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Thinking Of Doing A Remodel?

by Galand Haas

Good Monday Morning!

Everyone likes to keep their home updated. Updating is an important part of maintaining your homes value and it also makes living in your home more pleasant.  Depending on the size of the update project, the costs can become expensive and sometimes obtaining financing for your project is a key part of making the update process happen.  The following article will give you some ideas on financing your home update project.

Thinking of doing a somewhat major remodel? Perhaps adding another room? Maybe a kitchen do-over has been floating around in your head. If you’re thinking of making some changes to your home, you need to decide how you’re going to pay for them. Of course, your checking or savings account is probably the first option but then some home improvement projects might put quite a dent in a bank balance. That’s when it’s time to consider financing a project. Here are some options for you to consider.

First, if you’ve been thinking about refinancing your current mortgage, you might want to add a little extra to your loan and take some cash out. Of course, taking out some cash to pay for home improvements while refinancing is a secondary consideration, not a primary one. If you’re going to lower your rate or switch loan terms or refinance for any reason, then think about taking out some cash during the process. Yes, you’re going to add to your loan amount, but you’ll be financing your project with very low rates compared to other types of credit. Note however that a new first mortgage will have typical closing costs.

You have the option of simply taking out a personal loan but the rates for unsecured personal loans are going to be higher compared to a secured loan like your mortgage. Unsecured loans are a greater risk to lenders as there is no collateral on which to place a lien, such an automobile or mortgage.

Next, you can take out a home improvement loan in the form of a second lien. Depending upon the size of the loan, you can simply take out an equity loan or a home equity line of credit (HELOC). An equity loan will be one single amount subordinating to the first lien. The funds are disbursed to you at the closing table and transferred to your bank account. All you need to do is pull the funds out when needed. Interest will begin to accrue the day the loan is issued.

With a HELOC, this loan type acts more like a checking account. It is indeed a line of credit that you can draw on at any time. You can also pay back some or all of the withdrawn amount whenever you want. Most HELOCs do ask for a minimum draw and establish when and how much payments are due. Interest is only applied upon withdrawn amounts, and not the credit line itself. With a HELOC, you can use the funds for any purpose, not just for a home improvement.

Finally, you can use any of these options along with paying for some of the improvements with cash. You might want to pay cash for part of a project and finance the rest. Lowering your loan amount when contributing cash to the project means lower monthly payments and less interest paid over the life of the loan. What’s your ideal solution among these choices?

It’s best that you speak with your loan officer and discuss your plans. The first option explored will likely be a cash-out refinance. If you’re open to lowering your rate or shortening the term of your loan, pulling out a little extra cash might be your better choice. The next consideration might be a standalone home improvement loan. These loans will have minimal closing costs but slightly higher rates. There is a small tradeoff, but your loan officer can explain the details.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2259 Corinthian Ct  

Price: $549,000    Beds: 3    Baths: 3    Sq Ft: 2772

Beautifully Remodeled home on a cul-de-sac in the Southwest Hills with views. Custom finishes throughout. Spacious with ample amounts of natural light, 2 main levels, vaulted ceilings, & 2 full kitchens. Also features 2 large master suites, 12x23 bo...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Real Estate activity in the Eugene and Springfield market area changed only slightly in from May to June 2019.  All categories were slightly down in June, including sales, pending sales and new listings.  What was not down was the fact that home prices in Eugene and Springfield continue to climb.  The inventory of homes for sale continues to be extremely low and is now at 1.6 months of inventory.  The market remains very attractive for anyone considering the sale of a home.  Here are the home sales numbers for June 2019 in the Eugene and Springfield market areas.

Lane County saw some cooler numbers this June. There were 471 closed sales, falling 1.7% short of the 479 closings recorded last year in June 2018 and 1.5% short of the 478 recorded last month in May 2019.

Pending sales, at 540, similarly ended 3.7% cooler than in June 2018 (561) and fell 1.6% short of the 549 offers accepted last month in May2019.

New listings, at 623, decreased 15.0% from June 2018 (733) and10.4% from May 2019 (695). The prior June with fewer new listings was in 2013, when 602 were offered.

Total market time decreased to 38 days in June, with inventory increasing slightly to 1.6 months.

Year to Date Summary

Activity is cooler so far in 2019 compared with 2018. Comparing the first six months of each, closed sales (2,251) have decreased 7.7%, pending sales (2,558) have decreased 8.2%, and new listings (3,077) have decreased 8.7%.

Average and Median Sale Prices

Comparing 2019 to 2018 through June, the average sale price has increased 4.5% from $302,500 to $316,200. In the same comparison, the median sale price has increased 4.3% from $277,000 to $289,000.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2230 Comstock Ave  

Price: $555,000    Beds: 4    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...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

The Trend For Home Price Increases Continues Nationally

by Galand Haas

Good Monday Morning!

