Real Estate Information Archive

Good Monday Morning!

Finally, some relief with mortgage rates. The question is, will this trend continue? It's no secret that high mortgage interest rates have created a huge slowdown in home sales across the nation. Expected rate cuts this year by the Fed turned into disappointment as inflation numbers continue to climb, and the Fed determined that lower rates would only fuel this fire. There are many opinions out there as to what lies ahead; the following is from a recent article from "Realtor.com."

Mortgage rates finally fell for the first time in five weeks, with the average rate for a 30-year fixed home loan dropping from 7.22% last week to 7.09% for the week ending May 9, according to Freddie Mac.

“After a five-week climb, mortgage rates ticked down following a weaker than expected jobs report,” Sam Khater, Freddie Mac’s chief economist, said in a statement.

Despite this welcome bit of news, overall, high mortgage rates have put a damper on the spring market, discouraging both buyers and sellers from entering what is often the busiest season of the year. 

“An environment where rates continue to hover above seven percent impacts both sellers and buyers,” Khater noted in his statement. “Many potential sellers remain hesitant to list their home and part with lower mortgage rates from years prior, adversely impacting supply and keeping house prices elevated. These elevated house prices add to the overall affordability challenges that potential buyers face in this high-rate environment.”

In her recent analysis, Realtor.com® economist Jiayi Xu agrees that, for now, “homebuyers and sellers are likely to experience a slow spring, characterized by fewer transactions, as the elevated mortgage rates deter many from pursuing housing plans.”

She adds that so far, “many sellers who are also prospective buyers opted to defer their selling plans, resulting in a notable slowdown in listing activities. Alongside the scarcity of fresh listings, the increasing buying costs propelled by rising mortgage rates may leave many homebuyers feeling disheartened.”

Here’s what the latest real estate data means for homebuyers and sellers in our most recent installment of “How’s the Housing Market This Week?”

The latest mortgage rate outlook

The U.S. Federal Reserve has not lowered interest rates for six consecutive months, despite earlier talk of three rate cuts in 2024. (While the Fed does not directly influence mortgage rates, the two numbers usually move in tandem.)

“In Wednesday’s meeting, the FOMC voted to hold rates steady and Chair Powell emphasized, once again, that future rate decisions will be dependent on incoming inflation and employment data,” explains Realtor.com senior economic research analyst Hannah Jones. “Recent data reflects a surprisingly resilient economy, which means rate cuts expectations have pushed out further into the back half of the year.”

Yet that does not mean all hope is lost for buyers and sellers looking to make real estate moves this year.

“The cooler labor market data in May signaled that mortgage rate relief could be on the horizon,” says Xu. “The inflation is still far from the 2% target, but persistent inflation improvements and subsequent mortgage rate drops could pave the way for an unseasonably active summer and fall.”

Home prices are falling

There’s good news for homebuyers this week as well, with home prices slipping by 0.2% for the week ending May 4 compared to the same week last year. (The median-priced home cost $430,000 in April.)

“Smaller, more affordable listings are taking the pressure off of the overall median price, which is good news for shoppers looking for these types of homes,” says Xu.

Buyers looking for a bargain should head South, where sellers are listing these budget-friendly homes (often condos, semiattached homes or townhouse) priced between $200,000 and $350,000. 

New listings are dwindling

While fresh listings were up by 3.6% for the week ending May 4 compared to the year prior, this growth is slowing considerably under the weight of high mortgage rates. 

“Although the number of new listings kept rising, the rate of increase slowed considerably compared to the double-digit surges seen in recent weeks,” says Xu. “As mortgage rates breach 7% once more, numerous home sellers may be inclined to postpone their selling endeavors.”

If mortgage rates continue to rise, that may “continue to suppress listing activities,” says Xu.

While homebuyers might not have a ton of fresh listings to peruse, the number of homes for sale overall—both new listings and old—grew by 35.1% for the week ending May 4 compared to the year prior.

“For the 26th straight week, there were more homes listed for sale versus the prior year, giving homebuyers more options,” says Xu.

Homes are still selling fast

Despite sticky mortgage rates, buyers are still out there making offers. The typical property spent one fewer day on the market for the week ending May 4 compared to the same period last year. (The typical home spent 47 days on the market in April.)

