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Number of Home Sales Rise

by Galand Haas

Good Monday Morning!

Home sales numbers are on the rise nationally again as well as home prices. Locally, we have started 2019 with a bang as home sales have been brisk.  The previous issue of low inventory is again becoming an issue locally and may continue into the near future as home sales remain strong.  This is a good sign for the 2019 housing market both nationally and locally.  

If you are considering the sale of your home this year, I strongly suggest that you don't wait for Spring- Summer this year.  Right now you have a strong market that should allow you to obtain a sale in a shorter period of time for the highest dollar value.  

Have An Awesome Week!

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


THIS WEEK'S HOT HOME LISTING!

825 SAND AVE

Price: $525,000    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........ .View this property >>


AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good News Buyers!!

by Galand Haas

Good Monday Morning!

Good news for home buyers.  Mortgage rates have dropped and may continue to slide.  This along with improved inventory of homes for sale is making our current Real Estate market very attractive.  Here is an article from Realtor.com that explains the unexpected drop in mortgage loan rates.

Unless prospective home buyers have been living under a rock, they're probably all too familiar with the fact that mortgage rates are on the rise. And with a strong economy spurring the Federal Reserve to raise interest rates, mortgage rates are likely to continue their climb in the longer term.

The average rate of a 30-year fixed loan was anticipated to hit 5% last month. That would have been an increase of about a percentage point from a year earlier, a change that can add hundreds of dollars a month to a mortgage payment and tens of thousands of dollars over the loan's three-decade duration. But then something unexpected happened.

Instead of continuing their steady rise, mortgage interest rates began to fall. That average hit 4.75% as of Dec. 6, down from 4.94% a month earlier, which was this year's peak, according to Freddie Mac data. So what happened?

Well, buyers have an underperforming stock market and the worst trade deficit in a decade to thank for the temporary reprieve.

“It’s good for home buyers because it makes the monthly payment more affordable for a home," says Chief Economist Danielle Hale of realtor.com®. “It’s the lowest level we’ve seen in two months, but it’s still pretty high.”

What do trade and the stock market have to do with mortgage rates?

Trying to understand why mortgage rates go up and down is complicated stuff. Most folks think that they're tied to the Federal Reserve's short-term interest rates, which the Fed has hiked three times so far this year. But even if it does raise rates again this month by 0.25 percentage points, as expected, it doesn't mean that mortgage rates will jump as a result.

That's because while mortgage rates are influenced by these short-term rates, they're really more closely tied to the factors driving longer-term rates like the 10-year U.S. Treasury bond market. When the stock market drops or there is a trade deficit, investors get spooked. (The trade deficit is a result of more foreign imports coming in and fewer American products exported to the rest of the world.) So investors typically turn to bonds and mortgages, which are considered safer, long-term investments.

“The problem is, there’s negative headlines ... around the stock market and around international trade," says Sam Khater, chief economist of Freddie Mac. "When stock prices drop, it causes a flight to safety and Treasury bonds."

Since mortgage rates are generally an inverse reflection of the strength of the bond market, when bonds are up, mortgage interest rates drop. Basically, when investors put more money into mortgage-backed securities, there is more money to lend to home buyers. So interest rates, which are basically the price of borrowing money, come down—and the cost savings are passed onto lenders making loans.

"Mortgage rates are decided by investors looking for a return on their money over the next 10 years," says Hale. “If people think international trade is going to hurt the economy and U.S. company growth prospects, then they might choose to invest in something safer, like Treasury bonds, and that drives mortgage rates down.”

The lower rates could give the housing market a shot in the arm. It's been slowing in recent months due to a triple whammy of high home prices, rising mortgage rates, and an increase in homes for sale. Lower monthly mortgage payments could bring some prospective buyers back into the market.

"In the short term, this is good for consumers," says Khater. "Now we’re back down to the same rates of a few months ago, and there’s more inventory to purchase from."

So will mortgage rates continue to fall?

Unfortunately for buyers, mortgage rates aren't expected to continue falling for long.

"Trade will ultimately get worked out and the economy will continue to grow, so the doomsday scenario that people are expecting right now is unlikely to happen," predicts Hale. This means investors won't be as keen on bonds and mortgage-backed securities. "As the uncertainty passes, we expect mortgage rates will also turn around and begin climbing again.”

Khater agrees.

"The thing that gets lost with all the noise is the fundamental health of the economy remains sound," he says. "And mortgage rates will typically increase when the economy is stronger."

Have An Awesome Week!


THIS WEEK'S HOT HOME LISTING!

