Eugene Oregon Real Estate Blog

Good Monday Morning!

Even though the climate for purchasing a home has become more difficult for most people, recent statistics show that the number of homes purchased by people under the median income level has increased. Here is a recent article that talks about how this market is still growing.

Below-median family income households are overcoming constraints related to increased borrowing costs and home prices and are finding ways to become homeowners, according to Freddie Mac’s latest economic, housing and mortgage outlook.  

The below-median family income homeownership rate increased to 53% from 48% since 2016, Freddie Mac said, citing data from the Census Bureau’s Housing Vacancy survey.  In turn, the below-median family income homeownership rate drove the overall increase in the total homeownership rate during that time. 

The homeownership rate for owner-occupied households with a family income higher than the median family income grew at a much slower pace than the below-median family income homeownership rate.

Since the second quarter of 2016, the below-median family income homeownership rate has increased 5.4 percentage points, while the above-median family income homeownership rate has only increased 0.8 percentage points, according to the Census Bureau’s data. 

The homeownership rate gap between above-median and below-median family income households has also shrunk over the last couple of years, and has generally been trending down over the past decade. This is due to the growth in the below-median family income homeownership rate continuing to outpace the above median family income homeownership rate growth, according to Freddie Mac. 

“Below-median family income households are overcoming constraints and finding ways to become homeowners even within a less affordable environment – an encouraging sign as we continue to celebrate National Homeownership Month,” the agency said. 

In terms of home prices, the government-sponsored enterprise (GSE) expects them to fall by 2.9% over 12 months through the first quarter of next year, and is expecting an additional decline of 1.3% over the subsequent 12 months.

Mortgage origination volume will likely increase in the second quarter of this year due to seasonality in the housing market, but origination volume for 2023 will almost certainly be below 2022 levels, the GSE said. 

Purchase originations are projected to stay flat before strengthening later this year as home sales stabilize, according to Freddie Mac. It will take until 2024 for purchase originations to resume modest growth, the GSE noted. 

Freddie Mac’s projections are in line with the recent Mortgage Bankers Association’s (MBA) forecasts.

According to the MBA, the median price of existing homes is expected to decline 4.2%, dropping to $367,800 in 2023 from $384,000 in 2022. In 2024, the MBA expects the median price of existing homes to fall an additional 2.1% to $375,400.

Purchase originations are projected by the MBA to increase to 3.9 million loans in volume in 2024 from 3.2 million in 2023. 

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THIS WEEKS HOT HOME LISTING!

26065 Lake Trail Dr, Veneta, OR 

Price: $799,000    Beds: 3    Baths: 2.5    SqFt: 2289

Fall in love with this beautifully updated country home at Fern Ridge Peninsula. Large windows and high ceilings bring in lots of natural light to this spacious and thoughtfully designed floorpan. The large covered stamped concrete patio over looks...View this property >> 

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Good Monday Morning!

There were no significant changes in the Eugene and Springfield Real Estate market in May of this year. All categories were down from May of 2022, including sales, listings and home prices. These same categories with the exception of home prices were up from April of 2023 though, this includes a slight increase in the number of homes on the market. Any relief at all from higher mortgage interest rates would most likely put our local market back on a significant rebound. At this time this scenario looks unlikely though as the Fed is most likely going to announce another rate increase this week. Many economists feel that another rate increase by the Fed at this time is a huge mistake and could put the national housing market further into a tail spin. Let's hope for the best! Here are the home sales numbers for Lane County for the month of May 2023.

New Listings

New listings (439) decreased 27.4% from the 605 listed in May 2022, and increased 14.6% from the 383 listed in April 2023.

Pending Sales

Pending sales (372) decreased 23.1% from the 484 offers accepted in May 2022, and increased 9.7% from the 339 offers accepted in April 2023.

Closed Sales

Closed sales (291) decreased 31.5% from the 425 closings in May 2022, and increased 2.5% from the 284 closings in April 2023.

Inventory and Time on Market

Inventory increased to 1.7 months in May. Total market time decreased to 34 days.

Year-to-Date Summary

Comparing the first five months of 2023 to the same period in 2022, new listings (1,833) decreased 24.0%, pending sales (1,564) decreased 24.9%, and closed sales (1,320) decreased 27.7%.

