Good Morning!

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

March Residential Highlights

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

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

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

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

Average and Median Sale Prices

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

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING

 Wedgewood Dr

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

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

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Good Monday Morning!

In the Eugene and Springfield area, the housing market has become very tight for first-time home buyers.  Lack of inventory, rising home prices, and now, increased mortgage interest rates have made the home search for first-time buyers even more difficult than it has over the past several years.  This trend is not something that is just specific to Eugene and Springfield.  The following article from "Realtor.com" addresses this national problem.

Soaring home prices and the shortage of properties on the market are taking a toll on buyers, particularly first-time buyers.

The share of first-time homeowners fell to just 29% of all existing home buyers in January, according to the most recent National Association of Realtors® report. That's down from 32% in December and 33% in January 2017.

"First-time buyers are typically people with a tighter budget," says realtor.com® Senior Economist Joseph Kirchner, who worries this could further depress homeownership rates down the line. "They're looking for homes on the more affordable end of the market, but that is where the lack of homes is most severe."

Nationally, the dearth of inventory also drove down the number of existing homes sold, 5.38 million overall, in January. (Existing homes have previously been lived in.) Monthly sales dropped 3.2%, while annual sales decreased 4.8%.

(Realtor.com looked only at the seasonally adjusted numbers in the report. These have been smoothed out over 12 months to account for seasonal fluctuations.)

“There’s plenty of demand, but people just cannot find a home on the market that meets their needs and they can afford," Kirchner says. "It’s not a good start for the spring market. The shortage will continue.”

Across the country, there were 15.5% fewer existing homes in January selling for $250,000 or less compared with a year ago. Meanwhile, there were 25% more selling for $500,000 or more.

In January, sales of single-family homes, which are often the most sought-after properties, hit 4.76 million. That's a 3.8% fall from December and 4.8% from the same month a year earlier.

Condos and co-ops fared a bit better, as they're generally priced a little lower than single-family homes, with the number of monthly sales rising 1.6% in January to hit about 620,000. But that's down 4.6% from January 2017.

The median existing home price was $240,500 in January. That was a 2.4% drop from December but represented a 5.8% jump from January of the previous year. However, the cost was still substantially less than the median price of a newly constructed abode.

New homes cost a median $335,400 in December, according to the most recent joint report by the U.S. Census Bureau and U.S. Department of Housing and Urban Development. That's nearly 39.5% more than an existing home.

Around the country, higher prices and the lack of inventory took its toll. In January, the South had the most existing home sales, at about 2.26 million. However, that was still down 1.3% from December and was a 1.7% drop from January 2017.

The Midwest had the second most home sales, at 1.25 million, in January. That was down 6% from December and 3.8% lower than the same month last year.

There were 1.14 million existing homes sold in the West. That was a 5% drop from the previous month and a 9.5% fall from the previous year.

The Northeast had the fewest existing home sales, at just 730,000. That was also down, both by 1.4% month-over-month and 7.6% year-over-year.

Meanwhile, prices of existing homes were up in every region. They were the most expensive in the West, at a median $362,600 in January. That was a 8.8% jump over January 2017.

In the Northeast, median prices hit $269,100, up 6.8% annually. In the South, they were $208,200, up 4.3%, and in the Midwest, they were $188,000, up 8.7%.

In January, sales of single-family homes, which are often the most sought-after properties, hit 4.76 million. That's a 3.8% fall from December and 4.8% from the same month a year earlier.

Condos and co-ops fared a bit better, as they're generally priced a little lower than single-family homes, with the number of monthly sales rising 1.6% in January to hit about 620,000. But that's down 4.6% from January 2017.

The median existing home price was $240,500 in January. That was a 2.4% drop from December but represented a 5.8% jump from January of the previous year. However, the cost was still substantially less than the median price of a newly constructed abode.

New homes cost a median $335,400 in December, according to the most recent joint report by the U.S. Census Bureau and U.S. Department of Housing and Urban Development. That's nearly 39.5% more than an existing home.

