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Good Morning!

There can be some confusion in the minds of the average consumer about interest rates, especially as it relates to the Federal Open Market Committee, or FOMC, meetings. About every six weeks, the FOMC meets to discuss the current state of the economy with an eye toward the future. One important task is to monitor and adjust the cost of funds. In general, the “Fed” tries to keep inflation in check and in theory raise or lower the cost of funds. They do so by adjusting the Federal Funds rate and this is the rate that gets so much press each time the FOMC meets.

The Federal Funds rate is the rate banks can charge one another for short term lending. Short term as in overnight. Why does a bank need to borrow money on such a short notice? Banks are required to keep a certain amount of liquid capital, in other words “cash,” at the end of each business day. These funds are essentially demand funds. When a consumer wants to withdraw some cash either at the bank or at any automated teller, there needs to be cash available to meet those withdrawal requests. If the bank sees their reserves to meet these requests do not meet the reserve requirements, banks seek out a short term loan from another depository institution to meet the reserve requirements. This is what the Fed adjusts, the overnight lending rate. But the Fed doesn’t directly impact the everyday 30 year conforming fixed rate mortgage.

When lenders set their rates each day, they refer to a specific mortgage bond. For example, with a 30 year fixed conforming loan underwritten to Fannie Mae standards, the lender will review the current yield on the FNMA 30-yr 3.0 mortgage bond. Just like any bond, with the price of the bond goes up, the yield will fall. And when the price goes down, the yield will rise. Investors buy bonds, all types of bonds, as a safe place to park cash. When the economy appears to falter, investors can get a little skittish and pull some funds from the stock market and transfer those funds into bonds, including mortgage bonds. If on the other hand the economy is healthy and improving, the opposite will occur.

When the Fed makes an announcement at the end of their two-day meetings, investors are anxious to hear if the Fed raised, lowered or kept rates the same. If the Fed announces they decided to raise the cost of funds by 0.25%, it can tell investors the FOMC decided the economy is doing rather well but to hold of any potential inflation, it will raise the cost of funds that banks will pay for short term lending. It’s not a direct affect on mortgage rates, but definitely an indirect one.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

825 SAND AVE

Price: $550,000    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, pant...View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Latest Market Activity for August 2018

by Galand Haas

Good Monday Morning!

Don't let the sales statistics from August fool you, we are heading into a shifting market quickly in the Eugene and Springfield area. The months to come certainly may see slower home sales with more pressure on home prices and longer times on the market. Home prices over the past several years have increased too rapidly and have outpaced buyers ability to purchase. In the past, this scenario has always created a market adjustment. If you are needing to sell a home now, you should be pricing your home accordingly. Don't think that you can price above this current market and expect a sale. Here are the August sales numbers.

August Residential Highlights

Lane County saw some gains in closings and new listings this August. Closings, at 575, outpaced August 2017 (519) by 10.8% and July 2018 (491) by 17.1%. It was the strongest August for closings in Lane County on the RMLSTM record, dating to 2001!


New listings (711) saw a 4.6% gain over the 680 new listings  on the market last year in August 2017 and a 9.4% gain over the 650 new listings on the market last month in July 2018.


Pending sales, at 505, showed a 3.8% decrease from August 2017 (525) and a 7.5% decrease from July 2018 (546).


Inventory edged down to 1.7 months in August, with total market time increasing to 36 days.


Year to Date Summary


Comparing the first eight months of 2018 to 2017, closed sales (3,564) have increased 4.1% and pending sales (3,772) have increased 0.9%. New listings (4,762) have decreased 0.4%.


Average and Median Sale Prices


Comparing 2018 to 2017 through August of each year, the average sale price has increased 6.3% from $288,900 to $307,200. In the same comparison, the median sale price rose 7.9% from $259,900 to $280,500.

Have an awesome week!

 

THIS WEEK'S HOT HOME LISTING!

3187 Kentwood Drive

Price: $264,900   Beds: 3   Baths: 2   Sq Ft: 1,172

Fantastic updated home in Ferry Street Bridge! New laminate wood floors, doors and hardware, fresh interior and exterior paint, and kitchen countertop. Bright and open inside. Living room with dining area. Kitchen with eating bar opens to family roo... View this property >> 


 

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

This Month In Real Estate September 2018

by Galand Haas

Good Monday Morning!

Nationally, both home sales numbers and average sales prices have dipped slightly.  This has not caught up to the Eugene and Springfield area just yet, but I believe that it is on the horizon.  I am noticing that many homes in our area are not selling quickly at this time and also I am starting to see a good number of price reductions.  This is a strong indication that change is on the horizon.  I would guess that we will most likley be seeing a much softer sellers market over the next quarter.  

 

If you have been looking for a home in the Eugene and Springfield area and became frustrated during the frenzied strong sellers market of the last year, this might be your opportunity to jump back in and potentially have a much easier time finding a home to purchase.

