Eugene Oregon Real Estate Blog

Good Monday Morning!

Conditions with the housing market in Eugene and Springfield are changing rapidly.  The change in mortgage interest rates is leading the charge.  Rates have increased significantly over the past several weeks and this trend will most likely continue.  How far rate increases go is anyones guess right now.  My guess is that as long as inflation continues to soar, mortgage rates will continue to rise.  Even more concerning is the fact that the yield curve, which reflects bond rates has inverted and this indicates that we are either in the beginning of a recession or close to entering into one.  Mortgage rate increases make it harder for buyers to qualify for financing, so look for the return of ARM loans, which allow buyers to qualify for a lower rate that will be in place for a period at the beginning of their home loan and then adjust to a higher rate, typically 5-7 years down the road.  If lenders begin offering these Arm loans, it may take some of the heat off of the interest rates spikes down the road.  The following is an article from "realtor.com" that speaks to the current mortgage rate situation.

Mortgages rates keep climbing, and that poses a major challenge for families looking to score a deal during the busy spring home-buying season.

The benchmark 30-year fixed-rate mortgage averaged 4.67% for the week ending March 31, according to data released by Freddie Mac on Thursday. That represents a one-fourth percentage point increase from the previous week.

This marks the highest level for mortgage rates since the end of 2018. Comparatively, at this time a year ago, the 30-year fixed-rate mortgage averaged just 3.18%.

The 15-year fixed-rate mortgage rose 20 basis points from the previous week to an average of 3.83%, and the 5-year Treasury-indexed adjustable-rate mortgage climbed 14 basis points to an average of 3.5%. One basis point is equal to one hundredth of a percentage point, or 1% of 1%.

“We’re at rates that we thought we might see at the end of the year, and here we are, at end of March, already seeing that kind of a jump,” said Michael Fratantoni, chief economist for the Mortgage Bankers Association.

To a large extent, the surge in mortgage rates over the last few weeks has mirrored movements in long-term bonds, including the 10-year Treasury. Those increases have come amid expectations that the Federal Reserve will continue to hike short-term interest rates throughout the rest of this year as it attempts to curb high levels of inflation.

The speed at which mortgage rates have increased though, Fratantoni said, could be indicative of the market’s volatility. And home buyers shouldn’t necessarily assume that rates will only be moving upward from here on out.

“Given the speed of the increase we’re still not quite settled on whether this is volatility and you will see rates moving in both directions, or whether this is just a level shift and we will stay here at the higher level,” he said.

‘There’s a lot of capacity in the mortgage industry.’

Tendayi Kapfidze, chief economist at U.S. Bank

In the coming weeks, the Fed will release the minutes of the March meeting of the committee that sets its interest-rate policy, and those notes will provide more clarity of the central bank’s intentions.

The good news for the housing market is that so far, home-buyer demand has held up in the face of skyrocketing mortgage rates, Frantantoni said. Data on mortgage applications from the Mortgage Bankers Association shows that the number of applications for loans used to purchase homes has only slightly declined, as compared with a major downturn in the number of refinancing applications.

That’s a major shift for the mortgage industry. Since the start of the COVID-19 pandemic, lenders were able to rely on a steady stream of refinances to keep their business afloat.

“Refinancing is now at a three-year low,” said Tendayi Kapfidze, chief economist at U.S. Bank. “What that means is that there’s a lot of capacity in the mortgage industry.”

Many lenders are going to be looking to make up for the lost refinancing business. That provides them with “some impetus” not to raise rates as quickly as they might otherwise choose to, Kapfidze said.

It also underscores the importance for comparison shopping. “If you’re a borrower, you want to be very diligent in terms of comparing rates to see where you might find that advantage from a lender who maybe is trying to reduce the speed at which their business is shrinking,” Kapfidze said.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1699 N Terry St Spc 192, Eugene, OR 

Price: $149,900    Beds: 3    Baths: 2.0    Sq Ft: 1456

Every part of this home has been beautifully and tastefully upgraded and updated. New paint inside and out, quartz counter tops, new appliances, new luxury vinyl flooring, new lighting, new HVAC, new carpet and new landscaping and newer roof. Beauti...View this property >> 

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Good Monday Morning!