Average and Median Sale Prices

Comparing 2023 to 2022 through May, the average sale price has decreased 2.7% from $473,000 to $460,300. In the same comparison, the median sale price has decreased 0.7% from $433,000 to $430,000.

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THIS WEEKS HOT HOME LISTING!

35243 Mckennzie View Dr, Springfield, OR 

Price: $824,900    Beds: 4    Baths: 2.5    SqFt: 1917

Absolutely gorgeous home and setting 10 minutes from town. Entire home has been updated with no spared expense and thought for the highest quality and extra attention to detail. Enjoy the park-like setting with trees, wildlife and amazing views of t...View this property >> 

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Good Monday Morning!

The inventory of homes for sale in the Eugene and Springfield area continues to be extremely low and well below 2 months of inventory. This means that if no new homes were to go on the market it would take less than two months to void the existing inventory of homes for sale. A healthy Real Estate market would have around 6 months of inventory of homes for sale. This lack of inventory is holding home prices high, not only in our local market area, but in most markets around the country. High home prices and higher mortgage interest rates are continuing to make home ownership difficult for many. It is a tough market for home buyers, but on the other side of the coin, the market remains attractive for anyone wanting to sell a home. Here is an article from "Realtor.com" that talks about the national home inventory issues.

The numbers: Home prices rose in March as sellers held out on listing their homes, constraining supply.

Despite elevated mortgage rates, the S&P CoreLogic Case-Shiller 20-city home-price index rose 0.5% in March, as compared with the previous month.

Home prices were strongest in the Southeast, while prices in the West continued to drag. Though buyer demand has outpaced supply in March, surging mortgage rates may dampen home sales. The rate for the 30-year mortgage in May is over 7%, according to Mortgage News Daily.

Year-over-year appreciation was down 1.1%, a dip after home prices rose 0.4% in February. The 20-city index peaked in June 2022.

A broader measure of home prices, the national index, rose 0.4% in March compared with February and was up 0.7% over the past year.

All numbers were seasonally adjusted.

Key details: Cities in the Southeast led home price growth. Miami and Tampa in Florida and Charlotte, N.C., were the three cities with the highest year-over-year gains among the 20 cities in March.

Cities on the West Coast, from Seattle to San Francisco, continued to see weak home-price growth. Home prices in Seattle were down 12.4% from last March.

A separate report from the Federal Housing Finance Agency also showed home prices rising in March, up 0.6% from February.

And over the last year, the FHFA index was up 3.6%.

Big picture: The housing market is being squeezed by a lack of supply.

There aren’t enough homes listed for sale on the market, as home sellers see no incentive in giving up their ultralow mortgage rates for a new home loan with a 7% rate.

But rising rates could soon dampen demand as well, as buyers may find rising costs prohibitive to purchasing a home.

The housing sector is trying to boost both demand and supply: While home builders add to supply with new construction, which has boosted sales of new homes, mortgage lenders are also offering incentives, such as buyers only having to make a 1% down payment. The National Association of Realtors is proposing changes to existing tax policy to boost supply.

What S&P said: “Two months of increasing prices do not make a definitive recovery, but March’s results suggest that the decline in home prices that began in June 2022 may have come to an end,” Craig J. Lazzara, managing director at S&P DJI, said.

“That said, the challenges posed by current mortgage rates and the continuing possibility of economic weakness are likely to remain a headwind for housing prices for at least the next several months,” he added.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

26065 Lake Trail Dr, Veneta, OR 

Price: $799,000    Beds: 3    Baths: 2.5    SqFt: 2289

Fall in love with this beautifully updated country home at Fern Ridge Peninsula. Large windows and high ceilings bring in lots of natural light to this spacious and thoughtfully designed floorpan. The large covered stamped concrete patio over looks...View this property >> 

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Good Monday Morning!

Home sales both locally and nationally continued to slump in April. Much of the reason for the downturn is the extremely low inventory of homes for sale. Home inventory issues are effecting buyers in the Eugene and Springfield area and also buyers on the national level. The market remains very strong in our local area for home sellers. Demand for housing remains strong, but would be home buyers are finding it difficut to find houses that fit their needs and price range. If the inventory of homes would improve, we would see a sharp increase in home sales numbers. Eugene and Springfiled area home sellers are still seeing multiple offers and bidding wars on many homes. The climate for selling a home remains very strong. The following is an article from "Realtor.com" that describes our recent nations housing market.

