Real Estate Information Archive

Good Monday Morning!

With our current slower economy and the continued inflation we are suffering through, many homeowners are cashing in on their home equity for a variety of reasons. Some are using the home equity that increased significantly prior to our current recession for home improvement, to pay off debt, to purchase autos, RV's or even take vacations. Home equity loans, "Helocs" are a great tool and and can certainly be used as a aid to help homeowners.  But, beware of how you use a "Heloc". There are some potentail pitfalls with using your home equity. The following article from "Realtor.com" will tell you about some of the "Heloc" benefits and some of the "Heloc" dangers.

Do you have a home equity loan or home equity line of credit (HELOC)? Homeowners often tap their home equity for some quick cash, using their property as collateral. But before doing so, you need to understand how this debt will be treated come tax season.

With the 2017 Tax Cuts and Jobs Act, the rules of home equity debt changed dramatically. Here’s what you need to know about home equity loan taxes when you file this year.

Acquisition debt vs. home equity debt: What’s the difference?

For starters, it’s important to understand “acquisition debt” versus “home equity debt.”

“Acquisition debt is a loan to buy, build, or improve a primary or second home, and is secured by the home,” says Amy Jucoski, a certified financial planner and national planning manager at Abbot Downing.

That phrase “buy, build, or improve” is key. Most original mortgages are acquisition debt, because you’re using the money to buy a house. But money used to build or renovate your home is also considered acquisition debt, since it will likely raise the value of your property.

Home equity debt, however, is something different.

“It’s if the proceeds are used for something other than buying, building, or substantially improving a home,” says Jucoski.

For instance, if you borrowed against your home to pay for college, a wedding, vacation, budding business, or anything else, then that counts as home equity debt.

This distinction is important to get straight, particularly since you might have a home equity loan or HELOC that’s notconsidered home equity debt, at least in the eyes of the IRS.

If your home equity loan or HELOC is used to go snorkeling in Cancun or open an art gallery, then that’s home equity debt. However, if you’re using your home equity loan or HELOC to overhaul your kitchen or add a half-bath to your house, then it’s acquisition debt.

And as of now, Uncle Sam is far kinder to acquisition debt than home equity debt used for non-property-related pursuits.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

260 54th Street, Springfield, OR 

Price: $415,000    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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The number of new housing starts both nationally and locally are continuing to dip.  This would be expected with any downturn in the economy.  Another issue with new construction is that the cost of new housing is also increasing and making new homes less affordable to would be buyers.  This is not good for anyone in the business of building new homes or supplying material for new homes. Home construction is also one of the key elements for maintaining a healthy economy and when housing starts dip, it typically has a major effect on the overall economy. The lack of affordable new housing also has an effect on existing housing.  A decrease in new homes on the market will typically help keep exising home demand higher and help uphold existing home values.  It will be interesting to see what happens with new home starts as we enter the time of year when new home construction typically peaks.  The following article is from "Realtor.com" that talks about the national market for new homes.

The numbers: Construction on new U.S. homes fell a seasonally adjusted 4.5% in January to 1.31 million, the Commerce Department said Thursday.

The drop in construction on homes follows the decline in December, when housing starts also fell by 3.4%

The drop was larger than what Wall Street expected. Economists polled by the Wall Street Journal expected housing starts to drop to a 1.35 million rate from December’s initial estimate of 1.38 million.

Construction is at the lowest level since June 2020, during the depths of the coronavirus pandemic. Starts have also fallen for the fifth month in a row.

The annual rate of total housing starts fell from 27.3% from the previous year.

In December, housing starts were revised to a drop of 3.4% of 1.37 million, as compared to a previous drop of 1.4%.

Building permits for new homes rose 0.1% to 1.34 million in January.

Economists had expected building permits to rise to a 1.35 million rate from December’s initial estimate of 1.34 million.

Key details: On an unadjusted basis, housing starts fell 1% in January.

The construction pace of single-family homes fell 4.3% in January and apartments fell 5.4%.

Permits for single-family homes fell 1.8% in January, while permits in buildings with at least five units rose by 0.5%.

Notably, permits for middle housing, or buildings with 2 to 4 housing units like townhomes, rose by 26.1%.

Regionally, construction of homes rose the most in the south and the west.

Single-family construction in the south led the jump with a 11.6% increase. The northeast and west regions reported a drop in single-family construction.

Big picture: The housing starts data likely reflects builders’ subdued sentiment from back in January, when they were only slowly becoming confident that buyers would return.