The Real Estate market that we have been experiencing for the past several years has been rough for first time home buyers.  Even with historic low mortgage interest rates, the escalation in home prices has simply driven many first time home buyers out of the housing market.  Now to add fuel to the fire, inflation has reared its ugly head and has hit levels that have not been seen in many decades.  In an attempt to cool inflation, the Fed has initiated the beginning of what will be a long stream of interest rates increases.  The current low inventory of homes is holding home prices steady, while mortgage rates climb. This combination of events is making our current housing market even tougher than before for home buyers and especially first time home buyers.  The following is a very informative article on this subject from "Realtor.com".

Mortgage interest rates and home prices are continuing to surge, turning the American dream into what seems like an impossible goal for many first-time homebuyers. Welcome to the already fraught spring housing market.

Rates jumped to an average of 4.42%—the highest they’ve been in more than three years—and they’re expected to keep climbing. The rates were for 30-year fixed-rate loans in the week ending on March 24, according to Freddie Mac. Just a year ago, rates were more than a full percentage point lower, at 3.17%.

While that might not seem like much of an increase, it adds about $375 a month to a buyer’s mortgage payment. Over a 30-year loan, buyers will pay about $135,000 more than they would have just a year ago. This assumes they purchased a median-priced home of $392,000 with 20% down and a 30-year fixed-rate loan. The rate changes will cost buyers who take out larger loans even more.

“We are approaching a tipping point for housing markets, as an increasing number of buyers are being priced out by rising rates, stagnating real wages, and fast-paced inflation,” George Ratiu, manager of economic research for Realtor.com®, said in a  statement.

“The window of record-breaking mortgage rates has closed, and the road ahead points to a return toward rates more typical of the past two decades,” Ratiu continues. “For buyers and sellers, this spring will offer a period of transition, in which high prices will combine with rising interest rates to challenge budgets already contending with high inflation.

“Median home list prices haven’t slowed down in response to the increasing rates—and housing experts are divided on if they will,” he adds.

Home prices were 14.2% higher than they were just a year ago in the week ending March 19, according to the most recent Realtor.com data.

The number of homes for sale remains so low that prices could remain high. Inventory was down 18% from the same time last year, when the nation was already grappling with a severe shortage of homes on the market, according to Realtor.com. Homes also sold 10 days faster than they did the same time a year ago.

In addition, home sellers aren’t exactly lowering prices in response to the higher rates. Instead, more buyers are being priced out of homeownership. This is likely to result in fewer sales.

“As mortgage rates surge and buyers drop out of the market, housing will go through an adjustment period with sticky home valuations, while sellers will be reluctant to let go of record-high prices,” says Ratiu.

Rates are expected to keep rising as well. That’s because they typically follow the federal short-term interest rate. And the U.S. Federal Reserve recently raised those rates and is expected to raise them several times more this year to combat soaring inflation.

“Rising inflation, escalating geopolitical uncertainty, and the Federal Reserve’s actions are driving rates higher and weakening consumers’ purchasing power,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “In short, the rise in mortgage rates, combined with continued house price appreciation, is increasing monthly mortgage payments and quickly affecting homebuyers’ ability to keep up with the market.”

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1699 N Terry St Spc 192, Eugene, OR 

Price: $149,900    Beds: 3    Baths: 2.0    Sq Ft: 1456

Every part of this home has been beautifully and tastefully upgraded and updated. New paint inside and out, quartz counter tops, new appliances, new luxury vinyl flooring, new lighting, new HVAC, new carpet and new landscaping and newer roof. Beauti...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sale numbers for February 2022 are in and they don't reflect much change with the exception of home sales prices.  The price of homes in the Eugene and Springfield area continues to escalate.  The sellers market of the last couple of years continues as the inventory of homes for sale remains extraordinarily low.  February had .9 months of inventory. This means that if no new homes were to hit the market, our current inventory of homes for sale would be gone in about 3 weeks.  A healthy market would have 3-6 months of inventory.  With mortgage interest rates rising and inflation continuing to plague us, the market you see today will not be the market of the near future. Here is the home sale report from RMLS for Lane County in the month of February 2022.

Residential Highlights

New listings (427) increased 21.3% from the 352 listed in February 2021, and increased 26.7% from the 337 listed in January 2022.