"It’s very clear that too many markets right now are becoming less affordable and desperately need more new listings to calm the speedy price growth," NAR Chief Economist Lawrence Yun said in a statement.

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

Vineyard Hill Dr

Price: $230,000    Type: Bare Land    Acres: 5

In The Vineyards! Gated entry, paved access, gorgeous views with meadow and trees. Great solar exposure potential for vineyard ground. Additional 6 acres to be deeded upon completion of approval for adjacent property.... View this property >> 

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Good Monday Morning!

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

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

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

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

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

Average and Median Sale Prices 

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

Have an awesome week!

THIS WEEK'S HOT HOME LISTING!

798 70th St 

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

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

View this property >> 

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Good Morning!

Yes, our national economy is taking off.  Wages are up, employment is up and many economists say that this is just the beginning of a long improvement.  The value of homes across the nation have steadily increased since the recession and have added to a large increase in national wealth.

Americans are feeling richer. Household net worth neared $100 trillion in the final quarter of last year, falling into record territory, according to new data released by the Federal Reserve on Thursday. Rising stock markets and property prices were attributed to the jolt in the fourth quarter. (Household net worth is the value of all of a consumer’s assets, like stocks and real estate, minus any liabilities like mortgage and credit card debt.)

Household net worth increased more than $2 trillion last quarter to a record $98.7 trillion in the final three months of last year, according to the report. Households in the U.S. saw their net worth increase to nearly seven times their disposable personal income in 2017.

The impact real estate has had on that increase can’t be understated, economists say. The value of households’ real estate rose $511.2 billion, which reflects recent run-ups in home prices.

But the rate at which consumers are saving is concerning, JPMorgan Chase Economist Michael Feroli told The Wall Street Journal. The saving rate was 3.74 percent in 2017, down from 7.19 percent in 2015.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

309 Country Club Rd, Eugene OR

$215,000    Bedrooms: 1    Bathrooms: 1    SQ FT: 801 

Marvelous condo in highly desirable Ferry Street Bridge! Wonderfully updated, acacia hardwood, quartz counters, vaulted ceiling, exposed beams, recessed lights, open layout. One bedroom with walk-in closet and vanity with attached bathroom. Bonus room with wall of windows and French doors. Laundry area with built-in storage. Carport with extra storage. Located next to Eugene Country Club, only 3 minute drive to shops & freeway access. View property

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Good Morning!

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

January Residential Highlights 

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

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

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

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

Average and Median Sale Prices 

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

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

One of the largest problems that comes about during a home sale is the fact that there are typically seller paid repairs that need to be done.  The majority of buyers are going to want both a pest and dry rot inspection and a whole home inspection completed as part of their purchase due diligence.  From this inspection, there are typically some repair items that will come about and in most cases the buyer will want many of them taken care by the seller prior to the close of escrow.  Negotiating these repairs during escrow can be nerve racking and can also sometimes create delays with closing.  My suggestion to all of my sellers is to have their home inspected before we go on the market.  This gives us a heads up for any potential issues and also allows the seller to repair major problems.  Typically, this creates a much easier sale process.  The followiong is and article from "US News" on why having a professional inspection prior to selling is a good thing to do.

A home inspection is traditionally known as a part of the due diligence process when a home is under contract with an intended buyer. A professional home inspector will visit the home and conduct a thorough review of the structure, noting any deferred maintenance, defects in the building and the remaining useful life of major appliances and systems such as the air conditioner and water heater.

Depending on what the inspector finds, the results can have a powerful impact on the sale of the house. The buyer can ask for repairs or updates to be made, try negotiating on the sale price or walk away from the deal.

To avoid the unpleasant surprises a home inspection may bring to light, homeowners looking to put their house on the market can opt for a prelisting home inspection, which provides sellers with a thorough report before the home goes on the market. Sellers have the opportunity to make necessary repairs before potential buyers start touring the property and to avoid a deal that falls through due to structural or maintenance problems that could lead to other potential buyers steering clear of a property that has issues.

