Eugene Oregon Real Estate Blog

Good Monday Morning!

The Real Estate market in Lane County continues to be below 2019 levels in numbers of new homes coming on the market and in home sales.  The one area that our local market continues to see increase is in home values.  With 2 months inventory of homes for sale, there are a few more homes for sale than last year, but at the price range of $400,000 and below, the inventory is low and homes sales are extremely active. In the price range of $300,000 and lower the inventory is extremely low and this part of the market is as hot as I have ever seen.  There are far more buyers than there are homes for sale in this price range.  The following statistics will show you how May of 2020 compared to the market we saw in May of 2019.

May Residential Highlights

New listings (485) decreased 30.2% from the 695 listed in May 2019, and increased 18.0% from the 411 listed in April 2020.

Pending sales (465) decreased 15.3% from the 549 offers accepted in May 2019, and increased 31.4% from the 354 offers accepted in April 2020.

Closed sales (311) decreased 34.9% from the 478 closings in May 2019, and decreased 2.5% from the 319 closings in April 2020.

Inventory and Market Time

Inventory held steady at 2.0 months in May. Total market time increased to 38 days.

Year-to-Date Summary

Comparing the first five months of 2020 to the same period in 2019, new listings (2,289) decreased 6.2%, pending sales (1,842) decreased 10.1%, and closed sales (1,539) decreased 13.1%.

Average and Median Sale Prices

Comparing 2020 to 2019 through May, the average sale price has increased 8.9% from $312,800 to $340,700. In the same comparison, the median sale price has increased 12.3% from $285,000 to $320,000.

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Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

4312 Cole Way, Springfield, OR 

Price: $229,000    Beds: 1    Baths: 1    Sq Ft: 880

Located close to Clearwater Park, this adorable home is perfect for easy living. Beautifully remodeled bathroom with quartz counters, freshly painted interior, new carpet in the loft/master bedroom, new LED lighting & a new roof in 2019. Concrete fl...View this property >> 

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Good Monday Morning!

If you think that the Covid19 pandemic and other national issues has slowed demand for housing, think again.  The housing market in the Eugene and Springfield area is anything but slow.  Demand for homes is high and buyers are also paying top dollar.  With employment number beginning to rebound faster than expected and continued low mortgage interest rates, the climate is great for anyone wantiing to sell their home.  With low inventories of homes right now we are in a hot "sellers" market.  This same situation is typical nationally as described in the following article from "Realtor.com".

An improving economy is turning up the heat on the summer housing market.

The unemployment rate fell to 13.3% in May as more cities and states reopened and many furloughed employees were called back to work, the U.S. Bureau of Labor Statistics announced on Friday. While unemployment is still high, it's less than April's rate of 14.7% and well under the predictions of many economists.

“There are signs that the better-than-expected jobs situation is already having a positive effect on the housing market. We’re seeing more home buyers in the market than we did this time last year," says realtor.com® Chief Economist Danielle Hale. "It’s shaping up to be a hotter-than-expected summer in the housing market."

Summer has historically been when the housing market catches fire, as buyers bid up prices to secure a home and move before the kids start school in the fall. This year, experts had predicted that the season would be slower than normal, because of the economic turmoil, high unemployment, and fears of the novel coronavirus.

To put it in perspective, just after the Great Recession unemployment reached a high of 10%. May's rate was higher.

But the economy's retreat from the precipice is already having an impact on the national housing market.

“Part of why we’re seeing the housing market rebound is because people who would have been shopping in March and April are now out shopping in May and June with people who were originally planning to look for homes" in the summer, says Hale.

"The primary motivation is people believe this is the right time for them to buy a home," she says. "The secondary motivation is that mortgage rates are low, so it helps [buyers] afford more home than they would have been able to [previously]. That's especially important now that people are wanting more space.”

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

1699 N Terry St Space 192, Eugene, OR 

Price: $65,000    Beds: 3    Baths: 1.5    Sq Ft: 1456

Beautiful Home In The All Age Community Of Woodland Park Estates. Open front living area. Open kitchen with lots of cabinet/storage space. Wood flooring. Carpet in Master Bedroom. Master Bedroom has attached half bath. Large mud room with storage sp...View this property >> 

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Good Monday Morning!