Pending sales (402) increased 12.9% from the 356 offers accepted in February 2021, and increased 20.0% from the 335 offers accepted in January 2022.

Closed sales (265) decreased 1.9% from the 270 closings in February 2021, and decreased 2.9% from the 273 closings in January 2022.

Inventory and Market Time

Inventory increased to 0.9 months in February. Total market time decreased to 33 days.

Year-To-Date Summary

Comparing the first two months of 2022 to the same period in 2021, new listings (763) increased 8.5%, pending sales (726) increased 4.9%, and closed sales (544) decreased 4.2%.

Average and Median Sale Prices

Comparing 2022 to 2021 through February, the average sale price has increased 18.3% from $386,200 to $456,900. In the same comparison, the median sale price has increased 15.8% from $360,000 to $416,900.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2630 Bowmont Dr, Eugene, OR 

Price: $750,000    Beds: 3    Baths: 2.5    Sq Ft: 3002

Don't miss this well maintained executive home located on a quiet dead end road across from the Hawkins Heights neighborhood park. Enjoy the private backyard w/ mature landscaping from the deck & covered hot tub. Office w/ built-ins on the main leve...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sale numbers for February 2022 are in and they don't reflect much change with the exception of home sales prices.  The price of homes in the Eugene and Springfield area continues to escalate.  The sellers market of the last couple of years continues as the inventory of homes for sale remains extraordinarily low.  February had .9 months of inventory. This means that if no new homes were to hit the market, our current inventory of homes for sale would be gone in about 3 weeks.  A healthy market would have 3-6 months of inventory.  With mortgage interest rates rising and inflation continuing to plague us, the market you see today will not be the market of the near future. Here is the home sale report from RMLS for Lane County in the month of February 2022.

Residential Highlights

New listings (427) increased 21.3% from the 352 listed in February 2021, and increased 26.7% from the 337 listed in January 2022.

Pending sales (402) increased 12.9% from the 356 offers accepted in February 2021, and increased 20.0% from the 335 offers accepted in January 2022.

Closed sales (265) decreased 1.9% from the 270 closings in February 2021, and decreased 2.9% from the 273 closings in January 2022.

Inventory and Market Time

Inventory increased to 0.9 months in February. Total market time decreased to 33 days.

Year-To-Date Summary

Comparing the first two months of 2022 to the same period in 2021, new listings (763) increased 8.5%, pending sales (726) increased 4.9%, and closed sales (544) decreased 4.2%.

Average and Median Sale Prices

Comparing 2022 to 2021 through February, the average sale price has increased 18.3% from $386,200 to $456,900. In the same comparison, the median sale price has increased 15.8% from $360,000 to $416,900.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2630 Bowmont Dr, Eugene, OR 

Price: $750,000    Beds: 3    Baths: 2.5    Sq Ft: 3002

Don't miss this well maintained executive home located on a quiet dead end road across from the Hawkins Heights neighborhood park. Enjoy the private backyard w/ mature landscaping from the deck & covered hot tub. Office w/ built-ins on the main leve...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

For many Americans, a 4% mortgage rate has gone from a possibility to a reality in the span of a few weeks.

The 30-year fixed-rate mortgage averaged 3.92% for the week ending Feb. 17, up nearly a quarter of a percentage point from the previous week, Freddie Mac reported Thursday. It’s the highest average rate for the 30-year loan since May 2019, the last time mortgage rates were above 4%.

The 15-year fixed-rate mortgage, meanwhile, rose above 3% for the first time since March 2020, increasing 22 basis points over the past week to an average of 3.15%. The 5-year Treasury-indexed adjustable-rate mortgage averaged 2.98%, up 18 basis points from the previous week.

To be sure, other surveys gauging mortgage-rate movements have shown median rates already crossing the 4% mark.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances was 4.05%, while the average for 30-year loans backed by the Federal Housing Administration was 4.01%. That’s according to the most recent data from the Mortgage Bankers Association released Wednesday,

The climb in rates has tracked a similar rise in long-term bond yields, including the 10-year Treasury note. And it’s prompting questions about the strength of the housing market in the process.

“As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers, especially as inflation threatens to place a strain on consumer budgets,” Freddie Mac chief economist Sam Khater said in the report.

The increase in rates is likely to have an effect on home prices, which skyrocketed in recent years thanks to the extra runway granted by rock-bottom interest rates.