Trouble viewing video? View it here.

 

Have an awesome week!


THIS WEEK'S HOT HOME LISTING!

 

84305 Derbyshire Lane

 

Price: $414,900   Beds: 3   Baths: 1.5   Sq Ft: 2,019

 

Beautiful country property! Serene tree views surround 5.27 acre estate w/ gate entry. Engineered wood floors, 2 fireplaces, ductless heat pump, recessed lights & sliding door. Open galley kitchen w/ eating nook. Living & family rm, plus bonus rm w/... View this property >>  

 

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Here's Why Affordability In Housing Market Is At Record Lows

by Galand Haas

Good Monday Morning!

The housing market both locally, in the Eugene and Springfield area, and across the nation seems to be slowing down. There certainly are fewer buyers out there serious about a home purchase. Home affordability could be most of the reason for this recent slowdown. This video from CNBC gives details on why affordability could be having an impact on the housing market at this time.

View video HERE

Have an awesome week!

 

THIS WEEK'S HOT HOME LISTING!

84305 DERBYSHIRE LN

Price: $450,000   Beds: 3   Baths: 1.5   SqFt: 2,019

Beautiful country property! Serene tree views surround 5.27 acre estate w/ gate entry. Engineered wood floors, 2 fireplaces, ductless heat pump, recessed lights & sliding door. Open galley kitchen w/ eating nook. Living & family rm, plus bonus rm w/... View this property >>

 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

This Month In Real Estate August 2018

by Galand Haas

Good Morning!

Nationally, homes sales dipped slightly in July, but home prices continue their upward trend.  It is my guess that we may have reached the peak in home prices and home prices will either remain flat, or possibly even start a decline soon.  Both locally and nationally, homes are becoming less affordable with higher prices and higher mortgage interest rates.  There is a point where the market will flatten due to this and home prices will begin the decline.  We are either there or it is close.

View video here

Have an awesome week!

 

THIS WEEK'S HOME HOME LISTING!

 

253 WEDGEWOOD DR

Price: $320,000    Beds: 3    Baths: 2.5    Sq Ft: 1855

Fabulous one-level home in desirable Santa Clara neighborhood! Spacious 0.22 acre lot on lovely low-traffic street. Living room w/ fireplace. Large galley kitchen w/ pantry. Dining/Family room combination w/ fireplace. Large private master suite w/ ... 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!!

Latest Market Activity for March 2018

by Galand Haas

Good Morning!


March home sale numbers are in for the Eugene and Springfield area and the sellers market trend continues.  The inventory of homes for sale actually decreased from February, which is not normal and home prices continue to increase.  This is not the best news for homebuyers, but continued good news for homesellers. My caution here is that with mortgage interest rates up and the continued increase in home prices, there will be a point where this market will shift and make a correction.  That time could be sooner than later.  Here is the March 2018 homes sales report.


March Residential Highlights


March brought gains nearly across the board in Lane County, with closings taking an impressive lead. Closed sales (404) ended 13.8% ahead of March 2017 (355) and 36.9% ahead of February 2018 (295). It was the strongest March for closings in the county since 2006, when 409 were recorded.


Pending sales (489) edged 2.3% ahead of March 2017 (478) and outpaced February 2018 (392) by 24.7%.


New listings, at 531, fell six short of last year in March 2017 (537, -1.1%) but warmed 42.7% from last month in February 2018 (372).


Total market time decreased by three days to end at 61 days this March, with inventory creeping downward to 1.4 months.



Average and Median Sale Prices


Comparing the average price of homes in the twelve months ending March 31st of this year ($292,800) with the average price of homes sold in the twelve months ending March 2017 ($268,000) shows an increase of 9.3%. The same comparison of the median shows an increase of 10.4% over that same period.



Have An Awesome Week!

 

THIS WEEK'S HOT HOME LISTING

 Wedgewood Dr

List Price: $330,000     Beds: 3    Baths: 2.5    Sq. Ft.:1,855

Fabulous one-level home in desirable Santa Clara neighborhood! Spacious 0.22 acre lot on lovely low-traffic street. Living room w/ fireplace. Large galley kitchen w/ pantry. Dining/Family room combination w/ fireplace. Large private master suite w/ 2 closets & access to back. Laundry room w/ half bath.  Well-manicured lawns w/ sprinklers, fence backyard, covered deck & patio, & tool shed. Only 5 minute drive to schools, stores & park... View property

 


AND HERE'S YOUR MONDAY MORNING COFFEE!!

Latest Market Activity for February 2018

by Galand Haas

Good Monday Morning!