Nationally, home sales are similar to what we are currently seeing in Lane County. Home prices are up, demand is high and mortgage interest rates are extremely favorable. In Lane county, we are also seeing a low inventory of homes for sale. We are approaching prime time for home sales and the typical surge of homes hitting the market for sale is just not happening. My guess is that would be home sellers may be reluctant to put their homes on the market due to Covid19. This may be a huge mistake! I know that we have strong buyer demand for homes right now and homes are currently selling at top dollar prices. I am not sure as to what the future holds for our local housing market, but I doubt that we will see this favorable of a market for home sellers later this year. If you are considering a home sale, contact me. We can meet and I can give you an idea as to what your home is currently worth. We can also go through your home and give you ideas on what you can do to sell your home for top dollar. Don't hesitate if you are thinking about selling your home this year!!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-May-2020

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

93048 Templeton Rd, Cheshire, OR 

Price: $750,000    Beds: 4    Baths: 3    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 >> 

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Good Monday Morning!

Even with the unemployment numbers soaring nationally due to Covid19, home sales remain strong.  This is evident by the surge in home mortgage loan applications.  In the Eugene and Springfield market area, home sales remain strong and the numbers of buyers looking for homes is very high.  The largest issue in our local area to date is the lack of inventory of homes for sale.  Here is an article from "Realtor.com", that describes the current situation.

A weekly gauge of home buyer interest ticked up for the third week in a row—a sign of “pent-up demand for home buying,” according to the organization that administers the survey.

The Mortgage Bankers Association’s Purchase Index, which measures the weekly volume of applications for loans to buy a home, rose 6% on a seasonally-adjusted basis and 7% on an unadjusted basis for the week ending May 1. In a news release, MBA chief economist Mike Fratantoni credited that week-over-week increase to “strong growth in Arizona, Texas and California,” which posted increases of 11%, 10.3% and 10.1%, respectively.

With state lockdowns only beginning to be eased, much is still unknown about how an economic recovery from the coronavirus crisis will take shape. But a third week-over-week increase in loan applications is a positive sign for the housing market. The survey is a regular pulse-check of buyer interest in residential real estate—and for much of March and April it was falling.

Home-purchase applications began dropping in mid-March as the virus—and the lockdown policies meant to hinder its spread—began sidelining much of the U.S. workforce and subduing consumer spending. The Mortgage Banker Association poll wasn’t the only one showing a dip in home buyer interest at the start of the housing market’s normally busy spring season. In a survey by the National Association of Realtors in early April, 90% of members said buyer interest had dropped, while Fannie Mae’s Home Purchase Sentiment Index, which measures Americans’ outlooks on job security and buying and selling homes, experienced its greatest month-over-month decline since the index began.

While the Mortgage Banker’s index has been reporting week-over-week increases since mid-April, purchase application volume is still lower than it was at the same time last year. Purchase activity is down 19% from a year earlier, Fratantoni noted, but “this annualized deficit has decreased as more states reopen amidst the apparent, pent-up demand for home buying,” he said in the release.

Of the three states with strong growth that Fratantoni cited, Texas’s loan-application volume is the closest to 2019 levels, falling only 4.2% below the same week last year.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

855 Calvin St, Eugene, OR 

Price: $419,000    Beds: 3    Baths: 2    Sq Ft: 1400

Beautifully remodeled Ferry St Bridge home. Open living concept throughout, vaulted ceilings, quartz countertenors, new cabinets, new light fixture, & custom built entertainment center. Spacious master suite with master bath and walk in closet. Beau...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

For all of us, life has changed signicantly over the past two months.  Covid19 has altered the way we conduct our everyday lives and business's and the end of this interuption is not in sight.  In past messages, I have expressed the fact that even with the changes, people are actively selling and purchasing homes.  The sales numbers for the Eugene and Springfield area do not represent anything that even remotely appears to be a market crash.  In fact from what I am currently seeing the demand for homes to purchase may be as strong as it was for the same time period in 2019.

