Real Estate Information Archive

Good Monday Morning!

What is really wrong with the Eugene area housing market? One of the largest issues Eugene faces with housing is both availability and affordability. The truth is that Eugene has a housing inventory issue that is creating major problems. The lack of available and affordable single-family building sites has reached a critical stage. In the past, large pieces of land within the urban growth boundary allowed hundreds of new homes to be built. This kept home prices down and provided buyers with many options. Those days are gone, as Eugene has completely run out of large areas for new subdivisions, leaving the housing market almost entirely dependent on the sale of existing homes. Don't expect this situation to change anytime soon. Eugene has not brought any new areas into the urban growth boundary for years, and to my knowledge, there are no immediate plans for boundary expansion. This leaves Eugene with a housing market that has little competition and low availability. Home affordability will continue to suffer as a result. For a healthy housing market, Eugene needs new single-family home developments. The following is an article from "NAR" that addresses this very issue.

Home buyer demand appears strong. So, why did existing-home sales falter last month?

Existing-home sales have lagged over the past two years, while new-home sales have surged—highlighting a key dynamic: Buyer demand remains strong when inventory is available.

The existing-home market continues to face a short supply of homes for sale, despite the latest progress of a 20% annual uptick in inventory. With just a 4 months’ supply of inventory, existing-home sales fell nearly 6% in March compared to February. Sales were down 2.4% from a year ago, the National Association of REALTORS® reported Thursday.

That may begin to shift,” says Lawrence Yun, NAR’s chief economist. “As time passes, life events—such as job changes, family transitions or financial needs—could prompt more homeowners to sell, even if it means giving up their low locked-in mortgage rates.”

As it stands now, about 44 million homeowners have a mortgage rate below 6%, according to an NAR analysis. That’s lower than the current 30-year fixed-rate mortgage, which has been averaging in the mid- to high 6% range. Buyers with financial wherewithal are bypassing mortgages altogether: All-cash buyers continue to make up a sizable share of the market, comprising 26% of existing-home sales transactions in March, according to NAR’s data.

Proof Buyers Are Still Out There

Even with last month’s slide in existing-home sales, buyers could still face some competition. Twenty-one percent of homes sold above list price in March, and 57% of real estate pros report that properties typically sold in just over a month, according to the March REALTORS® Confidence Index Survey, reflecting results from a survey of more than 1,500 real estate pros about their latest transactions. Homes listed received an average of 2.4 offers. What’s more, 22% of buyers waived the inspection contingency and 19% waived their appraisal contingency in competing in a home sale last month.

Home prices also are still climbing: The median existing-home sales price in March reached an all-time high of $403,700, NAR reports.

Contrasting housing prices with recent stock market declines, Yun says, “Household wealth in residential real estate continues to reach new heights. With mortgage delinquencies at near-historical lows, the housing market is on solid footing.”

Signaling further potential buyer interest, mortgage applications for home purchases are up 4.3% year-to-date. “Aside from inventory growth, lower mortgage rates will be needed to get homeowners to move,” Yun says. “A small deceleration in home price gains, which was slightly below wage-growth increases in March, would be a welcome improvement for affordability.”

Builders Capitalize on Demand but Face Headwinds

Meanwhile, homebuilders have plenty of inventory—and in some cases, lower mortgage rates—to meet some of that pent-up buyer demand. Sales of newly built homes climbed 7% in March compared to the previous month and are up 6% from a year ago, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau reported on Wednesday.

“A wide inventory availability—at eight months’ supply—is helping newly constructed home sales to move forward,” Yun says. “The homebuilders’ focus on smaller-sized homes is also attracting buyers.” New home sales are up 33% year-to-date for homes priced below $300,000 and up by 28% year-to-date for new homes priced between $300,000 and $400,000, NAHB reports.

In March, the median price of newly constructed homes was $403,600, well-below the $435,000 price from three years ago when builders were more focused on larger-sized homes, Yun adds.

Builder incentives also could be drawing buyers in. About 30% of builders say they cut their home prices in April, with the average price reduction at 5%, according to the NAHB and Wells Fargo Housing Market Index. About 61% of builders say they also used sales incentives this month, like with mortgage rate buy downs or upgrades.