The Real Estate market in the Eugene and Springfield area shows no sign of change.  Home sales remain strong and the inventory of homes for sale remains extremely low.  The inventory is critically low in the price ranges for first time buyers from $150,000 to $300,000.  The cost of homes in our area also continues to increase and the inventory of affordable brand new housing is close to non-existant.  Mortgage intereste rates dropped slightly and are now at around 4.4% for 30 year fixed financing. Here is the report for February 2018.

Lane County saw mixed activity this February, but most measures were ahead of February 2017. Closed sales (295) outpaced February 2017 (247) by 19.4% but fell 9.5% short of the 326 closings recorded last month in January 2018. It was the strongest February for closings in Lane County since 2007, when 305 were recorded. 

 

Similarly, pending sales (392) rose 6.2% ahead of the 369 offers accepted in February 2017 but fell 7.8% short of the 425 offers accepted last month in January 2018. 

 

New listings, at 372, were 5.3% short of the 393 new listings recorded last year in February 2017 and 12.7% short of the 426 new listings recorded last month in January 2018. 

 

February saw total market time decrease by two days to end at 64 days. Inventory crawled slightly upward in the same month, ending at 1.8 months. 

 

Average and Median Sale Prices 

Comparing the average price of homes in the twelve months ending February 28th of this year ($290,400) with the average price of homes sold in the twelve months ending February 2017 ($265,900) shows an increase of 9.2%. The same comparison of the median shows an increase of 10.5% over that same period.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

798 70th St 

$245,000  Beds: 3   Baths: 2   Sq. Ft.: 1,395

Spacious corner lot in Thurston area. This 3 bedroom, 2 bathroom home has new furnace & water heater, mountain view & vinyl windows. Sunken living rm w/ pellet stove insert. Kitchen w/ eating bar & pantry opens to large dining area. Laundry rm. Cove... 

View this property >> 



AND HERE'S YOUR MONDAY MORNING COFFEE!!

Latest Market Activity for January 2018

by Galand Haas

Good Morning!

The Real Estate market in the Eugene and Springfield area was stronger in January of 2018 than in January of 2017.  Both sales and new listings were up.  The inventory of homes on the market remains low at 1.7 months and critically low in the first time buyer price ranges of $250,000 and below.  Here are the home sale statistics for January 2018.


January Residential Highlights 

January brought waves of warm real estate activity to Lane County, almost across the board. Pending sales (425) outpaced January 2017 (318) by 33.6% and December 2017 (309) by 37.5%. This is the strongest January for pending sales in Lane County on the RMLSTM record, dating to 2001. 

New listings, at 426, ended 33.1% stronger than in January 2017 (320) and 91.0% stronger than last month in December 2017 (223). 

 

There were 326 closed sales, faring 19.4% better than last year in January 2017 (273) but cooling 12.1% compared to December 2017 when 371 closings were recorded. 

 

Inventory held steady in January at 1.7 months, and total market time increased by four days to end at 66 days. 

Average and Median Sale Prices 

Comparing the average price of homes in the twelve months ending January 31st of this year ($289,100) with the average price of homes sold in the twelve months ending January 2017 ($264,800) shows an increase of 9.2%. The same comparison of the median shows an increase of 10.1% over that same period. 

 

Have An Awesome Week!

 

THIS WEEK'S HOT HOME LISTING!

 

 

6655 A ST

Price: $199,900

Beds: 2

Baths: 1

Sq Ft: 1078

Cute 1-level home in desirable Thurston neighborhood. Well-maintained home features updated drs & vinyl windows. Large living rm w/ wood-insert fireplace. Galley-style KIT w/ French door leads to utility rm. Open dining area w/ sliding dr. Large cro... 

View this property >> 



AND HERE'S YOUR MONDAY MORNING COFFEE!!

2018 Housing Forecast

by Galand Haas

Good Monday Morning!

2018 has started out to be a challenging year for homebuyers in the Eugene and Springfield market area.  The issue with the current market is certainly not demand.  Our current home market problem stems from lack of inventory of homes for sale.  This is especially true in the price ranges of below $300,000, where the high demand for housing exists.  With a current inventory of less that 1.6 months, this shortage has left hundreds of would-be home buyers out in the dark.  The lack of inventory and high demand has created such a shortage that when a home comes on the market that is priced well in the price range of high demand, there is typically a bidding war taking place.  This of course is leading to the situation where many homes are now selling for above asking price.  If this trend continues in 2018, it could be a challenging market for buyers.

For anyone thinking about selling a home, this is a dream market.  In close to 30 years of selling homes in the Eugene/Springfield market area, I have never witnessed this strong of a sellers market.  This is a market that clearly has demand outpacing supply.  My suggestion to anyone in the Eugene/Springfield area who is considering the sale of their home is to get it on the market now.  January through April should be the kind of market that home sellers of the past could only dream about.

Have An Awesome Week!



AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Displaying blog entries 1-10 of 44

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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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