"The homeowners would do the same diligence as if they were going to buy the house," says Frank Lesh, executive director of the American Society of Home Inspectors.

A prelisting inspection costs the same as one conducted while a property is under contract – ranging between $200 and $475, according to HomeAdvisor, depending on location and whether the inspection includes special checks like those for radon or termites.

Even in a hot real estate market where buyers are snapping up available homes quickly, a prelisting inspection can help reduce the chances a deal could fall through and get you closer to selling your home for the price you want in the time frame you need. Here are five reasons you should consider a prelisting home inspection before putting your house on the market.

Advance notice. Every house comes with its fair share of quirks and problems, and you're probably at least vaguely aware of a few of them – a window that lets water in when it rains or bowing floorboards in one corner of the dining room, for example. If you're planning to put your property on the market, an inspection report ahead of time will help you see all the potential problems together, including some you may not have known about.

The prelisting inspection gives you the knowledge to do with it what you will – make repairs or updates or reflect any deferred maintenance in your sale price, explains Drew White, founder and owner of AmPro Inspections in Colorado Springs, Colorado. "[Sellers] have all the cards – they're not going to be blindsided by any major finds from the buyer's inspection," he says.

There is a caveat: Once you have the report in your hands, you can't completely ignore a problem. If your inspector finds cracks in the foundation, you'll be required to disclose that information as a known defect to the buyer, or fix it before anyone puts an offer in.

"You know the old saying, 'Ignorance is bliss?' Now you can't do that," Lesh says. 

DIY option. For simple repairs, however, the prelisting inspection gives you the added benefit of being able to take on projects yourself. When negotiating with a buyer, necessary repairs will typically require you to bring in professionals for all work done, even when the fixes are simple.

"There's a lot of do-it-yourself projects that the homeowner can do where it's satisfactory, it's not going to be an issue," White says. "If the buyer's inspector finds it – let's say there's an electrical outlet that needs to be replaced or some simple plumbing – they're going to typically mandate that a professional electrician or plumber do it."

An outlet replacement or tightening a washer on a faucet – both simple projects homeowners can do – could be a couple hundred dollars for a pro to complete, White says.

Contractor of choice. For those bigger projects that do require professionals to come out, time is also on your side when your home isn't yet on the market. "They get time to use the contractors they want," White says.

Rather than needing to find a roofer in a specific time frame to appease the buyer, you can shop around for the right price, availability and skill to ensure you're satisfied with the work.

Informed pricing. Of course, there are some projects you're just not willing to take on. If you can't afford to fix a foundation issue with your house or you don't want to invest the money to replace cracked tile in a bathroom when you know a buyer will completely renovate it anyway, you don't necessarily have to take care of the repairs. Instead, "that can be reflected in the price," Lesh says.

Work with your real estate agent to establish the right sale price, taking into account whatever issues you can't – or aren't willing to – fix before putting the house on the market. Your final sale price will be lower, but it may be better than paying for repairs that won't be fully recouped by a buyer's offer.

Buyer may accept results. The fact that your house has already had an inspection can have its own appeal for buyers and can serve as a plus if included in marketing descriptions of the house. Especially in a tight seller's market where buyers have to fiercely compete with each other, you may see more buyers willing to accept the prelisting inspection report and forgo an additional inspection during the due diligence period, moving the process along faster.

Some home inspectors provide a warranty with their inspection reports. AmPro Inspections is one such company, White says, which helps some buyers feel more comfortable because the warranty can be transferred to the next owner. He says homebuyers accept the prelisting inspection roughly 50 percent of the time.

That doesn't mean you can expect buyers to accept the prelisting report as the only inspection. It's like buying a used car from a private individual, Lesh says. While the seller's mechanic may say the car is in great shape, you'll likely want a mechanic you trust to look at it, too.

Plus, if any significant amount of time passes between that first inspection and the buyer's offer, more problems could have popped up, especially in winter, Lesh says: "Are the conditions going to be the same in April as they are in January? Probably not."

Have An Awesome Week!