“The new home sales data shows that demand continues to be present in the market, provided affordability conditions permit a purchase,” says Buddy Hughes, NAHB’s chairman. “An increase in economic certainty would be a big boost to future sales conditions.” 

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2181 Turning Oak Pl Eugene, OR 97408

Price: $808,000    Beds: 4    Baths: 3.0    Sq Ft: 2269

Welcome to one of the most sought-after neighborhoods off N. Gilham! This stunning home offers the perfect blend of comfort, style and quality. Thoughtfully designed with attention to every detail, it features light engineered hardwood floo... View this property >> 

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Good Monday Morning!

Mortgage interest rates went on a wild ride last week as they went up and down many times.  The good news is that rates ended the week in decline.  Much of the rate reaction is tied to the bond market, which was also on a wild ride last week.  We are in the midst of an economy make over, which has to take place.  What we see happening right now is a temporary situation and the benefits of the new economic policies will be realized down the road soon.  One of the key events to watch is the war between the Whitehouse and the Fed.  The Whitehouse wants to see a rate decline now that inflation is in check and the Fed is resisting.  If the Whitehouse wins this battle and we see a series of rate reductions by the Fed, look for some immediate mortgage interest rate improvement.  The following is a recent article from "Realtor.com".

Mortgage rates jumped 20 basis points over the last week, but by the end of the week, rates were back below 7%. New tariff policies and stock market fluctuations prompted some economic turmoil last week. So, what should buyers be paying attention to as they contemplate applying for a mortgage?

“Economists are currently eyeing any potential changes in the bond market that would impact the mortgage market,” says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “China holds about $760 billion in U.S. bonds, raising eyebrows given the trade war. Japan is currently the largest holder of U.S. bonds.”

When bond prices fall, it can lead to higher mortgage rates.

Economic uncertainty “is likely to make at least some prospective buyers more hesitant to move forward with a purchase,” says Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association. Reflecting that, mortgage applications for home purchases—a gauge of future home buying activity—fell 5% last week. But MBA’s index notes: Loan applications for home purchases are still 13% higher compared to the same week a year ago.

Some Buyers Quickly Spring Back In

Considering mortgage applications for home purchases are posting double-digit percentage annual increases, “it’s a clear sign that this year’s spring home buying season is off to a stronger start” than last year, says Sam Khater, Freddie Mac’s chief economist.

“The 30-year fixed settled some from the bounce-house activity in the week prior,” and housing inventory is on the rise, says Lautz. NAR’s data shows that unsold inventory is up by double digit percentages compared to a year ago, offering prospective home buyers more choices of homes for-sale than they’ve had in years. “Spring buyers are in a better position with more inventory in many markets,” Lautz says. So “while some are cautious in the face of uncertainty, others will jump at better opportunities.”

To offset higher rates last week, more prospective home buyers reached for the ARMs—adjustable-rate mortgages. The share of ARM applications was up a full percentage point in just one week, MBA reported. ARMs offer an initial fixed rate—lately closer to 6%, lower than 30-year fixed rate average—before adjusting to current rates in five or seven years. Given the jump in rates last week, “more borrowers are opting for the lower initial [payments] that come with an ARM,” Fratantoni says. The ARM share of mortgage applications reached about 10%, the highest since November 2023. “On a dollar basis, almost a quarter of the application volume last week was for ARMs, as borrowers with larger loans are even more likely to opt for an ARM,” he adds.

A Close Watch on Mortgage Rates

At this week’s 30-year average of 6.83%, home buyers would likely have a monthly mortgage payment of $2,093 for a home priced at $400,000, assuming a 20% down payment, Lautz says. With a 10% down payment, the typical monthly payment would be $2,354.