The numbers: Sales of previously-owned homes in the U.S. fell 3.4% in April for the second month in a row, as buyers continue to deal with low levels of home listings and see-sawing mortgage rates.

Sales of existing homes in the U.S. fell to an annual rate of 4.28 million in April, the National Association of Realtors said Thursday.

That’s the number of homes that would be sold over an entire year if sales took place at the same rate in every month as it did in April. The numbers are seasonally adjusted.

The drop in sales wasn’t as bad as what economists on Wall Street had expected. They forecast existing-home sales to total 4.26 million in April.

But compared with April 2022, home sales were down 23.2%.

Key details: The median price for an existing home fell by 1.7% from last April to $388,800 this year. The drop is the largest since January 2012, when home prices fell 2%.

Home prices peaked in May 2021, where they grew 25.2% annually.

The number of homes on the market rose by 7.2% in April to 1.04 million units. But the number of fresh listings is still down from a year ago, the NAR said.

Homes listed for sale remained on the market for 22 days on average, down from 29 days in March.

Sales of existing homes fell in all regions, with the sharpest drop in the West.

All-cash buyers made up 28% of sales. The share of individual investors or second-home buyers was 17%. About 29% of homes were sold to first-time home buyers.

Big picture: Despite home sales dipping in April, most of the housing data is indicating that the U.S. housing market is in broad recovery.

But a combination of issues are making it a slow one, from a lack of new home listings to see-sawing mortgage rates.

Many homeowners are reluctant to sell for two reasons: They may be reluctant to give up an ultra-low mortgage rate secured during the pandemic for a much higher one, and they also don’t want to deal with competition

Homebuilders are responding to the inventory crunch by bumping up construction of new homes. Housing starts, which refer to when a builder starts constructing a home, rose in April. Rates, on the other hand, are volatile: The 30-year mortgage rose to the highest level in two months to 6.57% as of May 12, the Mortgage Bankers Association said on Wednesday. It was 6.48% the previous week.

Given the underlying issues on supply and rates, sentiment among U.S. consumers regarding the housing market has worsened: The number of people who think it’s a bad time to buy a home has hit a 45-year high.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

91710 Burton Dr, Mckenzie Bridge, OR 

Price: $627,400    Beds: 2    Baths: 2.0    SqFt: 1364

This cozy McKenzie retreat will not disappoint. Nestled in the trees on a quiet drive, this home is perfect for owner occupied or a vacation rental. Recently updated kitchen, open concept with great room, vaulted ceilings, wood burning fireplace & a...View this property >> 

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Good Monday Morning!

If you're shopping for a new home, you may be looking for ways to fund the purchase. Taking out cash from a retirement account such as an IRA might be an option in some cases. However, before you withdraw money from an IRA, you'll want to evaluate the short-term and long-term consequences. Use the following criteria to help decide whether to use your IRA to buy a house.

Should You Withdraw From an IRA to Buy a House?

When you open an IRA, the account is established to help you save for the future. Normally you'll need to wait until you are age 59 1/2 to start withdrawing funds. If you withdraw money from the account before age 59 1/2, you will typically have to pay a 10% penalty on the amount withdrawn. The distribution will also be subject to taxes.

However, there are certain circumstances in which you might be able to take out funds from the account before reaching age 59 1/2 and not incur penalties. One exception to the early withdrawal penalty is for the purchase of a first home. While you may be eligible to withdraw, there could be long-term implications. "It is important to remember that dragging money out of your retirement account means you’ll have less money available for your golden years,” says Dan Belcher, founder and CEO at Mortgage Relief in Oklahoma City.

For instance, perhaps you decide to withdraw $5,000 from an IRA to help put together a down payment for your first home. That amount will not have the chance to grow and earn interest over decades. This means you could potentially lose thousands or tens of thousands of dollars that could have been added to your account balance before your retirement.

If you're shopping for a new home, you may be looking for ways to fund the purchase. Taking out cash from a retirement account such as an IRA might be an option in some cases. However, before you withdraw money from an IRA, you'll want to evaluate the short-term and long-term consequences. Use the following criteria to help decide whether to use your IRA to buy a house.