The long-term implications of the strain of higher mortgage rates have yet to materialize. Thus far, there’s evidence that rising rates have encouraged buyers who were perhaps hesitant to enter the markets to leap into action.

“At a time when the prospect of a sustained increase in mortgage rates has drawn fence sitters into the market, this means that the supply/demand imbalance in the single family segment of the market will become even more pronounced,” Richard Moody, chief economist for Regions Financial Corp., wrote in a research note Thursday.

The increase in rates is likely to have an effect on home prices, which skyrocketed in recent years thanks to the extra runway granted by rock-bottom interest rates. Whether it will also cause buyers eventually to back out of the market, rather than simply adjust the budget for the homes they wish to buy, will be the deciding factor for the housing market’s strength in the months ahead.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2630 Bowmont Dr, Eugene, OR 

Price: $750,000    Beds: 3    Baths: 2.5    Sq Ft: 3002

Don't miss this well maintained executive home located on a quiet dead end road across from the Hawkins Heights neighborhood park. Enjoy the private backyard w/ mature landscaping from the deck & covered hot tub. Office w/ built-ins on the main leve...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The question is, will the national housing slump hit the Eugene and Springfield area soon?  So far, our area seems to continue on a roll for housing sales and home inventories remain extremely tight. Rising mortgage interest rates will certainly begin to take a toll and any future increases are going to slow our housing market.  So far, the Fed has refused to begin any true cycle of rate increses, but they are just kicking the can down the road.  New inflation numbers are hitting 40 year highs and this means only one thing, higher interest rates. Look for the Eugene and Springfield area to follow suit with the remainder of the nation soon.  Here is an article from "Realtor.com" that talks about the current national housing market.

The numbers: U.S. pending home sales fell a sharp 5.7% in January, according to a monthly index released by the National Association of Realtors on Friday. 

Economists polled by the Wall Street Journal expected pending home sales to rise 1%.

This is the third straight monthly decline in the index for pending home sales, which captures transactions where a contract has been signed, but the home sale has not yet closed.

Key details: Year over year, pending home sales were down 9.5%.

The West was the only region to see an increase in activity in January. All of the regions posted declines in activity compared with 12 months ago levels.

Big picture: In general, economists think 2022 will be a tough year for housing. They didn’t expect the wheels to start shaking on the sector so early in the year.

The Federal Reserve’s sharp pivot towards a steady pace of interest rate hikes, higher inflation, and continuing lack of supply seem to be causing investors to pull back.

On the other hand, existing home sales surprised to the upside this month.

Looking ahead: “The clear signal from today’s report is that February is likely to see a substantially slower sales rate for existing homes than the 6.5 million unit pace reported for January,” said Josh Shapiro, chief U.S. economist at MFR Inc.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

39140 Dexter Road Space 73, Dexter, OR 

Price: $35,900    Beds: 2    Baths: 1.0    Sq Ft: 672

Location! Location! Wonderfully maintained and updated home with beautiful views of Dexter Lake! This community rarely has homes on the market! Newly resurfaced roof, flooring, paint, ductless heat pump, electrical panel. All you need to do is move...View this property >> 

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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!!

Good Monday Morning!

Conditions in the Real Estate world are changing and changing fast.  Mortgage interest rates are up and they most likely will increase even further.  Is this still a good time to buy or sell a home?  My answer is, Yes! Mortgage rates are up, but this is just the beginiing.  Our high inflation rates will eventually lead the Fed to taking action and begin raising rates.  Even though rates are up at this time, historically, they remain very low.  We may not see rates at the level we have them at now for years. For this reason, I am very pro buying now.  Also, during inflationary times, investment in Real Estate is by far the most solid place to have your money invested.  In regards to selling a home now, it is also a great time.  Inventories of homes for sale remain historically low and demand remains high.  Home value increases may taper in the coming months, so right now the opportunity for a top dollar sale is still very possible.  The coming months will see further change and the market you see today will not be the market of Spring and Summer.  My advice is don't wait to buy or sell a home. The following is an article from Realtor.com that talks about the current housing market nationally.

Surging mortgage rates are making the prospect of buying a home even more expensive for Americans—many of whom have already grown weary about the state of the housing market.