2230 Comstock Ave

Price: $585,000    Beds: 5    Baths: 3/1    Sq Ft: 2904

Builder's home with only one owner. 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... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!


Happy New Year 2019

by Galand Haas

Good Morning,

 

Video Link: http://eugeneoregonhomesforsale.com/video/Happy-New-Year-2019

 


THIS WEEK'S HOT HOME LISTING!

 825 SAND AVE

 Price: $535,000    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!!

Eugene & Springfield Inventory

by Galand Haas

Good Monday Morning!

Good news for homebuyers in the Eugene and Springfield area!! The inventory of homes on the market for sale has increased slightly and believe it or not, the housing market has become slightly less competitive. This also means that pricing has become somewhat softer in some price ranges and areas. If you have been searching for a home and gave up due to the fact that you could not find a home, you should take advantage of this market change. Here are the home sales statistics for the month of November 2018 in Eugene and Springfield.

November Residential Highlights

Lane County saw an uptick in new listings this November. At 393, new listings outpaced November 2017 (345) by 13.9%, despite cooling 16.2% from the 469 new listings also entered last month in October 2018. The last November with more new listings in Lane County was in 2007,when 467 new listings were o ered.

Pending sales, at 351, ended 4.1% cooler than in November 2017 (366)and 22.9% cooler than October 2018(455).

Closed sales, at 370, similarly cooled 6.1% from November 2017(394) and 12.1% from October 2018(421).

Inventory in Lane County showed a slight increase in November, ending at 2.2 months. Total market time rose to 52 days in the same period.

Year to Date Summary

Comparing the first eleven months of 2018 to 2017, closed sales (4,848) have increased 0.8% and new listings(6,155) have increased 0.2%. Pending sales (4,952) have decreased 0.3%.

Average and Median Sale Prices

Comparing 2018 to 2017 through November of each year, the average sale price has increased 7.1% from $288,300 to $308,800. In the same comparison, the median sale price rose 8.3% from $260,000 to $281,500.

Have An Awesome Week!


THIS WEEK'S HOT HOME LISTING!

825 SAND AVE

 Price: $535,000    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!!

Home Sales Soften

by Galand Haas

Good Monday Morning!

Home sales nationally have softened.  Maybe it is time for the Fed to revisit its policy of interest rate hikes.  The yield curve, which can predict recession has changed negatively and could be pointing towards tougher economic times.  It might be time for the Fed to halt interest rates hikes and abandon its agressive approach.  Could it be time for the Fed to even lower rates again?  Here is an article from Realtor.com that addresses the current national home sales slump.

Sales of previously owned U.S. homes posted their largest annual decline since 2014 in October, as the housing market continues to sputter due to higher mortgage rates that are reducing home affordability.

The latest data offered a mixed picture of a market that isn’t in free fall but also is far from robust. Existing-home sales edged up 1.4% in October from the previous month to a seasonally adjusted annual rate of 5.22 million, the National Association of Realtors said Wednesday. That broke a six-month streak when sales declined compared with a month earlier.

Sales, however, posted a sharp 5.1% drop compared with a year earlier, indicating the market is likely to end the year on a sluggish note.

Lawrence Yun, the trade group’s chief economist, said the annual decline signals softness in the housing sector that is likely to persist in the months to come.

“There is some feeling that the market could actually go even lower than what it is now in terms of sales,” Mr. Yun said.

When sales began slowing this spring, economists initially blamed a shortage of inventory, which has plagued the housing market throughout the recovery. But rising mortgage rates are playing a bigger role in slowing buyer demand than many economists had expected, shaking confidence that now is a good time to buy a home, according to recent surveys.

Mr. Yun said higher interest rates appear to be choking off buyer demand, and said the Federal Reserve should consider pausing its rate increases to give the housing sector time “to be on firmer ground.”

Mike Fratantoni, chief economist at the Mortgage Bankers Association, said recent declines in the stock market are also causing fresh unease. “The level of volatility in the stock market is reflecting a lot of uncertainty about where we are with the broader economy. There is a little bit of increased anxiety about how much things are going to slow,” he said.

The good news for buyers is that conditions are becoming friendlier to them, as mortgage rate and home-price increases slow and inventory of homes for sale is growing compared with last year.

The rate for a 30-year fixed rate mortgage averaged 4.81% this week, down from 4.94% a week earlier, according to data released by Freddie Mac on Wednesday. Rates are still up significantly from a year ago, when they averaged 3.92%.

The median sale price for an existing home in October was $255,400, up 3.8% from a year earlier. That shows a cooling from a year ago, when prices rose about 5.5%.