Builders have since become even more confident that sales of new homes will increase, and are signaling that they will ramp up production in the months ahead.

What are they saying? “Strong economic data (retail sales and jobs report) from January mean the Fed is likely to raise the fed funds rate higher than previously expected to get inflation under control,” Abbey Omodunbi, senior economist at PNC, wrote in a note.

And “this will put upward pressure on mortgage rates and slow housing demand even further this year,” he added.

The company is expecting home prices to fall by 12% in 2023.

“Home builders continue to face a raft of headwinds including worker shortages and fading housing demand,” Priscilla Thiagamoorthy, senior economist at BMO Economics, wrote in a note. “And, with rates likely to stay high for some time, homebuilders are not out of the woods… yet.”

Have An Awesome Week!

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

THIS WEEKS HOT PROPERTIES FOR SALE!

320 Mountaingate Dr, Springfield, OR 

Price: $125,000    Acres: 0.23

...View this property >> 

340 Mountaingate Dr, Springfield, OR 

Price: $140,000    Acres: 0.25

...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

January was an interesting month for home sales in the Eugene and Springfield area. The inventory of homes on the market hit the highest point we have seen in over 2 years at 2.3 months of inventory. At the same time, the number of new homes hitting the market decreased. This means that the rise in home inventory was created by fewer home sales. The interesting thing is that with an even slower market for home sales, the average and median home sale prices increased further. Also of interest is the fact that even with mortgage interest rates increasing slightly, the demand for homes is extremely strong. Why is this not reflected with home sales? The answer to this is that the existing inventory of homes for the most part does not fall into the categories of where the buyer demand is. Many price points and areas have virtually no inventory and in many cases scores of buyers waitng to find a home to purchase. The result of all of this is that this continues to be a very frustrating market for most home buyers and in many cases, it is one of the best markets we have seen for home sellers. The next several months should prove interesting for sure. Here are the home sales numbers for January 2023.

New Listings 

New listings (303) decreased 10.1% from the 337 listed in January 2022, and increased 73.1% from the 175 listed in December 2022. 

Pending Sales 

Residential Highlights 

New Listings 

New listings (303) decreased 10.1% from the 337 listed in January 2022, and increased 73.1% from the 175 listed in December 2022. 

Pending sales (303) decreased 9.6% from the 335 offers accepted in January 2022, and increased 53.8% from the 197 offers accepted in December 2022. 

Closed Sales 

Closed sales (177) decreased 35.2% from the 273 closings in January 2022, and decreased 24.4% from the 234 closings in December 2022. 

Inventory and Time on Market 

Inventory increased to 2.3 months in January. Total market time increased to 50 days. 

Year-to-Date Summary 

Comparing the first month of 2023 to the same period in 2022, new listings (303) decreased 10.1%, pending sales (303) decreased 9.6%, and closed sales (177) decreased 35.2%. 

Average and Median Sale Prices 

Comparing 2023 to 2022 through January, the average sale price has increased 5.0% from $448,000 to $470,600. In the same comparison, the median sale price has increased 1.9% from $411,000 to $419,000.

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: $629,900    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 >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Even with 4 consecutive weeks of mortgage interest rate decline, the housing market remains in decline nationally. Our current market is strange though and not like any other that I have witnessed in my 34 years as a Real Estate Broker in the Eugene and Springfield area. Yes, some homes that are on the market for sale just sit and dont sell in this market, but others sell quickly and some with bidding wars. Why is that? The reasons are many, but price is the number one reason and condition follows close behind. The other reasons are that some price ranges have more buyers looking and lower inventory. If you price your home competitively with this market and prepare your home for sale by making it very attractive to buyers, you may sell quickly and possibly create a buyer bidding war, even in this market. If you are considering selling your home, read the following article from "Realtor.com" that talks about why some homes sell while others sit in this market.

Homebuyers who are closely watching the correction in the real estate market might believe now is a good time to pounce. After all, homes are sitting on the market for longer, those maddening bidding wars have dried up, and wild offers over the asking price are things of the past, right?

Well, not exactly. It all depends on what they’re hoping to purchase.

Those searching for a home are seeing plenty of fixer-uppers, homes lacking curb appeal, and those in less desirable areas sitting on the market for longer and undergoing price reductions. But well-appointed, well-situated turnkey homes are still selling fast, often receiving multiple offers, and even selling over the asking price. It’s as if the housing slowdown hasn’t affected these properties much at all.