How to Use an IRA to Purchase a Home

If you decide to take savings from your IRA to put toward the purchase of a home, you'll first need to make sure you qualify. “As long as the funds are being used to buy a primary residence, the IRS permits first-time homebuyers to withdraw up to $10,000 from their traditional IRA without paying the customary 10% early withdrawal penalty,” Belcher says. This $10,000 exception can be applied individually, meaning a married couple could each take $10,000 from their accounts, totaling $20,000 for the down payment.

In addition to purchasing your own home, you may qualify to help others buy their first house. If you have an IRA, you could withdraw to help a child, grandchild or parent provided you meet the requirements. “The traditional IRA exemption allows for a withdrawal of up to $10,000 penalty-free, as long as the funds are used to purchase, build or rebuild a home,” says Matthew Martinez, a real estate broker and CEO at Diamond Real Estate Group in the San Francisco Bay area. “It’s crucial to know that the $10,000 is a lifetime limit, and once used, you can’t use the first-time homebuyer provision again, even with a different IRA.”

While there will not be a penalty on early IRA distributions for a first home purchase, you can expect to pay taxes on the amount withdrawn. For example, if you are in the 22% tax bracket, a $10,000 withdrawal for a home purchase will lead to $2,200 in taxes. For a couple in the 24% tax bracket who withdraws $20,000, the taxes due would come to $4,800.

How to Withdraw From a Roth IRA for a Home Purchase

For those who want to take funds from a Roth IRA rather than a traditional IRA, the rules are slightly different. "If you have a Roth IRA, you can withdraw a sum equal to the contributions you’ve made tax and penalty-free at any time,” Martinez says. “After you’ve exhausted your contributions, you can withdraw up to $10,000 of the account’s earnings or money converted from another account without paying a 10% penalty for a first-time home purchase.”

If you have contributed to a Roth IRA for less than five years, you’ll owe income tax on any earnings you withdraw. For Roth IRAs that are more than five years old, you won’t have to pay taxes on the earnings. Taking out funds before retirement could impact the long-term potential of the balance to grow.

Other Options for Purchasing a Home

Instead of accessing cash from your IRA, you could search for other ways to fund a home purchase. You might withdraw from a different account, such as a short-term savings account, money market account or a 401(k) plan. Some 401(k) plans may allow for a loan to help with a home purchase. "If you prefer not to use your IRA, borrowing 50% of your 401(k) balance, up to a maximum of $50,000, could be another alternative worth exploring,” Martinez says. A 401(k) loan typically doesn’t have taxes or penalties attached to it. However, you’ll be charged interest as you make loan repayments.

Looking at the balances in retirement accounts and current salary could help the decision-making process. “Although using IRA assets as a source of financing for a down payment or purchase price is a possibility, it isn’t always the ideal choice,” says Sara Sharp, founder and partner at SK&S Law Group in Denver. “Homebuyers should think about any early withdrawal penalties and any tax repercussions before taking money out of their IRA."

If you consider your long-term savings balances to be substantial, withdrawing may not have a significant impact on your overall financial picture. For account holders who feel they haven’t saved much, it could be time to consider another option like a mortgage. You might decide to apply for a regular home loan to help cover the costs of the purchase.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1670 Duke Ct, Eugene, OR 

Price: $659,000    Beds: 4    Baths: 2.5    SqFt: 2420

Come see this Meticulously maintained home in a quiet culdesac. This home has had many interior updates, as well as a roof, water heater and HVAC system in the past 5 years. High ceilings, and light filled spacious rooms welcome you inside. A delightful...View this property >> 

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Good Monday Morning!

The April Real Estate market in the Eugene and Springfield area remained slower than at the same time last year. The inventory of homes for sale remains very low, but it was slightly higher than April of 2022. Both Pending homes sales and closed home sales were also lower than April of last year. Suprisingly there are quite a few buyers actively looking for homes to purchase and time on the market remains extremely low. The low inventory makes finding the right home somewhat challenging for home buyers, but offers a strong market for home sellers. Mortgage interest rates are holding fairly steady and hopefully will continue at or below current rates into the near future. Here are the homes sales numbers for April 2023 in Lane County.

New Listings

New listings (383) decreased 21.8% from the 490 listed in April 2022, and decreased 4.3% from the 400 listed in March 2023.

Pending Sales

Pending sales (339) decreased 25.2% from the 453 offers accepted in April 2022, and decreased 0.9% from the 342 offers accepted in March 2023.