“While the surge in mortgage rates might postpone certain buyers’ decisions, it could also intensify competition as some homebuyers rush to lock in favorable rates before they rise further,” says Xu.

Savvy home shoppers may also take advantage of high mortgage rates to offer less on a home—and sellers are listening. 

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

4927 Morely Loop, Eugene, OR 

Price: $340,000    Beds: 3    Baths: 2.0    SqFt: 1518

This updated home is on its own lot & doesn't have any HOA fees. It's located on a quiet street with a treed view in the backyard. Open floor plan with vaulted ceilings, skylight in the kitchen, laminate flooring and vinyl windows. Sliding French ba... View this property >> 

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Good Monday Morning!

The following article from NAR gives a great description of the housing market that we have lived through over the previous year and the one we find ourselves in today. 

Home sales in 2023 were the worst in nearly 30 years. The micro-level reasons—owners locked into low mortgage rates, low inventory, and rising interest rates—explain the fall in sales. But looking at the big picture, it makes less sense. Last year’s 4 million existing-home sales were the same as in 1995, when there were 70 million fewer people living in the U.S. The massive stored-up housing demand could easily mean increased home sales in eight of the next 10 years.

A turn for the better is already showing up: In February, existing-home sales rose 9.5% from the prior month even after accounting for seasonal factors and a leap year. The increase was helped by a 10% inventory boost. One regional exception was in the Northeast, where sales fell by 10%. But this region also had the largest home price gain because of lack of supply and a wider prevalence of multiple offers.

One issue to monitor is consumer response to the rules of the new settlement agreement, which is still pending final approval by the court. Sellers and buyers clearly benefit from a cooperative arrangement between the listing broker and buyer broker, and the proposed settlement was able to maintain consumer choice with respect to offering compensation off-MLS. It's especially important to maintain representation options for first-time, historically underrepresented and underserved, and veteran homebuyers, who often struggle to come up with a down payment. In the near term, the dynamics are hard to predict. But I believe sellers will continue to see the value of cooperation when listing agents clearly explain the benefits, such as increasing housing opportunity and widening the potential buyer pool. NAR’s goal is as much choice as possible for consumers undertaking one of the most important transactions of their life.

First-Timer Share Drops Again

Existing-home sales increased in February. Yet first-time buyers’ share of the market declined to 26%, down from 28% in January. According to NAR’s 2023 Profile of Home Buyers and Sellers, first-time buyers made up 32% of the market from July 2022 to June 2023, while the historical norm is 38%.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2690 Carbona St, Eugene, OR 

Price: $345,000    Beds: 3    Baths: 1.0    SqFt: 912

This charming home is located in the desirable Santa Clara neighborhood on a HUGE lot! The warm and inviting living room welcomes you with large windows flooding the space with natural light and a cozy fireplace ready to add to the ambiance.. The di... View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Are you wanting to purchase a home, but you are just not sure if right now is the best time to make your purchase? If you fit into this category, you are not alone. Hundreds of thousands of potential home buyers are finding themselves in this situation. The following article from "US News" talks about this situation and gives you some perspective from both sides on whether to buy now or wait it out. This is a great read for you if you are on the fence about purchasing a home now vs. renting.

Over the past two years, mortgage rates have surged from around 3% to well past 7%, leaving many would-be homebuyers simply priced out of the market. Others have decided to wait on the sidelines, holding out for lower rates. In fact, two-thirds of homebuyers are waiting for rates to fall before buying a home in 2024, according to a U.S. News survey. 

But patience doesn't always pay off for buyers who are trying to time the market. Here's what to consider if you're holding out for lower mortgage rates, as well as when waiting to buy a home could make sense. 

Home Prices May Rise While You Wait to Buy

National home prices are up about 44% since the onset of the COVID-19 pandemic, according to the S&P CoreLogic Case-Shiller Home Price Index. Much of that home price appreciation can be attributed to heightened demand when mortgage rates were at record lows in 2020 and 2021. 

But even in 2022 and 2023, when mortgage rates began their relentless climb, home prices didn't drop. Instead, they rose by about 10% between January 2022 and January 2024. 

Those who put off buying a home during the past few years as they were holding out for lower mortgage rates have been left out of the market as home prices continued to appreciate. On top of that, mortgage rates have stayed higher for longer than previously expected, keeping monthly housing payments elevated. In other words, affordability didn't improve for those who chose to wait.