“If it’s a good home in the resale market, it’s selling quickly,” says Ali Wolf, chief economist of the building consultancy Zonda. “The buyer who is buying today is not the same buyer buying 12 months ago. If [they’re] paying this much, it needs to be a nice home.”

Competition for turnkey homes in good school districts remains fierce.

“If the house is perfect, the odds of someone else wanting it are high, too,” says Geena Peoples, an Austin, TX–based real estate agent with The Juice Group at Compass.

Home prices are still much higher than they were before the COVID-19 pandemic. And while mortgage rates have fallen a bit of late, they’re still substantially higher than they were at this time last year, jumping to just over 6% for 30-year fixed-rate loans, according to Freddie Mac. So buyers don’t have much room in their budget for costly repairs.

“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing,” says Realtor.com® Chief Economist Danielle Hale.

During the pandemic, just about everything was selling for more money than ever before because homebuyers didn’t have much to choose from. Even fixer-uppers in the right markets were hot commodities. Buyers and investors could snap up these properties and still be able to afford the work they needed.

“Back in 2021, you could list just about anything and there would be a line out the door,” says Peoples. She used to see dated homes with cracks in the foundation and the walls on the market, and buyers would still pounce on them.

But those days seem to have ended, at least for now.

Fewer buyers are seeking out fixer-uppers

Fixer-uppers have traditionally been popular with investors, who could get these homes at a discount, put some work into them, and then resell them at a hefty profit. And this popularity soared in the early portion of the pandemic. However, with home prices falling from their peaks over the summer, many investors are now increasingly pausing their purchases. If prices dip, even a little, they could lose money on their projects. And many of the larger iBuyers have either exited the market or aren’t buying as much at the moment. That’s left less demand for these properties.

So they’re staying on the market longer and sellers are having to drop the price on these homes or accept lowball offers.

“Buyers want those homes [only] when there is no other inventory out there,” says Matt Curtis, owner of his eponymously named brokerage in Huntsville, AL.

Even in today’s more challenging housing market, “anything that is staying on the market for more than 48 hours [without a booked showing] is in a less desirable location and definitely not in tiptop, showable condition, says Princeton, NJ–based real estate agent Debbie Lang. She works for Berkshire Hathaway HomeServices Fox & Roach Realtors.

She recently saw a home priced below $1 million that received eight offers.

What’s not selling are properties “that need a major renovation and updates, like a new kitchen or bathroom and major systems,” says Lang. “Buyers are always looking for improvements that have already been done.”

Those problems can be overlooked if the home is in a great location, such as near a train station or in a community with top-rated schools, she says. But buyers could get a discount on these properties.

Money isn’t the only obstacle to purchasing a home that needs some TLC.

On Cape Cod, a popular vacation destination on the Massachusetts shore, it can be difficult to get work done, says local real estate agent Doug Payson, with Kinlin Grover/Compass.

“Because of the supply chain issues, it’s often difficult to get materials. There’s also a shortage of workers,” says Payson. Meanwhile, “properties that you don’t have to do anything to are seeing, like, 12 offers.”

Price Matters

Even the ugliest, run-down, abandoned homes with the worst smells, located in the most undesirable areas, such as on a busy highway, will still sell—at the right price.

“Price will always overcome any objection,” says Salt Lake City real estate agent Justin Udy, of Century 21 Everest.

His brokerage will loan sellers up to $10,000 to renovate and improve their homes before putting them on the market.

You have to make it easy on the consumer to want to buy it,” he says.

Have An Awesome Week!

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

THIS WEEKS HOT PROPERTIES FOR SALE!

320 Mountaingate Dr, Springfield, OR 

Price: $125,000    Acres: 0.23

...View this property >> 

340 Mountaingate Dr, Springfield, OR 

Price: $140,000    Acres: 0.25

...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Even with 4 consecutive weeks of mortgage interest rate decline, the housing market remains in decline nationally. Our current market is strange though and not like any other that I have witnessed in my 34 years as a Real Estate Broker in the Eugene and Springfield area. Yes, some homes that are on the market for sale just sit and dont sell in this market, but others sell quickly and some with bidding wars. Why is that? The reasons are many, but price is the number one reason and condition follows close behind. The other reasons are that some price ranges have more buyers looking and lower inventory. If you price your home competitively with this market and prepare your home for sale by making it very attractive to buyers, you may sell quickly and possibly create a buyer bidding war, even in this market. If you are considering selling your home, read the following article from "Realtor.com" that talks about why some homes sell while others sit in this market.