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

What will the 2018 Real Estate market be like for the many thousands of buyers out there trying to find the perfect house?  The following article from "Realtor.com" will give you some insight into what lies ahead for 2018 homebuyers!

Aspiring home buyers have long known about the maddening lack of homes on the market. And despite the strong economy that's propelling more and more people into the home-buying market, the lack of inventory is crimping existing home sales.

Sales of homes that have previously been lived in hit 5.57 million in December, according to the most recent National Association of Realtors® report. That's down 3.6% from November to December, but up 1.1% from December 2017.

(Realtor.com® looked only at the seasonally adjusted numbers in the report. These have been smoothed out over 12 months to account for seasonal fluctuations.)

However, 2017 as a whole was a record year, boasting the most existing homes sold since the boom year of 2006, more than a decade ago. Sales were up 1.1% over 2016—and would have been more if there had been more properties for sale.

“The inventory of homes on the market is at its lowest level in [at least] two decades," says realtor.com® Senior Economist Joseph Kirchner. “It’s a problem because it means people are not finding homes on the market that meet their needs. So they’re just not buying.”

The lack of supply has also been steadily pushing up prices. The median price tag on an existing home was $246,800. The cost went up an almost unnoticeable 0.16% from November, but was up 5.8% from December 2017.

"The pool of interested buyers at the end of the year significantly outweighed what was available for sale," NAR Chief Economist Lawrence Yun said in a statement.

The median cost of an oh-so-in-demand single-family home was $248,100 in December—down just $100 from November. Year over year, prices were up 5.8%. Sales of the standalone homes, often found in suburbs, were down 2.6% from November, but increased 1% over December 2017.

Condos and co-ops were a little cheaper at $236,500 in December. Prices were down 1.2% from November, but up 6.4% year over year. Meanwhile, sales were down 11.6% from the previous month, but up 1.7% over the previous year.

However, prices were still significantly less (about 35.9% to be exact) than the median cost of a newly built abode at $334,900 in November, according to the most recent data from the U.S. Census Bureau and the Department of Housing and Urban Development.

Despite the overwhelming demand for affordably priced abodes, only about 10.9% of the sales in December were $100,000 or under. About 42% were in the $100,000 to $250,000 range, while another 34% cost between $250,00 and $500,000. An additional 13.1% of sales were more than $500,000.

The cheapest existing homes were in the Midwest, where the median price was $191,400 in December. That's up 7.8% from a year ago.

The region was followed by the South, at $221,200, where prices rose 5.8% over the previous year, and the Northeast, at $261,400, where prices jumped 3%. The most expensive region by far was the West, where the median home price was $367,400—and prices were up 7.3% from last year.

“Rising wages and the expanding economy should lay the foundation for 2018 being the turning point towards an uptick in sales to first-time buyers,”

NAR's Yun said in a statement. “However, if inventory conditions fail to improve, higher mortgage rates and prices will further eat into affordability and prevent many renters from becoming homeowners.”

Have An Awesome Week!

THIS WEEK'S HOT HOME LISTING!

28667 HILLAIRE ST Price: $595,000 Beds: 3 Baths: 2 Sq Ft: 2000 Horse property only 5 mins from town! Nearly 6 level acres, backs up to canal & great for trail riding along Amazon. Wonderfully updated home with 2-car garage. 1 bedroom guest house w/ carport has income producing potential. 2 barns w/ 11 stalls, i... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

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

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

Have An Awesome Week!

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

Over the past couple of weeks I have had numerous questions about the new tax laws. There are some changes and the following information will give you some ideas on what those changes look like.

Under the new tax law, homeowners will have decisions to make in 2018, due to reductions or elimination of certain deductions under the new tax law.

28667 HILLAIRE ST Price: $595,000 Beds: 3 Baths: 2 Sq Ft: 2000 Horse property only 5 mins from town! Nearly 6 level acres, backs up to canal & great for trail riding along Amazon. Wonderfully updated home with 2-car garage. 1 bedroom guest house w/ carport has income producing potential. 2 barns w/ 11 stalls, i... View this property >>

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