Freddie Mac reports the following mortgage rate averages for the week ending April 17:

• 30-year fixed-rate mortgages: averaged 6.83%, rising from last week’s 6.62% average. A year ago, 30-year rates averaged 7.1%.
• 15-year fixed-rate mortgages: averaged 6.03%, up from last week’s 5.82% average. Last year at this time, 15-year rates averaged 6.39%.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2181 Turning Oak Pl Eugene, OR 97408

Price: $808,000    Beds: 4    Baths: 3.0    Sq Ft: 2269

Welcome to one of the most sought-after neighborhoods off N. Gilham! This stunning home offers the perfect blend of comfort, style and quality. Thoughtfully designed with attention to every detail, it features light engineered hardwood floo... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Mortgage interest rates went on a wild ride last week, fluctuating up and down several times. The good news is that rates ended the week on a downward trend. Much of this volatility is tied to the bond market, which also experienced significant swings. We are currently in the midst of an economic makeover—a necessary transition. What we’re seeing now is likely temporary, and the benefits of new economic policies should begin to take shape in the near future. One key event to watch is the ongoing tension between the White House and the Federal Reserve. The White House is pushing for rate cuts now that inflation appears to be under control, while the Fed is resisting. If the White House prevails and the Fed initiates a series of rate reductions, we could see immediate improvements in mortgage interest rates. The following is a recent article from "Realtor.com".

Mortgage rates jumped 20 basis points over the last week, but by the end of the week, rates were back below 7%. New tariff policies and stock market fluctuations prompted some economic turmoil last week. So, what should buyers be paying attention to as they contemplate applying for a mortgage?

“Economists are currently eyeing any potential changes in the bond market that would impact the mortgage market,” says Jessica Lautz, deputy chief economist at the National Association of REALTORS®. “China holds about $760 billion in U.S. bonds, raising eyebrows given the trade war. Japan is currently the largest holder of U.S. bonds.”

When bond prices fall, it can lead to higher mortgage rates.

Economic uncertainty “is likely to make at least some prospective buyers more hesitant to move forward with a purchase,” says Mike Fratantoni, senior vice president and chief economist at the Mortgage Bankers Association. Reflecting that, mortgage applications for home purchases—a gauge of future home buying activity—fell 5% last week. But MBA’s index notes: Loan applications for home purchases are still 13% higher compared to the same week a year ago.

Some Buyers Quickly Spring Back In

Considering mortgage applications for home purchases are posting double-digit percentage annual increases, “it’s a clear sign that this year’s spring home buying season is off to a stronger start” than last year, says Sam Khater, Freddie Mac’s chief economist.

“The 30-year fixed settled some from the bounce-house activity in the week prior,” and housing inventory is on the rise, says Lautz. NAR’s data shows that unsold inventory is up by double digit percentages compared to a year ago, offering prospective home buyers more choices of homes for-sale than they’ve had in years. “Spring buyers are in a better position with more inventory in many markets,” Lautz says. So “while some are cautious in the face of uncertainty, others will jump at better opportunities.”

To offset higher rates last week, more prospective home buyers reached for the ARMs—adjustable-rate mortgages. The share of ARM applications was up a full percentage point in just one week, MBA reported. ARMs offer an initial fixed rate—lately closer to 6%, lower than 30-year fixed rate average—before adjusting to current rates in five or seven years. Given the jump in rates last week, “more borrowers are opting for the lower initial [payments] that come with an ARM,” Fratantoni says. The ARM share of mortgage applications reached about 10%, the highest since November 2023. “On a dollar basis, almost a quarter of the application volume last week was for ARMs, as borrowers with larger loans are even more likely to opt for an ARM,” he adds.

A Close Watch on Mortgage Rates

At this week’s 30-year average of 6.83%, home buyers would likely have a monthly mortgage payment of $2,093 for a home priced at $400,000, assuming a 20% down payment, Lautz says. With a 10% down payment, the typical monthly payment would be $2,354.

Freddie Mac reports the following mortgage rate averages for the week ending April 17:

• 30-year fixed-rate mortgages: averaged 6.83%, rising from last week’s 6.62% average. A year ago, 30-year rates averaged 7.1%.
• 15-year fixed-rate mortgages: averaged 6.03%, up from last week’s 5.82% average. Last year at this time, 15-year rates averaged 6.39%.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

32568 Deberry Rd, Creswell, OR 

Price: $2,670,000    Beds: 4    Baths: 3.0    Sq Ft: 5433

Welcome to one of Lane County's finest estate homes! Every detail of this exquisite residence has been thoughtfully crafted to create an unparalleled living experience. Bathed in natural light, this unique home boasts soaring ceilings and premium ma... View this property >> 

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Good Monday Morning!