But there is a silver lining to buying now versus buying during the pandemic frenzy: Even though prices have stayed high, the housing market has come into better balance. Active listings have continued to improve in 2024 so far, according to a March housing market report from the real estate listings website Realtor.com. It may not be quite a buyer's market, but buyers may not have to waive home inspection contingencies or engage in bidding wars well over a home's appraised value in order to have an offer accepted. 

Lower Rates Could Spark Competition – and Drive Prices Higher

Although home prices aren't expected to appreciate at the breakneck pace observed during 2020 and 2021, they're not expected to decline, due to limited housing inventory. 

One factor is the rate lock-in effect, where many homeowners are reluctant to list their homes for sale since they have much lower interest rates (and monthly payments) than what's currently available. About four in five homeowners have a mortgage rate below 5%, according to a January 2024 study by the online real estate brokerage Redfin. 

If mortgage rates do fall this year, some homeowners could be motivated to sell, but the vast majority will still have much lower rates than what's currently available for the foreseeable future. At the same time, first-time buyers (who aren't tied to a sub-5% rate) might decide to enter the market if rates fall even slightly, unleashing a wave of pent-up demand that could outweigh the relative improvement in supply. 

Those who are waiting for rates to fall will be in good company – or rather, healthy competition. On the other hand, those who are financially prepared to buy now may benefit from the improving inventory while demand is still stifled by high mortgage rates. And those who buy now can always refinance down the line if rates fall. 

If you do plan to buy now and refi later, just ensure that you can comfortably afford your monthly payments without banking on refinancing. Think of it as an added bonus, not a guarantee – and remember that refinancing costs money, too. 

Mortgage Rate Trends Are Difficult to Predict

At the start of 2023, many economists expected mortgage rates to drop throughout the year – but those forecasts didn't come true. In fact, mortgage rates marched higher, reaching a new peak of nearly 8% in October 2023. And while mortgage rates are forecast to decline in 2024, they're not likely to return to pandemic-era levels anytime in the near future. 

Federal Reserve Chair Jerome Powell said it best in a September 2023 news conference: "Forecasts are highly uncertain. Forecasting is very difficult. Forecasters are a humble lot with much to be humble about."

Even the most seasoned economists have trouble predicting mortgage rate trends, so the average homebuyer has little chance of successfully timing the market. Instead, buyers should focus on things within their control, like deciding what they want out of a home and working with a real estate agent to put in a competitive purchase offer.

When Buying a Home Now Makes Sense

You can afford the monthly payments. When mortgage rates are high, buyers face higher monthly housing payments. As a rule, your mortgage payments should not exceed 28% of your monthly pretax income. Some homebuyers may need to reduce their home price budget to accommodate the current rate environment and keep their monthly payments within reason.

Research rents in your area, and compare them to your estimated costs as a homeowner using a mortgage calculator. Don't forget to account for property taxes, homeowners insurance, mortgage insurance and homeowners association fees. 

You plan on staying in the home for a while. Buying a house comes with its share of one-time transactional costs, like fees for a home appraisal, land survey, home inspection and mortgage underwriting. On average, closing costs will run you about 2% to 5% of the home's purchase price (between $8,000 and $20,000 on a $400,000 home). 

At a minimum, you should expect to live in your home for about five years before it's worth selling to offset closing costs. Plus, you could be on the hook for capital gains tax if you sell a property within two years of owning it. 

Buying a home won't drain your savings. Take it from a new-ish homeowner: Home maintenance, upkeep and repairs are probably more expensive than you think. After making a down paymentand paying for closing costs and even moving expenses, buying a home can put a sizable dent in your bank account. Make sure you have enough of a cushion to cover upfront purchase costs, with a healthy savings fund left over. That way, you're not cash-strapped as a new homeowner.

You can expect to spend at least 1% of your home's value each year on maintenance expenses(or a minimum of $4,000 on a home worth $400,000). Building in a home maintenance fund helps you avoid tapping credit cards or taking on debt if you need to pay for renovations or urgent repairs within few years of homeownership. It's also wise to keep an emergency fund that can cover three to six months' worth of living expenses in the event of job loss or another unexpected life event.