If you are considering selling your home this year and are worried that this is just not the right time to sell, the market that we are currently experiencing does not reflect this at all.  The largest isssue that we seem to have at this time is that we have more buyers than we have houses to sell them. This means that you can sell your home now for top market value and take advantage of this great sellers market!

Many Real Estate agents are choosing to not work during this crisis and are stating that the market is off.  As I stated above, this is not supported by what I am currently seeing statiscally or from my peronal experience.  Myself and my Team are at work every day!  We are busy listing homes and helping people purchase homes.  If you are wanting to sell a home or want to explore purchasing a home, please contact us.  This is a great market, so don't miss out!!

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

855 Calvin St, Eugene, OR 

Price: $419,000    Beds: 3    Baths: 2    Sq Ft: 1400

Beautifully remodeled Ferry St Bridge home. Open living concept throughout, vaulted ceilings, quartz countertenors, new cabinets, new light fixture, & custom built entertainment center. Spacious master suite with master bath and walk in closet. Beau...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

With the world still in a crisis over Covid19 and many speculations as to when this all will end, the Real Estate world is still alive and moving in the Eugene and Springfield area.  The suprising fact is that there are people putting their homes on the market and they are selling.  In fact in many cases, homes are lasting no more than just a few days before they sell.  One thing that never changes is the fact that there are people who need to purchase a home and those who need to sell a home.  If you find yourself in a position where you either need or want to buy or sell a home, don't be afraid to act now.  We are finding that even though the market is different right now, it remains strong. Unfortunately, this is not the common feeling right now by most people as described in this article from "Realtor.com".  The reality is that the inventory of homes for sale is very low and there are many buyers out there ready to buy when they find the home they are looking for.

Americans have quickly soured on the prospects of the nation’s real-estate market as the coronavirus pandemic has swept the country.

Only 50% of Americans said that now is a good time to buy a home, according to a survey of roughly 1,000 people released Friday by polling firm Gallup. That represents the lowest share of Americans to have a positive view on the country’s housing market in the time that Gallup has tracked people’s sentiments on real estate.

A year ago, 61% of Americans thought it was a good time to buy, while 36% said they believed it wasn’t. The previous low was set back in 2006 when only 52% of Americans thought it was a good time to buy amid the subprime mortgage-fueled housing bubble. Gallup began tracking American’s feelings on the housing market periodically back in the 1970s and has polled on this question annually since 2003.

Sellers, meanwhile, have refrained from listing their homes or pulled them from the market to avoid the possibility of needing to sell at a lower price.

Notably, the shift in sentiment was more prominent among homeowners (down 16 percentage points) than renters (down four percentage points). Renters were more pessimistic about the housing market during the Great Recession than they are now, while this year’s poll represents an all-time low among homeowners.

Republicans, people who live in the suburbs of large cities, and those whose annual income exceeds $100,000 were most upbeat, per Gallup’s survey.

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

93048 Templeton Rd, Cheshire, OR 

Price: $750,000    Beds: 4    Baths: 3    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!

The data is in for March 2020 home sales in Lane County.  Bear in mind that this period of time for sales in pre Covid19, for the most part.  There is a great deal that has changed in our market since this time and there are many more changes in front of us.  The one thing that I can tell you is that there are lots of potential home buyers out there ready to go.  In fact, sales activity has been robust even during this tragic time.  The largest problem is lack of homes for buyers to purchase.  If you are thinking about selling your home this year, don't wait!  Right now is a great opportunity for you to sell while the competition levels are low.  Here are the home sales numbers for March 2020.

March Residential Highlights

There were 557 new listings, 25.5% more than in March 2019 (444) and 47.7% more than last month in February 2020 (377).

Pending sales (374) decreased 17.4% from March 2019 (453) and rose 2.2% from last month February 2020 when 366 offers were accepted.