As our homes get older and the styles and colors of the original build begin to feel dated, many of us start dreaming about what a facelift could do for our space. Remodeling your home may be one of the most expensive ventures you ever take on. Material and labor costs have risen significantly over time, and depending on the extent of the remodel, expenses could reach into the hundreds of thousands of dollars. If you are considering selling your home—whether soon or sometime down the road—keep in mind that dated homes typically sell for less and are more difficult to sell than updated ones. If this sounds like your situation, proceed with caution. It’s easy to spend more on a remodel than you’ll gain from the sale. Keeping your remodel focused on increasing value and putting more money in your pocket at the time of sale should be the goal. The following article from NAR (National Association of Realtors) offers helpful ideas and guidelines if you're remodeling with the intent to sell.

A new NAR report reveals which projects homeowners may want to prioritize if they plan to sell within the next year or two.

The home remodeling boom continues, as homeowners leverage their equity to take on a range of house projects, large and small. But are they choosing the best projects to help boost their home’s resale value?  

A fancy kitchen upgrade or bathroom renovation may have a significant impact on potential buyers. But for projects that recoup most or all of their cost, owners should think smaller, according to the newly released 2025 Remodeling Impact Report, conducted by the National Association of REALTORS® and the National Association of the Remodeling Industry. Swapping out the front door for steel, for example, is likely to get the most bang for the buck.

Prioritizing Home Remodeling Projects

Being able to help sellers prioritize home improvements and maximize their net on the sale is a key value real estate agents offer. For a range of home improvement projects, the Remodeling Impact Report compares estimated cost (estimates are from a NARI member survey) with real estate professionals’ estimates of the likely dollar value at resale.

The report revealed the following home remodeling projects may offer the highest returns, based on their estimated cost recovery at resale:  

• New steel front door: 100% (estimated return based on upfront cost)
• Closet renovation: 83%
• New fiberglass front door: 80%
• New vinyl windows: 74%
• New wood windows: 71%
• Basement conversion to living area: 71%
• Attic conversion to living area: 67%
• Complete kitchen renovation: 60%
• Minor kitchen upgrade: 60%
• Bathroom addition: 56%
• New primary suite: 54%
• bathroom renovation 52% 

A Balancing Act

Because owners often plan to stay in the home and enjoy the improvements for a few years before selling, the report also assigns a “joy score” to each project. The score is derived from a survey of homeowners conducted by NAR’s consumer website HouseLogic.

“Homeowners undertake remodeling projects for numerous reasons, but what remains intriguing is the disparity between the joy experienced post-remodel and the actual cost recovery,” says Jessica Lautz, NAR’s deputy chief economist. “While homeowners take pride in seeing their personal tastes and design choices come to life, [real estate professionals who are] REALTORS® may recommend different strategies to enhance the property’s resale value.”

Americans spent an estimated $603 billion last year on remodeling their homes, according to the report. With the average home of the U.S. now older than 40 years old, home remodeling may be growing more important as homeowners try to ensure their home ages well—with its value, too.

Consumers surveyed for the report said their top motivations for undergoing a home remodel were:

• To upgrade the home’s worn-out surface finishes and materials (27%)
• To improve energy efficiency (19%)
• A desire for a change (18%), or
• Because they plan to sell their home within the next two years (18%).

Because every home and every neighborhood are different, a presale project that’s right for one home won’t benefit another. But for those who do plan to sell within the next couple of years, the Remodeling Impact Report offers agents a starting point for a discussion.

How Real Estate Pros Are Helping

Forty-three percent of homeowners say home remodeling, repairs and maintenance stresses them out, according to Angi’s State of Home Spending report.  

Real estate pros are finding themselves an important ally in helping to guide remodeling decisions to help ease some of that stress. Clients turn to them for reputable contractors, as well as for guidance in prioritizing remodeling decisions.

“A real estate professional absolutely can help clients with remodeling,” says Angie Hicks, co-founder of the home services site Angi, formerly known as Angie’s List. “I always like to say, ‘You want to keep up with the Joneses, but you don’t want to beat the Joneses.’ If you have three bathrooms when everyone else has two, you won’t be getting the return on that. In thinking of the resale on your house, a real estate agent is going to be a great person to talk to.”