When Waiting to Buy a Home Makes Sense

You need more time to financially prepare. Considering that your home could be the most expensive purchase in your lifetime, there's no such thing as being too prepared or having too much money saved up. While it's possible to buy a home with far less than 20% down, coming prepared with a larger down payment can help you qualify for better loan terms and enable you to avoid paying for mortgage insurance, which can help keep your monthly payments affordable.

On top of building up your savings, you might want to improve your credit score, pay down other debts like credit cards or find ways to increase your income before buying a home. 

You enjoy the flexibility of not owning a home, for now. Purchasing a home isn't just a financial decision, it's also a lifestyle choice. Some people might save money if they can find a reasonably priced rental with roommates, and they might simply enjoy that type of living arrangement. Others might decide to live at home until they've saved up for a larger down payment or just because they want to live among family – about 16% of Americans ages 25 to 34 live with a parent, according to U.S. Census Bureau data. 

Ask yourself what you want out of homeownership, because if you're not highly motivated to buy a home when mortgage rates are high, it might not be worth the financial stress. In other words, waiting makes sense when you're simply not ready to buy a home. 

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2434 E Irwin Way, Eugene, OR 

Price: $349,900    Beds: 3    Baths: 1.5    SqFt: 1056

This single level ranch style home is located on a quiet street near Irwin Park and the Golden Garden Pond. RV parking and an attached 2-car garage with built-in storage. Vinyl windows, newer carpet & vinyl, large fenced yard with a patio...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sales, both locally and nationally, are slowing again. After a short spurt of strong activity in our local Eugene and Springfield area, activity levels have once again slowed due to rising mortgage interest rates, high inflation, and a very sluggish economy. Even with all of this negativity, home sales remain better than you would anticipate. This certainly gives hope for a strong rebound if mortgage rates decline again and the economy strengthens. If you are considering a home sale, don't hesitate. Right now, this could be the strongest housing market we see this year. The following is a national housing market report from "Realtor.com."

Home sales slipped in March as mortgage rates rose.

Total existing-home sales dropped 4.3% from February, to a seasonally adjusted annual rate of 4.19 million in March, the National Association of Realtors® reported on Thursday. The March sales figure represented a 3.7% drop from one year ago. (Existing homes exclude new construction.)

A pullback in sales had been widely expected after mortgage rates ticked up, discouraging buyers.

Prices also kept climbing. The median price for existing homes was $393,500 in March, up 4.8% from the previous year to the highest it’s ever been for that month. Prices rose in all U.S. regions, climbing 9.9% in the Northeast, 7.5% in the Midwest, 6.7% in the West, and 3.4% in the South.

But in a silver lining for prospective homeowners, the number of existing homes for sale jumped 4.7% from February to 1.11 million units at the end of March, according to the report. The number of existing homes on the market was up 14.4% from a year ago.

Although high prices and rising interest rates remain challenges for homebuyers, any boost to housing inventory could provide some relief in a tight market where limited supply has been a persistent issue.

“More inventory is always welcomed in the current environment,” said NAR Chief Economist Lawrence Yun in a statement. “There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market.”

It is still a “great time to list” as home prices continue to rise overall and sellers of midpriced properties still frequently receive multiple offers, Yun said.

Existing-Home Sales

Sales of existing homes pulled back in March, after interest rates climbed in late February.

First-time buyers made gains in March

First-time buyers were responsible for 32% of sales in March, up from 26% in February and 28% from a year ago, according to the NAR report.

The resurgence of first-time buyers could be due to a recent influx of lower-priced homes for sale, says Realtor.com® Chief Economist Danielle Hale.

"Despite climbing sales and list prices, Realtor.com data show that sellers are approaching the housing market with more realistic expectations this spring even as we approach the week that Realtor.com has identified as the best time to sell a home," says Hale.

Cash sales also declined last month, perhaps giving first-time buyers a better shot at seeing their offer accepted. All-cash sales accounted for 28% of transactions in March, down from 33% in February. But these sales were up from 27% one year ago.

Investors, who frequently pay all-cash, made up a smaller share of buyers last month. Individual investors or second-home buyers purchased 15% of homes in March. That was down from 21% in February and 17% in March 2023.

Mortgage rates poised to remain higher for longer

Thomas Ryan, a property economist with Capital Economics, says that March's sales slump "didn’t come as a huge surprise" given that mortgage applications and pending home sales both fell in the early months of the year due to rising mortgage rates.