The 30-year fixed-rate mortgage averaged 3.69% for the week ending Feb. 10, up 14 basis points from the previous week, Freddie Mac reported Thursday. It’s the highest level for the benchmark mortgage rate since January 2020, before the COVID-19 pandemic had officially reached U.S. shores.

The 15-year fixed-rate mortgage, meanwhile, rose 16 basis points to an average of 2.93%. The 5-year Treasury-indexed adjustable-rate mortgage averaged 2.8%, up nine basis points from the previous week.

“The normalization of the economy continues as mortgage rates jumped to the highest level since the emergence of the pandemic,” Sam Khater, Freddie Mac’s chief economist, said in the report. “Rate increases are expected to continue due to a strong labor market and high inflation, which likely will have an adverse impact on home buyer demand.”

There’s already evidence that Americans have soured on the prospect of buying a home. A new survey from Fannie Maeshowed that in January only 25% of respondents believe that now is a good time to buy a home, representing a record low since the mortgage giant began tracking the data. Meanwhile, 69% of people said it was a good time to sell a home.

“Younger consumers—more so than other groups—expect home prices to rise even further, and they also reported a greater sense of macroeconomic pessimism,” Doug Duncan, chief economist for Fannie Mae, said in the report, noting that young Americans’ “sense of optimism around their personal financial situation declined.”

“All of this points back to the current lack of affordable housing stock, as younger generations appear to be feeling it particularly acutely and, absent an uptick in supply, may have their homeownership aspirations delayed,” Duncan added.

Rising interest rates are another source of pessimism for these buyers. According to Fannie Mae, more than half of the survey respondents (58%) said they expect mortgage rates to rise in the next 12 months, in line with economist’ expectations.

‘With millennials and Gen Z forming households at faster rates, new home construction would have to triple the rate of home completions to close the gap in five to six years.’
– George Ratiu, manager of economic research at Realtor.com

As Americans consider the prospect of higher rates, some are attempting to take action—but finding major obstacles lie in their path. “Real-estate markets are caught in a lopsided dynamic with many buyers eager to find the right home before rates rise even higher, but very few available homes for sale as a result of almost a decade and a half of underbuilding,” said George Ratiu, manager of economic research at Realtor.com.

According to Ratiu, the housing shortage has surpassed 5.8 million homes as of the end of 2021. “With millennials and Gen Z forming households at faster rates, new home construction would have to triple the rate of home completions to close the gap in five to six years,” he said.

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!!

Good Monday Morning!

With about two weeks of inventory of homes for sale in the Eugene and Springfield area, home buyers are struggling to find homes to purchase.  This situation does not seem to be easing at this time and it is creating an very strong market for home sellers with multiple buyers and offers being the norm.  Could the slight increase in mortgage interest rates begin changing this situation?  The answer to this is most likely it will not at this time.  If mortgage rates begin to tick up even higher, then you will see fewer buyers out there and the inventory of homes could begin to rise.  My suggestion is for home buyers to hang in there.  Even though rates jumped slightly, they are going higher in the near furture and will not be dropping again as many think.  For home sellers, if you are going to sell your home this year, don't wait.  You are at the top of the market and waiting will only cost you money.  Here is an article from a national Real Estate publication that speaks to our current housing market situation.

Homes are selling even faster than they were at this time last year as buyers continue to compete in the housing market. Housing inventories are lower as well, down 28% from a year ago. In December 2021, the National Association of REALTORS® reported that existing homes for sale fell to an all-time low.

With fewer listings of homes last week, buyer interest again outpaced homes available, writes Danielle Hale, realtor.com®’s chief economist, in a weekly analysis posted at the site.

“With fewer homes for sale now than this time last year, homes are selling faster and successful buyers have to move quickly,” Hale writes.

Seventy-nine percent of homes sold in December 2021 were on the market for less than a month, according to the National Association of REALTORS®. Properties typically remained on the market for just 19 days in December.

As rents rise at a double-digit pace, renters are looking to homeownership for the safety net of a steady mortgage and hopes of long-term appreciation. Mortgage rates that remain under 4% are also an incentive.