Closed Sales

Closed sales (284) decreased 30.9% from the 411 closings in April 2022, and decreased 2.4% from the 291 closings in March 2023.

Inventory and Time on Market

Inventory increased to 1.5 months in April. Total market time decreased to 39 days.

Year-to-Date Summary

Comparing the first four months of 2023 to the same period in 2022, new listings (1,390) decreased 22.9%, pending sales (1,219) decreased 24.4%, and closed sales (1,015) decreased 26.9%.

Average and Median Sale Prices

Comparing 2023 to 2022 through April, the average sale price has decreased 4.1% from $469,000 to $449,700. In the same comparison, the median sale price has decreased 0.5% from $427,000 to $425,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

260 54th Street, Springfield, OR 

Price: $405,000    Beds: 4    Baths: 2.0    SqFt: 2048

Great opportunity for a multi-family investment property. Both units are townhouse style with attached garages & separated backyards. Vinyl windows, newer flooring & spacious bedrooms. Convenient location near shopping & the bus line. Strict tenant...View this property >> 

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Good Monday Morning!

Home sales in March of 2023 lagged behind those of  March 2022. Nationally, homes sales were off 5.2%, but in the Eugene and Springfiled market area, home sales were off 28.3%. The question at this time is whether this trend will continue or will home sales begin to rebound this Summer? Much of what takes place will depend upon several factors.  First, will be mortgage interest rates. Mortgage rates have dipped as of late and this may have created a bump in home sales for April. Those numbers will be available soon. If the Fed increases rates again this month, then mortgage rates could see a bump again and possibly halt a current trend of increased home sales. Secondly, the inventory of homes for sale needs to increase. Both nationally and locally, home inventories are low. This is keeping home prices high and making it difficult for would be home buyers to find a home. In many markets, including the Eugene and Springfield market, there are far more home buyers than home sellers. Lastly, the economy continues to sag with a very low GDP report again this month, continued inflation and job loss. If this economy continues, it will certainly continue to take its toll on home sales. We can only hope that the economic situation begins to improve soon. The following is an article from "Realtor.com" that describes the cuurent national housing market.

The numbers: Contract signings on U.S. homes fell for the first time since last November, as buyers faced a tough market in March due to an undersupply of houses.

U.S. pending-home sales fell 5.2% in March, according to the monthly index released Thursday by the National Association of Realtors (NAR).

Sales dropped for the first time since November 2022. At the time, buyers had sharply pulled back as mortgage rates exceeded 7%.

The numbers: Contract signings on U.S. homes fell for the first time since last November, as buyers faced a tough market in March due to an undersupply of houses.

U.S. pending-home sales fell 5.2% in March, according to the monthly index released Thursday by the National Association of Realtors (NAR).

Sales dropped for the first time since November 2022. At the time, buyers had sharply pulled back as mortgage rates exceeded 7%.

On a monthly basis, only the U.S. South saw an uptick in pending home sales of 0.2%.

The NAR said a third of all home listings were seeing multiple bids, and 28% were selling above list price. Realtors also expect the 30-year mortgage rate to drop to 6% this year, and 5.6% in 2024.

Big picture: Buyers, who are already sensitive to mortgage rates, are hurt even more by the underlying structural problem of low inventory. Some have turned to new homes, boosting sales for builders. But expensive homes and high mortgage rates will push home prices down for the year, Vanguard believes, by as much as 5% year-over-year.

What the realtors said: “The lack of housing inventory is a major constraint to rising sales,” NAR Chief Economist Lawrence Yun said. “Limited housing supply is simply not meeting demand nationally.”

Yun expects existing-home sales to drop on a year-over-year basis in 2023 by 9.3% to 4.56 million.

Then, he added, sales will rise recover, rising by 15.4% to 5.26 million.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1553 Fetters Loop, Eugene, OR 

Price: $279,000    Beds: 2    Baths: 1.5    SqFt: 960

This move-in ready townhouse has been freshly updated w/ new interior paint & new laminate flooring, baseboard, fixtures counter tops and more. Kitchen w/ ample counter space & cabinetry. Two large bedrooms and a full bathroom upstairs. Laundry & ha...View this property >> 

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Good Monday Morning!