Closed sales (341) increased 8.6% from March 2019 (314) and rose 20.1% from the 284 closings recorded last month in February 2020.

Inventory and Market Time

Inventory increased slightly to 1.7 months in March. Total market time decreased to 42 days.

Year to Date Summary

Comparing the first three months of 2020 to the same period in 2019, new listings (1,381) increased 19.9%, pending sales (1,061) decreased 1.3%, and closed sales (887) decreased 1.1%.

Average and Median Sale Prices

Comparing 2020 to 2019 through March, the average sale price has increased 9.6% from $306,200 to $335,700. In the same comparison, the median sale price has increased 12.5% from $280,000 to $315,000

Have An Awesome Week!

Stay Safe, Stay Healthy!!

THIS WEEKS HOT HOME LISTING!

250 Yellowwood St, Juction City, OR 

Price: $365,000    Beds: 3    Baths: 2    Sq Ft: 1728

Don't miss this wonderful one-level home located in a desirable Junction City neighborhood! Great room concept w/ vaulted ceilings, natural lighting throughout & a well thought out floor plan. Spacious kitchen has Brazilian Cherry flooring, granite...View this property >> 

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Good Monday Morning!

Our country has never been through a period like that of the current COVID19 situation and hopefully, we will never have to endure anything like this again.  With all of the stress, both emotional and financial, there are many options popping up that look like they might help out during this time of hardship.  One of these programs is being presented by many mortgage lenders right now and it is called "Mortgage Forbearance".  The following is the definition of "Mortgage Forbearance:

Forbearance is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage. You will have to pay the payment reduction or the paused payments back later.

I have been receiving both emails and calls from clients asking me for some guidance in regards to "Mortgage Forbearance".  Since this is unchartered waters for most, it is really a great idea to check it out before jumping on board. The contracts that I have read from several different lenders, clearly spells out the fact that if you do this program and don't make payments for several months, this money is not forgiven from your mortgage debt.  The ones I read clearly state that the period of "Forbearance" is for 90 days and at the end of that 90 day period, your accrued debt from the "Forbearance" period is due and needs to be PAID!!  Read the small print in the "Forbearance" contract, because if this is the case, then you need to decide if you are going to have that money available when the time comes for repayment?  I have also learned that if you take advantage of "Forbearance", that during this time you may not be able to get other loans, refinance, or take advantage of other financial programs.  I have yet to determine whether "Forbearance" will effect your credit or not, but I would certainly suggest checking this out as well before jumping into a program with your lender.

Have An Awesome Week!  Stay Healthy!  Remain Positive!

THIS WEEKS HOT HOME LISTING!

3220 Crescent Ave #60, Eugene, OR 

Price: $199,500    Beds: 2    Baths: 2    Sq Ft: 2248

55+ park with gated entry in beautiful Summer Oaks.Spacious beautiful home with nice view of fields and mountains. Brand new carpet and paint throughout with lots of natural lighting and high ceilings. Beautiful fenced backyard with great outdoor li...View this property >> 

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Good Monday Morning!

Ten million Americans lost their jobs over the last two weeks. The next announced unemployment rate on May 8th is expected to be in the double digits. Because the health crisis brought the economy to a screeching halt, many are feeling a personal financial crisis. James Bullard, President of the Federal Reserve Bank of St. Louis, explained that the government is trying to find ways to assist those who have lost their jobs and the companies which were forced to close (think: your neighborhood restaurant). In a recent interview he said: 

“This is a planned, organized partial shutdown of the U.S. economy in the second quarter. The overall goal is to keep everyone, households and businesses, whole.” 

That’s promising, but we’re still uncertain as to when the recently unemployed will be able to return to work.

Another concern: how badly will the U.S. economy be damaged if people can’t buy homes?

A new concern is whether the high number of unemployed Americans will cause the residential real estate market to crash, putting a greater strain on the economy and leading to even more job losses. The housing industry is a major piece of the overall economy in this country.