However, the fear of rising rates has driven a “rush on new-home sales as buyers try to sign contracts to lock-in rates and beat further cost increases,” Hale says.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

3311 Ginkgo Way, Eugene, OR 

Price: $399,900    Beds: 3    Baths: 2.0    Sq Ft: 1417

Meticulously maintained two owner ranch style home in a quiet Santa Clara neighborhood. Newer roof, forced air w/ heat pump & vinyl windows. Corner 1/4 acre lot w/ screened in covered patio, two storage sheds, sprinklers, an irrigation well & RV par...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The inventory of homes for sale in the Eugene and Springfield area has never been lower.  A brisk market with high demand created by extremely low mortgage interest rates and a national housing shortage have fueled a hot market that currently has about two weeks of housing inventory. Things are changing though!  Mortgage interest rates have bumped up slightly and inflation has hit the housing market hard. The combination of high home prices and higher interest rates could be the catalyst for change. The coming weeks will tell the story.  The following is an article from MSNBC that talks about this current housing market change nationally.

The nation’s housing market has never been this tight, which is frustrating enough for house hunters, but now they have another problem.

Mortgage rates, which have hovered around record lows since the start of the Covid pandemic, are now rising. It’s what one potential buyer called “a perfect storm.” Another described it as “agony.”  

At a Sunday open house in Waldorf, Maryland, last weekend, there were already three offers on the three-bedroom home before it even started. By Tuesday, the agent’s deadline, there were nine.

“We’re stuck between a rock and a hard place,” said Rondie Robinson, who was there with his wife and daughter. Robinson said he recently got a new job and is looking to upgrade to a larger home.

“We thought that because of the winter months that it would slack off a little bit, prices would start to come back down to normal, but that’s not happening,” he said. “It’s anguish, it’s pain, it’s agony.”

Limited supply is taking a toll on sales. Pending home sales, which represent signed contracts on existing homes, fell more than expected from November to December, down 3.8%, according to the National Association of Realtors. The Realtors blame the drop on the extreme shortage of homes for sale, not on lack of demand.

New listings from sellers were down 8% year over year for the week ended Jan. 22, according to Realtor.com. Those listings have been below historical levels for eight of the last 10 weeks. As a result, active inventory, which is the total number of homes for sale, was down 28% from a year ago.

Buyers are coming out early this year, hoping to get a jump on the usually busy spring market. They are also concerned that in an already pricey housing market, rising mortgage rates could force them out.

“Between looming rate hikes, rising home prices and surging rents, today’s home shoppers have plenty of motivation to close while monthly costs might still be affordable,” said Danielle Hale, chief economist at Realtor.com.

The combination of fierce demand and low mortgage rates over the past two years caused home prices to rise at the fastest pace in several decades. While the year-over-year gains are starting to shrink nationally, prices are still at record highs, up close to 19% last November from November 2020, according to the S&P Case-Shiller index.

“We don’t want to wait, because likely when it does get warmer, more houses go on the market, and the rates get higher, it’s just gonna be kinda like the worst situation, like the perfect storm where things really go up,” said Mike Williams, who was at the open house in Maryland.

The home was priced at $375,000, right around the national median. But rising rates mean the monthly payment is now about $200 more than it would have been a year ago and $100 more than just three weeks ago. The average rate on the 30-year fixed mortgage was below 3% at the start of last year and is now hovering around 3.7%.

“Everybody’s concerned that competition’s going to make it so that especially the first-time homebuyers don’t have a leg up, they’re not going to be able to compete,” said Duke Walker, a loan officer at Movement Mortgage in Washington, D.C.

Walker said his phone has been ringing off the hook with calls from potential buyers looking to lock in their rates now before they move any higher. Mortgage applications to buy a home jumped 8% in the second week of this month from the first, according to the Mortgage Bankers Association.

“Over the last two weeks in particular, you’ve seen a significant increase, not just with my own, but industrywide all my contemporaries are also seeing their application count up,” said Walker.

More competition amid limited supply will only make the competition more fierce. Homes are now selling on average 10 days faster than they were a year ago, according to Realtor.com.

City Chic Realty’s Kyo Freeman, who is the agent on the Maryland home, said he expected from the start to see it sell for well above the list price, just as so many did last year.

“It feels like we’re going to see a lot of similar bidding wars,” said Freeman. “Any property that is really, really high interest is going to have a lot of offers, and it’s going to be tough for somebody who has a limited budget to be able to compete for those.”

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