According to NAR’s Remodeling Impact Report, the top agent-recommended projects were painting—either the entire home or at least one room—as well as installing a new roof, if necessary, to make a home more marketable.

Real estate professionals also reported that over the last two years they’ve noticed an uptick in the number of homeowners who’ve had an increased desire to tackle kitchen upgrades, install a new roof or complete a bathroom renovation, the Remodeling Impact Report finds. These can be key areas in a home for buyers, as well as among the most expensive house projects. Nearly half—or 46%—of home buyers say they’re less willing to compromise on the condition of the home they purchase. As such, homeowners prioritizing such projects may help make their properties more move-in ready to home buyers and justify recent home price growth.

Homeowners who don’t intend to sell soon may be motivated by recent home appreciation to undertake house projects. “The substantial housing equity that homeowners have built up over time enables them to invest in transforming their homes,” Lautz says.

“This report demonstrates that demand for remodeling remains robust,” as remodeling contractors continue to report an uptick in projects as well as larger scope projects over the last two years, says Jason Hensler, president of NARI. “Homeowners are discovering significant value and joy in these investments—from smaller upgrades, such as front doors and windows, to major renovations like kitchens and primary suites,” he says.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4342 Cloudview Dr S, Salem, OR 

Price: $599,900    Beds: 4    Baths: 2.5    Sq Ft: 2105

This beautifully maintained two-story home blends comfort, function, and charm in one of South Salem’s most desirable neighborhoods. With a spacious floor plan featuring four bedrooms and two and a half bathrooms, it offers a thoughtful layout... View this property >> 

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Good Monday Morning!

Real estate markets have historically been a roller coaster, shifting from strong, active home sales to sluggish and challenging conditions. Rarely do we see rapid changes in the real estate market. Recovery from slow markets can be painfully gradual, often marked by ups and downs, but with an overall upward trend. This is exactly the kind of market we find ourselves in today. The days of 2.5% and 3% mortgage interest rates are gone—and most likely won’t return anytime soon, if ever. As we all adjust to the new norm of higher mortgage interest rates, we can expect more ups and downs. However, the overall market is expected to trend upward as the economy adapts to these new rates. As our economy improves over the next several years, we can look forward to a robust housing market returning, with interest rates that may resemble what we’re seeing today. The following is an update from the National Association of Realtors (NAR) on how our current housing market is responding to recent mortgage rate trends.

Over the last month, mortgage rates have seen only slight moves, but that could be enough to give prospective buyers the confidence to make a move.

The signs of a livelier market may be starting to pop up. The number of mortgage applications for purchase rose last week to its highest level since the end of January—and the number has climbed from levels a year ago, according to the Mortgage Bankers Association’s seasonally adjusted index.

Less volatility in mortgage rates—which have settled in the mid-6% range—may be helping home buyers feel more comfortable planning ahead for a purchase. “Over the last month, the 30-year fixed-rate has settled in, making only slight moves in either direction,” says Sam Khater, Freddie Mac’s chief economist. “This stability is reassuring, and borrowers have responded with purchase application demand rising to the highest growth rate since late last year.”

Mortgage applications for a home purchase—a gauge of future home buying activity—ticked up by 2% in the latest week and are up by 9% compared to a year ago, according to the MBA.

“Overall purchase activity has shown year-over-year growth for more than two months as the inventory of existing homes for sale continues to increase, a positive development for the housing market despite the uncertain near-term outlook,” says Joel Kan, MBA’s deputy chief economist.

Mortgage Rate Averages This Week

Freddie Mac reports the following national average mortgage rates for the week ending April 3:

• 30-year fixed-rate mortgages: averaged 6.64% this week, falling slightly from last week’s 6.65% average. A year ago, 30-year rates averaged 6.82%.

15-year fixed-rate mortgages: averaged 5.82%, dropping from last week’s 5.89% average. Last year at this time, 15-year rates averaged 6.06%.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

91760 Horse Creek Rd, McKenzie Bridge, OR 

Price: $529,000    Beds: 2    Baths: 2.0    Sq Ft: 1540

Nestled within an ideal location on the McKenzie River and on just under a half-acre, this home is a rare find. Many exciting updates have been made throughout including a new roof, septic system, a refreshed guest bathroom, interior paint, and quar... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!