Good Monday Morning!

Even though mortgage interest rates have increased over the past several weeks, the demand for housing remains strong.  As I have been stating for some time now, if you are thinking about selling your home this year or in the future, don't wait.  Right now the demand for housing is as strong as I have ever seen it and this may last for several months.  Buyers are panic buying as they fully understand that mortgage interest rates are on the verge of some hefty increases.  Inflation numbers are not backing down and the Fed has one way to go and that is to increase rates.  So far the Fed has just kicked the can down the road, but the reality is that soon they will be forced to act. For buyers, I would also suggest that you try to purchase a home now.  The process of buying now could be tough due to competition, but just hang in there.  You will be very happy that you made your move now.  Here is an article that talks about our current national housing market.

Homebuyers flocked to what little inventory existed in January, with existing-home sales rising 6.7% from the prior month to a seasonally adjusted annual rate of 6.5 million. 

January sales fell 2.3% from a year earlier, though the median existing-home price rose 15.4% annually to $350,000, according to the Friday report from the National Association of Realtors.

The supply of homes for sale fell to a record low, down 16.5% from a year ago. There were just 860,000 homes for sale at the end of January, according to the report. That translates to just 1.6 months of supply; a healthy market generally has between four and six months of supply. 

“Buyers were likely anticipating further rate increases and locking in at the low rates, and investors added to overall demand with all-cash offers,” said Lawrence Yun, NAR’s chief economist.

Indeed, January saw the strongest pace of existing-home sales in a year, even though home prices increased 1.8% from December and mortgage rates shot up 30 basis points. 

Homes priced between $100,000 and $250,000 were down 23% from January 2021, while sales of homes priced between $750,000 and $1 million rose 33%. Sales of homes priced above $1 million were up 39%. Homes went under contract in just 19 days on average, down from 21 a year ago.

“While the 6.7 percent sales growth in January was good news, the drop in for-sale inventory to an all-time low at 860,000 units is a cause for concern,” said Joel Kan, the Mortgage Bankers Association’s AVP of economic and industry forecasting. “There were more listings at the higher end of the market and the median sales price increased for the third straight month, suggesting fewer entry-level and less expensive options, making home-purchase conditions more difficult for first-time buyers. Their share of sales dropped to 27% compared to 33% a year earlier.”

While homebuilders are getting closer to delivering new homes, they remain stymied by ongoing global supply chain issues. Homebuilders are still struggling to obtain lumber, windows and appliances. Garage doors are taking months to arrive, delaying closings.

The good news is there are several directions from which more supply may come, said Matthew Speakman, an economist at Zillow. 

“From new construction, from an aging Boomer population choosing to downsize and list their homes, from people feeling more confident listing as pandemic fears subside and/or from those sellers looking to capitalize on huge gains in equity over the past few years,” he said. “The other good news is that even despite very limited selection, buyers are finding ways to get deals done, keeping sales volume elevated heading into the spring shopping season.

Have An Awesome Week!

Stay Healthy! Stay Safe! Remain Positive! Trust in God!

THIS WEEKS HOT HOME LISTING!

1826 Adelman Loop, Eugene, OR 

Price: $500,000    Beds: 4    Baths: 2.5    Sq Ft: 2522

This home has a great floor plan with very wide hallways, staircase and high vault ceilings. Large master bedroom on the main level with dining area and large kitchen with counter. 3 bedrooms upstairs with with a bonus room area. This home sits on o...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!