"The fall in existing home sales in March was triggered by mortgage rates climbing," Ryan said in a note.

Mortgage rates averaged 6.82% in March for 30-year fixed loans, according to Freddie Mac.

They rose to 7.1% for 30-year fixed loans in the week ending April 18 after hotter-than-expected inflation data for March tempered expectations of a Federal Reserve rate cut anytime soon.

"Prospective home buyers face a challenging—and confusing—housing market. Mortgage rates, which had been expected to fall in 2024, have inched up close to 7% and seem poised to remain higher for longer," said Bright MLS Chief Economist Lisa Sturtevant in a market commentary. "Inventory has started to increase, but the market is still competitive with sellers still getting multiple offers."

Sturtevant projected that "home sales activity could remain a bit downbeat this spring." However, she anticipates sales will likely pick up over the rest of the year.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

766 S 47th Pl, Springfield, OR 

Price: $899,900    Beds: 3    Baths: 2.5    Sq Ft: 2840

This beautifully updated home is nestled on a private ? acre lot with filtered views through the trees. Designed for either main level living or a great setup for separation of space with additional bedrooms and a bonus room upstairs and a large fam...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Many would be home buyers and sellers are fearful of our current housing market. It certainly is a much different market than what we were experiencing just over a year ago. The reality is that mortgage interest rates in the 2.5% to 3.5% range are unrealistic, and the fact that we had them available for so many years was a blessing. Those who have been in the Real Estate market for years knew that these rates would end. They couldn't last forever! Mortgage interest rates are cyclical, as is the national housing market. When I purchased my first home, the interest rate was just under 12%. It was painful, but I was tired of paying rent, and I knew that rates would not stay at 12% to 13% forever. When the rates finally began to decline, I refinanced at 8.5%. I was a very happy homeowner at that time. My second home came about 10 years later, and mortgage interest rates were at 7.5%. I was very happy to pay such a low mortgage interest rate. I would later refinance at 3.5%, and it was like gaining free money. I still live in the same home that my wife and I purchased 27 years ago. Again, when we bought our current home, the price we paid was a struggle, and we sacrificed to be able to make the payment. The purchase price of that new home was $300,000. We used the equity that we built from the sale of our first home to move up to a much nicer and larger home. Today, the value of that home is between $950,000 and $1,000,000, and we are months away from owning it free and clear. Was it worth it to go out on a limb and buy homes that we had to sacrifice for at the time? I think it should be clear that yes, it was a good move, and in hindsight, it certainly is something that I would not hesitate to repeat. 

I mention all of this because I feel that homeownership remains one of the best investments that anyone can make. The conditions that we purchase homes under constantly change, and we go through various market cycles, but throughout the history of this country, homeownership has stood as a strong investment. The market we have today won't be the market we have tomorrow or a year from tomorrow. There will always be opportunity, and there will be challenges that come with that opportunity. But becoming a homeowner is well worth the effort and the sacrifice.

The other thing to be considered is that the alternative to purchasing a home is renting.  Renting is typically a losing proposition long-term. You build no equity, you have few, if any, tax write-offs, and you are helping your landlord make the money that should be yours. Renting can become a dead-end street, and if there is anything you can do to get out of the renting cycle, you need to explore it. If you are caught in this cycle, get in touch.  I may be able to show you some avenues to break you away from making money for a landlord and start building equity in your own home. I have helped many people purchase homes they thought they had no chance of ever owning!

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2690 Carbona St, Eugene, OR 

Price: $355,000    Beds: 3    Baths: 1    Sq Ft: 912

This charming home is located in the desirable Santa Clara neighborhood on a HUGE lot! The warm and inviting living room welcomes you with large windows flooding the space with natural light and a cozy fireplace ready to add to the ambiance.. The di...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Home sales in the Eugene and Springfield area fell slightly in March. New listings hitting the market were slightly up, and at the same time, the total inventory of homes on the market fell. This is just a continuation of the same market that we have been in for quite some time. I see little change on the horizon unless we see a significant decrease in mortgage interest rates. A decrease in rates is not likely at this time, as inflation continues to be a thorn in the economy's side and the Fed has announced that there will be no rate decreases in the near future. Overall, the Eugene and Springfield area housing market is holding up better than I would have expected. Homes are selling, and we are continuing to see many multiple-offer situations. The bright spot for anyone considering a home sale is the fact that we are currently at 2 months of active home inventory. This means little competition at the time of year when home sales typically begin to spike. The following are the home sales statistics for Lane County in March 2024.

