths: 4      Partial Baths: 1     Sq Ft: 4338

Elegant upper end home on 1.06 acres in SW Hills! Maple hardwood flrs, granite, travertine, 3 suites, 2 fireplaces, 2 balconies, family rm, library/office, formal dining, bonus rm, media rm. Gourmet kitchen with cherry cabs, wine fridge, dbl ovens, ... 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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