After a small improvement with home sales nationally, March saw that trend end as once again homes sales slumped. The trend for home sales in the Eugene and Springfield area also has declined further recently. The big question at this point is whether the housing market will continue to slide downwards. The culprits at this point are multiple. The inventory of homes for sale both locally and nationally remains extremely low. Would be home buyers are continuing to find it very difficult to find homes. Mortgage interest rates have declined some recently, but continue to be much higher than during the hot market of a year ago. Typically, in a situation where mortgage interest rates rise, home values decline to compensate. That has not really happened recently and the combination of higher interest rates with high home prices has made home affordability difficult for many would be home buyers. The other culprit is a sagging economy where inflation continues to create havic. A good indication of what is happening in our economy is that auto loan foreclosures are at an all time high, home foreclosures are on a sharp rise and overall consumer spending is lagging. With all of this, the local market remains strong for home sellers. This may not last for long, but the low inventory of homes for sale make the market favorable for those who decide to sell a home right now. The following is an article from "Realtor.com" that describes recent national Real Estate trends.

The numbers: Existing-home sales in the U.S. fell 2.4% in March, as buyers contended with higher mortgage rates and a lack of new listings.

Sales of previously owned homes in the U.S. fell to an annual rate of 4.44 million in March, the National Association of Realtors said Thursday.

That’s the number of homes that would be sold over an entire year if sales took place at the same rate in every month as they did in March. The numbers are seasonally adjusted.

The drop in sales reverses a sudden jump in February, when home sales rose to a revised pace of 4.55 million.

The drop in sales was larger than expected. Economists had expected existing-home sales to total 4.48 million in March.

Compared with March 2022, home sales were down 22%.

Key details: The median price for an existing home fell by 0.9% from last March, dropping to $375,700 this year.

The drop is the largest since January 2012, when home prices fell 2% year over year. It’s also the second month in a row that home prices fell.

Home prices peaked at 25.2% in May 2021.

The number of homes on the market rose by 1% in March from the previous month, to 980,000 units.

Expressed in terms of the months-supply metric, there was a 2.6-month supply of homes for sale in March, the same as the previous month. Before the pandemic, a four- or five-month supply was the norm.

Homes remained on the market for 29 days on average in March, down from 34 days in February.

Sales of existing homes fell in most regions, falling the most in the Midwest. The Northeast was the only region that saw sales remain flat.

All-cash transactions made up 27% of all sales, and about 28% of homes were sold to first-time home buyers. The share of individual investors or second-home buyers was 17%.

Big picture: Buyers are watching mortgage rates, and with a low number of homes on the market, they’re being cautious and pulling back when the market isn’t going their way.

Rates rose in the latest week, adding hundreds of dollars in extra costs for potential borrowers, and mortgage demand is down. The drop likely signals further weakness in home sales.

Would-be home buyers are also contending with a low supply of new listings. Many are turning to new homes, whose inventory continues to grow. Builders are gaining market share as a result.

What the realtors said: “It’s a unique housing market,” Lawrence Yun, chief economist at the National Association of Realtors, said.

Despite drops in home prices and sales, multiple offers are back, Yun said, especially for entry-level homes. New listings are down 17% from the previous year.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

1553 Fetters Loop, Eugene, OR 

Price: $279,000    Beds: 2    Baths: 1.5    SqFt: 960

This move-in ready townhouse has been freshly updated w/ new interior paint & new laminate flooring, baseboard, fixtures counter tops and more. Kitchen w/ ample counter space & cabinetry. Two large bedrooms and a full bathroom upstairs. Laundry & ha...View this property >> 

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Good Monday Morning!

The monthly Realtors Confidence Index is an essential measure of what real estate professionals are seeing in their local markets and how the market is evolving on a monthly basis. The National Association of Realtors Research Group has produced the index since 2008, a time of turbulence in the real estate market.

One such measure is who is entering the market. Since October of 2022, the share of buyers who are purchasing their home without a mortgage has been more than one quarter of the market. The share is collected monthly in the Realtors Confidence Index and includes buyers who purchased primary homes, vacation homes and investors. 

These all-cash homebuyers are happily avoiding the higher mortgage interest rates, which touched 7% in the fall of 2022 before trending down to the current rate of 6.28%. While spring of 2022 saw a similar share of all-cash homebuyers, one needs to look back to 2014 before seeing similar shares. 