Homebuyers who are closely watching the correction in the real estate market might believe now is a good time to pounce. After all, homes are sitting on the market for longer, those maddening bidding wars have dried up, and wild offers over the asking price are things of the past, right?

Well, not exactly. It all depends on what they’re hoping to purchase.

Those searching for a home are seeing plenty of fixer-uppers, homes lacking curb appeal, and those in less desirable areas sitting on the market for longer and undergoing price reductions. But well-appointed, well-situated turnkey homes are still selling fast, often receiving multiple offers, and even selling over the asking price. It’s as if the housing slowdown hasn’t affected these properties much at all.

“If it’s a good home in the resale market, it’s selling quickly,” says Ali Wolf, chief economist of the building consultancy Zonda. “The buyer who is buying today is not the same buyer buying 12 months ago. If [they’re] paying this much, it needs to be a nice home.”

Competition for turnkey homes in good school districts remains fierce.

“If the house is perfect, the odds of someone else wanting it are high, too,” says Geena Peoples, an Austin, TX–based real estate agent with The Juice Group at Compass.

Home prices are still much higher than they were before the COVID-19 pandemic. And while mortgage rates have fallen a bit of late, they’re still substantially higher than they were at this time last year, jumping to just over 6% for 30-year fixed-rate loans, according to Freddie Mac. So buyers don’t have much room in their budget for costly repairs.

“In a market where costs are still high and buyers can be a little choosier, it makes sense they’re going to really zero in on the homes that are the most appealing,” says Realtor.com® Chief Economist Danielle Hale.

During the pandemic, just about everything was selling for more money than ever before because homebuyers didn’t have much to choose from. Even fixer-uppers in the right markets were hot commodities. Buyers and investors could snap up these properties and still be able to afford the work they needed.

“Back in 2021, you could list just about anything and there would be a line out the door,” says Peoples. She used to see dated homes with cracks in the foundation and the walls on the market, and buyers would still pounce on them.

But those days seem to have ended, at least for now.

Fewer buyers are seeking out fixer-uppers

Fixer-uppers have traditionally been popular with investors, who could get these homes at a discount, put some work into them, and then resell them at a hefty profit. And this popularity soared in the early portion of the pandemic. However, with home prices falling from their peaks over the summer, many investors are now increasingly pausing their purchases. If prices dip, even a little, they could lose money on their projects. And many of the larger iBuyers have either exited the market or aren’t buying as much at the moment. That’s left less demand for these properties.

So they’re staying on the market longer and sellers are having to drop the price on these homes or accept lowball offers.

“Buyers want those homes [only] when there is no other inventory out there,” says Matt Curtis, owner of his eponymously named brokerage in Huntsville, AL.

Even in today’s more challenging housing market, “anything that is staying on the market for more than 48 hours [without a booked showing] is in a less desirable location and definitely not in tiptop, showable condition, says Princeton, NJ–based real estate agent Debbie Lang. She works for Berkshire Hathaway HomeServices Fox & Roach Realtors.

She recently saw a home priced below $1 million that received eight offers.

What’s not selling are properties “that need a major renovation and updates, like a new kitchen or bathroom and major systems,” says Lang. “Buyers are always looking for improvements that have already been done.”

Those problems can be overlooked if the home is in a great location, such as near a train station or in a community with top-rated schools, she says. But buyers could get a discount on these properties.

Money isn’t the only obstacle to purchasing a home that needs some TLC.

On Cape Cod, a popular vacation destination on the Massachusetts shore, it can be difficult to get work done, says local real estate agent Doug Payson, with Kinlin Grover/Compass.

“Because of the supply chain issues, it’s often difficult to get materials. There’s also a shortage of workers,” says Payson. Meanwhile, “properties that you don’t have to do anything to are seeing, like, 12 offers.”

Price Matters

Even the ugliest, run-down, abandoned homes with the worst smells, located in the most undesirable areas, such as on a busy highway, will still sell—at the right price.

“Price will always overcome any objection,” says Salt Lake City real estate agent Justin Udy, of Century 21 Everest.

His brokerage will loan sellers up to $10,000 to renovate and improve their homes before putting them on the market.

You have to make it easy on the consumer to want to buy it,” he says.

Have An Awesome Week!

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

THIS WEEKS HOT PROPERTIES FOR SALE!

320 Mountaingate Dr, Springfield, OR 

Price: $125,000    Acres: 0.23

...View this property >> 

340 Mountaingate Dr, Springfield, OR 

Price: $140,000    Acres: 0.25

...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!