New Listings

New listings (405) increased 1.3% from the 400 listed in March 2023, and increased 13.8% from the 356 listed in February 2024.

Pending Sales

Pending sales (345) increased 0.9% from the 342 offers accepted in March 2023, and increased 3.0% from the 335 offers accepted in February 2024.

Closed Sales

Closed sales (287) decreased 1.4% from the 291 closings in March 2023, and increased 20.6% from the 238 closings in February 2024.

Inventory and Time on Market

Inventory decreased to 2.0 months in March. Total market time increased to 80 days.

Year-to-Date Summary

Comparing the first three months of 2024 to the same period in 2023, new listings (1,052) increased 5.5%, pending sales (908) increased 0.9%, and closed sales (723) increased 1.4%.

Average and Median Sale Prices

Comparing 2024 to 2023 through March, the average sale price has increased 4.7% from $445,500 to $466,300. In the same comparison, the median sale price has increased 3.1% from $415,000 to $428,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

766 S 47th Pl, Springfield, OR 

Price: $925,000    Beds: 3    Baths: 2.5    Sq Ft: 2840

This beautifully updated home is nestled on a private ? acre lot with filtered views through the trees. Designed for either main level living or a great setup for separation of space with additional bedrooms and a bonus room upstairs and a large fam...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

I am often asked, "When is the best time of year to sell my home?" That answer can be somewhat complicated, but typically my answer is the same. In the Eugene and Springfield market area, I have always found that late winter and early spring may be the prime time for home sales. In our area, the days are becoming longer, the weather is improving from winter storms, trees are getting leaves again, and flowers are beginning to bloom. This is typically when homebuyer interest begins to spark. Another important thing to remember is that this time period typically has a lower inventory of homes for buyers to choose from. Later in spring and summer, the inventory of homes for sale will typically increase. Higher demand and lower inventory are a good combination for home sellers. The following is an article from "Realtor.com" that also suggests spring as the best time to sell your home.

A new realtor.com® analysis looks at historical listing metrics to pinpoint when sellers have the biggest advantage this spring.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2690 Carbona St, Eugene, OR 

Price: $365,000    Beds: 3    Baths: 1    Sq Ft: 912

This charming home is located in the desirable Santa Clara neighborhood on a HUGE lot! The warm and inviting living room welcomes you with large windows flooding the space with natural light and a cozy fireplace ready to add to the ambiance.. The di...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The national Real Estate world was full of facts and non-facts in regards to the recent NAR settlement over brokerage fees. I am doing this article this morning because many clients have had questions over what is going on, and home buyers have been in fear that they will now have to pay fees that they did not have to pay previously in a Real Estate transaction. The truth is that, yes, there will be some changes coming soon, but the overall picture of how we buy and sell Real Estate will change very little for most home sellers and home buyers. This is an ever-changing situation, so there could be some further developments ahead, but as of right now, it is pretty much business as usual. Here is a recent article from "Realtor.com" that briefly goes over the recent decisions.

Misinformation has been pervasive in the media over real estate commissions. Here are the facts you should know.

The national conversation around real estate commissions reached a crescendo in the last week since the National Association of REALTORS® announced a settlement agreement that would resolve litigation brought on behalf of home sellers related to broker commissions. Brokers and agents have their own questions about what comes next for their businesses, while at the same time trying to answer consumer inquiries. And many headlines aren’t separating fact from fiction, feeding misinformation to you and your clients.

Let’s clear the air: There’s no doubt the litigation—including copycat lawsuits that were filed after the Sitzer-Burnett verdict—caused considerable uncertainty in an industry already dealing with the effects of low inventory and interest rate increases. The settlement, which must be approved by a judge, provides a path forward for real estate professionals, REALTOR® associations, brokerages, MLSs and other industry stakeholders. Most importantly, it gives NAR members the chance to refocus on their core mission to support buyers and sellers.