There was a 4.3-months’ supply of homes on the market at the end of October, based on the current sales pace, down from 4.4 months in September but up from 3.9 months a year ago.

Mr. Fratantoni said the combination of more muted price growth and a greater number of homes for sale could boost the housing market in the spring, especially if wages continue to rise.

Have An Awesome Week!


THIS WEEKS HOT HOME LISTING!

1849 Crescent Ave 

Price: $319,000   Beds: 3   Baths: 2  Sq Ft: 1344

Wonderful updates in this N. Gilham home! Great Rm layout, hickory cabinets, granite counters, engineered wood flr, recessed lights, stone gas fireplace, vinyl windows & French drs w/ built-in blinds. Kitchen w/ under-mount sink, island & eating bar. Master ste w/ slider. Laundry/mud rm. Fenced yard, shed, covered deck & patio, plus RV parking. Located in highly desirable area, on bus route & only 6 min drive to shops, schools & park.

View this property >> 



AND HERE'S YOUR MONDAY MORNING COFFEE!!

October Home Sale Numbers

by Galand Haas

Good Monday Morning!


Here are the home sales numbers for October of 2018.  For the most part, there is little change taking place over previous months this year. This reflect on a market that has flattened out and maybe starting to decline slightly. This actually is good news and may help us maintain a strong housing market going into 2019.  Here is the report for Lane County in October of 2018.


October brought mixed numbers to Lane County, but new listings saw a gain over October 2017. At 469, new listings rose 5.2% ahead of the 446 new listings last year in October 2017, despite a 2.9% cooling from last month in September 2018 (483).


Closed sales (421) were 5.5% warmer than last month in September 2018 (399) but fell 1.6% short of the 428 closings recorded last year in October 2017.


Pending sales fared similarly,warming 6.1% over the 429 offers accepted in September 2018, but falling 4.6% short of the 477 accepted last year in October 2017.


Total market time rose to 43 days in October with inventory decreasing slightly to 2.1 months from 2.4 months in September.


Year to Date Summary

Comparing the first ten months of 2018 to 2017, closed sales (4,451) have increased 1.9%. Pending sales (4,611) have decreased 0.4% and new listings (5,753) have decreased 0.5%.


Average and Median Sale Prices

Comparing 2018 to 2017 through October of each year, the average sale price has increased 6.9% from $288,200 to $308,200. In the same comparison, the median sale price rose 8.5% from $260,000 to $282,000.


Have An Awesome Thanksgiving Week!


THIS WEEKS HOT HOME LISTING!

1849 Crescent Ave 

Price: $329,900   Beds: 3   Baths: 2  Sq Ft: 1344

Wonderful updates in this N. Gilham home! Great Rm layout, hickory cabinets, granite counters, engineered wood flr, recessed lights, stone gas fireplace, vinyl windows & French drs w/ built-in blinds. Kitchen w/ under-mount sink, island & eating bar......

 View this property >> 



AND HERE'S YOUR MONDAY MORNING COFFEE!!

This Month In Real Estate October 2018

by Galand Haas

Good Monday Morning,

The national home sales statistics for October 2018 indicate that the national housing market remains flat.  There was little change in home sales numbers and home prices from the month of September.  Mortgage interest rates were up slightly, but still remain favorable.  These numbers indicate that the national housing market remains healthy.  With little change going into the Fall months, this suggest that we should see a very healthy and stable national housing market into the first quarter of 2019.

The housing market in the Eugene and Springfield area remains very robust for the price ranges of $300,00.00 and under, but drops off considerably in the upper end price ranges over $500,000.00 and above.  The housing market for homes that work for first time home buyers remains a strong sellers market, but changes considerably from a sellers market in the upper end market.  This trend should remain unchanged going into 2019.

View video HERE.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

 88139 KEOLA LN

Price: $495,000   Beds: 4   Baths: 3   Partial Baths: 1   Sq Ft: 2794

Gorgeous & private rural living! Serene tree views surround 1.37 acre estate. Well-manicured gardens w/ paths, sitting areas & huge patio. Finished 3-car garage & half bath, w/ guest suite above. Features media rm, open layout & private master suite...View this property >>


AND HERE'S YOUR MONDAY MORNING COFFEE!!

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!!

What Is A Piggyback Mortgage and Is It Right For You?

by Galand Haas

Good Morning!

A loan program that was popular several years ago is making a comeback and many lenders are now offering options for a mortgage loan program called "the Piggyback mortgage".

The following will give you some insight into just what a Piggyback mortgage is and also it will give you some information to help you decide if a "Piggyback" loan is a good option for you, if you are searching for a home loan.