Then, the mortgage interest rates were in the low-4% range. In the months before the COVID-19 pandemic, the share of all-cash buyers hovered in the teens. While mortgage rates may be one component, they do not tell the full story. So what happened and who is paying all cash for homes? 

One factor at play is the multiple-bid scenarios that took place throughout the COVID-19 pandemic. Homebuyers placed competitive offers on homes while inventory grew increasingly difficult to find. In March of 2022, sellers received an average of 5.5 offers. 

Today, the average is 2.7 offers. As buyers wanted to find the perfect property, before interest rates rose, they were willing to offer all cash to sellers so their offer was not contingent on financing. 

Additionally, buyers migrated to more affordable locations in low-density areas, allowing them to purchase a home with all cash, if they had housing equity from their past property. Thus, the typical homeowner, who owned their home for a decade, had more than $200,000 in housing equity to make a trade. 

The share of non-primary residence buyers is now at 18% from a high of 22% in January 2022. At that time, housing inventory dropped to historic lows making the environment ripe for investors. Investors joined the market to hold properties as short-term or long-term rentals, or to flip the home. 

As these all-cash buyers and non-primary residence buyers are finding success in today’s housing market, what is notably lacking are first-time homebuyers. Unfortunately, the share of first-time buyers remained suppressed at just 27% last month. While it is not the high seen during the First-time Home Buyer Tax Credit in 2010, it is also not the historical norm of 40% seen in the annual Profile of Home Buyers and Sellers report. 

Notably, during the time frame of the First-time Home Buyer Tax Credit, there was significantly more inventory than seen today. Unfortunately, the hope of seeing more first-time buyers in the market this year due to the lower competition has yet to materialize as higher mortgage interest rates have suppressed the share who can afford to purchase a home. 

First-time buyers today need more housing inventory to improve affordability. The low mortgage interest rates of 3% are not going to be seen any time in the near future. For buyers to afford to enter the market comfortability and sustainably, new construction, office conversion, and reimagining existing spaces such as vacant schools could hold the key.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

260 54th Street, Springfield, OR 

Price: $405,000    Beds: 4    Baths: 2.0    SqFt: 2048

Great opportunity for a multi-family investment property. Both units are townhouse style with attached garages & separated backyards. Vinyl windows, newer flooring & spacious bedrooms. Convenient location near shopping & the bus line. Strict tenant...View this property >> 

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Good Monday Morning!

Home sales in March of 2023 were off significantly from March of 2022. The primary reason for the decline in home sales was the declining inventory of homes for sale in our local market. Conditions for homes selling actually improved as mortgage interest rates declined in late March. The numbers of people out there looking to purchase a home has increased a bunch as the price of homes has become increasingly favorable and the cost of money has decreased. If home inventories increase and mortgage rates remain lower, April could see a huge rebound in home sales locally. If you are thinking about selling your home this year, do not miss out on this opportunity. This window could close quickly if mortgage rates go on the rise again. Here are the home sales statistics for Lane County in March of 2023.

New Listings

New listings (400) decreased 24.5% from the 530 listed in March 2022, and increased 40.4% from the 285 listed in February 2023.

Pending Sales

Pending sales (342) decreased 27.4% from the 471 offers accepted in March 2022, and increased 24.4% from the 275 offers accepted in February 2023.

Closed Sales

Closed sales (291) decreased 28.3% from the 406 closings in March 2022, and increased 26.5% from the 230 closings in February 2023.

Inventory and Time on Market

Inventory decreased to 1.4 months in March. Total market time decreased to 44 days.

Year-to-Date Summary

Comparing the first three months of 2023 to the same period in 2022, new listings (997) decreased 23.4%, pending sales (900) decreased 23.7%, and closed sales (713) decreased 26.0%.

Average and Median Sale Prices

Comparing 2023 to 2022 through March, the average sale price has decreased 3.1% from $459,800 to $445,500. In the same comparison, the median sale price has decreased 1.9% from $422,900 to $415,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4261 Hyacinth St, Eugene, OR 

Price: $549,000    Beds: 3    Baths: 2.0    SqFt: 1800

Beautifully updated, spacious home in this highly desirable neighborhood! Abundant natural light with vaults and skylights. The large windows take in the expansive back views of undeveloped fields and wetlands. Two living areas, with luxury vinyl flo...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!