Chris Herbert, Managing Director of the Joint Center for Housing Studies of Harvard University, in a post titled Responding to the Covid-19 Pandemic, addressed the toll this crisis will have on our nation, explaining:

“Housing is a foundational element of every person’s well-being. And with nearly a fifth of US gross domestic product rooted in housing-related expenditures, it is also critical to the well-being of our broader economy.”

How has the unemployment rate affected home sales in the past? 

It’s logical to think there would be a direct correlation between the unemployment rate and home sales: as the unemployment rate went up, home sales would go down, and when the unemployment rate went down, home sales would go up.

However, research reviewing the last thirty years doesn’t show that direct relationship, as noted in the graph below. The blue and grey bars represent home sales, while the yellow line is the unemployment rate. Take a look at numbers 1 through 4:           The unemployment rate was rising between 1992-1993, yet home sales increased.

1. The unemployment rate was rising between 2001-2003, and home sales increased.
2. The unemployment rate was rising between 2007-2010, and home sales significantly decreased.
3. The unemployment rate was falling continuously between 2015-2019, and home sales remained relatively flat.

The impact of the unemployment rate on home sales doesn’t seem to be as strong as we may have thought.

Isn’t this time different?

Yes. There is no doubt the country hasn’t seen job losses this quickly in almost one hundred years. How bad could it get? Goldman Sachs projects the unemployment rate to be 15% in the third quarter of 2020, flattening to single digits by the fourth quarter of this year, and then just over 6% percent by the fourth quarter of 2021. Not ideal for the housing industry, but manageable.

How does this compare to the other financial crises?

Some believe this is going to be reminiscent of The Great Depression. From the standpoint of unemployment rates alone (the only thing this article addresses), it does not compare. Here are the unemployment rates during the Great Depression, the Great Recession, and the projected rates moving forward:

Bottom Line

We’ve given you the facts as we know them. The housing market will have challenges this year. However, with the help being given to those who have lost their jobs and the fact that we’re looking at a quick recovery for the economy after we address the health problem, the housing industry should be fine in the long term. Stay safe.

Stay Healthy!

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3220 Crescent Ave #60, Eugene, OR 

Price: $199,500    Beds: 2    Baths: 2    Sq Ft: 2248

Sought after Summer Oaks 55 and over community on wonderful large view lot. Refrigerator, washer/dryer included. $817/mo space rent. Disposal, dishwasher, built in oven, stove top, gas heat, cool, hot water, Composition roof. Heat pump. Security sys...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The world continues to change daily as COVID19 remains a huge threat.  For most of us, life is anything but usual right now and many find just doing the daily tasks that we have to be difficult at best.  Right now buying or selling a home in our community of Eugene/Springfield is certainly not business as usual, but the good news is that you can still accomplish this. We are now wearing booties, putting on nitrile gloves, using hand sanitizer and sanitizing wipes, but we are listing and selling homes.  For now the governor has deemed the Real Estate industry in Oregon as a necessary service.  Are there really people out there buying houses at this time?  The answer to this a a huge yes!!  In the past week, we have listed and put 5 new homes on the market, three are already Pending Sale and we have offers on a fourth home that will most likley go Pending by days end.

The truth is that there are people who need to buy a home and there are people who need to sell a home.  Is this the best time to buy or sell a home?  I can't say that it is the best time, but it is a good time.  Mortgage interest rates remain extremely favorable, there are homes available to purchase and when this is all over with, I expect higher demand and this means more competition and potentially higher mortgage interest rates.

We don't know what the immediate future holds, but I do know that if you are wanting to buy or sell a home today, we can help you.  You just might find that this is one of the easiest things you can do right now!

Be careful, practice social distancing, stay healthy!!

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1117 Maple Dr, Eugene, OR 

Price: $325,000    Beds: 3    Baths: 1.5    Sq Ft: 1716

This roomy ranch style home has something for everyone! Over 1/3 of an acre w/ covered RV parking, 22 x 24 shop w/ 220v power, greenhouse & raised garden beds. Beautifully updated kitchen w/ cherry cabinets & granite counters, vinyl windows & hardwo...View this property >> 

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