Facts First

There’s much the media has gotten wrong about NAR’s settlement, which would require the association to pay $418 million over four years. Some outlets have suggested that NAR previously set or guided commissions to a standard rate of 6%. Even President Joe Biden, in recent comments, misspoke in suggesting that the settlement makes commissions negotiable for the first time.

You know that is false. NAR does not set commissions, and commissions were negotiable long before this settlement. They are and will remain entirely negotiable between brokers and their clients. And housing prices are dictated by market forces beyond members’ control.

Getting the facts right is important, especially because the settlement agreement is complex. NAR is continuing to engage with media to correct inaccurate reporting about the settlement. Members are also encouraged to refer to official NAR sources, like facts.realtor, for the most accurate and up-to-date information about the settlement and what it means for consumers.

The settlement achieves two important goals: protecting members to the greatest extent possible and preserving consumer choice. The proposed settlement:

1. Resolves claims against NAR and nearly every member; all state, territorial and local REALTOR® associations; all association-owned MLSs; and all brokerages with an NAR member as principal whose residential transaction volume in 2022 was $2 billion or below.
2. Preserves cooperative compensation as an option for consumers looking to buy or sell a home—as long as such offers of compensation occur off of the MLS.

NAR fought for a release that covered all industry players, but large settlements reached by other corporate defendants shaped the negotiations. Throughout the settlement process, NAR also engaged with a diverse range of members to consider their perspectives and interests.

“Ultimately, continuing to litigate would have hurt members and their small businesses,” NAR Interim CEO Nykia Wright said in a statement. “While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances. It provides a path forward for our industry, which makes up nearly one-fifth of the American economy, and NAR. For over a century, NAR has protected and advanced the right to real property ownership in this country, and we remain focused on delivering on that core mission.”

The settlement agreement also mandates two key changes to the way members and MLS participants do business.

1. NAR agreed to create a new MLS rule prohibiting offers of compensation on the MLS. This would mean that offers of compensation could not be communicated via an MLS, but they could continue to be an option consumers could pursue off-MLS through negotiation and consultation with real estate professionals.
2. NAR also agreed to create a new rule requiring MLS participants working with buyers to enter into written representation agreements with their buyers before the buyer tours a home. NAR has long encouraged its members to use written agreements to help consumers understand exactly what services and value they provide, and for how much.

NAR continues to deny any wrongdoing and maintains that cooperative compensation is in the best interest of consumers. NAR members can use these changes as an opportunity to explain their clients’ options. Both changes would go into effect in mid-July under the terms of the proposed settlement.

NAR considered a range of legal options throughout the litigation process, including reaching a settlement or continuing to appeal the Sitzer-Burnett verdict and litigate the related copycat cases. The latter could have forced the association to file for Chapter 11 bankruptcy protection, leaving members, associations, MLSs and brokerages exposed.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2105 Chambers St, Eugene, OR 

Price: $495,000    Beds: 3    Baths: 2    Sq Ft: 1360

Welcome to this amazing mid-century modern home that has been meticulously updated throughout. Conveniently located just a short distance to restaurants, shopping, park space and highly sought after schools. Updates include a new membrane roof & R-1...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

At the beginning of this year, national financial experts were mostly in agreement that the Fed would go through a series of interest rates drops in 2024. They thought that with inflation numbers predicted to decline, the Fed would need to do this to get the economy back on track. So far, the Fed has failed to drop rates and has even made it look as if a rate decline program is not in the picture any time soon. Recent unfavorable inflation rates could be putting a stranglehold on Fed rates declining any time soon. With that reality, mortgage interest rates remain around the 7% mark. This is a lower level than a year ago, but this rate remains higher than what many home buyers feel they want to deal with. Many would-be buyers are sitting and waiting for mortgage interest rates to drop, but is that the best route? The following article from "US News" talks about the best direction for home buyers to take.

It's been two years since the Federal Reserve first began its tightening cycle with a series of rate hikes, effectively ending the pandemic-era housing boom. Since then, mortgage rates rose past 5%, 6% and 7% as home prices stayed stubbornly high – a combination that brought housing affordability to its lowest levels in decades. 

The spring 2024 home-shopping season is upon us, and it brings with it a sense of deja vu: Just like in 2023, two-thirds of respondents who plan on buying a home in 2024 are waiting for rates to fall first, according to the second annual Homebuyer Sentiment Survey from U.S. News.