As we move towards mid Summer 2019, the trend for home price increases continues nationally.  We continually think that we are at or near the peak of where home prices are going to go and the market just keeps being strong enough that the price of homes continues to spiral upwards.  This is great news for anyone considering a home sale.  My word of advice is that if you are thinking about selling your home, do it now.  The price increases will have to end sometime soon and as usual, most sellers will wait and miss the upwards trending market and hit a flat or downward price trend.  With mortgage interest rates continuing their downward trend, the housing market should remain hot for sellers for the rest of the Summer months and possibly into early Fall.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1441 Norkenzie Road  

Price: $414,900    Beds: 3    Baths: 2.0    Sq Ft: 2150

Home sits off of Norkenzie on a Shared Driveway. RV parking space and additional guest parking area. Updated and spacious kitchen, living, office and dining with hardwood floors. Carpet in all bedrooms. Master bedroom has a large walk-in closet, roomy shower and jacuzzi tub. Fully fenced with a gorgeous and...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

I am often asked the question, "is this a good time to purchase a larger and more expensive home?"  Market conditions can really change the way I would answer this question.  Some markets are great for move up buyers and some are not.  Currently though, in the Eugene/Springfield area the time is perfect for move up buyers.  There are several reasons for this beginning with the fact that lower and mid range homes are in high deman and are selling at a premium.  Higher priced homes do not currently have the high demand and are selling at more competitive prices.  The other reason for this being a great ove up market is interest rates.  Currently mortgage interest rates are extrmely attractive and have dropped considerably over the past several months.  The following article will give you more insight into why now is a good time to move into a more expensive home.

Homes priced at the top 25% of the price range for a particular area of the country are considered “premium homes.” In today’s real estate market, there are deals to be had at the higher end! This is great news for homeowners wanting to upgrade from their current house.

Much of the demand for housing over the past couple of years has come from first-time buyers looking for their starter home. Many of the more expensive homes listed for sale have not seen as much interest.

According to ILHM’s Luxury Reportthis mismatch in demand and inventory of luxury and premium homes has created a Buyer’s Market. For the purpose of the report, a luxury home was defined as one that costs $600,000 or more.

“A Buyer’s Market indicates that buyers have greater control over the price point. This market type is demonstrated by a substantial number of homes on the market and few sales, suggesting demand for residential properties is slow for that market and/or price point.”

The authors of the report were quick to point out that current conditions at the higher end of the market are no cause for concern.

“While luxury homes may take longer to sell than in previous years, the slower pace, increased inventory levels and larger differences between list and sold prices, represent a normalization of the market, not a downturn.”

Luxury can mean different things to different people. To one person, luxury is a secluded home with plenty of property and privacy. To another, it could be a penthouse at the center of a bustling city. Knowing what characteristics mean luxury to you will help your agent find you the home of your dreams.

Bottom Line

If you are debating upgrading your current house to a premium or luxury home, now is the time!

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

93048 Templeton Road  

Price: $785,000    Beds: 4    Baths: 3.0    Sq Ft: 3035

Quiet And Private House on 20.59 secluded acres with gorgeous valley and mountain views. 15+ acres second growth Fir with significant market value and 2+ acres of pasture. Gorgeous custom interior with hardwood floors, vault ceilings, views. 4 bay s...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Right now is the perfect time to take advantage of mortgage rates that are at an extremely favorable level. Just when we thought that we would never see mortgage rates at the near historic low levels again, rates started a spiral downwards.  If you are considering a home purchase, right now may be the time to take advantage of these current low rates.  

For the seventh time in the last nine weeks, the 30-year fixed-rate mortgage dropped, reaching the lowest average since November 2016, Freddie Mac reports in its weekly mortgage market survey.

“While the industrial- and trade-related economic data continues to dominate the news, the drop in mortgage rates over the last two months is already being felt in the housing market,” says Sam Khater, Freddie Mac’s chief economist. “Through late June, home purchase applications improved by five percentage points compared to the previous month. In the near term, we expect the housing market to continue to improve from both a sales and price perspective.”

Freddie Mac reports the following national averages with mortgage rates for the week ending June 27:

  • 30-year fixed-rate mortgages: averaged 3.73%, with an average 0.5 point, falling from last week’s 3.84% average. Last year at this time, 30-year rates averaged 4.55%
  • 15-year fixed-rate mortgages: averaged 3.16%, with an average 0.5 point, falling from last week’s 3.25% average. A year ago, 15-year rates averaged 4.04%.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.39%, with an average 0.4 point, falling from last week’s 3.48% average. A year ago, 5-year ARMs averaged 3.87%.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1441 Norkenzie Road  

Price: $414,900    Beds: 3    Baths: 2.0    Sq Ft: 2150

Private house on a Shared Private Driveway. RV parking space. Spacious kitchen, living, and dining with hardwood floors. Carpet in all bedrooms. Master bedroom has a large walk-in closet, roomy shower and jacuzzi tub. Fully fenced with a gorgeous and...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

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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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