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Slow Rise In Home Inventory Still Not Meeting Demand

by Galand Haas

Good Morning!

It seems that much of the nation is beginning to feel the pressure from housing markets that are quickly becoming over-priced. California, which has had extreme housing inflation for years is feeling the pain of an over-priced market and home sales are beginning to slow down quickly in many areas. California many times leads national housing trends. Here is an article from MSNBC that talks about the housing market changes.

A slight increase in the supply of homes for sale brought buyers back to the table in June.

Pending home sales, a measure of signed contracts to buy existing homes, rose 0.9 percent in June compared to May, according to the National Association of Realtors. Sales, however, were 2.5 percent lower than they were in June 2017. Pending home sales have been down annually for six straight months.

Sales increased in all regions of the country, rising 1.4 percent month-to-month in the Northeast, 0.5 percent in the Midwest, 1.1 percent in the South and 0.7 percent in the West. Compared to a year ago, however, sales were lower in all regions – weakest in the West.

"After two straight months of pending sales declines, home shoppers in a majority of markets had a little more success finding a home to buy last month," said Lawrence Yun, chief economist for the Realtors. "The positive forces of faster economic growth and steady hiring are being met by the negative forces of higher home prices and mortgage rates."

The severe shortage of homes for sale has been plaguing the housing market for more than a year. As demand rises, prices continue to heat up, with multiple offers more the norm than the exception. Total housing inventory at the end of June rose 0.5 percent compared to June of 2017, the first annual increase in three years.

"Even with slightly more homeowners putting their home on the market, inventory is still subpar and not meeting demand. As a result, affordability constraints are pricing out some would-be buyers and keeping overall sales activity below last year's pace," added Yun.

Affordability has hit the West especially hard. Home sales in southern California plummeted in June, according to CoreLogic, as buyers came up against red-hot prices. Some sellers are starting to lower prices, and real estate agents there are reporting fewer bidding wars. This could mark a turn in the market.

The rise in pending home sales, albeit very small for the month, does show that as more inventory comes on the market, there are buyers waiting to meet it. One headwind going forward is mortgage rates. They barely moved at all in June but started to edge higher again in July. Should rates move even more decisively higher, especially amid still-high home prices, sales could weaken further.

Have an awesome week!

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 BOLTON HILL RD

Price: $990,000    Beds: 4    Baths: 3.5    Sq Ft: 3700

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AND HERE'S YOUR MONDAY MORNING COFFEE!!

Mortgage Applications Down 2.5% vs. Previous Week

by Galand Haas

Good Monday Morning!


 

The combination of rising home prices and slightly higher mortgage interest rates is beginning to have an impact on the housing market.  It is clear that we are now seeing fewer buyers entering the market due to home affordability.  This may be the beginning of an end to the heated homes sales market that we have been in for several years.  A slow down in buyer numbers is usually the first indication of a shifting market.


Have an awesome week!

 

THIS WEEK'S HOT HOME LISTING 

6997 Glacier Drive

Price: $375,000    Beds: 4    Baths: 2.5   Sq.Ft.: 2,406

Completely remodeled! Fresh interior and exterior paint. All new: carpet, vinyl wood floors, LED lighting with Decora switches, heat pump, furnace, hot water heater. Large lower level bonus space (not included in SF) with lots of potential; it could make a great mother-in-law suite. Private master suite...View this property>>


AND HERE'S YOUR MONDAY MORNING COFFEE!!

Latest Market Activity For June 2018

by Galand Haas

Good Morning!

The numbers are in and Lane County had another strong month of home sales for June of 2018.  The primary thing to note is that the average home sales price continues to increase and is now over $300,000 as you will see.  One has to wonder how long this trend can continue in a market with a wage scale that does not support this high of an average home price? Here are the numbers for June of 2018.

 

June Residential Highlights

 

Lane County had mostly positive activity this June, with accepted offers leading the way. At 561, pending sales outpaced June 2017 (544) by 3.1% and May 2018 (521) by 7.7%. The last June when pendings ended stronger was in 2004, when 588 offers were accepted.

 

New listings, at 733, fared well in June. At 733, new listings rose 2.8% ahead of June 2017 (713) and 7.8% ahead of May 2018 (680). This was the strongest June for new listings since 2007, when 902 were listed.

 

Closed sales, at 479, dipped 6.1% under the 510 closings recorded in June 2017 but fared 6.2% better than last month in May 2018.

 

Inventory rose upward slightly in June to end at 1.7 months, with total market time holding steady at 38 days.

 

Year to Date Summary

 

Comparing the first six months of 2018 to 2017, closed sales (2,439) have increased 5.7% and pending sales (2,786) have increased 1.7%. New listings (3,370) have decreased 0.4%.

Average and Median Sale Prices

 

Comparing 2018 to 2017 through June of each year, the average sale price has increased 7.3% from $281,900 to $302,500. In the same comparison, the median sale price rose 9.1% from $254,000 to $277,000.

Have An Awesome Week!

 

THIS WEEK'S HOT HOME LISTING!

6997 Glacier Drive
Price: $375,000 Beds: 4 Baths: 2.1 Sq. Ft.: 2,406

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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Demand for Housing Remains Strong Even As Home Prices Rise

by Galand Haas

Good Morning!

Mortgage interest rates declined slightly and are now holding steady. This has brought some relief to a national housing market that is continuing to see prices on the rise. Demand for housing remains very strong, even though home prices are rising faster than wages. Please watch the video for further details. If the attached video does not play, view it HERE.

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

36946 PARSONS CREEK RD

Price: $380,000     Beds: 3     Baths: 1     Partial Baths: 1     Sq Ft: 1890

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AND HERE'S YOUR MONDAY MORNING COFFEE!!

Displaying blog entries 1-4 of 4

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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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