Between Feb. 28 and March 4, U.S. News ran a nationwide survey of 1,200 Americans who are planning to buy a home in 2024 using a mortgage. We asked respondents a series of questions to find out how the mortgage rate environment has impacted their homebuying plans. Here's what we found:

• Two-thirds of homebuyers (67%) are waiting for mortgage rates to drop before buying a home this year. Last year, an equal share of buyers said the same thing – but rates didn't budge. In fact, 67% of this year's buyers put off purchasing a home in 2023 because they were waiting for rates to fall. 
• Among those who are holding out for lower rates, a quarter (26%) want to see them below 5% before buying, which isn't expected to happen in 2024 or even 2025. About half (49%) are willing to wait for more than six months for rates to come down. 
• Three-quarters of current buyers (76%) plan on refinancing to a lower mortgage rate in the future. Additionally, more than a third (36%) are considering borrowing an adjustable-rate mortgage in order to get a lower rate. Both of these strategies come with risks: Those who "buy now, refi later" could be stuck with unaffordable monthly payments while they wait for rates to fall, and those who choose an ARM may be on the hook for higher payments in the future. 
• The vast majority of homebuyers (91%) are at least "somewhat" stressed about buying a home this year, with a quarter (25%) saying they're "extremely" stressed about it. Just a quarter of buyers (26%) say there's enough for-sale housing inventory within their budget in the market where they're buying a home. 
• Over half of 2024 home shoppers (52%) are planning on buying new construction, including 55% of first-time buyers and 45% of repeat buyers. Among them, 61% say they will use their builder's preferred lender, which often comes with added incentives like mortgage-rate buydowns and closing-cost credits.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

320 Mountaingate Dr, Springfield, OR 

Price: $114,500    Acres: 0.23

Rare lot availability in the Mountaingate Community. Build your dream home here! Gorgeous mountain and valley views. Lot provides level driveway to garage opportunity, with potential for daylight basement opportunity in the rear of the lot. Nearby p...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

February of this year saw closed home sales and pending sales tick upwards in the Eugene and Springfield area.  Could this be seasonal, or is it a long-term positive sign for our local Real Estate market? Mortgage interest rates remain just below the 7% mark, which is up from this time last year but about a percentage point below several months ago. The overall economy remains about the same, but inflation continues, but at a slower pace than last year. The hope is that the Fed will lower rates at their next meeting. Slightly lower rates could give our Spring housing market a boost. We remain in a volatile housing market, and it is just tough to determine exactly where it is headed. The inventory of homes remains low, and my advice to anyone thinking of selling a home this year is to not wait. Right now, we seem to have more home buyers than we have home listings in our market. My suggestion would be to take advantage of this. The following are the home sales statistics for Lane County in the month of February 2024.

New Listings

New listings (356) increased 24.9% from the 285 listed in February 2023, and increased 25.8% from the 283 listed in January 2024.

Pending Sales

Pending sales (335) increased 21.8% from the 275 offers accepted in February 2023, and increased 29.8% from the 258 offers accepted in January 2024.

Closed Sales

Closed sales (238) increased 3.5% from the 230 closings in February 2023, and increased 37.6% from the 173 closings in January 2024.

Inventory and Time on Market

Inventory decreased to 2.3 months in February. Total market time increased to 76 days.

Year-to-Date Summary

Comparing the first two months of 2024 to the same period in 2023, new listings (640) increased 7.9%, pending sales (585) increased 3.4%, and closed sales (419) increased 2.2%.

Average and Median Sale Prices

Comparing 2024 to 2023 through February, the average sale price has increased 3.8% from $449,000 to $466,100. In the same comparison, the median sale price has increased 2.4% from $415,000 to $425,000.

Have An Awesome Week!

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

THIS WEEKS HOT HOME LISTING!

2434 E Irwin Way, Eugene, OR 

Price: $365,000    Beds: 3    Baths: 1.5    SqFt: 1056

This single level ranch style home is located on a quiet street near Irwin Park and the Golden Garden Pond. RV parking and an attached 2-car garage with built-in storage. Vinyl windows, newer carpet & vinyl, large fenced yard with a patio...View this property >> 

AND HERE'S YOUR MONDAY MORNING COFFEE!!