Definition of a Piggyback Mortgage

Also called a “purchase money second mortgage,” a piggyback loan is used by homebuyers with less than 20 percent down to avoid paying for private mortgage insurance (PMI).

Types of Packages

Typical packages might be called 80-10-10 (80 percent first mortgage, 10 percent second mortgage, and 10 percent down payment from the buyer), 80-15-5 (a 15 percent second mortgage, and a five percent down payment) or even an 80-20 (80 percent first mortgage, 20 percent second mortgage, and no down payment from the buyer).

Buyers considering this financing should compare the costs of a second mortgage (they do have higher interest rates than first mortgages) with the cost of a bigger first mortgage plus mortgage insurance. They should compare the after tax costs, because borrowers with higher incomes may not be able to deduct mortgage insurance, but they may still be able to write off mortgage interest.

Piggyback Loan Explained

Essentially, a piggyback loan helps homebuyers who don't have the traditional 20 percent down payment when applying for a mortgage.

A piggyback loan occurs when a borrower takes out two loans simultaneously: one for 80 percent of a home's value, and the other to make up for whatever cash is lacking to make up a 20 percent down payment. This is used as an alternative to private mortgage insurance. A piggyback loan is also known as a second trust loan.

The most common type of piggyback loan is an 80/10/10 where a first mortgage is taken out for 80 percent of the home’s value, a down payment of 10 percent is made and another 10 percent is financed in a second trust loan at a higher interest rate. In some cases, you may even qualify for a piggyback loan with as little as a 5 percent down payment (known as an 80/15/5).

Many lenders will finance loans with down payments of less than 20 percent, but you'll pay a price. Usually, the lender insists you buy private mortgage insurance (PMI) which guarantees that the outstanding balance of your loan will be paid off if you default. You will either pay a lump sum each year for PMI or add the cost to your monthly mortgage payments.

Piggyback loans eliminate the need for PMI. You combine this loan with your down payment to reach the 20 percent down needed for a conventional mortgage. This can significantly lower the interest rate of your mortgage.

If you get a piggyback loan, you will close on it the same time as you close on the mortgage. You will most likely have to pay closing costs, which will require additional upfront cash.

You will probably also have to make two loan payments each month — one for your mortgage and one for the piggyback loan. The interest rate on the piggyback loan will probably be higher. But, the monthly payments of both loans are often still less than they would be if you were paying PMI.

Another benefit of a piggyback loan is that the interest may be tax-deductible, potentially saving you even more money. Check with a tax adviser on how a piggyback loan would affect your tax situation.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

176 V Street

Price: $225,000   Beds: 3   Baths: 1   Sq Ft: 1,011

Lovely Hayden Bridge home centrally located! Pride of ownership shows. Step-down living rm w/ pellet stove. Kitchen opens to dining area w/ sliding door. Combination mud/pantry/laundry rm. Workbench in garage, large covered deck w/ hot tub...View this property>>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Mortgage Interest Rates Holding Steady and May Even Decline

by Galand Haas

Good Monday Morning!

Finally, some bright news for would-be homebuyers. Mortgage interest rates are holding steady and may even see a decline. This trend may help take heat off of a housing market that continues to be over priced for many buyers.

Borrowers saw a slight cool down in mortgage rates this week following last week’s seven-year high. The 30-year fixed-rate mortgage dipped for the first time after five consecutive weeks of increases, averaging 4.71 percent.

But the higher rates may be deterring some would-be home buyers. “The strength in the economy has failed to translate to gains in the housing market as higher mortgage rates have contributed to the decrease in home purchase applications, which are down from a year ago,” says Sam Khater, Freddie Mac’s chief economist. “With mortgage rates expected to track higher, it’s going to be a challenge for the housing market to regain momentum.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 4:
(Scroll over interactive data chart)

30-year fixed-rate mortgages: averaged 4.71 percent, with an average 0.4 point, falling slightly from last week’s 4.72 percent average. Last year at this time, 30-year rates averaged 3.85 percent.

15-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.4 point, decreasing from last week’s 4.16 percent average. A year ago, 15-year rates averaged 3.15 percent.

5-year hybrid adjustable-rate mortgages: averaged 4.01 percent, with an average 0.3 point, rising from last week’s 3.97 percent average. A year ago, 5-year ARMs averaged 3.18 percent.

Have an awesome week!

 

THIS WEEK'S HOT HOME LISTING!

6997 GLACIER DR

Price: $359,900    Beds: 4    Baths: 2 ½   Sq Ft: 2406

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!!

Displaying blog entries 1-10 of 592

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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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